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Human resource management has been a relative late comer to thearena of strategic management. Consideration of the strategic contributions of human resource management to organisational functioningand performance requires a qualitatively different approach from thataccorded traditional perspectives of personnel management. This articleidentifies the basic features of a strategic approach to human resourcemanagement. The strategic contributions of the human resource functionto organisations are examined at both the corporate and business levels.It is argued that at both levels issues arising from the management ofpeople are central to the formulation and implementation of strategy.Formulation is concerned primarily with the choice of a strategy that alignsthe organisation's resources and competencies with the opportunities andconstraints that characterise its chosen environment. The implications forthe human resource function of this search for alignment are explored.Reasons are advanced as to why workforce issues are now considered morecentral to the formulation of strategy in many organisations.Implementationof a strategy is concerned with identifying and creating tight fittingconfigurations in organisation design and human resource policies andpractices that ensure that the strategy is translated into action. A frameworkis developed to demonstrate how human resource policies and practicescan be aligned to an organisation's strategy, structure, culture and workforce characteristics. Two generic strategies, low cost production and innovating differentiation, are analysed in detail to illustrate the concept ofinternal fit between the personnel function and related aspects of organisation design.
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