Human Resource Management Strategy

One enduring trend that has helped promote HR as a critical function in any organizational setting is the degree to which HR most effectively supports organizational strategies designed to create a competitive advantage. In this context business leaders understand that to be sustainable, an organization needs to develop an d embrace a purpose (i.e., mission and set of values) that gives it a unique presence within its industry , and therefore a competitive advantage. That purpose becomes the focus around which all organizational functions operate. Thus, Human Resources will not simply recruit, select, train, compensate, etc. Each decision made in the context of those functions must in one or more ways create greater value related to the purpose.

Let’s take a closer look at the concept of a strategy. Click on the white arrow to review of the concept.

One way to understand strategy is to know it is a destination. In other words, after all resources have been combined as effectively as possible, the organization would expect to find itself in a certain position (i.e., destination) within that industry. The value of the strategy is that it will be calculated to help the organization develop a competitive advantage over its rivals.