Link Between Strategic Management and Leadership

1199 Words Sep 29th, 2012 5 Pages
PROGRAMME TITLE: Human Resource
UNIT NAME: Human Resource

ASSIGNMENT NAME: To achieve goals of the organization there must be vertical link between business strategy and HR strategies and horizontal links among HR strategies
Student Name : Phone Myint Ko

Issue Date : August 12, 2012

Submission Date : August 19, 2012

Abstract The human resource of an organization offered the potential synergy for sustained competitive advantage, when properly deployed, maintained and utilized. From the onset, the traditional HRM, the formal system for managing people in organization, concerned itself essentially with transactional and administrative support services. The emergence of SHRM, concerned with the
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Inyang (2008b) argues for the co-optation of the HR manager to business policy formulation as a business partner, to help drive policy implementation to success and attain competitive advantage. There is research evidence that integration tends to result in enhanced competence, congruence and cost effectiveness (Black & Boal, 1994; Teece, Pisano & Shuen, 1997). There is increasing attention being focused on SHRM discourse about congruence or fit” or integration between HR practice and business strategy (Baird & Meshoulam, 1988; Wright & McMahan, 1992; and Wei, 2006). The underlying assertion in the fit analyses is that the employment of effective HR practices and the design of an HR system compatible with the firm strategy are sine qua non for the successful implementation of the organization’s business strategies (Lengnick-Hall & Lengnick-Hall, 1988). Fit is therefore a fundamental feature of SHRM, which connotes the utilization of human resources to enhance the attainment of organizational goals. According to Wright & McMahan(1992:298), fit means “… the pattern of planned human resource deployment and activities to enable a firm to achieve its goal”. Scholars of SHRM identify two kinds of fit: horizontal fit and vertical fit. Horizontal fit refers to the congruence among various HRM practices (Baird & Meshoulam, 1998), and vertical
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