Human resource management strategy alignment with business mission and performance outcomes

HRM Strategy and Business Goals:

According to recommendations of the human resource management literature, organizations which sustain a human resource management strategy and practices that are in accordance with business mission usually record high performance. This performance basically includes high performance work practices and increased economic performance. Therefore, human resource executives play a significant role in the creation of competitive advantage within organizations. Human resource management practices are critical for choosing, developing, encouraging and maintaining necessary human capital.

Generally, human resource executives align their strategies and practices with the business objectives through Human Resource Planning (HRP) and Strategic Human Resource Management (SHRM). In addition to being advocated for by practitioners and academics for several years, these practices and procedures positively affect the performance of an organization. HR executives can align business mission with HR strategy and practices through personnel selection tests that designed for the selection of employees with the necessary knowledge, skills and abilities (Huselid, 2002). The process is adopted in consideration of how the corporate and strategic plans of the business entity may transform the nature of a particular job and is viewed as strategic job analysis.

Secondly, these executives can use targeted staff assignments which provide employees with necessary experience and proficiency to implement the strategic plan of the organization. The targeted staff assignments may include performance appraisal systems and compensation policies that focus on the strategic goals of the business. Thirdly, the HR executives can enable these alignments through the strategic business planning process which provides information regarding the existing and future stocks of human capital in the entire organization.

HRM Executives' Development:

Today's business environment has changed drastically with the ongoing elimination of trade barriers and tariffs, subsequent globalization of markets, unpredictability of customer demands and political upheaval. Therefore, the ability of people handle and manage within such business environment is a critical factor to the success of any business. As a result, this new business environment has forced managements of organizations to greatly consider the utilization of their human resources. The role and function of human resource in the 21st Century business environment is very crucial in a firm's strategic planning than ever before. Moreover, HR executives need to support an organization's competitive advantage by assisting in strategic planning and providing high-quality people.

Human resource management executives need to possess certain knowledge, skills and competencies in order to integrate human resource management with organizational goals in the 21st Century business environment. These necessary knowledge, skills and competencies include global operating skills, problem solving skills, business and financial abilities, critical thinking skills and strategic visioning abilities (Rowden, 1999). In addition to this, they also need to possess organizational effectiveness skills, deep human resource knowledge, abilities to effectively use information technology and change management skills.