Table 2.3 A conceptual approach to linking business and HR strategies
(^) developmentMarket^ developmentProduct^ New technology mergers Acquisitions/divestments
Organization
Resourcing
HRD
Performance
management
Reward
Employee
relations
Source: Armstrong M (200) A hand book of strategic HRM, New Delhi, Crest
publishing house pp.87.
Even if the approach cannot be as rigorous as this, the principle of consid-
ering each key area of business strategy and, reciprocally, the HR
implications, provides a possible basis for integration.
An alternative framework for linking business and HR strategies is the
competitive strategy approach. This identifies the different HR strategies that
can relate to the firm's competitive strategies, including those listed by Porter
(1985)^66. An illustration of how this might be expressed is given in Table 2.4.
knowledge of the skills and behaviour necessary to implement the
strategy;
knowledge of the HRM practices necessary to elicit those skills and
behaviours;
the ability to quickly implement the desired system of HRM practices.
The link between HR and competitive strategy is as shown in Table 2.4