Strategic Human Resource Management

Section Two

Determinants of Integration

The strategy and human resource planning linkage is affected
by a number of influences, including environmental factors such
as intense competition, which often requires productivity
enhancements and workforce downsizing; technological
change, which requires different employee skills; and changes
in the composition of the workforce. Less integration is likely in
stable environments. Another influence is level of
diversification, as greater integration occurs in companies with
one dominant core business as opposed to diversified
companies. At the opposite end of the continuum, where an
organization’s divisions are in different core businesses, a
decentralized structure would be likely. Greater integration also
occurs where the top human resource executive has equal
status with the heads of the other functional areas and has
credible line experience. More integration also occurs out of
necessity where there are severe skill shortages. Greater
integration also occurs where compensation systems reward
executives’ performance. Likewise, it occurs where line
managers perceive that human resource planning can help
them implement strategies that will further the goals of the
company.^98 One way in which the benefits of human resource
planning can be demonstrated is provided by the following
practical advice from the Director of Human Resource Planning
and Development at Corning Glass: “Identify the issues that are