Does alignment matter? The performance implications of HR roles connected to organizational strategy

Abstract

For the HR function to have a positive impact on performance and thus strategically add value to the organization, it has been suggested to redefine its traditional operational role. However, to gain a deeper understanding of the relationship between these HR roles and performance, their alignment with the organizational strategy should not be ignored. In this paper, we therefore focus not only on whether the operational and strategic HR roles are linked to performance, but also on the extent to which their alignment with the applied organizational strategy actually matters for performance. We carried out a survey study among 336 respondents either holding an HR function or being responsible for HR-related tasks in various organizations. We found a positive effect of the strategic role on performance, and also how it might substitute a lack of innovation strategy. Further, we found an alignment effect between a cost strategy and the operational HR role in relation to organizational performance. We discuss these findings based on the literature and provide some practical recommendations for further developing the role of HR.