Professional in Human Resources (PHR) Practice Exam

What does strategic business management help organizations achieve?

1. Increased compliance with industry regulations

2. Clear frameworks for HR marketing strategies

3. Alignment of HR practices with business objectives

4. Lower staffing costs across the organization

The correct answer is: Alignment of HR practices with business objectives

Strategic business management is essential for ensuring that all aspects of an organization’s operations, including Human Resources (HR), are aligned with its overall business objectives. This approach allows organizations to create a cohesive strategy that supports their mission and drives results. By ensuring that HR practices such as recruitment, training, and performance management are directly linked to the strategic goals of the organization, HR can contribute to enhanced employee performance, improved organizational efficiency, and ultimately, better business outcomes. This alignment not only helps in achieving specific targets but also fosters a culture of collaboration and shared goals across the organization. As a result, HR becomes an integral partner in strategy formulation and execution rather than just a service provider, positioning the organization for greater success in a competitive landscape.