With the increased awareness of frugal utilization of Human Resources, the organizations today keep their HR policies knitted in their strategic policies when they develop these policies. HR is no more a back wheel rather a forerunner.

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The links between HR effectiveness and organizational effectiveness could be explored from different conceptual angles. In this particular empirical study, the focus is on the multiple links that exist between certain HR policies and practices (i.e., staffing, compensation, training and the like), the characteristics of the HR Department (i.e., ratio of professionals, average level of education, and others), and the overall economic performance / success of the firm.
Organizations must determine their strategic direction and the outcomes they seek. This is usually accomplished with some form of strategic planning. Classic strategic planning is a formal, top-down, staff-driven process. When done well, it is workable at a time when external change occurs at a more measured pace. plans and strategies are so fundamental that there must be clear plans to address them before the organisation can achieve on any of its goals. These are likely to include:
workforce planning issues succession planning workforce skills plans employment equity plans black economic empowerment initiatives
Suppose HR has a policy to only hire applicants who are college graduates (they are an engineering firm). Management decides to embark on a new strategy of constructing some of the units they have designed. The HR policy would work for the construction manager, but not for the welders, pipefitters, electricians, painters, insulators, etc. that they wold need to complete such projects.