To be effective, HR strategy must underpin the business/service priorities of the organisation. It is about understanding the organisational culture and ensuring that the strategy sets out the overarching approach to HR policies, procedures and advice which should be designed to support the desired direction of the organisation. It must ensure that the structure and management of the workforce is aligned with the achievement of the business/service goals. It is key to setting out how  recruitment, the shape of the hierarchy, working patterns, development, particularly leadership development, performance management and pay, reward and recognition are fit for purpose.

If the HR strategy is not aligned to the values and priorities of the organisation then the organisation will not perform at the optimum level.