Question

HRM–Strategy Linkage

A strategy is only as good as its implementation, and the success of strategy implementation often falls on the ability of a company's human resources department to make plans a reality. However, this does not mean that HRM is only relevant at the strategy implementation stage; for many companies, linkages between HRM and strategic management can guide strategy formulation so that the optimal strategy can be created.

The following scenario walks you through a manager's decision-making process as she creates a strategy for determining the extent to which linkages should exist between her company's HRM and strategic management process.

Read the following case and answer the questions that follow.

Sandra is an HR executive for her company and has been put in charge of overseeing a major strategic shift for her organization. This is the third such change in strategic direction in the past five years, and it is "make or break" time for her company. The company CEO believes that the disconnect between strategy formulation and strategy implementation was a major contributing factor to past failures. Specifically, the past two strategic choices did not reflect the actual capabilities and strengths of the people in the organization. Based on lessons learned from past failures, Sandra needs to change the company’s strategic approach.

1.

What should the HRM director's attention be focused on?

Continual contact with strategy formulators

Day-to-day activities

Implementing strategic plans

2.

What role should Sandra play with regard to the company’s senior management team?

The HRM executive should be subordinate to the strategic team.

The HRM executive should focus only on HR issues and leave strategy to others.

The HRM executive should be an integral member of the senior management team.

3.

In what direction should information flow between the HR executive and senior management?

HR should take a receptive role and listen to the strategies formulated by senior management.

There should be no information flow between HR and senior management.

There should be a two-way information flow between HR and senior management.

4.

At what point in the strategic process should the HRM executive become involved?

The HRM executive should only focus on developing high level human resources capable of implementing any strategy that is formulated.

There should be a division of labor: the senior management team formulates the plan and HR implements it.

The HRM executive should be involved in both the formulation and implementation of the strategy.

5.

What should the HRM executive do if she believes that the proposed strategy does not fit the firm’s human resources capabilities?

Implement the strategy she is given

Propose an alternative strategy based on the current or potential human resource capabilities

Accept a new position and let the strategic team take over the human resources function

Answer 1

1. The HRM directors attention should be focused on continual contact with strategy formulators. They should be involved in all steps in a strategy.

2. The HRM executive should be an integral part of the senior management team.  

3. There should be a two way information flow between the hr and senior management. Communication should be two way and clear.

4. The HRM executive should be involved in both the formulation and implementation of all the strategies.

5. Propose an alternative strategy based on the current or potential human resource capability.