The success of an organization in today's competitive business environment is related to the core of existence of such organization. Whether large or small scale enterprise, it is expected that every business must have certain guidelines and principles which form the basis for its existence. In this case, we may refer to such principles and guidelines as the mission, vision and values of the organization. Goal settings are very often derived from the vision and mission of an organization and finding ways to achieve these goals can be referred to as strategy development (Pilbeam & Corbridge, 2010: 38-42).
Necessary Conditions for determining business strategy
As stated ...view middle of the document...
Working to include Human Resource (HR) issues within business strategies.
The view of an organization regarding its human resource determines to a large extent the involvement of HR in corporate or business strategies. If an organization views its human resource as a source of competitive advantage for the business, the more likely will it be for HR strategies to be integrated with business strategies. Based on the approaches that attempted to link HR strategy to business strategy and performance, organizations can evaluate the possible problems associated with aligning HR strategies to business strategies and adopt a model for higher organizational performance because in my opinion, if there is no tight-fit between the objectives of individual employees and those of the organization, there cannot be congruence in functions and activities and this may have a long term effect on the performance of the organization.
Analysis of the three models that link business strategy, performance and HR strategy
1. Best Practice Model: this model requires the senior management to champion HR strategies and apply them to organization’s performance. If senior management support HR in the management of human resource, the business strategies and practices will be cascaded easily to lower level employees and this will bring about congruence in functions and activities from top to bottom, the outcome of this process on performance will be positive.
2. Best-Fit Model: this model identifies the internal and external factors of the organization as determinants of HR strategies which will suit the organization. It focuses on the need to align HR strategies with the requirement of business strategies with the assumption the different HR strategies will fit different business strategies Bringing about a link between these internal and external factors ( business strategies) for developing and implementing HR strategies will surely be challenging for HR and management.
3. Resource-Based Model: this model views human resource as a source of competitive advantage for the organization. It focuses on developing human resource to promote sustainable competitive advantage. If employees are seen as a...