Human resources and business strategy frameworks or best practices.

Full Answer Section

Aligning Human Resources and Business Strategies

1. Strategic Human Resource Management (SHRM): SHRM involves aligning human resource practices with the overall business strategy to achieve organizational goals. This approach emphasizes the importance of integrating human resources into strategic planning and decision-making.

2. High-Performance Work Systems (HPWS): HPWS focus on creating a work environment that supports employee engagement, motivation, and performance. This approach involves implementing practices such as employee empowerment, performance-based rewards, and training and development programs.

Recommendation for Increasing Diversity

SHRM is a recommended approach for companies seeking to increase diversity. By strategically aligning human resource practices with diversity and inclusion goals, companies can create a more inclusive workplace culture and attract and retain a diverse workforce.

Evidence Supporting SHRM for Diversity:

• Research has shown that diverse teams are more innovative and creative. This is because diverse perspectives can lead to new ideas and problem-solving approaches.
• A diverse workforce can help companies better understand and serve their customers. By having employees from different backgrounds, companies can better relate to and connect with their customers.
• Studies have found that companies with diverse workforces tend to have better financial performance. This is likely due to the benefits of increased innovation, creativity, and customer satisfaction.

By implementing SHRM practices, companies can create a more inclusive workplace culture that values diversity and fosters a sense of belonging among all employees. This, in turn, can lead to increased innovation, improved performance, and a stronger competitive advantage.

Sample Answer

1. Human Capital Theory: This theory posits that human resources are a valuable asset to a company, similar to physical capital. Investing in employee development and training can lead to increased productivity, innovation, and competitive advantage.

2. Resource-Based View (RBV): RBV suggests that a company's competitive advantage is derived from its unique resources and capabilities, including its human capital. By effectively managing and leveraging its human resources, a company can create a sustainable competitive advantage.