Why Link HR Strategy to the Organizational Strategy?

History

The discipline of strategic management is a relatively new concept first introduced into the American workplace by Army officers returning from World War II. By the 1970s, the application of militarylike strategies to workplace management had become fairly widespread. Today, strategic management is a common catch phrase in the contemporary workplace. The concept has undergone in depth study by various management theorists over the decades and is now a commonly accepted practice.

An organization's human capital is perhaps its most vital asset, and effective HR strategy is vital to the organization's ability to get work done. HR managers must ensure skilled workers are available to meet the needs of the overall organizational strategy. It is essential to link HR strategy to organizational strategy as the HR department typically has the skills necessary to respond to workforce evolution and shifting labor markets. HR policies and procedures also have the potential to drive creativity and innovation, which are essential to the long-term success of the organization.

Strategic management, whether implemented at the organizational or departmental level, typically consists of a few specific steps designed to align day-to-day work activities with the organization's or department's mission. The mission statement is an abstract idea created by leaders at the highest echelons of the organization or department. These abstract ideas are then disseminated throughout the functional and operational levels of the organization or department for implementation. Organizational strategies are commonly disseminated through the HR department, which must then work to align its own strategies with those of the organization as a whole.

HR strategy is typically used to address capability strategies for the overall organization. The HR department is generally tasked with hiring capable employees or training and developing existing employees to meet organizational needs. This is accomplished most effectively when HR strategy is linked to the organizational strategy. Results strategies are commonly used to align the human resource capabilities of the organization with the overall strategy of the organization. It is essential to link HR objectives to organizational strategies to achieve optimum effectiveness.

According to the Society for Human Resource Management's Learning Module Instructor's Manual, "Organization change is inevitable, and ... HR must have the strategic skills to help organizations succeed." Organizations and HR especially are commonly affected by a variety of changes including a constantly evolving work force consisting of several different generations, increasing needs of workers for flexible work schedules, increasing costs of benefits, global competition and outsourcing. The strategic implementation of human resource functions in alignment with overall organizational needs is vital to the future success of the organization.