Strategic linkage: definitions, frameworks, and organizational applications

Strategic Linkage

Strategic management

Why do you think it is important for HR to be a strategic partner to the business?

In the new, knowledge-based economy, the human resources department of the firm is increasingly important to leverage as a strategic advantage. This can be seen in the actions of corporations such as Google, which offer extensive perks and benefits to employees, after a long vetting process (Benefits, 2012, Google). The philosophy of such organizations is that the companies that can attract the best people can translate this into financial gain. Companies like Apple generate ideas just as much as they generate products, and without knowing how to recruit and above all retain top talent, a company will be left behind.

Retention requires competitive and often unique perks and bonuses, spanning from workout facilities to healthcare benefits and beyond. It also requires a fair system of promotions and pay. There is a need to generate a good atmosphere at the company that is conducive to motivating employees. Whether that atmosphere promotes teamwork (such as at Google, which encourages people to share their ideas and disdains organizational hierarchies) or competition (as at a sales force-driven company) it must be strategically designed to meet the company's goals.

Q2. What benefits do you think the employees derive from this arrangement?

This integration with HR and the strategic goals of the organization fosters a more cooperative connection between managers and employees. In the earlier era of scientific management, employees were viewed as adversaries, and managers strove to extract the maximum amount of work from them. Rules were used to govern employee behavior and ensure they met productivity goals. Employees were viewed as interchangeable tools, rather than valuable assets (Frederick Taylor and scientific management, 2012, Net MBA).

Today, the unique contribution of employees is valued to a greater degree, when human beings are seen as 'resources.' Companies make major investments in their employees. Because of the expense of training skilled employees, they wish to keep employees happy and satisfied with fair pay, decent benefits and humane treatment. For highly skilled and prized employees, benefits may even include tuition reimbursement, which companies strategically deploy to encourage employees to gain higher-level skill sets. Workers benefit from both increased pay and promotion prospects while sharing their knowledge with the company.

Q3. What do you think are the risks involved (to HR and the organization as a whole) if HR does not make this a priority and instead remains a purely task-oriented department mostly administrative in nature?