Business Strategy and HRD Linkage

Alpander and Botter 1981Lorange and Murphy 1983Jackson and others 1992

1.Reactive Model of HRM – The Strategy Drives HR policy2.Proactive Model – HR planning is involved3.Match Model – Design and implementation of Business strategy and HR strategy

Views and reflections of research findings

1.1981 – Used products life cycle to explain Human Resource Management with a strategic perspective.2.1983 – Describes Human Resource Management strategy as a continuous and developing match between organizational conditions and certain specific aspects of HR.3.1986 – HRD should be explained both as a dependent variable and independent variable of business strategy.4.1984 – Found relationship between business strategy and incentive compensation system.5.1984 – HR policies influence employee behavior. Different employees i.e. categories, required different strategies. Hence HR policies systematically vary with organizational strategies.6.1985, 86, 87 – HRD department plays two-fold roles.

a) Formulating corporate strategyb) Formulating strategy for HRD department. Consistency and suitable linkages

between organizational strategy and HR strategy is vital.

1. 1988, 89 – Performance management system designed by HRD department helps the organization for its overall strategy performance.

2. 1989, 90 – Business strategy would give direction in HR strategies and HR issues.

3. 1991 – Revised management strategies and policies are driven by strategic changes occurring inside the organization.

4. 1994 – It is observed that organizational strategy and HR strategy linkages are stronger in more effective organizations than in ineffective organizations.