Linking Business Strategy and Human Resource Management: Issues and Implications

Abstract

Abstract Considers the idea of linking decisions on business strategy, product market characteristics and personnel/human resource management policies. Initially explores some theoretical aspects of business strategy‐personnel policy linkages and then considers some empirical evidence from a survey of Irish organizations. While some of personnel literature suggests that organizations should adapt particular "best practice" modes in each personnel area, it is increasingly accepted that optimal personnel policy choice is linked to the unique characteristics of the individual organization. Consequently, argues that organizations need to achieve a fit between personnel policy choice and broader strategic considerations, particularly product market conditions and business strategy. However, the Irish survey evidence considered presents quite a mixed picture. While some organizations appear to be successfully aligning HR policies and business strategy this development does not seem widespread.

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