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A Definite Link Between An Organisation'S Business Strategy And Human Resources Strategy Is Essential For Business Success

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

The world of work as we know it today is changing rapidly from the introduction of new labour laws, globalisation, demographics, an ageing workforce. In the busy and demanding environments in which people work today it's not very often that we can take the opportunity to step back and look at the broader picture and overall direction in which we are heading.

There are many different types of organisations which are set up to serve a number of different purposes and to meet a variety of needs. Organisations come in all different forms, shapes and sizes. Example

* School

* Airports

* Leisure centres

* Hospitals

All though there are many different types of organisations there are at least 3 common factors in any organisation.

It's the interaction of people to achieve objectives which form an organisation. Structure is needed to ensure that peoples interactions and efforts or co-ordinated. This is why HRM management is required so that the activities of the organisation and the efforts of its members are directed and controlled towards achieving objectives.

HRM management is a shared responsibility. There's the line management who have the authority and control over staff in their departments. The top management take an active part in ensuring there are harmonious working relationships among departments.

If the HRM function is to be effective there has to be good team work, and co-operation and consultation between line managers and HR manager.

The range of HRM responsibilities within an organisation is very wide

1. Human Resource Planning

2. Recruitment, Selection and Induction

3. Education, Training and Development

4. Employee relations, employee services, welfare, and health and safety.

Organisations must take in to consideration Where, how, and for whom, in transforming company structures and cultures. As Organisations progress they have realised that a successful business depends on how you implement and design a people strategy which in turn supports, your business strategy.

All organisations have a function to perform. Organisations exist to achieve objectives and to provide satisfaction to their members. Organisations are the structures of people.

For that reason Organisations set out the purpose and general direction they are aiming for through what is called mission statements. For employees to value mission statements it depends on, to which extent it is understood and accepted and then translated into something that is meaningful to them. Therefore an organisations values and objectives is a key part of the process of management, and an essential function of every organisation and the basis for the overall strategy of the business.

To back up the business strategy organisations need to impose a H.R. strategy to provide a structure for both current and future initiatives which will in turn support and will create and maintain an environment in which staff are treated equally and feel that what they are doing is valued within the company. As the main function of the HRM is generally of management and is the core part of the responsibilities of all managers and supervisors.

Therefore to achieve competitive advantage under the different industry conditions a HR strategy could be broken into 3 different but equal strategies-innovation, quality enhancement and cost reduction which all require different employees behaviour patterns these 3 strategies suggest different HRM policies in relation to employee appraisal, rewards and job design etc.

Innovation requires a degree of creative behaviour which includes jobs that require interactions between individuals or groups. Giving employee's long term focus such as performance appraisal will reflect in the long term achievement. Employees will have an interest in the future and the long term result. They will be looking for promotions which will reinforce the development of new skills. If there is nothing there for employees to work for or aim for they will lack the motivation to carry out the day to day job. This in return leads to absenteeism and low morale with in the company.

The Quality of the job leads to predictable behaviours .A low quality working condition leads to the feeling of worthless repetitive work. The higher the quality of work, provides employee's with some degree of employment security.. Employees are concerned with the quantity of output. This can be reduced by making sure that there is extensive and continuous training and development provided to employees. For example "Ryanair encourages cabin crew with offers of high wages, but requires them to pay substantial costs upfront for training, which has led to a decrease in the amount of Irish workers so Ryanair are "recruiting contract labour form agencies as far away as Poland". (Example from Class Notes)

While on the other hand cost reduction requires relatively

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