A Study of the Alignment of Human ResourceStrategy with Business Strategy

Applying Porter’s typology at business strategy, and Stewart and Brown’s typology at human resource strategy and focusing on vertical alignment, the researchers conducted an investigation on the alignment between human resource management and business management. This is a descriptive and correlational research following aapplied purpose. Research population includes 78 managers and deputy directors at Saipa. 63 questionnaire, out of 78 ones, were filled in by the subjects and were analyzed. The results indicated that business strategy was cost reduction and human resource strategy was loyal soldier. Multiple regression and variance analysis indicated that business was directed towards human resource. Yet, Chi-squared test did not confirm both of the hypotheses. In other words, there was a weak alignment between human resource and business strategies.