Ways in Which HRM Policies Can Support Business Strategies

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The main role of the human resource management (HRM) is to establish actions and policies, which offer a worker competencies and characters the organization requires in order to attain its main or primary objectives. A strategy refers to the plan of an organization on the ways it will combine or run its inner strengths and the limitations with exterior or external chances and menaces so as to sustain a competitive advantage. Strategic management and strategic thinking are the key and most significant actions that any organization conducts. The methods in which these actions are conducted determines the growth, success or failure of an organization. No business will grow and develop by reacting towards all advancements as it happens. Taking specific responsibilities can only lead to incoherent activities, resulting to a business that is susceptible to other business competitors. Hence, every company or organization should implement a planned strategy in the marketplace if it desires to progress and prosper. Therefore, strategy refers to the purpose of the primary long-run objectives and missions of an organization and the acceptance of courses of activities and the distribution of materials or resources that are important for achieving these mission and objectives. The purpose of primary long-run objectives concerns the formulation of consistent and achievable strategic goals. Acceptance of courses of activities means the measures carried out in order to achieve the goals that are laid down by the organization. In addition, distribution of materials or resources means that there is a certain cost that will be associated with the activities needed to attain the goals. In this case, this paper will discuss different ways on how HRM policies can support business strategies.

Currently, it is believed that in the business field, the organization’s human resource is the cause competitive benefit, as long as the actions/practices and policies for handling individuals are incorporated with strategic aims and purpose. Strategic human resource management (SHRM) stresses on the significance of developing congruence between the strategic objectives of the company and the policies of the human resource (Darwish 2009, p.5). Strategic management associates to the organization roles of controlling and managing the strategy of the business. Therefore, such decisions are not supposed to be owned by specific departments within the organization nor by a person’s businesses in a certain team. However, they are communal or shared decisions since there is competition for substantial resources and the distribution of which will importantly impact the productivity of the entire organization.

Problem Statement

HRM has been improved or advanced into SHRM by learners trying to stress the significance of the perception to the efficient performance of a company. Up to today, several writers or academicians belief that SHRM is directly associated with the productivity of a company and there is a preponderous of thoughts that high high-functioning work companies put great interest to acquiring certain HRM policies and bridging these to plans of their companies.

Analysis of Human Resource Management

Human resource management refers to the strategically and consistent approach that is utilized in running properties of an agency including employees working there who independently or cooperatively play a part in the fulfilment of the goals of the organization. In addition, human resource management (HRM) centres on selection, recruitment, supervision and offering instructions to the employees of the organization. Therefore, HRM is the function of the organization, which focuses on matters associated with individuals like reimbursement, recruitment, performance management, growth and development of the agency, welfare, health, remunerations, workers inspiration, communication, supervision and employees’ training. On the other hand, personnel management focuses mostly on recruitment or employing and improving workers in order for the employees to be more important or significant to the institution or organization. Therefore, personnel management involves carrying out job evaluation, organizing personnel requirements and hiring, choosing the appropriate individuals for a certain position, conducting orientation and training, measuring and controlling remunerations, offering incentives and benefits, assessing employees’ performance, solving problems and communicating with the organization’s workers. Therefore, human resource management differs from personnel management in that personnel management basically focuses mainly on the non-managers while HRM focuses on management improvement as a similarly significant matter.

There are factors that have led to the establishment and reputation of HRM. Some of them include; the rising competition in the market place, need to have excellence employees and services, flexible modes of working and an eagerness to adjust to alteration in some circumstances. For instance, the use of HRM in most of the organizations has led to devolution that has assisted in facilitating a better response or reaction towards the market situations, and a greater independence and responsibility for the effective utilization of resources. In addition, there would be a striving to incorporate flexibility into the responsibilities that are carried out by the workers. A great subject that is known by the HRM team is the concept that employees are the most valued assets of an organization. The relationship between the HRM system and the communal planning procedure receives unique and special interest. Therefore, it is anticipated that the policies and actions of the HRM, which form due to the recognition of the human resource requirements of corporate strategy could verify to be useful to managers.

The idea of HRM took administration or management by great surprise in the year 1980s and signified an important transformation or change of direction. The variation requires to be investigated, although the quality and level of the variation remain mostly issues of belief rather than reality, and the similarities are much bigger compared to the variations. Therefore, human resource (HRM) is resource-centered, based mostly on the management requirements for human resources that are supposed to be offered and deployed. In addition, the main interest of the HRM is demand instead of supply. There is larger interest on planning, inspiration and management, rather than arbitration. Problem-solving is conducted by other individuals of the organization of the management on human resource matters rather than solidly with workers. It is entirely acknowledged with organization interests, being a universal management action, and is comparatively far-away from the labor force as a whole. On the other hand, personnel management is mostly interested with work force or labor force hence it is labor-force oriented, unswervingly mostly at the company’s workers; employing and training them, organizing for their payment, describing management anticipations, mitigating management’s procedures, fulfilling workers’ work placed requirements, solving the predicaments of the workers and seeking to change the managements’ activities, which would create an undesirable worker response. For personnel managers, the individuals working in a company are mainly the beginning point and at the same time the organization’s asset.

Use of HRM in the organization

Recently, the method used to approach the management of the organization’s most valued asset, greatly affect the entire performance and productivity of the company. Therefore, for quick growth and development of a company, the best approach to use is the human resource management. Therefore, HRM has been utilized in the ABM industries and as a result, there has been appropriate and adequate recruitment and staffing that has helped the company to sustain productive workers for a long time. This is because HRM is crucial in both the development of the organization’s workers and the company itself. In addition, human resource personnel in the ABM industries has ensured that the present manpower is looked at, though not basically to fulfill the demands but to make sure that the manpower can maintain its excellence and paradigm. In addition, the HR personnel have ensured that though the company is growing, it still sustain their status and reliability, and the managers or leaders of the company have their attention transferred to the commodities and the growth of the company and have the HR unit conduct the organization’s advancement. Another contribution the HR personnel has brought to the company is to ensure that all organization’s employers and employees focuses mostly on the long term objectives, vision and mission of the organization, the advancement of performance standards is significant to recognize probable predicaments, non-performing workers and compliance to responsibilities and standards (Tyson, 1995, pp.1-3).

Similarly, the HR personnel have ensured that any little predicament concerning the employees and their performance is solved quickly in order to eliminate potential inconveniencies and probable predicaments to the organization’s clients and therefore becoming a burden to the organization. In addition, the personnel is in a position to recognize the procedures and the appropriate employees for every activity within the company and as a result, the settings and approach relating to the front line of the organization can be advanced in order to minimize the manpower hours, advance quality, modernize procedures and assess the standards of the organization.

HRM has been utilized appropriately in the ABM industries because workers are the most acknowledged and valued assets of the organization. Since they are the most valued asset they work towards a common objective and interest of profiting the company. Therefore, the elicit dedication; suggestion is mostly formed to affinity. This represents the policies of the HRM, which offer common esteem, common impact, common roles, common rewards and common objectives. In an atmosphere of mutuality or commonness the source of dedication is improved, with the effects of both advanced performance and improvement of individuals.

Every worker in an organization has to contribute personally or corporately to the achievement of the goals of an organization. In order to achieve this, the HRM team need to implement the best strategy or approach. It is clear that a worker performs less or poorly if she or he is not valued and does not know what to do. Therefore, the ABM industries have known this secret and that’s why they value their employees. Failure to have knowledge and skills in a certain field or procedure results to poor or low productivity within a company. Hence the ABM industries’ HRM unit or department has recognized such workers and they offer training to them depending on their job. High productivity in these industries has also resulted from the HRM team recruiting the appropriate candidate. Training of the employees is significant since technology is developing rapidly and in the anticipations of individuals’ requirements has necessitated the unremitting training of labor-force. In this case training means ways utilized by the employer to equip the employees with modern/new and innovative knowledge and skills in order to be more productive. Thus, the ABM industries’ HRM team has tried to train and motivate its employees appropriately. In addition, it has communicated the ethical policies at correctly and solved employees’ predicaments on time. This has made the workers to work more effectively to fulfill the objectives of the company.

Since ABM industries have utilized HRM in the management of their resources, they have been able to prevent some of the problems that occur during management. Some of these problems that they have been able to eliminate include; underperforming of the workers, employing the wrong candidate for a certain position, facing high turnover, failure of the workers doing their best, failure of the company and having untrained employees.

ABM industries have HR managers who help and give advice to the line managers on the functions of selecting, recruiting, employing and reimbursement of employees. On the other hand, the ABM industries’ line mangers offer instructions while staff managers help and give advice to line managers in achieving their objectives.

How HRM is used for strategic benefits

Human resource strategy consists of a primary concept on how individuals are controlled and managed within an organization, and the alteration of such concept into human resources actions and policies. It needs human resources policies and actions in order to be incorporated to form a consistent whole and at the same time this whole be incorporated into the strategy of a company. Several human resource strategies are not only interested in behavior but through character modification to impact the company’s culture. Hence, the main aim is to alter the way activities are carried out within an organization by altering the thinking and values of the workers. Therefore, HRM can be used for strategic benefits or advantage of the company. This is because, for the company to change ways on how activities are conducted in, such functions as training of the employees are important. This is because training will equip the employees with new ideas and knowledge regarding certain processes. Previously, training only focused on the teaching technical skills but currently, training, a HRM function incorporates several practices like technical skills, practical skills and remedial-education training since quality advancement programmes need workers to offer graphical representations like graphs and charts, and evaluate information or data.

Important to organization’s advancement and wealth, is obtaining and maintaining competitive advantage. Though organizations might follow several ways in order to develop, one way that is mostly not identified is maximizing on advanced HRM. Today, several organizations identify the rising significant of the HR, though few are formulating them into strategic approach methods in order to acquire a competitive benefit. As a result, several organizations give up the chance to snatch competitive benefit by HR practice responsibilities (Schuler & Macmillan n.d, p.1).

HRM is used for strategic advantage since when an employee get more knowledgeable, the organization will require applying strategic human resources actions so as to maintain their implicit skill base, either through maintaining the implicit skill or by sustaining the technology employee and hence maintaining an important competitive benefit resource. Therefore, as the quantity of knowledge employees rises in the labor-force, HRM should play an important responsibility in forming and involving the significant technology or knowledge that is needed to maintain a competitive advantage. Technology is significant for the performance of a company and by applying a human resource strategy to advance the technology of the employee, and to maintain the technology or skill, a company can comprehend on ways to form, change and utilize it efficiently to attain a competitive benefit. Hence, technology has evolved as the best strategically essential resource of an organization and is made into the environment or status of the organization (Jayne 2006, pp.3-5).

Summary of the findings

From the above discussion, it is clear that supporting HRM is the concept, which management of HR value most in an organization in order for the organization to achieve its goals and objectives. On the other hand, supporting personnel management shows that individuals are entitled to being respected and valued since they can only be efficient and productive if their personal requirements are well looked at. Therefore, HRM involves the actions and policies that one need to conduct personnel aspects of one’s management work, particularly, choosing, recruiting, training, evaluating, reimbursing and offering ethical, secure and comfortable surroundings to the workers of an organization. These actions and policies include; carrying out job evaluations, preparation of work requirements and employing applicants, choosing job applicants, familiarizing and teaching newly workers, evaluating employees’ performance, sustaining employees’ earnings, offering bonuses and gains, conveying and teaching and advancement.

According to the above discussion, the greatest and most valued asset of an organization is the worker. Therefore, if an organization has to obtain competitive success in the market place, it has to value and motivate its employees since the knowledge and skills of the worker are very significant to the growth and development of an organization. Accordingly, the most understandable effect of the altering foundation of competitive benefit is the rising significance of having a labor-force that has appropriate and enough skills. Thus, improving the skills of the workers is one of the greatest responsibilities of an organization. An organization can only invest in its employees through improvement and retraining when it understands that workers are a great asset and not a liability as many organizations tend to belief, and improvement is the primary thing in advancing competitive benefit.

One thing that can separate a company from its rivals whether it is in public or private segment is its workers. The excellence of the company’s workers, their passion or interest, and their contentment with the work they are doing and the organization as a whole, all have an important influence on the company’s effectiveness or production, degree of client service, reputation and endurance. Human resources are a significant element in all fields of a company. Hence, the main role of the human resource is to make sure successful and proficient utilization of human gifting is maximized in order to achieve the objectives, missions, vision and goals of a company.

Utilizing HRM as a strategic advantage that refers to evaluating what factors are important or significant for a company to develop and be successful is essential for an organization to grow and prosper. Applicable areas to look at consist; organizational plan, primary work procedures, groups, recruiting and employing appropriate workers, advancement strategies, describing competences and functioning assessment, teaching and advancement programs for present job and preparation for future position. In addition, there are the remuneration and acknowledgment settings, inspiration and preservation, workers’ opinion and client opinion of the company and workers. Therefore, in order to devise suitable competitive benefit by the workers’ program for the company, it is important to first evaluate the company’s competitive plan and the practices of the human resources. Therefore, companies ought to form a suitable and complete HRM model and hiring association, and backing up durable thoughts, creating foundation competences and establishing sensing abilities.


In conclusion, HRS was established in order to diagnose compact strategic requirements and organized gift advancement that needed to apply a competitive plan so as to attain functional objectives. Therefore, HRM team is supposed to support the strategies of a business and should be implemented appropriately in order for the organization to achieve its goals and objectives. In addition, the implementation of HRM practices and policies determines the performance and growth of the organization. The success of the HRM practices and policies is dependent on the attainment of a good counterpart between HR strategies and other matters of the company. Similarly, a better comprehending of the responsibilities of the application of the HRS in forming and maintaining the productivity and competitive benefit of a company ought to be attained through additional hypothetical advancement and experimental confirmation.

Reference list

Darwish, K., 2009. Empirical Study on the Telecommunication Sector in Jordan”.

BBS Doctoral Symposium 2009. The Impact of Strategic Human Resource Management Implementation on Firm Performance. Web.

Jayne, R., 2006. Knowledge Worker: Human Resource Strategy to Achieve a Competitive Advantage. Web.

Schuler, S., & Macmillan, C., n.d. Gaining Competitive Advantage through Human Resource Management Practices. Web.

Tyson, S., 1995. Human Resource Strategy, Pitman Publishing London.

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BusinessEssay. "Ways in Which HRM Policies Can Support Business Strategies." December 9, 2022. https://business-essay.com/ways-in-which-hrm-policies-can-support-business-strategies/.