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Critically Evaluate the Evidence Related to Links Between Corporate Strategies and Hrm and Identify Issues Which Organisations Need to Address That Make Such a Link Work Effectively in Aligning Hrm and Corporate Goals

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Critically evaluate the evidence related to links between corporate strategies and HRM and identify issues which organisations need to address that make such a link work effectively in aligning HRM and corporate goals

Over the years, there has been increased recognition and awareness that business needs to match its business strategies according to the human resource functions and practices. The main reason behind this is that economy has changed from manufacturing based to knowledge based economy. Many organizations’ competitive advantage now stems more from their human assets (Bal et al., 2013). This concept of integrating business strategy and human resource management is called strategic human resource management where it gradually became well known in the 1980s (Azmi, 2011) This paper discusses evidences related to links between corporate strategies and human resource management and issues that needs to be identified for the link to work effectively.
According to Liao (2005), “a strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage”. Whereas, strategic human resource management involves creating and applying a set of internally consistent guidelines and practises that safeguard a firm’s human capital, which directly contributes to the achievement of its corporate goals (Baird & Meshoulam, 1988). Bal et al. (2013) describe this approach of linking business concept and HRM practices as “bridging” between business strategy and utilization of its human resources. The main reason for the necessity of this linkage is that rather than HRM strategies being separate priorities, the integration allow employees to be managed more effectively allowing growth of the skill base of an organization (Holbeche, 2004).
The theory of business strategy originates predominantly from

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