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The strategy mapping approach can be used as a tool to help clarify and communicate business strategy. It can also be used to identify gaps in the strategy – and these gaps might often be found in the human resource domain. However, cause and effect relation ship can be hard to prove, the context is often dynamic and so the order qualifying and order winning criteria can shift and the mix of intangible asset work in combination to deliver value and not in a singular manner.

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Therefore, an organization’s human resource architecture needs to be conceptualized. A framework for analyzing the different types of human capital required for the organization and the HR systems that generate this human capital is known as the human capital architecture.
This human resource architecture is based on the idea that human capital varies according to two factors:
– The skills are general or specific to the organization.
– The skills must have a strategic value for the organization.
Depending on the importance of these two factors, the human capital of society will be decided.
Architectural mapping of the human capital of an organization
* Jobs requiring general skills and low strategic value for the organization can be outsourced.
* For work requiring skills that are highly unique and yet have low strategic value to the organization, partner relationships are vital.
* Transactional work requiring skills that are not very specific but of great strategic value to the organization will require people employed in the company.
* The knowledge-based work, requiring strong and highly strategic skills for the organization, will also be done by people employed internally.
Based on architectural mapping, the decisions to do the work in or out the organization will be decided and accordingly, HRM strategies to build up the human capital will be worked out which in turn will guide the HR practices to be followed.