This paper examines the delivery of strategic effect to organizations by effective HRM policy and the contribution to competitive advantage, with a focus on the influence of the internal and external factors on the delivery of HRM policy in the UK during the last 25 years.
HR function in companies is ruled along with the overall strategy of the company, so as to set up the best match between the organization, the employees and its surrounding environment. The latter is known as vertical or horizontal alignment and demands coordination of organizational aims and processes with needs of the staff in an orderly and efficient way. Doing so will guarantee different training, development and learning opportunities for the organizations’ employees. Hence, companies will be more likely to gain competitive advantage and there is a strong tendency that the performance of the organization as well as the relation between the employees and the organization will ameliorate.
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