A Definite Link Between an Organisation's Business Strategy and Human Resources Strategy Is Essential for Business Success

Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.

Explain why the human resource function should be aligned with an organization’s strategic plan (use ideas from the Module One discussion on this topic).

Human resources plays a great part in the functioning of the company and could impact the success

Organisations are social entities that involve individuals and groups to obtain benefits and goals in different ways. The struggle for resources, personal conflicts and a variety of influence tactics used by these social entities assists in obtaining them.

In order to develop a human resource strategy; there must be a linkage of the entire human resource function with the firm’s business strategy in order to improve business strategy execution. The first recommendation

The idea of strategic human resource (management) is a relatively new concept. It first introduced in early 1980’ in a research. The research involved “252 senior personnel executives who represents 168 companies” and questions related to “which human resources activities should be used to developing and implementing [organizational] strategies” are being asked. The result showed more than half of the companies thinking the human resources should be utilized as tool for implementing strategies (Devanna, Fombrun, Tichy, 1982). In late 1980s’, the idea of strategic human resource management is solidified by Michael Beer in his book titled as “ Managing Human Assets”, and he concluded that the

Business environment is facing a rapid change that reminds the business management to focus on its core competencies to survive and sustain in the competitive environment. The core competencies can be developed by strategic human resource management. According to Armstrong (2006) employees are the valued assets for a company. The strategic human resource management is mainly developed in accordance to the fact that human resources need to be managed strategically for the company to enjoy sustainable competitive advantage.

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

Human resources and the services they provide can be seen as the crucial link between staff and the achieving the business goals and objectives.

The Human Resource Function should be aligned with an organizations strategic plan because an organization has a vision of what they want their company to be and in what time frame they would like to achieve it in. By aligning the human resources with the plan they (Human Resources) can make sure that the organization has the right people with the right skills in the right place at the right time. (Snell, 2015) For example Harvey Building Products recruits in their slow season (winter) to have the candidate trained in all aspects of the position before their peak season. An example would be a warehouse person would need to be certified in driving a forklift, learning the scanning system and knowing about as much of the product as they can. For someone being hired in the inside sales office they would need to be fluent in SAP by the peak season, get to know the customers and how they prefer things, as well as know as much about the products as they can. Another example would be that existing employees go to sessions to be updated on new product, colors and software.

There are several important reasons of human resource planning that business organisation carry out regardless their size and it is important for the continuity of any business organisation to plan. However, in many business owners may not include human resource planning at the beginning of their business but later realise the importance of human capital and no business can survive without having competitive human capital.

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

People are the key to business success. However nowadays of business this is often neglected and people are seen to be a necessary expense. A successful business does not just rely on a person’s power instead it involves continuous effective teamwork and communication. Storey (1995) defines that human resource management is an individual approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

One type of organisation is public sector. This sector is owned by the government where people have to pay taxes to the government as it brings opportunities and rewards the community. Governments in different countries have their own way to fund for their public sector. Generally profits is not the purpose of this types of organisations. Some of the examples of public sectors are: education, healthcare, emergency services etc. some public sectors are in linked with private sectors which is known as ‘Public-private partnership’. They work together to provide service to business and communities.

The report uses strategic human resource management approaches to carry out an assessment of the needs of RACQ following a need for better business strategies. This is because; human resource activities that are strategic are coordinated with business strategies (Chew & Intan-Soraya, 2010). The strategy identified that RACQ's new business strategies required the management to improve its commercial approach and interpersonal skills.