Section Two
The evolving wisdom of strategic human resources argues
that the function can make its greatest contributions in the
upper right quadrant. Human resource executives see an
imperative to move their departments toward greater
contributions in this area. Activities in the high strategic
value/relationship quadrant have a more direct impact on the
firm’s ability to successfully implement its competitive strategy.
For example, if the firm has poor relations with its unionized
workers and this produces restrictive work rules and resistance
to more flexible work arrangements, then the firm is likely to
have difficulty implementing a low-cost strategy. Likewise, if
the firm does not have a good executive compensation
program, then it is likely to have more political infighting and
will encounter greater difficulty in getting its executives to
cooperate for the good of the company. Given such conditions,
the firm is unlikely to succeed with a differentiation strategy
requiring superior customer service. Because excellence in
these activities can provide firms with a source of competitive
advantage and some are based on trusting relationships
developed over time, they are unlikely to be outsourced. In
contrast to executives, the firm’s other employees are less likely
to attach as much importance to these activities.
Several planning-related or design activities fall within the
high strategic value/transactional quadrant. These activities
potentially affect the firm’s ability to implement strategies in the