Impact of Aligning HR Strategy with the Business Strategy and HR Transformation on Building the Business Sustainable Capabilities

Abstract

Having worked in the field of human resource management (HRM) for over 30 years; all I have ever hoped to do is to offer what I believe to be the best translation to this experience in fruitful and feasible results to transfer and share the knowledge with all HR professionals in the strategic human resources management. In fact, it was one of my strategic challenges to conduct a research on one of the newly emerging approaches in the field of strategic HR management. However, in today’s hypercompetitive environment, it is always an emerging problem that the business tangible capital stock (tangible resources)(physical resources) mainly referred to as money, technology and other physical assets became only threshold success enabler. These tangible capital stocks only enable market penetration but they are not competitive advantage sustainer since they are easily accessed, equally acquired and possessed by all competitors in the industry. Accordingly, all competitors are equally in a competitive parity. Accordingly, this PhD thesis is going to introduce a "nonconventional wisdom" and concrete answers to this research problem. It is our strong argument that the intangible human resources such as HR capital stocks like leadership, cost leadership, talent, customer care and innovation appear to be the new keys to build and reshape the business strategic capabilities, add value to the customers and sustain the business competitive advantage. To test this new nonconventional wisdom, three Companies specialized in food industry in Khartoum North were selected as case study to test the validity of our arguments. Questionnaires were equally distributed to the targeted population. Meanwhile statistical data were collected from the operation records of two responding companies to test the relationship between the selected HR independent variables and the production and the relationship between these selected HR variables. Our research findings showed encouraging results that, strong statistical positive relationship existed between the alignment of the HR strategy and the business strategy and the business performance. Statistical result also showed that positive relationship existed between HR transformations and reshaping of the business strategic capabilities, the distinctive value added to the customers, and the sustained comptetive advantage. Finally, statistical results showed that positive relationship existed between HR selected independent variables that sustained human resources, the sustained production and the sustained competitive advantage. These statistical findings support our new concepts of "sustainable HRM" and the "Green HR". The research sum up with recommendations derived from the research findings also research limitation was shown and recommendations for future researches were taken into consideration. The thesis has been explored in three research Models: the alignment process between the HR and business strategy, the role of intangible capital stock in building the business strategic capabilities and the Sustainable HRM (Green HR). However, these three models simplified the tracing of the each hypothesis and can be taken as rationale for implementation or adaptation in any business that aims at reaching its success through the HR and its intangible deliverables.