Human Resources and Business Strategy

In strategic management it is already accepted that the knowledge which employees possess is the most valuable resource of a company and the key source of competitive advantage. Business strategy demands from human resources to possess relevant knowledge, expertise, experience, skills and enthusiasm, while the credible managerial team, with the clear vision and the ability to motivate their subordinates is the basic arm for implementing a strategy. Strategic management of human resources deals with relevant aspects of human resources management in the process of formulation and implementation of business strategies. Possession of human resources doesn’t necessarily mean their automatic transformation into value. In order to transform human resources into value the existence of a strategy is essential. The essence of a strategy is turning investments into immaterial assets into value. In order to turn investments into human resources into value it is necessary that the human resources “carry” certain human capital.