The Impact of HR Strategy on Organizational Effectiveness

Abstract

Organizational effectiveness is becoming ever more essential, particularly in the more dynamic marketplaces that involve greater competition. Organizational effectiveness promises the continuation of an organization’s competitiveness in a global market. Human resources are crucial to maintain an organization’s presence in the marketplace. These human resources must be managed carefully to achieve an organization’s required performance. To succeed strategically, it is essential to focus on human resources and tailor them to the organization’s strategy. In the past few decades, the field of human resource management has been characterized by continued growth. However, different organizations perceive human resources to have different roles. Some organizations argue that a human resource management strategy is essential in enhancing organizational efficiency. This is because the human resource strategy is seen as influencing decisions made regarding the overall operation of the organization. Conversely, other organizations believe they are already operating efficiently and consider the utilization of a human resource strategy to be a luxury. Such organizations perceive human resource management as inconsistent with the dynamic nature of their operations. This paper aims to describe the role of the human resource strategy in increasing the efficiency of organizations. It will present a set of concepts that have proven successful in doing so.