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Article
Publication date: 31 August 2010

Describes the benefits of an evidence‐based, metrics‐driven approach to formulating HR strategy.

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1798

Abstract

Purpose

Describes the benefits of an evidence‐based, metrics‐driven approach to formulating HR strategy.

Design/methodology/approach

Details the approach taken to developing the HR strategy at Royal Mail's letters business, which involved: identifying the priorities for the HR strategy based on key business objectives; conducting an analysis of the current state in the organization; developing the HR strategy supported by robust analysis; reviewing the proposed approach against data and with key stakeholders; and finalizing the HR strategy.

Findings

Reveals that the key factors in delivering a successful HR strategy were: identification of the right metrics; engagement with, and facilitation across, stakeholders; adopting a robust, evidence‐based approach; and adopting a business rather than HR focus.

Practical implications

Claims that HR functions need the requisite analyst skills, combining “hard” data analysis relating to financial and operational performance measures and “soft” analysis of data such as employee opinion and assessment results. Argues that understanding the wider business strategy is critical, and that to act as a strategic partner, engagement across stakeholders is vital. Advances the view that the credibility of HR in the business then flows from a reputation for robust analysis.

Social implications

Reveals how HR specialists can improve business performance by playing a more strategic role.

Originality/value

Outlines in practical terms how an HR strategy can be developed that is fundamentally based on the business strategy and uses objective analysis to help to achieve a consensus among key stakeholder groups as the basis for action.

Details

Human Resource Management International Digest, vol. 18 no. 6
Type: Research Article
ISSN: 0967-0734

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Article
Publication date: 30 March 2020

Fiona Edgar

The behavioral framework presents a logic for understanding the relationships between characteristics of the organization and the HRM system. Drawing on this logic to…

Abstract

Purpose

The behavioral framework presents a logic for understanding the relationships between characteristics of the organization and the HRM system. Drawing on this logic to connect the broader management oriented area of strategy with HRM, a micro-level lens is used to examine how competitive strategies and human resource (HR) practice subsystems cohere to influence employees' role behaviors and performance outcomes.

Design/methodology/approach

Online survey data were collected from 301 employees working in the retail trade and hospitality segments of New Zealand's service industry.

Findings

Relationships represented in the behavioral model are supported. Specifically, this study finds identifiable differences between the types of HR practices employed and the competitive strategy followed by an organization. Distinguishable sets of HR practices could also be connected to discernible employee role behaviors, which in turn, were related to strategically-aligned performance outcomes. Some commonality in these relationships were evident however.

Practical implications

HR practitioners need to be cognizant of their organization's competitive strategy and ensure the design and messages sent by their HRM system supports the realization of desirable employee role behaviors that promote organizational success. This alignment is supported with job descriptions that clearly articulate to prospective employees the role behaviors required, along with screening processes that support this assessment.

Originality/value

This descriptive, exploratory study presenting data about the alignment between competitive strategies, HR practices, behavioral and performance outcomes contributes to our understanding of contingency arguments and employees' experiences and reactions to HRM. Moreover, by adopting a particularistic focus, this research is able to highlight the salient role of context in SHRM research.

Details

Personnel Review, vol. 49 no. 9
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 1 May 2009

Abang Ekhsan Abang Othman

The purpose of this paper is to examine the strategic integration of HRM practices with business/corporate strategy in the context of its applications and processes in two…

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6925

Abstract

Purpose

The purpose of this paper is to examine the strategic integration of HRM practices with business/corporate strategy in the context of its applications and processes in two Japanese multinational companies in Malaysia.

Design/methodology/approach

The research used mixed‐methodology via case studies and questionnaire surveys. Overall 29 questionnaires, 15 from Company A and 14 from Company B were returned and analyzed for a response rate of 58 per cent. In addition, 15 respondents were interviewed, including Executive Director, Head of HR and line managers.

Findings

Analysis of questionnaire responses and interview findings shows strategic integration of HRM practices has been adopted by both organizations, though their approaches vary slightly. Importantly, the involvement of HR at board level, direct reporting of HR to the CEOs and the organization's supportive culture symbolize the integrative approach to HRM. Additionally, the findings indicate that although company strategies are in place, other factors such as business credibility of the HR manager and the level of commitment and support from CEOs and line management commitment are important determinants of strategic integration of HRM practices.

Practical implications

The influence of Japanese management practices which has similar characteristics of high performance work system (HPWS) and resource‐based view (RBV) approach that emphasizes participatory decision making and construe employees and HR function not as cost burdens but as sources of competitive advantage are important predictors of higher and effective strategic integration.

Originality/value

The paper provides some insights into approaches to strategic integration of HRM practices in two Japanese multinational companies in Malaysia.

Details

Cross Cultural Management: An International Journal, vol. 16 no. 2
Type: Research Article
ISSN: 1352-7606

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Article
Publication date: 9 August 2013

Kunle Akingbola

The change in the environment of nonprofit organizations (NPOs) has accentuated the need for managers to understand the relationship between strategy, HRM and…

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4784

Abstract

Purpose

The change in the environment of nonprofit organizations (NPOs) has accentuated the need for managers to understand the relationship between strategy, HRM and organizational effectiveness. The purpose of this paper is to examine contingencies that underlie strategy, HRM and the dimensions of fit and flexibility in the actual HRM practices implemented by two study organizations that have deployed HRM in strategic change.

Design/methodology/approach

The research used two case studies of NPOs who reported that they adopted HR practices as an integral component of their adaptive strategy to achieve a fit. Thus, the research adopted purposive sampling to determine the cases that are appropriate to examine the research questions.

Findings

The findings provide evidence of horizontal and vertical fit and flexibility‐focused HRM practices designed to provide strategic alternatives. The research raises questions about how well NPOs’ managers understand contingency drivers of strategy, HRM practices and the direction of HRM in NPOs. A number of factors contributed to promote fit, flexibility and HR practices. First, the emphasis on HRM as a critical priority in strategy by senior management. Second, factor that may have contributed to fit and flexibility dimension is the use of professional managers in the NPOs. The case organizations involved either internal or external consultants with HRM expertise in strategic planning process. Finally, organisational structure that facilitated communication channels within both organizations. Both organizations emphasized internal communications as a way of engaging employees.

Research limitations/implications

The findings set the groundwork for major research which could extend findings from previous empirical research, that strategy of NPOs is aligned with the level of HR practices in some functions such as training and not aligned in others practices such as recruitment.

Practice implications

For nonprofit managers, this research reinforced the importance of senior management commitment and HR expertise to develop and implement HR practices that are aligned with current strategy and the need to develop employees’ skills to facilitate flexibility to adapt to change in the environment. It is imperative for the HR practices of NPOs not only to achieve horizontal and vertical fit, but also to build in flexibility the organization requires to develop, deploy and sustain employee skills and behaviour needed to cope with the competitive environment and to help with the achievement of organisational goals.

Originality/value

The important point of this research is that it extends our understanding of fit and flexibility in NPOs. It provides an example of how two NPOs adopted and emphasized SHRM as a critical component of their strategy.

Details

Employee Relations, vol. 35 no. 5
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 25 April 2008

Gillian Maxwell and Lois Farquharson

The purpose of the paper is to investigate the perceptions of senior managers in companies in the Sunday Times list of UK best employers on the practice of HRM in their…

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8036

Abstract

Purpose

The purpose of the paper is to investigate the perceptions of senior managers in companies in the Sunday Times list of UK best employers on the practice of HRM in their organisations.

Design/methodology/approach

The approach taken was to conduct semi‐structured interviews with senior line and HR directors/ managers.

Findings

In the organisations investigated, HRM is afforded high‐level organisational support at chief executive, if not always senior operational manager, level. It is generally recognised by senior managers as contributing to business effectiveness when it centres on business needs. It is integrated with business strategy processes at both strategic and operational levels. Indeed HRM is elemental to business strategic planning processes, which has the effect of reducing the potential gap between strategic rhetoric on HRM and practical implementation of HRM. Leadership and performance management are current HR policy priorities.

Research limitations/implications

The generative primary data represent senior managers' perceptions of how HRM operates in their organisation therefore cannot be generalised.

Practical implications

Senior manager support of HRM means focusing HRM efforts in organisations on business needs and integration between HRM and business strategy processes. The corollary is that HRM policy priorities are derived from the strategic business direction and that they are perceived to support business operations and, consequently, business performance.

Originality/ value

Senior line managers and HR specialists inform the research which contributes to understanding of current, best practice HRM from an evidence base; a model of contemporary best practice is proposed.

Details

Employee Relations, vol. 30 no. 3
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 1 June 2003

Jennifer Palthe and Ellen Ernst Kossek

Past research suggests that most culture change efforts proceed with limited attention to the pluralistic nature of contemporary organizations. We argue that the…

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9238

Abstract

Past research suggests that most culture change efforts proceed with limited attention to the pluralistic nature of contemporary organizations. We argue that the relationship between organization subcultures and the implementation of new HR strategies into HR practice has not been adequately explored because of the lack of a comprehensive framework for defining and integrating culture change and the strategic HR literature. We review the organization culture and strategic HR literature and present a heuristic that serves as a step toward exemplifying the role of changing employment modes and organizational subcultures in enabling or constraining the implementation of HR strategy.

Details

Journal of Organizational Change Management, vol. 16 no. 3
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 2 March 2015

Dhruba Kumar Gautam

The purpose of this paper is to explore the extent of strategic integration between business strategy and human resource (HR) policies and their impact on organizational…

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1849

Abstract

Purpose

The purpose of this paper is to explore the extent of strategic integration between business strategy and human resource (HR) policies and their impact on organizational performance of public listed companies in Nepal.

Design/methodology/approach

Exploratory cum descriptive research design is followed with structured questionnaire distributed to 105 publicly listed individual organizations as a unit of analysis and secondary source of information used to verify the performance result of perceptual measurement.

Findings

Formulation of explicit mission and business strategies indicate that around half of the organizations are doing business without business strategy and just one-fourth organizations formulate explicit HR strategy in order to support business strategies. Among the respondent organizations, few organizations meet the requirement of high strategic integrating organizations that were performing better than organizations that were low integrating.

Practical implications

This study provides sufficient evidences to Nepalese decision makers and academics that integration of business and HR strategies will have better impact on organizational performance. The result of this study motivates decision makers and academics, particularly South Asian, to understand the importance of investing in HR to raise organizational performance.

Originality/value

Examining strategic integration for organizational performance is perhaps the first study which certainly contributes to the overall assessment HRM and its impact on organizational performance to the developing countries of South Asia, like Nepal and add values to the process of theoretical development as well as HR management.

Details

South Asian Journal of Global Business Research, vol. 4 no. 1
Type: Research Article
ISSN: 2045-4457

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Article
Publication date: 1 June 2004

Azhdar Karami, Farhad Analoui and John Cusworth

The notion, that people management can be a key source of sustained competitive advantage, calls for the integration of Human Resource Management (HRM) and business…

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10716

Abstract

The notion, that people management can be a key source of sustained competitive advantage, calls for the integration of Human Resource Management (HRM) and business strategy. Not surprisingly, the main debate in HRM is nowadays concerned with the relationship between strategic management and employee relations in the firm and therefore strategic HRM focuses on the overall direction of the organisation in pursuit of its stated goals and objectives. This paper explores the above relationship in the electronic manufacturing industry. It is based on empirical evidence and the findings of a survey of senior managers’ perception and views on strategic HRM.It is concluded that increasing core competencies of the firm, in particular HR, is one of the key elements to the success of the firm performance and that HR involvement in the development and implementation of business strategy leads to organisational effectiveness in this industry.

Details

Management Research News, vol. 27 no. 6
Type: Research Article
ISSN: 0140-9174

Keywords

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Article
Publication date: 5 January 2010

Stephen Gates and Pascal Langevin

The purpose of this paper is to report the results of a survey and interviews with human resource (HR) professionals to identify and better understand their perceptions…

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10222

Abstract

Purpose

The purpose of this paper is to report the results of a survey and interviews with human resource (HR) professionals to identify and better understand their perceptions and expectations of human capital measures' (HCM) content, links to strategy, and impact on performance.

Design/methodology/approach

This paper relies on a quantitative analysis of survey questionnaires collected from 104 HR executives, as well as on a qualitative investigation using six interviews. Two types of HCM are derived using principal component analysis. One factor measures employees' work efficiency and cost consciousness (efficiency indicators), whereas the second factor measures employees' entrepreneurial and innovative capabilities (innovation indicators).

Findings

The results confirm the following hypotheses: first, according to HR managers, the more advanced a company is in the development of HCM, the higher the company's performance; and second, in companies following a differentiation strategy, HR managers are interested in innovation indicators, while in those following a cost reduction strategy, HR managers are interested in efficiency indicators.

Research limitations/implications

Results are based on a cross‐sectional study of HR professionals' perceptions. However, it underscores the critical role that HCM plays in delivering performance in the HR managers' opinion. It also shows that HR managers are conscious that HCM should be aligned with strategy.

Practical implications

Based on HR managers' perceptions, the paper suggests that HR professionals might invest more effort in creating and implementing their HCM to deliver higher levels of performance. It also implies that HR managers and management accounting and control systems experts have a common interest to collaborate when implementing HCM.

Originality/value

The paper demonstrates the importance of implementing human capital (HC) metrics into a strategic performance management system to deliver performance from a company's HC. It contributes to a cross‐disciplinary (HRs, management control, and strategy) perspective on HC strategy.

Details

Accounting, Auditing & Accountability Journal, vol. 23 no. 1
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 1 February 2006

Bou‐Wen Lin, Shih‐Chang Hung and Po‐Chien Li

This paper investigates how a firm's human resource capability can affect the deployment and effectiveness of corporate mergers and acquisitions strategy.

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8097

Abstract

Purpose

This paper investigates how a firm's human resource capability can affect the deployment and effectiveness of corporate mergers and acquisitions strategy.

Design/methodology/approach

Mergers and acquisitions (M&A) is treated as a long‐term strategic orientation based on human resource advantage rather than a tactic to pursue short‐term goals. Using a sample of 267 US banking firms, the main and interaction effects of M&A intensity, HR capability, and in‐state propensity on four firm performance measures were examined.

Findings

The findings confirm that banking M&A could be very effective when the firm had high HR capability. Evidence was also found that HR capability had a direct impact on firm performance. Although in‐state M&A strategy was in general superior to out‐of‐state M&A strategy, a firm with excellent HR capability might narrow the performance difference between in‐state and out‐of‐state M&A.

Research limitations/implications

An obvious drawback of using this sample of banking firms is that it raises questions about the generalizability of these findings to smaller financial firms and firms in other industries. This study considers firms having at least one M&A over a three‐year period, so we should not generalize our findings to those firms preferring to use internal growth strategies or greenfield start‐ups.

Practical implications

The main message of this paper is that human resource capability is critical for M&A strategy to be effective.

Originality/value

By extending previous investigations which showed that M&A strategy and HR capacity should be independently treated, this study highlights the critical role of internal HR capability in performance implications of M&A strategy.

Details

International Journal of Manpower, vol. 27 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

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