Business strategy and HR strategy can be better communicated by understanding the two terms. A business strategy is best described as a competitive moves and action that a business uses in order to attract the appropriate customers, improving performance, and achieve the organizational goals that have been previously established.
It provides an outline on how the businesses should be executed to reach the desired goals of the organization. HR strategy or human resource strategy is a long-term plan that is created to meet the objectives created by the human resource department and human capital management and development in the organization. HR strategy is one of the outputs of the strategic management in the field of human resource management.
Specifically, proper HR strategy is said to have on impact on the business strategy. In today’s world, it has been observed that the human resources department have a more concrete, strategic role in companies, and this reflect that HR strategy affects the bottom line. HR strategy can be a part of complete business strategy which says that business strategy and HR strategy play a significant role while devising one and another.
In the real world, the distinction between Business strategy and HR strategy is said to be a very thin line. However, a successful business owner understands the significance of this difference and understands that there is a strong connection between the two. Human Executive leadership teams confers with human resources experts which is included in the human resource strategy and this aids in improvising the complementary goals for human resource and the whole business. As you can see, this is what is aimed to be achieved through business strategy and human resource strategy.
The recruitment and selection process carried out the human resource department amounts to ensuring that a productive workforce is created. Ensuring the maintenance of workforce that facilitates high levels of job satisfaction and job security converts into a workforce assisting in achieving the business goals.
Currently, it can be stated that HR technologies have become an integrated engine in terms of advancing the broader requirements of the business, supporting more than just the basic transactions, and advancing the HR and business agenda for the purpose of a better future. The progress of the performance management, recruitment, and selection includes Human Resources Information System (HRIS) as an integral part of such progress. HRIS also plays a significant role in the rejection of candidates, their promotions and postings, etc.
Business strategy and HR strategy rests upon the interaction among executive leadership. IT is said that one of the best ways to cultivate a healthy relationship between HR and C-level executives is by demonstrating the ROI (Return on Investment) in human resource activities and practices. By cultivating such a healthy relationship, the HR strategy will complement the business strategy to work towards achieving the business goals.
Thereby, this helps us understand business strategy and HR strategy as the integration of HR strategy with business strategy, business productivity, and their interdependencies and the way their relationship influences the organization.