ABSTRACT

Recent changes in the European business community have increased the strategic emphasis on the human resources of organizations. This is particularly seen in knowledge-intensive and service-oriented organizations, where business strategy and human resource management (HRM) strategy tend to merge. The immaterial nature of the ‘products’ of knowledge organization necessitates an intensive use of high-level human competence. The HR strategy is no longer merely a passive reflection of and an adjustment to the business strategy. In reverse, the HR strategy can in fact determine the business strategy. This represents a move from ‘business-driven HRM’ to ‘HRM-driven business’.