Human Resources and Organizational Strategy IntroductionOrganizational success or failure depends on a myriad of variables that can be difficult to measure and interpret. Success or failure may simply be due to luck and timing or an orchestrated, deliberate effort. Because new technologies allow organizations to quickly measure and evaluate their internal and external environmental factors, more efficient strategies can be quickly implemented. The focus of this literature review is specifically on one of these mentioned variables. The document will detail the relationship that human resources (HR) practices have to an organization's strategic goals and vision. Human resources is defined by the Society for Human Resource Management as "The function that deals with the management of the people employed within the organization". (SHRM, 2011). The primary functions of administration, development and management. Administrative functions include those activities that are often considered “overhead,” such as managing benefits and payroll. Development, or HRD, is defined by Swanson (2001) as “Human resource development is a process of developing and/or releasing skills through organization development (OD) and the training and development of personnel for the purpose to improve performance (as cited by Hassan, 2007, page 2). Finally, management is the strategic function that aligns human resources tasks within their department and with overall organizational strategies. This paper will attempt to provide a broad overview from the available literature in three areas. First, the paper will explore the historical relationships between human resources and organizational strategy. Secondly, the document will provide an overview of current practices and trends. Finally,… halfway through the paper… a partnership approach is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state that “the more management believes that HRM contributes to business success, the more its role will be integrated into the company's strategic planning process”. (as cited by Rose & Kumar, 2006, p. 3). Furthermore, organizations that apply energy and resources to human resources benefit from an increase in human capital. López-Cabrales, Real & Valle (2011) state the advantages of building human capital as: "If the company adopts adequate personnel management procedures, human capital can be oriented towards achieving sustainable competitive advantages" (p. 5 ). In conclusion, it is recommended that additional literature reviews be completed to explore the findings of studies that integrate or add to previously reviewed information.
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