Congruence_Between_Strategy_and_Hrp

Maintain Congruence in Organization: Corporate Strategy Structure and Human Resource Practices Must Be Consistent with Each Other Abstract: This essay investigates that it is very important an organization maintain congruence among corporate strategy, organizational structure and human resource management practices. The need for congruence between corporate strategy, organizational structure and human resource management practices were discussed in this essay. This essay examined the relationships between them. Cases effectively demonstrated the theory. Keywords: corporate strategy, organizational structure and human resource management practices Introduction Strategic human resource management is largely about integration and adaption. Its concern is to ensure that:（1）human resources management is fully integrated with the strategy and strategy needs of the firm;(2) human resources polices cohere both across policy areas and across hierarchies; and(3)human resource practices are adjusted, accepted, and used by line managers and employees as part of their daily work.(Randall S. Schuler, Organizational Dynamics, Summer 1990) It indicated that strategic human resource management including many different aspects such as policies, culture, values, and practices. HR practice is one of SHRM activities. What SHRM dose, it links, it integrates in organizations. Organization must maintain congruence among corporate strategy, organizational structure and human resource management practices for better development. The relationship between corporate strategy and HR practices Human resource practices are one useful way to approach this component of HR strategy is from the framework of roles. Strategy determines the direction in which an organization is going in relation to its environment to achieve sustainable competitive advantage. The chosen strategy is the declaration of intent which is concerned with long term allocation of significant resource.(Armstrong, 1993). The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm's disposal. Managing an organization’s employees as investments mandates the development of an appropriate and integrated approach to managing human resources that is consistent with the organization’s strategy. Horizontal integration is functions integration. And vertical integration is consistent with the organization’s strategy. Back to human resource practices which are categorized as leadership role, managerial role, and operational role. Behaviors associated with a given role should support strategic needs. Matching practices and roles is very important. Once the role behaviors, whether leadership, managerial, or operational, are identified. HR practices are to develop to cue and enhance role performance. If plenty of HR practices are used in enterprises with ignoring organizational strategy, some practices tie role behaviors directly strategic needs. HR activities are essential including job analysis career development, and performance appraisal and HR planning. HR planning links people management to the organization's mission, vision, goals and objectives, and its strategic plan and resources. Human resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. In strategic HRM we emphasize how HRM activity matches the needs of the changing environment. Integrating HRM activity need to be concerned. The key goal of strategic human resource planning is to plan and anticipate what might happen in the various fields of the organization’s internal and external environments and to develop plans to address these events prior to their actually happening. Once corporate and business unit strategies have been established, and then the human resource strategy can get to be developed. The HR strategy involves taking the organization’s strategic goals and objectives and translating them into a consistent, integrated, complementary set of programs and policies for managing employees. It derived from corporate strategies. Strategic human resource planning serves as the key link between the strategy and human resource practices. The relationship between corporate strategy and organizational structure Strategy is to maintain a position of advantage, by capitalizing on the strengths and minimizing the weaknesses of the organization. Corporate strategy is first key level of strategy. And there are three levels to formulate a strategy. It is the course chartered for the total organization that specifies what markets the organization will compete. A business formulates an operating strategy to understand what goes on in its external environment and avoid potentially costly problems. In business, strategy bridges the gap between policy and tactics.  Together, strategy and tactics bridge the gap between ends and means.A business strategy is a plan of action aimed at reaching specific goals and staying in good stead with clients and vendors. Organizational structure is a loose term referring to the way a company thinks about hierarchy, assigns tasks to personnel and ensures its workforce works collaboratively to achieve a common goal. The goal is to avoid task overlap and workforce confusion, especially when it comes to laying a strong foundation for long-term productivity. Corporate managers formulate a strategy to meet various operating goals. Companies design an adequate organizational structure and draw up an effective