Relationship between Business Strategy and HR Strategy

HUMAN RESOURCE
MANAGEMENT
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between BS and HR strategy..................................................................................3
Horizontal and vertical integration..............................................................................................4
Evaluation of performance management and reward system......................................................4
TASK -2...........................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
Human resources management plays an crucial for each and every organisation as its
main responsibilities is to hire, recruit or select and retained highly talented and skilled
employees within firm for achievements of goals. There are several motivational techniques or
performance management strategies that are used by HR manager so that employees are motivate
to give their best for growth of organisation. This report has discussed about relationship
between BS and HR strategy and critically evaluated that nature and theoretical perspective of
employment relationship.
TASK 1
Relationship between BS and HR strategy
Business strategy can be termed as set of actions that are taken by enterprise in order to
attract maximum customers, strengthen its positioning in external environment and earn huge
amount of profitability. Hr strategies are plans that are related to management of employees or
human resources that are directly linked with end goals of organisation (Armstrong, 2019). It can
be evaluated that there is direct link with HR and business strategies which can be illustrated
through different models:
Separation model: It is model which states that there is no relationship between HR strategy
and business that was used 20 years ago.
Fit model: It illustrates that hr manager formulate strategies that contribute in meeting
organisation objectives for examples: manager of Sainsbury have formulated strategies to use
incentive as motivators to enhance performance so that company can attain its objectives.
Dialogue model: Some strategies set by Hr manager may not be feasible or contribute in gaining
actual outcome such as manager have planned to reward and recognise employees that have
work hard for success of organisation (Koster and Benda, 2020). But no one is motivated so after
taking feedback manager get to know that they want incentive or financial increament rather than
recognition.
Holistic model: HR manager pay more emphasis on satisfying needs and requirement of
individuals so that they are happy and satisfied to deliver qualitative services thus company can
easily gain competitive advantages. Therefore, Tesco manager have ensure that employees are
happy and satisfied to work for growth and development of company.
3