Human Resources, HR

The Relationship of HR With Business Strategy

Human resources are an important part of a successful business strategy. Successful business managers realize the importance of well-trained and motivated employees to achieve the company’s financial goals. Successful HR departments realize the importance of keeping employees’ focus on the company’s financial goals while providing opportunities for employee growth and advancement. Employees and management must both realize that a cooperative, not adversarial, relationship is vital to a company’s success.


Business managers are responsible for communicating the company’s objectives, goals and production targets to the employees in ways that makes them feel that they are partners in the process and play a key role in the success of the company’s business strategy. HR managers are responsible for communicating employee concerns and problems to the business managers in ways that allow the managers to address the concerns and solve problems without sacrificing productivity and profits.

Demographics, Social Trends and Technology

Younger workers often have a different perspective on job satisfaction than older, more traditional workers. These changes in demographics and social trends mean that business managers must be willing to adapt to changing social trends in the work environment. HR departments also have a responsibility in educating younger workers and helping them recognize their responsibility in supporting the organization’s business strategy, objectives, budget requirements and operations. As new technologies develop, training, accountability and transparency become increasingly important management skills.

Developing Strategies and Solutions

The HR department and the management team must cooperate in developing an effective program for employee training and development, performance appraisal and employee rewards. Management development is also an important component of this process. Organizational development, employee selection and recruitment and proper manpower planning are key components of management training. When problems arise, the HR department and the business-management team must work together to find solutions that keep employees satisfied and keep the business on track to meet its financial and strategic goals.


Business managers and the HR department must work together to design consequences for employees who do not or cannot perform their jobs satisfactorily. Labor laws, company policies, training procedures, disciplinary steps and good business practices are all factors that must be considered as part of the company’s strategic planning to establish a fair and equitable system that rewards good employees and disciplines unsatisfactory employees. Employees who see the system as inherently unfair or inequitably applied become disgruntled employees. Managers who believe their hands are tied by a system that protects unsatisfactory employees become resentful of the workers. Neither of these attitudes is good for business.