It is important for organizations to understand that when things are all set to go, and they have derived a good strategy to make their business a stand out one, then there is one more thing, which is most important of all, and that is their human resource management. Whatever strategy is planned by an organization with different sales and marketing goals, it cannot be successful with the right people on the job. An organization can have a great idea and strategy to be successful in their relevant market, but if they don’t have a team of people to deliver that strategy with efficacy and efficiency, then it is hard for any organization to achieve success. So, it means that business strategy needs to be aligned with human resource strategy, and then right amount of people with relevant skills and expertise should be given the task to implement the planned business strategy. If human resource of the organization is not aware of their actual business strategic goals, and they don’t have good enough skills, then success is far away from such organizations. A great HR policy aligned with strategic business goals can provide a great strategic effect in the end, which will deliver all the desired results for an organization by gaining competitive advantage (Martin, 2014)

            Earlier, the selection and recruiting of employees was a traditional process with some set standards like choosing people with certain standard characteristics fit for the job. But this is not the case anymore. The strategic effect for an organization cannot be achieved by this traditional approach of HRM, rather HRM has to come up with a policy, which hires people with a strategic aspect that is fit for the organization. The organizations have to seek people, who are fit for their organization as a whole, rather just being fit for one job. It actually means that an organization should come up with a HR policy and process, which goes for strategic selection and recruitment. They will have to select people, which are suitable for their long term strategic goals and can play their part in achieving those goals. It means that objective and thinking of an employee should be aligned with the objective of his/her organization. If employee understand that what goals and objectives his/her company is trying to achieve and works for that common goal, then it is most likely that organization will achieve its strategic fit and get competitive advantages to stay ahead in the competition (Bagga and Srivastava, 2014)

            It is also important to understand that every company can have its own mission and vision to pursue and they plan their strategy accordingly. Some organizations may believe in juts making profits by any means, and some focus on delivering good to the people. For instance, American Express has created a vision for them, which is to “to become the world’s most respected service brand.” It shows that they are focusing on becoming a great service brand, so now they will have to develop a strategy, which is helpful in achieving this vision, and in addition to that they have to select a team of people, who will help in achieving this vision. The mission of a company is also important to develop their actual strategy, like a company may have a mission statement, which asks for providing superior and better product to people, and some may focus their mission on delivering quality and innovation. In every case, the companies have to align their human resource strategy with these strategic business objectives, and recruit people, who can work for the same mission and vision (Storey, 2007)

References of HR Policies helping Organizations to achieve Strategic Effect with Competitive Advantage

Bagga, Teena, and Sanjay Srivastava. 2014. "SHRM: alignment of HR function with business strategy." Strategic HR Review 13 (4/5).

Martin. 2014. How HR Strategy Can Help You Gain a Competitive Advantage. Accessed December 18, 2018. https://www.cleverism.com/hr-strategy-competitive-advantage/.

Storey, John. 2007. Human Resource Management: A Critical Text. illustrated Edition. Cengage Learning EMEA.