HR strategy Linking business strategy and HR strategy The quality of HRs plays a decisive role in the success of small and medium enterprises. It's man who does the production and makes working efficiency that boost the working quality of enterprises. Moreover, "the people recruited" in an enterprise or an organization creates the business culture which can highlight enterprises' positions and make them different from competitors. Unlike other resources such as finance or assets, HR is the significant factor which builds up an enterprise and lead the enterprise development while financial resource is just the means to gain the targets proposed by enterprises. Any enterprises' business strategy has its objectives that are the criteria to evaluate enterprises' working efficiency. Business strategies can be referred in many types and calculated by various factors like objectives of production, marketing and financial coordination. Enterprises mostly do not care about the connection between business strategies and human resource policies or planning and plan implementation. Enterprise managers need to know that HRM is much more difficult than machine operation. On the other hand, human is not like robots; each one has his own advantages and disadvantages, different working competence. With careful selection and good management, human resources in enterprises can be the key of business success. Conversely, it can be the greatest risk. Take a look at the following table to see the reaction between business strategies and human resource policies: 1. Business strategies: Competition based on low cost 1.1 Enterprise's features o Long-term investment o Low cost for distribution channels o Detail reports needed. o Clear assignment of responsibility and accountability o Simple product design 1.2 Human resources policies o Specific description of tasks or duties o Focus on rules and regulations o Careful training o Productivity-based payment o The aim of working efficiency assessment is to control. 2. Business strategies: Competition based on difference (high quality, customer service, ect.) 2.1 Enterprise's features o Reinforce marketing o Design new products o Put priority on research and development o Focus on reputation and quality of products and services o Attract skilled human resources 2.2 Human resources policies o Broad description of tasks and duties o General staff supervision o Outside service for some tasks o Teamwork, not individual work o Staff's competence-based payment o The aim of working efficiency assessment is to develop.
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