An investigation into existence of fit between HR strategy and the business strategy, and the implications for organizational performance : a case of Surface Investment (PVT) LTD in Zimbabwe (January 2010 to December 2012)

Abstract

During the period January 2010 to December 2012, Surface Investments (Pvt) Ltd performed inconsistently and failed to achieve set targets. The company’s set goals and objectives were to attain a target of 600 metric tonnes of crushed seed per day. The study’s overall objective was to investigate the existence of fit between HR strategy and the business strategy and the implications for performance at the company. The study proposed that there was no fit between HR strategy and the business strategy at Surface Investments (Pvt) Ltd in the period covered by the study and that this contributed to the firm’s failure to achieve set production targets of crushed seed. Literature review was undertaken to identify key concepts that underpin SHRM. This study adopted both qualitative and quantitative approaches but was more qualitative. The research used random sampling to choose 50 participants who consisted of 5 managers, 25 middle managers and 20 professionals. Primary data was collected using both interviews and self – administered questionnaires. The following were the major findings of the study; in the year 2010, there was no optimal fit between HR strategy and business strategy and this was caused by a weak recruitment and selection strategy, weak learning and development strategy and a weak industrial relations strategy. However, from mid 2011 to December 2012, because effective human resource planning, succession planning, reward management, performance management, recruitment and selection, training management and implementation of a sound industrial relations management system were now in place, there was an improvement in performance. The researcher recommended that the company improves on its recruitment and selection strategy, learning and development strategy and industrial relations strategy, to ensure that optimal fit between HR strategy and business strategy is achieved. Further research needs to be done in Zimbabwe at industry level to establish the correlation between HR strategy and business strategy focusing on both the vertical and horizontal dimensions. This study was at company level and only focused on the vertical dimension of fit.