The aim of this project is to identify what is meant by HR strategy and what is meant by Business Strategy. After understanding and defining each of these terms this project aims at identifying the relationship between the two, if there is any. Later this project aims at extensively covering an organization which has HR strategy at the core of its business strategy and another organization in which HR strategy is not given its due importance. Then, this project aims at drawing a comparative analysis between the two organizations and infers some outcomes from the same. Further this project aims at studying what impact globalization has on HR strategy vis-à-vis business strategy. Towards the end, this project further aims at studying the impact of integrating law into HR strategy and Business Strategy.
Literature Survey Review
Impact of Globalization on Human Resource Management,Â Bhushan Kapoor
Get your grade
or your money back
using our Essay Writing Service!
Available at: <http://www.jimsjournal.org/6%20Bhushan%20Kapoor.pdf> (Last accessed on September 9, 2012).
The roles and responsibilities of Human Resources departments are transforming as the modern business faces pressures of globalization. The global supply of talent is short of its long-term demand, and the gap is a challenge for employers everywhere. The shortage between the demand and supply of talent is likely to continue to increase, notably for high skilled workers and for the next generation of business executives. Now organizations need to place greater emphasis on attracting human capital rather than financial capital. Global staffing and management of a workforce diverse in culture and language skills and dispersed in different nations are the key goals of global human resources. Only those multinational enterprises willing to adapt their human resource practices to the changing global labor market conditions will be able to attract and retain high performing employees. Companies with the ability to foresee their business needs and their workforce needsÂ -Â especially for high skillsÂ -Â will gain the decisive competitive advantage.Â
Patrick M. Wright, "SHRM Foundations Effective Practice Guideline Series Human Resource Strategy: Adapting to the Age of Globalization"
Available at: <http://www.shrm.org/about/foundation/products/Documents/HR%20Strategy%20EPG-%20Final%20Online.pdf> ( Last accessed on September 9, 2012).
Globalization of individual companies and capital markets over the past two decades has changed the business landscape. Many firms have expanded operations overseas, and even strictly domestic businesses are facing competition from abroad. To respond to global competition, firms are using new technologies to provide better, lower-cost solutions for their customers, but these technological innovations have led to constant movement of customers and competitors. At the same time, global capital markets are pressuring firms to innovate and reduce costs-not an easy feat. All of these trends are pushing companies to manage their assets as effectively as possible-especiallyÂ their human assets.
This report will explore a variety of ways to adapt your overall HR strategy to the new realities of global competition.Â
Oyeyemi Kayode, "Impact of Globalization on Human Resource Management", Science Journal of Business Management.
The pace of globalization is increasing continuously in terms of markets for goods and services, investment and business opportunities within one or more organizations. This transformation caused by globalization affects all the department in an organization in which human resource management is not left out in this transformation crusade as it has obligation to move along with the changing demands of the globalization process. This paper examines the impact of the workforce on Human Resource Management either locally or internationally also it revealed the various factors driving globalization in the workforce and the issues and challenges that confront the Human Resource Management in the global markets, and also the benefits of globalization Human Resource Information System (HRIS) to the Human Resource (HR) department.
Bagley E. Constance, "What's Law Got to Do with It: Integrating Law and Strategy", 47 (4) American Business Law Journal 587-639 (Winter 2010).
This article seeks to integrate theory of law and strategy. Part I summarizes the existing literature on the ability of managers to help shape their political and regulatory environment and to craft institutional arrangements, such as firms and contracts, to privately govern their trading relationships. Part II then makes explicit the enabling aspects of law inherent in Porter's five-force framework, various generic strategies, the value chain, and the resource-based view of the firm. Part III then integrates this prior work into a comprehensive model of law and strategy that embeds legal and other nonmarket factors in mainstream theories of competitive advantage. Part IV addresses the circumstances under which legal astuteness can be a source of sustained competitive advantage.
HR Strategy 
Always on Time
Marked to Standard
"Human resource strategy is designed to develop the skills, attitudes and behaviours among staff that will help the organization meet its goals. Human resource strategy consists of principles for managing the workforce through HR policies and practices. It covers the various areas of human resources functions such as recruitment, compensation, performance management, reward and recognition, employee relations and training."
---- Rowena Odina
HR strategy must be aligned with the organization's vision, mission and goals. In developing an HR strategy, the company must analyse the characteristics of its industry, determine its competitive advantage, and identify key processes and key people. Creating different strategies for all groups of people in the organization may be necessary, depending on their skills, knowledge and responsibilities. The strategy must look at the organization's culture, structure, people and systems.
HR strategy affects what employees feel and do. It manifests in work-productivity outcomes such as customer satisfaction, product quality, errors, accidents, down time and employee retention. These outcomes, in turn, affect company finances. Poor customer service, for example, can reduce company sales. An effective HR strategy benefits the company's bottom line. It improves employee motivation and satisfaction. Employees also benefit by realizing their full potential and developing their own careers.
Large firms often focus on building systematic HR practices that improve employees' motivation and skills. A Cornell University study of small and medium-sized enterprises showed that their HR practices are informal and reflect company values. Their HR strategy tends to focus more on selecting the right employees to do the job, managing their activities and motivating them to stay with the company. Smaller organizations often develop employee loyalty by creating a family-like culture.
The HR department must find ways to attract, select and retain employees in an increasingly competitive market. The globalization of the workforce requires more complex and diverse human resource strategies that will adapt to each country's labor laws, economic structure and staff expectations. The HR professional must play a strategic role in adapting the company to diverse environments while keeping down costs and working with fewer resources. This involves proactively partnering and consulting with line managers.
Senior management often leads in defining the organization's human resource strategy. The HR department plans and translates the strategy through HR policies and practices. This requires reviewing the organization's current practices and analysing critical issues such as high turnover, declining sales or production delays. HR can refer to best practices in successful organizations. For a successful human resource strategy, managers must be active partners with HR and HR staff must facilitate and coordinate the process.
Importance of HR Strategy
The HR Strategy sets the vision of Human Resources and it is extremely important HR decision making tool. When HR has the HR Strategy, it can easily evaluate the activities against the strategy and the GO/NO GO decision can be made quickly and it can be explained to the population. TheÂ HR StrategyÂ is aÂ managerial decision making toolÂ as the HR Strategy sets the way the management should approach to the particular HR project proposals Even when HR Strategy exists, the team will generate more project proposals than expected and the management team has to decide about the priorities of the individual projects as no HR department is able to implement all.
The HR Strategy helps to employees toÂ decide common daily decisionsÂ as they can see, if the request is fully aligned with the HR Strategy and the organization will benefit from such a solution. The HR Strategy sets the vision, but it is fulfilled by many daily small decisions and the strategy helps to set the decision process.
The HR Strategy is important for the communication with the managers about their requests and their proposals to improve HR Services. The HR Team can demonstrate the way the department goes and how Human Resources will deal with the individual request or the individual feedback on provided services.
The HR Strategy helps to build theÂ team spirit of Human ResourcesÂ as it provides the platform for the communication in HR and it provides the basic playground for the discussions about the future of Human Resources. The story of the HR Strategy has to beattractive as it builds a common understanding to the key words in the strategy and the HR employees do interpret them the same way.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
The HR Strategy takes many rounds of discussions to evolve, but the result can be amazing and when the HR Management Team does not allow the HR Strategy story to disappear, the investment returns quickly.
Business Strategy 
A business strategy specifies the way a firm competes in an industry. Business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives. Strategy is management's game plan for strengthening the performance of the enterprise. It states how business should be conduct to achieve the desired goals. Without a strategy management has no roadmap to guide them.
Having a good strategy and executing the strategy well, does not guarantee success. Organisations can face unforeseen circumstances and adverse conditions through no fault of their own.
The strategy needs to be frequently reviewed against prevailing external and internal environment. (SWOT Analysis). A good business strategy should incorporate two key elements: 1) the way the firm competes and 2) the industry in which it competes.
The Way a Firm Competes 
A business strategy should include both objectives to be accomplished or general direction in which the firm is heading along with the actions or events that lead toward that direction.
Objectives are the discrete goals of the strategy-what the company is trying to accomplish. Ideally they are specific (e.g. gain market share) as well as measurable (e.g. three share points).
Actions or events clarify how the firm will achieve the objectives. Actions such as improve new product development process or create partnerships with key distributors are examples of the actions that might be taken. Often there are referred to as strategic initiatives.
Industry-Based Business Strategy
A business strategy should consider questions such as: 'what industry (or industries) are they competing in?', 'how profitable is their industry?', 'what changes are taking place within the industry that might affect them?'
Industries are usually well-defined and the key competitors within an industry are typically known to the players. The commercial airline industry, the soft-drink industry or medical devices industry provide good illustrations.
Akzo Nobel (a Netherland-based Chemical Manufacturer)
The Industry: Paints, Performance Coatings and Specialty Chemicals.
The Way (Objectives): Maintaining momentum and leadership
The Way (Actions): Through accelerated growth (particularly in emerging markets), leveraging our global leadership positions and continuous improvement of profitability through operational excellence.
Edward Jones (a U.S. Based Full Service Financial Services Firm)
The Industry: Financial Services
The Way (Objectives): Grow to 17,000 financial advisers by 2012
The Way (Actions): Offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of one-financial-adviser offices.
Strategic management can depend upon the size of an organization, and the proclivity to change of its business environment.
A global/transnational organization may employ a more structured strategic management model, due to its size, scope of operations, and need to encompass stakeholder views and requirements.
An SME (Small and Medium Enterprise) may employ an entrepreneurial approach. This is due to its comparatively smaller size and scope of operations, as well as possessing fewer resources. An SME's CEO (or general top management) may simply outline a mission, and pursue all activities under that mission.
Mintzberg stated there are prescriptive (what should be) and descriptive (what is) approaches. Prescriptive schools are "one size fits all" approaches that designate "best practice" while descriptive schools describe how strategy is implemented in specific contexts.
No single strategic managerial method dominates, and remains a subjective and context-dependent process.
Relationship between HR Strategy and Business Strategy 
We have come to understand that HR strategy is part of Business Strategy. HR Strategy plays a supportive role along with several others to realise the bigger picture, the complete Business Strategy. McKinsey framed a 7S-Framework  (1) that strongly emphasised the role of a well-planned HR strategy in the success of any enterprise.
The 7S framework is twenty years old. Today, the importance of people to organisational success has, if anything, only multiplied as businesses have become more knowledge- and technology-driven. Hence the need to develop better integration of corporate and business strategy with HR strategy has become paramount.
A very good example of a company that has matched its business strategy to its human resource strategy is the Lincoln Electric Company . A producer of electrodes and welding machinery, Lincoln is also a cost leader. Lincoln's cofounder James F. Lincoln believed that everyone could develop to his or her full potential through a system of incentives designed to encourage both competition and teamwork.
This system has four components: wages for most factory jobs based on piecework output; a year-end bonus that could equal or exceed an individual's regular pay; guaranteed employment and limited benefits. Like Nucor, Lincoln focuses on hiring individually motivated, high performers. These individuals have their compensation tightly linked to their output with laid-down minimum quality levels. A substantial portion of the company's profits is also distributed to employees at the end of the year based on an individual merit rating that is computed from output, ideas and cooperation, dependability and quality. Lincoln's innovative HR strategy enabled it to gain, by 1995, a market share of 36% in the otherwise fragmented US market for welding equipment and supplies. Interestingly though, Lincoln found that applying this same system in ventures acquired outside the United States was not effective. In fact, large -scale expansion through acquisition and a rigid application of the US system to the acquired companies almost resulted in disaster for Lincoln. Thus the choice of a human resource strategy also depends on cultural factors, both at the societal and organizational levels.
STRATEGIC HRM at GOOGLE Inc.
Google is an internet search giant based in Mountain View, California, and has been recognised as the number one "Company to Work and build a career" for in the world for the year 2012  . It is one of the biggest brand names in the world today. It is a brand that is built upon a culture which is high on trust and low on politics. The company is great at sharing resources and wealth. It has made significant contributions to the world of business as well as the world community. Apart from the much publicized remuneration package and plush offices, many more thoughtful set of factors have been appreciated by consulting firms and employees alike on what renders it an attractive organization to seek a long term career.
Goal and Vision
The unique and distinguishing work culture and the concept of employee empowerment philosophy of Google was laid down on the day the company was established in 1998. The HR Department has made deliberate efforts to sync with the business strategy and attracted the best minds across the globe to work for Google. As a result the company's people operations department has been widely recognised as a model company practicing strategic HR.
Strategy surrounding the Business Model
The employees feel a sense of pride and honour in being identified as nerds. In fact the company itself publicizes this aspect at various locations as in its Canada office  this philosophy immensely guides the company's business strategy is demonstrated from the public statements of the organizational leadership like Larry Page. Google offices are not considered as locations where people go to work, but rather as leisure areas for these geeks to retire to when they want to innovate and wrack their grey cells. The employees don't ask for deadlines or project proposal to work on, but rather seek an intrinsic challenge - which drives them by self-benchmarks, peer influence and the innate sense of doing something. Unfortunately over the years, various academics and competitors have sought to downplay and undermine the role of HR in building the company.
The values and principles of Google have served as the operating principles for the Human Resource Department there in a very general and broad manner. It is evident from this guiding force that Google, when formed, was aimed at creating innovative and distinct solutions which would uphold the reputation of the company not by the origins of its employees, attire or behaviour but rather the mass impact and appeal of the products launched in the market.
HR as a Strategic Partner for Google's long term goals
HR department at Google has a unique challenge - it has to ensure that the employees are motivated and enthusiastic and work with utmost integrity and dedication. In essence, the HR department should serve as a facilitator for the employees, and consider employees as its customer  base - treat the employees the same way you would like them to treat their customers, and the whole paradigm of customer satisfaction and delivery becomes easy to adopt and adapt. The business model and strategy of not just attempting, but eventually delivering the most suitable solution has been a hallmark of the work culture and ethic at Google. The workplaces and office locations all over the world are built in expansive central business districts to provide the employees utmost convenience and serenity to come up with innovative ideas.
Recruiting the right people is a key HR objective at Google. Google employees are offered unparalleled opportunities to learn and grow. Professional development opportunities offered to all employees includes formal training on individual and group presentation skills, content design and development, formal writing, executive speaking, giving candid feedback from the immediate leadership. An all pervading culture and practice of innovation and experimentation is encouraged and the employees take 20% of their time to develop new initiatives and products. Google stands out as being one of the most sought after and yet one of the most underpaying  employers in the industry. However, the HR strategy matches perfectly with the business mechanism and vision of Google, wherein employees are attracted not for the short term monetary returns from work, but rather to the support system that could help them fulfil their creative desires.
HR Strategy influencing Business Strategy: An alternate view
The practice of Google provides a 20% off time to employees for their creative and intellectual pursuits is an HR practice that has helped them harvest substantial rewards. However the efficacy and effectiveness of such radical initiatives is controversial and unsubstantiated. In spite of all this the People operations department and the senior executives motivate employees to spare time and effort into such endeavours. The essential idea is that the employees continue to be motivated and dedication to creativity and innovation. One day a week the employees are allowed to pursue their own interests and satisfy their creative desires. The recruitment policy of Google has become a matter of immense interest and analysis where other companies yearn to match up to their standards. Thus Google represents an ideal and contemporary case where the business strategy is complemented by a suitable and targeted Human Resource strategy.
Kingfisher Airlines 
Kingfisher airlines, an Indian based airline group which is owned by Mr. Vijay Mallaya, who is always been associated with luxury, extravagant lifestyle and vibrancy. The parent company, United breweries Group is third largest sprit company in the world. He is also known for owning one of the world's most expensive yachts and a cricket, Formula One team and IPL Royal challengers team. A general perception prevails among stakeholders, such that 'Luxury' and 'Vijay Mallya' are always associated with each other.
Kingfisher airlines (KFA), a brand known for its luxury; glamour and its premium classÂ positioningÂ in the airline industry. KFA acquired Air Deccan which is a LCC (Low cost carrier) and Air Deccan has been renamed Air Deccan as Kingfisher Red.Â But somewhere it has failed to align its HR strategy with the business strategy. Reason could be one or many but their repercussions are same decline in the growth of business.
7.1 HR Practices which Kingfisher Airlines has undermined:-
7.1.1 Work Environment 
Conducive environment makes the employees feel good about being there. Every single employee should be given importance and provided the assurance that gives them the motivation and incentive to stay. In case of kingfisher Airlines, generally there is no such working environment exists perhaps it is more like a virtual.
7.1.2 Open Management 
Employees don't like the feeling of being kept in the dark about what is happening in the company. They feel motivated and develop enthusiasm only when the management opens up to them and discusses the company policies, sales, clients, contracts, goals and objectives. This encourages participative management. Kingfisher Airlines simply bypassed employee's participation in company's decisions. Whether it is a decision about acquiring the debt ridden Deccan Airlines or it is unnecessary buying the aircrafts above the capacity employees were kept out of the discussion. Had it been asked them for ideas on how to improve, it would have got their creative juices flowing.
7.1.3 Adequate and Timely Compensation
Every good performance is appreciated in the form of a pat on the back, bonuses or giving some other compensation for a job well done. Kingfisher, facing severe fund crunch, has not paid salaries to most of its employees, including pilots and engineers, since March 2012. This is not the first time that the pilots have decided to stay away from work over non-payment of salaries. The airline, which is facing severe fund crunch for over a year now, has witnessed labour unrest at regular intervals in the last six months with one section of employees or the other resorting to agitation for release of salaries
7.1.4 Talent Management and Retention
Talent Management can be simply described as the art and science of attracting, developing and retaining talent - the three key deliverables of the HR function. Apparently, Kingfisher Airlines is lacking behind in developing and retaining talent. Reasons are quite obvious, inadequate and untimely salary, lack of personal growth and resolving the problems of the employees. In the past few months over 60 pilots have resigned their jobs which crumpled their operation leading to reduction of flights from 400 to 170 flights per day.
While recognition of talent is highly important, this recognition has to be made public and what better way than holding ceremonies and announcing to the whole world (the employees), the achievements of a fellow employee. There can be nothing better for an employee than the heady feeling from a resounding applause. Instead of rewarding its employees the owner is more inclined towards outer world. He cares more about Kingfisher Calendar, Formula one racing and 20-20 cricket.
Analysis of HR strategy in Google Vs. Kingfisher Airlines
8.1 Analysis of HR strategy in Google:
Google has a rigorous recruitment process through which it recruits best talent for innovation in Google. Hiring the right people is a key HR philosophy at Google.
In Google, HR department is heart of the company which continuously keeps on circulating the right human resources in the right place in the organisation.
Google invests lots of money in training and development, for its employees to nurture them for individual growth as well for organisation growth.
Google keeps its employees motivated and committed to innovation through lavish incentives and respects their ideas and concerns.
In conclusion, HR polices are extensively employee friendly. The employees are given lavish facilities. Belongingness and mutual respect are the key things which make every employee to give his best of best, and come with innovation.
8.2 Analysis of HR strategy in Kingfisher Airlines:
In Kingfisher Airlines, The strategies and decisions are not transparent.
They do not let the employees take part in decision making. Now Kingfisher is lacking behind in retaining its talent and employees.
There is inadequate and untimely salary, lack of personal growth and resolving the problems of the employees. Employees are not satisfied.
Employees are really not committed to the Airlines.As soon as employees find better respect and belongingness, they easily switch over to other jobs i.e. attrition rate is high.
With the analysis of HR strategies in both the companies Google and kingfisher Airlines, it can be inferred that apart from business strategies, HR strategies and policies play important role in the continuous growth and sustainability of business.
Impact of Globalization on Human Resource Strategy
We have seen in previous sections of this report that today, it is becoming increasingly important for organizations to integrate their HR Strategy into their business strategy, and that the HR strategy is gaining more and more prominence when organizations plan their business strategy. Human Resource Management (hereinafter referred to as 'HRM') has been seen as a strategic partner that has input into the formulation of the company's strategy and develops and aligns HRM programs to help implement the strategy.
Due to globalization, Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which organizations are increasingly outsourcing. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways through globalization, and therefore the Human Resources departments are transforming as the modern business faces numerous and complex challenges, and exploits opportunities  . Thus, the HR functions in a department are changing with globalization, and becoming more complex.
The new global world has also widened the talent pool for workers. An organization's talent can be a source for a sustained competitive advantage and can affect important organizational outcomes such as survival, profitability, customer satisfaction level, and employee performance. Human resources need to take advantage of technology and data analytics to build a global human resource information system that collects and stores data from various sources. Companies with the ability to foresee and sustainably manage their workforce needs - especially for high skills - will gain the decisive competitive advantage. Only the multinationals that will be willing to adapt their human resource practices to the changing global labour market conditions will be able to attract, develop and retain the right talent, and will likely succeed in the global competition.
Further, globalization is also resulting in a more diverse workforce. As organizations expand across countries, the workforce is becoming more and more diverse and complex HR policies have to be put into place to handle and harmonize this diversity. It is critical that the businesses not only familiarize with local ways of doing business, and understand the needs of local consumers, but also develop a global mindset among their employees. HR policies are having to consider the impact of different cultures in the workplace, and accordingly carving out new and innovative HR strategies to integrate people from different backgrounds so as to achieve organizational goals. To achieve success in global market place, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources. The key issues involve staffing policies selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative, culture barriers, and legal frame work. Others issues include understanding the challenges of living and working conditions, performance appraisals from a distance, training and management development, compensation packages and labour relations and organized labour laws  .
An example of the importance of integrating the HR strategy into the business strategy can be seen from an analysis of Delta Airlines.
In the 1970s and 1980s, Delta the premier U.S. airlineâ€¨for customer service with a culture of "southern hospitality" and employees who went above and beyond the call of duty. Prior to 1994, Delta's HR strategy was perfectly aligned with its business strategy so that HR practices built employees' skills and motivation to make the business work. But by the 1990s, things were changing. Major business trendsâ€¨altered the competitive climate, and HR strategy had to change too. Accordingly, in 1994, after 2 successive years of losses, the CEO, Ron Allen introduced a new HR strategy whereby training dollars were cut, experienced employees were laid off and replaced with contingent employees, Delta put fewer flight attendants on each flight and fewer mechanics at the gates and pay was frozen or cut for just about all employee groups. In a front-page Wall Street Journal article about the Leadership 7.5 strategy, Delta CEO Ron Allen was quoted as saying, "Employee morale is not what it used to be. So be it." The day after the article came out, Delta employees began wearing "Soâ€¨Be It" buttons indicating their lack of engagement. Delta dropped to the bottom of the industry in on-time performance. The airline also had the highest number of baggage handling and customer complaints. From 1992 to 1993, customer complaints skyrocketed by 253 percent. Then the following year, complaints rose an additional 188 percent. Revenues from 1993 to 1998 rose at a compounded annual growth rate of just over 3 percent, when the industry average was 13 percent. Delta had lost its core customer: the business traveler. Here was an HR strategy that resulted in short-term profitability, but had destroyed the human element that had been Delta's source of competitive advantage. By the early 2000s, Delta's profits had evaporated and it declared bankruptcy. 
Today, the role of modern human resource departments is concentrating on the organization's long-term objectives. Instead of focusing exclusively on internal human resource issues, modern human resource departments must take a balanced and broader approach. The human resource personnel are the champions of globalization, and must help develop global mindset in the employees of an organization. Having a global mindset implies recognition of benefits that can flow to the whole organization. Further, talent planning should be inextricably linked with strategic planning and, as such, regularly addressed by human resource executives. Companies need to develop leaders capable of generating growth and effectively managing a multicultural workforce  .
Integrating Law into HR Strategy and Business Strategy
Prof. Constance E. Bagley argues in his article titled "What's Law got to do with it?: Integrating Law and Strategy"  that it is highly important to include legal considerations while formulating business strategies. Needless to say, this boils down to the need for taking into account legal considerations in HR strategy making as well.
Very different but significant legal issues arise in the course of marshalling human resources. In the same article  in Table 3 certain significant legal considerations are mentioned which need to be taken into account while assembling people together into an organization or for implementing a new business strategy in an already existing organization. These may further be divided into two stages:
At the stage of creating and capturing value (strategy implementation) - issues here include choosing appropriate form of business entity and issue early equity to founders, structure appropriate equity incentives for employees, enter into non - disclosure agreements etc.
At the stage of managing risks - issues here include arbitration and mediation of disputes, compliance with anti-discrimination laws in hiring and firing, institute harassment policy, avoiding wrongful termination by documenting performance issues, cautioning employees on discoverability of e-mails, providing whistle blower protection etc.
In the same article Jeffrey Pfeffer is quoted saying that the firms which promote human sustainability i.e. worker health, well-being by providing vacations, health insurance, sick days etc. certainly outperform benchmark indices  . This highlights the importance of an integrated HR strategy and any integrated HR strategy must take into account legal considerations within its ambit as well.
While business strategy includes marketing strategy into it, non-marketing issues of importance to firms include "environmental protection, health and safety, technology policy, regulation and deregulation, human rights, international trade policy, legislative politics etc.  "
Barney is also quoted in the same article asserting that "firm resources, be they physical capital, human capital, or organizational capital, have the potential of providing sustained competitive advantage if they are valuable, rare, and imperfectly imitable by competitors and have no strategically equivalent substitutes." Further he is quoted as saying: "Under the resource-based view, a firm develops competitive advantage by not only acquiring but also developing, combining, and effectively deploying its physical, human, and organizational resources in ways that add unique value and are difficult for competitors to imitate.'' 
Clearly, once again importance of HR strategy in building competitive advantage is highlighted. Legal integration into HR strategy ensures its wholesomeness and validity as managers must work within the purview of regulatory framework or in the contrary view they may also choose to influence politicians into modifying regulatory framework to suit their strategy. Either way law assumes significance and can't be ignored.
A business strategy specifies the way a firm competes in an industry. Business strategy is a long-term plan of action designed to achieve a particular goal or set of goals or objectives. HR Strategy, on the other hand, is a subset of business strategy. HR strategy is designed to develop the skills, attitudes and behaviors among staff that will help the organization meet its goals. Since it is the people that help an organization achieve its goals, organizations are increasingly realizing the importance of incorporating the HR strategy into strategic decision-making. As a result, strategic human resource management is playing a greater role in the planning and implementation of organizational policies.
HR strategy affects what employees feel and do. It manifests in work-productivity outcomes such as customer satisfaction, product quality, errors, accidents, down time and employee retention. These outcomes, in turn, affect company finances. Poor customer service, for example, can reduce company sales. An effective HR strategy benefits the company's bottom line. It improves employee motivation and satisfaction.
An example of the importance of having an HR strategy which is a key component of business strategy can be seen from the case of Google Inc. Google offices are not considered as locations where people go to work, but rather as leisure areas for these geeks to retire to when they want to innovate and wrack their grey cells. The employees don't ask for deadlines or project proposal to work on, but rather seek an intrinsic challenge which drives them by self-benchmarks, peer influence and the innate sense of doing something. HR department at Google has a unique challenge - it has to ensure that the employees are motivated and enthusiastic and work with utmost integrity and dedication. Recruiting the right people is a key HR objective at Google. Google employees are offered unparalleled opportunities to learn and grow. The HR strategy matches perfectly with the business mechanism and vision of Google, wherein employees are attracted not for the short term monetary returns from work, but rather to the support system that could help them fulfil their creative desires. Thus Google represents an ideal and contemporary case where the business strategy is complemented by a suitable and targeted Human Resource strategy.
This is starkly contrasted with the case of Kingfisher Airlines, which is currently in the doldrums. Kingfisher Airlines has failed to align its HR strategy with the business strategy. Kingfisher Airlines is lacking behind in developing and retaining talent. Kingfisher Airlines simply bypassed employee's participation in company's decisions. Kingfisher, facing a severe cash crunch, has not paid salaries to most of its employees, including pilots and engineers, since March 2012. The result of mistreating its employees and not having a forward-looking HR strategy is apparent from is present dismal performance. If Kingfisher had framed an HR strategy which was dynamic and inclusive, it could have built employee loyalty and commitment towards the organization and used them to pull its way out of its crisis.
A comparison of the HR strategy of Google with that of Kingfisher Airlines reveals that HR polices of Google are extensively employee friendly, those of Kingfisher Airlines are not. At Google, the employees are given lavish facilities, belongingness and mutual respect are the key things that make every employee to give his best of best, and be innovative. On the other hand, employees of Kingfisher Airlines are not really committed to the Airlines. As soon as employees at Kingfisher find better prospects, they easily switch over to other jobs i.e. attrition rate is high.
The analysis of HR strategies in both the companies Google and kingfisher Airlines, it can be inferred that apart from business strategies, HR strategies and policies play important role in the continuous growth and sustainability of business and have a direct bearing on organizational performance.
It is quintessential to include legal considerations while formulating business strategies. Consequently, HR strategy needs take into account legal formulations as well. Significant legal issues arise in the course of marshalling human resources, both at the stage of creating and capturing value, and also at the stage of managing risks. Organizations that promote human sustainability i.e. worker health, well-being by providing vacations, health insurance, sick days etc. certainly outperform benchmark indices. . Legal integration into HR strategy ensures its wholesomeness and validity as managers must work within the purview of regulatory framework or in the contrary view they may also choose to influence politicians into modifying regulatory framework to suit their strategy.
Globalization has had a significant impact on business strategy as well as HR strategy. Due to globalization, Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which organizations are increasingly outsourcing. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways through globalization, and therefore the Human Resources departments are transforming as the modern business faces numerous and complex challenges, and exploits opportunities. In the era of globalization, as organizations are molding their business strategies in the new and complex world, the HR strategies too are changing and adapting to market requirements.
Time and time again, it has been proven that organizations that do not make HR strategy a key element of their business strategy are sure to fall into decline sooner or later. The workforce of today is better educated, better equipped and more aware of its needs, demands and rights. Organizations cannot afford to ignore its most important stakeholder, i.e. its workforce, who helps it achieve its goals, and a lot of organizations are realizing this the hard way. Thus, organizations must develop their business strategies keeping in mind HR strategies to survive and also to gain competitive advantage in the industry.