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It is the purpose of [the HR department] of an organisation to produce profit, not good HRM', Redman and Wilkinson (2001). Analyse and debate this question with regard to the relationship between HR strategy and business strategy.

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It is the purpose of [the HR department] of an organisation to produce profit, not good HRM', Redman and Wilkinson (2001). Analyse and debate this question with regard to the relationship between HR strategy and business strategy. Introduction Organisations are as good as their people. The need to maximise the potential of the organisation and their workforce through intelligent people management and organisational development is a task carried out by the HR department. It is the purpose of an organisation to be successful and to make profit. Along with this it is essential for people to play a role in achieving this objective. The purpose of this subject is to provide an understanding of the relevance of HR strategy that supports the business strategy to the function of [HR department] an organisation. The impact of human resource management (HRM) on organisational performance has emerged as a dominant research issue in the HRM field and is generating great interest for both academics and practitioners (Wright, McCormick, Sherman & McMahan, 1999). Human Resource Management The overall purpose of HRM is to help organisations achieve their objectives which are essentially seen in terms of performance through its people. 'HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities'. ...read more.


A classic indication and reflection to the above can be highlighted by a case study which was conducted on IBM. Here it was emphasised on the number of difficulties associated with the adoption of 'soft' HRM. When business is going well and steady with scope for continued growth, an organisation can afford to manage its people in a humane and considerate way. However, when things get difficult and a business starts to struggle where there is a need for change, in this case profitability becomes the prime consideration. This kind of pressure is put upon by other stakeholders and at this stage managers having little else option turn their efforts on adopting a 'hard' approach. In practice, it can be said that an organisations choice of adopting 'soft' or 'hard' approaches to HRM is much influenced by the changing market situation in order to settle and work around such factors. HR Strategy and Business Strategy The link or relationship between HR strategy is the basic belief of how an organisation sets out its purposes and objectives by being effective. The fit between the two enables HRM to play its part in achieving organisations objectives. Business strategy can be defined as those person(s) who run an organisation that find ways to position their business objectives by the use of manipulating the planning environment and to fully utilise the future use of the capital and human assets. ...read more.


We cannot consider for one instance that an organisation exists not to make a profit (except in the case of charities), which is of course a fundamental reason for its existence in the very nature for what it is meant to achieve - profit. To go on from this and say that its only purpose is to make profit and not to have in place, if not 'good' but at least some practice of HRM is undermining the principals of an effective organisation whose human resources are vital to its overall success - looking from a financial side of things. HRM is seen to utilise the use of people in their management by effective means. Together with the human resource strategies that are integral to the business strategies, and the whole business plan based on them, will see to effect the HR department interlinking their work to that with managers will be crucial to the success of both - profit and good HRM. There needs to be in place desired outcomes from which all concerned can plan and set out what needs to be included in order to gain a competitive advantage. For an organisation to choose particular techniques or policies which will produce the outcome, will depend on the organisations circumstances as a whole, its values and preferred way of working, the culture and style which will result in its achievement of long term goals. ...read more.

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