The Role of Human Resources Management in Strategy Formulation

The Role of Human Resources Management in Strategy Formulation

With the trend of shifts in the business environment, human resource management is at the heart of the organizational development as a result of factors contributed by the changes according to Yau and Jen (2010). Human resource management should come up with processes that would ensure organizational agility in the changing times.

Purpose

This research will be able to explore the need for human resources in relation to the strategic formulation and organizational success.

Available Literature

            In Wang and Niu (2010), the human resource contributes a major role in coming up with processes of ensuring global agility, effectiveness and competitiveness. The human resource management through its four characteristics of being a strategic partner, administrative expert, change agent and employee champion, play a role of importance in a company’s strategic formulation and as a result the corporate performance.

             Human resource management is able to assist in establishing what can deter or enable the success of an organization. Krishna and Singh (2011) explored the link between human resource management and the performance of an organization. In their work, they a three staged model, that include the formulation of business and Human Resource (HR) strategy through one/two-way vertical fit;  the implementation of HRM systems and employee-related interventions; and the evaluation/review of HRM systems for increased efficiency and best vertical and horizontal fit was developed. They conducted an analysis to establish how human resource systems increase efficiency and influence performance of an organization.

            Labedz and Lee (2011) on their part looked into the contribution of human resource management on the strategic table. They examined mental models regarding interrelationship of important elements of human resource inshaping competitive strategy, consensus or systematic variation, and the distinctive contribution at the strategic formulation.

            Kalyani and Sahoo (2011) realized the need for the speedy overall transformation of an organization as a result of the drastic change in the business environment. They explain that any transformation within an organization revolves around people and that human resource is essential in achieving organizational change and building on organizational competitive advantage. They further explain that “human resource strategies and practices play an importantrole in managing the transition smoothly, rapidly and successfully.

            Ghayoomi and Chatri (2012) in their work also explored the importancve of people and leadership in developing strategy of a petroleum company. In their work, they established which role of leadership was crucial for the success of the company. This expounds on the important role human resource plays at different positions of an organization.

Conclusion

With the rapid change in the business environment evident in the 21st Century, it is important for organizations to come up with strategies that will ensure their competency. These strategies result to changes and the changes revolve around people, thus the crucial central role of human resource in the success of an organization. The review of the available literature will help in understanding the contributions the human resource management would make in organizational strategic formulation, competence and success.

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