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3
HR Strategies
Key concepts and terms
High commitment management •
High performance management •
HR strategy •
High involvement management •
Horizontal fi t •
Vertical fi t •
On completing this chapter you should be able to defi ne these
key concepts.
You should also understand:
Learning outcomes
T • he purpose of HR strategy
Specifi c HR strategy areas •
How HR strategy is formulated •
How the vertical integration of •
business and HR strategies is
achieved
How HR strategies can be set out •
General HR strategy areas •
The criteria for a successful HR •
strategy
The fundamental questions on •
the development of HR strategy
How horizontal fi t (bundling) is •
achieved
How HR strategies can be •
implemented
47
48 Human Resource Management
Introduction
As described in Chapter 2, strategic HRM is a mindset that
leads to strategic actions and reac-
tions, either in the form of overall or specifi c HR strategies or
strategic behaviour on the part
of HR professionals. This chapter focuses on HR strategies and
answers the following ques-
tions: What are HR strategies? What are the main types of
overall HR strategies? What are the
main areas in which specifi c HR strategies are developed?
What are the criteria for an effective
HR strategy? How should HR strategies be developed? How
should HR strategies be
implemented?
What are HR strategies?
HR strategies set out what the organization intends to do about
its human resource manage-
ment policies and practices and how they should be integrated
with the business strategy and
each other. They are described by Dyer and Reeves (1995) as
‘internally consistent bundles of
human resource practices’. Richardson and Thompson (1999)
suggest that:
A strategy, whether it is an HR strategy or any other kind of
management strategy must
have two key elements: there must be strategic objectives (ie
things the strategy is sup-
posed to achieve), and there must be a plan of action (ie the
means by which it is pro-
posed that the objectives will be met).
The purpose of HR strategies is to articulate what an
organization intends to do about its
human resource management policies and practices now and in
the longer term, bearing in
mind the dictum of Fombrun et al (1984) that business and
managers should perform well in
the present to succeed in the future. HR strategies aim to meet
both business and human needs
in the organization.
HR strategies may set out intentions and provide a sense of
purpose and direction, but they are
not just long-term plans. As Gratton (2000) commented: ‘There
is no great strategy, only great
execution.’
Because all organizations are different, all HR strategies are
different. There is no such thing as
a standard strategy and research into HR strategy conducted by
Armstrong and Long (1994)
and Armstrong and Baron (2002) revealed many variations.
Some strategies are simply very
general declarations of intent. Others go into much more detail.
But two basic types of HR
strategies can be identifi ed; these are: 1) general strategies
such as high-performance working,
and 2) specifi c strategies relating to the different aspects of
human resource management such
as learning and development and reward.
HR Strategies 49
General HR strategies
General strategies describe the overall system or bundle of
complementary HR practices that
the organization proposes to adopt or puts into effect in order to
improve organizational per-
formance. The three main approaches are summarized below.
1. High-performance management
High-performance management or high-performance working
aims to make an impact on
the performance of the organization in such areas as
productivity, quality, levels of customer
service, growth and profi ts. High-performance management
practices include rigorous recruit-
ment and selection procedures, extensive and relevant training
and management development
activities, incentive pay systems and performance management
processes.
These practices are often called ‘high-performance work
systems’ (HPWS) which, as defi ned
by Appelbaum et al (2000), comprise practices that can
facilitate employee involvement, skill
enhancement and motivation. Thompson and Heron (2005) refer
to them as ‘high-perform-
ance work organization practices’ which, they say, ‘consist of
work practices that invest in the
skills and abilities of employees, design work in ways that
enable employee collaboration in
problem solving and provide incentives to motivate workers to
use their discretionary effort’.
This term is more frequently used than either high-commitment
management or high-involve-
ment management, although there is a degree of overlap
between these approaches and an
HPWS and the terms ‘high performance’ and ‘high commitment’
are sometimes used
interchangeably.
2. High-commitment management
One of the defi ning characteristics of HRM is its emphasis on
the importance of enhancing
mutual commitment (Walton, 1985b). High-commitment
management has been described by
Wood (1996) as: ‘A form of management which is aimed at
eliciting a commitment so that
behaviour is primarily self-regulated rather than controlled by
sanctions and pressures exter-
nal to the individual, and relations within the organization are
based on high levels of trust.’
The following defi nitions expand these statements.
50 Human Resource Management
High commitment management defi ned, Wood (1999)
High-commitment management is generally characterized as
entailing, a) a
particular orientation on the part of employers to their
employees, based on an
underlying conception of them as assets to be developed rather
than as dispos-
able factors of production, and b) the combined use of certain
personnel prac-
tices, such as job redesign, job fl exibility, problem-solving
groups, team working
and minimal status differences.
Approaches to achieving high commitment, Beer et al (1984)
and Walton
(1985b)
The development of career ladders and emphasis on trainability
and •
commitment as highly valued characteristics of employees at all
levels
in the organization.
A high level of functional fl exibility with the abandonment of
poten- •
tially rigid job descriptions.
The reduction of hierarchies and the ending of status
differentials. •
A heavy reliance on team structure for disseminating
information (team •
briefi ng), structuring work (team working) and problem solving
(quality circles).
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Wood and Albanese (1995) added to this list:
job design as something management consciously does in order
to provide jobs that •
have a considerable level of intrinsic satisfaction;
a policy of no compulsory lay-offs or redundancies and
permanent employment guar- •
antees with the possible use of temporary workers to cushion fl
uctuations in the
demand for labour;
new forms of assessment and payment systems and, more specifi
cally, merit pay and •
profi t sharing;
a high involvement of employees in the management of quality.
•
As defi ned above, there are many similarities between high-
performance and high-commit-
ment management. In fact, there is much common ground
between the practices included in
all of these approaches as Sung and Ashton (2005) comment.
HR Strategies 51
Comparison of approaches, Sung and Ashton (2005)
In some cases high performance work practices are called ‘high
commitment
practices’ (Walton, 1985a) or ‘high involvement management’
(Lawler, 1986).
More recently they have been termed ‘high performance
organizations’ (Lawler
et al, 1998) or ‘high-involvement’ work practices (Wood et al,
2001). Whilst
these studies are referring to the same general phenomena the
use of different
‘labels’ has undoubtedly added to the confusion.
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However, a study of the literature shows that the most
frequently used term is ‘high-per-
formance management’, which is why in this book it is given
more detailed consideration in
Chapter 12.
3. High-involvement management
As defi ned by Benson et al (2006): ‘High-involvement work
practices are a specifi c set of
human resource practices that focus on employee decision
making, power, access to informa-
tion, training and incentives.’ The term ‘high involvement’ was
used by Lawler (1986) to
describe management systems based on commitment and
involvement, as opposed to the old
bureaucratic model based on control. The underlying hypothesis
is that employees will increase
their involvement with the company if they are given the
opportunity to control and under-
stand their work. He claimed that high-involvement practices
worked well because they acted
as a synergy and had a multiplicative effect. This approach
involves treating employees as part-
ners in the enterprise whose interests are respected and who
have a voice on matters that
concern them. It is concerned with communication and
involvement. The aim is to create a
climate in which a continuing dialogue between managers and
the members of their teams
takes place in order to defi ne expectations and share
information on the organization’s mission,
values and objectives. This establishes mutual understanding of
what is to be achieved and a
framework for managing and developing people to ensure that it
will be achieved.
The practices included in a high-involvement system have
sometimes expanded beyond this
original concept and included high-performance practices. For
example, as noted above, high-
performance practices usually include relevant training and
incentive pay systems. Sung and
Ashton (2005) include high-involvement practices as one of the
three broad areas of a high-
performance work system (the other two being human resource
practices and reward and
commitment practices).
52 Human Resource Management
Examples of general HR strategies
A local authority
As expressed by the chief executive of this borough council,
their HR strategy is about:
having a very strong focus on the overall effectiveness of the
organization, its direction
and how it’s performing; there is commitment to, and belief in,
and respect for indi-
viduals, and I think that these are very important factors.
A public utility
The only HR strategy you really need is the tangible expression
of values and the imple-
mentation of values… unless you get the human resource values
right you can forget all
the rest. (Managing Director)
A manufacturing company
The HR strategy is to stimulate changes on a broad front aimed
ultimately at achieving
competitive advantage through the efforts of our people. In an
industry of fast followers,
those who learn quickest will be the winners. (HR Director)
A retail stores group
The biggest challenge will be to maintain (our) competitive
advantage and to do that
we need to maintain and continue to attract very high calibre
people. The key differen-
tiator on anything any company does is fundamentally the
people, and I think that
people tend to forget that they are the most important asset.
Money is easy to get hold
of, good people are not. All we do in terms of training and
manpower planning is
directly linked to business improvement. (Managing Director)
Specifi c HR strategies
Specifi c HR strategies set out what the organization intends to
do in areas such as:
Human capital management – obtaining, analysing and reporting
on data that inform •
the direction of value-adding people management, strategic,
investment and opera-
tional decisions.
Corporate social responsibility – a commitment to managing the
business ethically in •
order to make a positive impact on society and the environment.
HR Strategies 53
Organization development – the planning and implementation of
programmes •
designed to enhance the effectiveness with which an
organization functions and
responds to change.
Engagement – the development and implementation of policies
designed to increase •
the level of employees’ engagement with their work and the
organization.
Knowledge management – creating, acquiring, capturing,
sharing and using knowl- •
edge to enhance learning and performance.
Resourcing – attracting and retaining high quality people. •
Talent management – how the organization ensures that it has
the talented people it •
needs to achieve success.
Learning and development – providing an environment in which
employees are encour- •
aged to learn and develop.
Reward – defi ning what the organization wants to do in the
longer term to develop and •
implement reward policies, practices and processes that will
further the achievement of
its business goals and meet the needs of its stakeholders.
Employee relations – defi ning the intentions of the
organization about what needs to •
be done and what needs to be changed in the ways in which the
organization manages
its relationships with employees and their trade unions.
Employee well-being – meeting the needs of employees for a
healthy, safe and support- •
ive work environment.
Criteria for an effective HR strategy
An effective HR strategy is one that works in the sense that it
achieves what it sets out to
achieve. Its particular requirements are set out below.
Criteria for an effective HR strategy
It will satisfy business needs. •
It is founded on detailed analysis and study, not just wishful
thinking. •
It can be turned into actionable programmes that anticipate
implementation •
requirements and problems.
It is coherent and integrated, being composed of components
that fi t with and •
support each other.
54 Human Resource Management
How should HR strategies be formulated?
Propositions about the formulation of HR strategy, Boxall
(1993)
The strategy formation process is complex, and excessively
rationalistic •
models that advocate formalistic linkages between strategic
planning
and HR planning are not particularly helpful to our
understanding of
it.
Business strategy may be an important infl uence on HR
strategy but it •
is only one of several factors.
Implicit (if not explicit) in the mix of factors that infl uence the
shape of •
HR strategies is a set of historical compromises and trade-offs
from
stakeholders.
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Strategic options and choices
The process of formulating HR strategies involves generating
strategic HRM options and then
making appropriate strategic choices. It has been noted by
Cappelli (1999) that: ‘The choice of
practices that an employer pursues is heavily contingent on a
number of factors at the organi-
zational level, including their own business and production
strategies, support of HR policies,
and cooperative labour relations.’ The process of developing
HR strategies involves the adop-
tion of a contingent approach in generating strategic HRM
options and then making appro-
priate strategic choices. There is seldom if ever one right way
forward.
‘Inside-out’ and ‘outside-in’ approaches to formulating HR
strategies
Research conducted by Wright et al (2004) identifi ed two
approaches that can be adopted by
HR to strategy formulation: the inside-out approach and the
outside-in approach. They made
the following observations about the HR-strategy linkage:
It takes account of the needs of line managers and employees
generally as well •
as those of the organization and its other stakeholders. As
Boxall and Purcell
(2003) emphasize: ‘HR planning should aim to meet the needs
of the key stake-
holder groups involved in people management in the fi rm.’
HR Strategies 55
At the extreme, the ‘inside-out’ approach begins with the status
quo HR function (in
terms of skills, processes, technologies, etc) and then attempts
(with varying degrees of
success) to identify linkages to the business (usually through
focusing on ‘people issues’),
making minor adjustments to HR activities along the way… On
the other hand, a few
fi rms have made a paradynamic shift to build their HR
strategies from the starting point
of the business. Within these ‘outside-in’ HR functions, the
starting point is the business,
including the customer, competitor and business issues they
face. The HR strategy then
derives directly from these challenges to create real solutions
and add real value.
They suggested that ‘the most advanced linkage was the
“integrative” linkage in which the
senior HR executive was part of the top management team, and
was able to sit at the table and
contribute during development of the business strategy’.
In reality HR strategies are more likely to fl ow from business
strategies, which will be domi-
nated by product/market and fi nancial considerations. But there
is still room for HR to make
a useful, even essential contribution at the stage when business
strategies are conceived, for
example, by focusing on resource issues. This contribution may
be more signifi cant if strategy
formulation is an emergent or evolutionary process – HR
strategic issues will then be dealt
with as they arise during the course of formulating and
implementing the corporate strategy.
Issues in developing HR strategies
Five fundamental questions that need to be asked in developing
HR strategies have been posed
by Becker and Huselid (1998):
1. What are the fi rm’s strategic objectives?
2. How are these translated into unit objectives?
3. What do unit managers consider are the ‘performance drivers’
of those objectives?
4. How do the skills, motivation and structure of the fi rm’s
workforce infl uence these per-
formance drivers?
5. How does the HR system infl uence the skills, motivation and
structure of the workforce?
But many different routes may be followed when formulating
HR strategies – there is no one
right way. On the basis of their research in 30 well-known
companies, Tyson and Witcher (1994)
commented that: ‘The different approaches to strategy
formation refl ect different ways to manage
change and different ways to bring the people part of the
business into line with business goals.’
In developing HR strategies, process may be as important as
content. Tyson and Witcher (1994)
also noted from their research that: ‘The process of formulating
HR strategy was often as
56 Human Resource Management
important as the content of the strategy ultimately agreed. It
was argued that by working
through strategic issues and highlighting points of tension, new
ideas emerged and a consen-
sus over goals was found.’
There are two key issues to be addressed in developing HR
strategies: achieving vertical fi t or
integration and achieving horizontal fi t or integration
(bundling).
1. Achieving vertical fi t – integrating business and HR
strategies
Wright and Snell (1998) suggest that seeking fi t requires
knowledge of the business strategy,
knowledge of the skills and behaviour necessary to implement
the strategy, knowledge of the
HRM practices necessary to elicit those skills and behaviours,
and the ability quickly to develop
and implement the desired system of HRM practices.
When considering how to integrate business and HR strategies it
should be remembered that
business and HR issues infl uence each other and in turn infl
uence corporate and business unit
strategies. It is also necessary to note that in establishing these
links, account must be taken of
the fact that strategies for change have also to be integrated
with changes in the external and
internal environments. Fit may exist at a point in time but
circumstances will change and fi t
no longer exists. An excessive pursuit of ‘fi t’ with the status
quo will inhibit the fl exibility of
approach that is essential in turbulent conditions.
An illustration of how HR strategies could fi t vertically with
one or other of the competitive
strategies listed by Porter (1985) is given in Table 3.1.
Table 3.1 Achieving vertical fi t between HR and business
strategies
HR strategy Competitive strategy
Achieve competitive
advantage through
innovation
Achieve competitive
advantage through
quality
Achieve competitive
advantage through
cost-leadership
Resourcing Recruit and retain
high quality people
with innovative skills
and a good track
record in innovation
Use sophisticated
selection procedures to
recruit people who are
likely to deliver quality
and high levels of
customer service
Develop core/
periphery employment
structures; recruit
people who are likely
to add value; if
unavoidable, plan and
manage downsizing
humanely
HR Strategies 57
HR strategy Competitive strategy
Achieve competitive
advantage through
innovation
Achieve competitive
advantage through
quality
Achieve competitive
advantage through
cost-leadership
Learning and
development
Develop strategic
capability and provide
encouragement and
facilities for enhancing
innovative skills and
enhancing the intellec-
tual capital of the
organization
Encourage the
development of a
learning organization,
develop and
implement knowledge
management processes,
support total quality
and customer care
initiatives with focused
training
Provide training
designed to improve
productivity;
inaugurate just-in-time
training which is
closely linked to
immediate
business needs and can
generate measurable
improvements in cost-
effectiveness
Reward Provide fi nancial
incentives and rewards
and recognition for
successful innovations
Link rewards to quality
performance and the
achievement of high
standards of customer
service
Review all reward
practices to ensure that
they provide value for
money and do not lead
to unnecessary
expenditure
The factors that can make the achievement of good vertical fi t
diffi cult are:
The business strategy may not be clearly defi ned – it could be
in an emergent or evolu- •
tionary state, which would mean that there would be little or
nothing with which to fi t
the HR strategy.
Even if the business strategy is clear, it may be diffi cult to
determine precisely how HR •
strategies could help in specifi c ways to support the
achievement of particular business
objectives – a good business case can only be made if it can be
demonstrated that there
will be a measurable link between the HR strategy and business
performance in the
area concerned.
Even if there is a link, HR specialists do not always have the
strategic capability to make •
the connection – they need to be able to see the big picture,
understand the business
drivers and appreciate how HR policies and practices can
impact on them.
Table 3.1 continued
58 Human Resource Management
Barriers exist between top management and HR – the former
may not be receptive •
because they don’t believe this is necessary and HR is not
capable of persuading them
that they should listen, or HR lacks access to top management
on strategic issues, or HR
lacks credibility with top management as a function that knows
anything about the
business or should even have anything to do with the business.
It is up to HR practitioners in their strategic role to overcome
these problems by getting to
know what the business is aiming to do and what drives it (this
should be possible even when
strategies are ‘emergent’), understanding just how HR practices
make an impact, and achiev-
ing access to strategic business decision making by
demonstrating their credibility as an inte-
gral part of the management of the business.
2. Achieving horizontal fi t (bundling)
Horizontal fi t or integration is achieved when the various HR
strategies cohere and are mutu-
ally supporting. This can be attained by the process of
‘bundling’, which is carried out by fi rst
identifying appropriate HR practices; second, assessing how the
items in the bundle can be
linked together so that they become mutually reinforcing; and fi
nally drawing up programmes
for the development of these practices, paying particular
attention to the links between them.
The use of high-performance, high-involvement or high-
commitment systems as described
earlier in this chapter is an integrating process. The essence of
these systems is that they each
consist of a set of complementary work practices that are
developed and maintained as a
whole. Other integrating activities or processes are talent
management, performance manage-
ment and the use of competencies.
The factors that inhibit the achievement of horizontal fi t are
diffi culties in:
deciding which bundles are likely to be best; •
actually linking practices together – it is always easier to deal
with one practice at a •
time;
managing the interdependencies between different parts of a
bundle; •
convincing top management and line managers that bundling
will benefi t the organi- •
zation and them.
These can be overcome by dedicated HR professionals, but it is
hard work.
Setting out the strategy
There is no standard model of how an HR strategy should be set
out; it all depends on the cir-
cumstances of the organization. But the typical areas that may
be covered in a written strategy
are set out below.
HR Strategies 59
Typical areas that may be covered in a written HR strategy
Basic considerations – business needs in terms of the key
elements of the busi- •
ness strategy; environmental factors and analysis
(SWOT/PESTLE) and cultural
factors – possible helps or hindrances to implementation.
Content – details of the proposed HR strategy. •
Rationale – the business case for the strategy against the
background of business •
needs and environmental/cultural factors.
Implementation plan – an action programme, defi nitions of
responsibilities •
and resource requirements and arrangements for communication,
consulta-
tion, involvement and training.
Costs and benefi ts analysis – an assessment of the resource
implications of the •
plan (costs, people and facilities) and the benefi ts that will
accrue, for the organ-
ization as a whole, for line managers and for individual
employees. (So far as
possible these benefi ts should be quantifi ed in terms of added
value or return
on investment.)
Implementing HR strategies
All too often, 80 per cent of the time spent on strategic
management is devoted to designing
strategies and only 20 per cent is spent on planning their
implementation. It should be the
other way round. It is necessary to plan with implementation in
mind.
Because strategies tend to be expressed as abstractions, they
must be translated into pro-
grammes with clearly stated objectives and deliverables. It is
necessary to avoid saying, in effect:
‘We need to get from here to there but we don’t care how.’
Getting strategies into action is not
easy. Too often, strategists act like Mr Pecksmith who was
compared by Dickens (1843) to ‘a
direction-post which is always telling the way to a place and
never goes there’.
The term ‘strategic HRM’ has been devalued in some quarters;
sometimes to mean no
more than a few generalized ideas about HR policies, at other
times to describe a short-
term plan, for example, to increase the retention rate of
graduates. It must be emphasized
that HR strategies are not just programmes, policies, or plans
concerning HR issues that
the HR department happens to feel are important. Piecemeal
initiatives do not constitute
strategy.
The problem with strategic HRM as noted by Gratton et al
(1999) is that too often there is a
gap between what the strategy states will be achieved and what
actually happens to it. The
60 Human Resource Management
factors they identifi ed as contributing to creating this say/do
gap between the strategy as
designed and the strategy as implemented include:
the tendency of employees in diverse organizations only to
accept initiatives they per- •
ceive to be relevant to their own areas;
the tendency of long-serving employees to cling to the status
quo; •
complex or ambiguous initiatives may not be understood by
employees or will be per- •
ceived differently by them, especially in large, diverse
organizations;
it is more diffi cult to gain acceptance of non-routine
initiatives; •
employees will be hostile to initiatives if they are believed to be
in confl ict with the •
organization’s identity, eg downsizing in a culture of ‘job-for-
life’;
the initiative is seen as a threat; •
inconsistencies between corporate strategies and values; •
the extent to which senior management is trusted; •
the perceived fairness of the initiative; •
the extent to which existing processes could help to embed the
initiative; •
a bureaucratic culture, which leads to inertia. •
Barriers to the implementation of HR strategies
Each of the factors listed by Gratton et al (1999) can create
barriers to the successful imple-
mentation of HR strategies. Other major barriers include failure
to understand the strategic
needs of the business, inadequate assessment of the
environmental and cultural factors that
affect the content of the strategies, and the development of ill-
conceived and irrelevant initia-
tives, possibly because they are current fads or because there
has been an ill-digested analysis
of best practice that does not fi t the organization’s
requirements. These problems are com-
pounded when insuffi cient attention is paid to practical
implementation problems, the impor-
tant role of line managers in implementing strategies, and the
need to have established
supporting processes for the initiative (eg, performance
management to support performance
pay).
Approaches to implementation
An implementation programme that overcomes these barriers
needs to be based on:
a rigorous preliminary analysis of the strategic needs of the
business and how the strat- •
egy will help to meet them;
HR Strategies 61
a communication programme that spells out what the strategy is,
what it is expected to •
achieve and how it is to be introduced;
the involvement of those who will be concerned with the
strategy, eg line managers, in •
identifying implementation problems and how they should be
dealt with;
the preparation of action plans that indicate who does what and
when; •
project managing the implementation in a way that ensures that
the action plans are •
achieved.
HR strategies – key learning points
Purpose of HR strategy
To articulate what an organization intends
to do about its human resource manage-
ment policies and practices now and in the
longer term.
General HR strategy areas
High-performance management, high-
commitment management and high-
involvement management
Specifi c HR strategy areas
Human capital management, corporate
social responsibility, organization develop-
ment, engagement, knowledge manage-
ment, employee resourcing, talent
management, learning and development,
reward, employee relations, and employee
well-being.
Criteria for an effective HR strategy
satisfi es business needs; •
founded on detailed analysis and •
study;
can be turned into actionable •
programmes;
is coherent and integrated; •
takes account of the needs of line •
managers and employees generally
as well as those of the organization
and its other stakeholders.
Fundamental questions on the
development of HR strategy
What are the fi rm’s strategic objec- •
tives and how are these translated
into unit objectives?
What are the ‘performance drivers’ •
of those objectives and how do the
skills, motivation and structure of
the fi rm’s workforce infl uence these
performance drivers?
How does the HR system infl uence •
the skills, motivation and structure
of the workforce?
How the vertical integration of
business and HR strategies is
achieved
Understand what the business is aiming to
do and what drives it, and how HR prac-
tices make an impact on these drivers.
62 Human Resource Management
HR strategies – key learning points (continued)
How horizontal fi t (bundling) is
achieved
Identify appropriate HR practices, assess
how these items can be bundled together so
that they become mutually reinforcing, and
draw up programmes for the development
of these practices, paying particular atten-
tion to the links between them.
How HR strategies can be set out
The format will vary but may typically be
set out under the following headings:
Basic considerations. •
Content. •
Rationale. •
Implementation plan. •
Costs and benefi ts analysis. •
How HR strategies can be
imple mented
Analyse business needs and how the •
HR strategy will help to meet them.
Communicate full information on •
the strategy and what it is expected
to achieve.
Involve those concerned in identify- •
ing implementation problems and
how they should be dealt with.
Prepare action plans. •
Plan and execute a programme of •
project management that ensures
that the action plans are achieved.
Questions
1. Critically evaluate the following statement by Lester Digman
(1990): ‘Since most strate-
gic decisions are event-driven rather than programmed they are
unplanned. Accordingly
they should be seen in terms of preferences, choices and
matches rather than exercises in
applied logic.’
2. You have been asked to write an article for your CIPD branch
newsletter on ‘What are
the main characteristics of an HR strategy?’ You have also been
asked to include exam-
ples from your own organization or a published article or book.
Draft an outline of the
article.
3. A colleague says to you: ‘It’s all very well talking about
integrated HR strategy but what
does it mean for us?’ Reply.
HR Strategies 63
References
Appelbaum, E, Bailey, T, Berg, P and Kalleberg, A L (2000)
Manufacturing Advantage: Why high
performance work systems pay off, ILR Press, Ithaca, NY
Armstrong, M and Baron, A (2002) Strategic HRM: The route to
improved business performance, CIPD,
London
Armstrong, M and Baron, A (2004) Managing Performance:
Performance management in action, CIPD,
London
Armstrong, M and Long, P (1994) The Reality of Strategic
HRM, IPD, London
Becker, B E and Huselid, M A (1998) High performance work
systems and fi rm performance: a synthesis
of research and managerial implications, Research on Personnel
and Human Resource Management, 16,
pp 53–101, JAI Press, Stamford, CT
Beer, M, Spector, B, Lawrence, P, Quinn Mills, D and Walton,
R (1984) Managing Human Assets, The Free
Press, New York
Benson, G S, Young, S M and Lawler, E E (2006) High
involvement work practices and analysts’ forecasts
of corporate performance, Human Resource Management, 45
(4), pp 519–27
Boxall, P F (1993) The signifi cance of human resource
management: a reconsideration of the evidence,
The International Journal of Human Resource Management, 4
(3), pp 645–65
Boxall, P F and Purcell, J (2003) Strategy and Human Resource
Management, Palgrave Macmillan,
Basingstoke
Cappelli, P (1999) Employment Practices and Business
Strategy, Oxford University Press, New York
Dickens, C (1843) Martin Chuzzlewit , Chapman & Hall,
London
Digman, L A (1990) Strategic management – Concepts,
decisions, cases, Irwin, Homewood, IL
Dyer, L and Reeves, T (1995) Human resource strategies and fi
rm performance: what do we know and
where do we need to go?, The International Journal of Human
Resource Management, 6 (3), pp 656–70
Questions (continued)
4. Prepare a presentation for your fellow students on ‘What
makes a good HR strategy?’
Illustrate with examples.
5. You have received an e-mail from your boss, the HR director,
with the message: ‘We hear
a lot about integrating the HR strategy with the business
strategy but what does this
mean? What are the problems in doing it? How do we overcome
these problems?’
Reply.
6. Thompson and Harley (2007) wrote that the move has not
been to abandon control in
favour of commitment (cf Walton, 1985a) but towards the
introduction of softer con-
trols, ie ‘towards practices intended to generate commitment
through a combination of
culture-led changes and delegation of authority’. Soft controls
are presented as a package
of high-commitment practices. To what extent is this picture of
high-commitment
practices as manipulative true?
64 Human Resource Management
Fombrun, C J, Tichy, N M and Devanna, M A (1984) Strategic
Human Resource Management, Wiley, New
York
Gratton, L A (2000) Real step change, People Management, 16
March, pp 27–30
Gratton, L A, Hailey, V H, Stiles, P and Truss, C (1999)
Strategic Human Resource Management, Oxford
University Press, Oxford
Lawler, E E (1986) High Involvement Management, Jossey-
Bass, San Francisco, CA
Lawler, E E, Mohrman, S and Ledford, G (1998) Strategies for
High Performance Organizations: Employee
involvement, TQM, and re-engineering programs in Fortune
1000, Jossey-Bass, San Francisco, CA
Porter, M E (1985) Competitive Advantage: Creating and
sustaining superior performance, New York, The
Free Press
Richardson, R and Thompson, M (1999) The Impact of People
Management Practices on Business
Performance: A literature review, IPD, London
Sung, J and Ashton, D (2005) High Performance Work
Practices: Linking strategy and skills to performance
outcomes, DTI in association with CIPD, available at
http://www.cipd.co.uk/subjects/corpstrtgy/
Thompson, P and Harley, B (2007) HRM and the worker: labour
process perspectives, in (eds) P Boxall,
J Purcell and P Wright, Oxford Handbook of Human Resource
Management, Oxford University Press,
Oxford
Thompson, M and Heron, P (2005) Management capability and
high performance work organization,
The International Journal of Human Resource Management, 16
(6), pp 1029–48
Tyson, S and Witcher, M (1994) Human resource strategy
emerging from the recession, Personnel
Management, August, pp 20–23
Walton, R E (1985a) From control to commitment in the
workplace, Harvard Business Review, March–
April, pp 77–84
Walton, R E (1985b) Towards a strategy of eliciting employee
commitment based on principles of
mutuality, in (eds) R E Walton and P R Lawrence, HRM Trends
and Challenges, Harvard Business
School Press, Boston, MA
Wood, S (1996) High commitment management and
organization in the UK, The International Journal
of Human Resource Management, 7 (1), pp 41–58
Wood, S (1999) Human resource management and performance,
International Journal of Management
Reviews, 1 (4), pp 397–413
Wood, S and Albanese, M (1995) Can we speak of a high
commitment management on the shop fl oor?
Journal of Management Studies, 32 (2), pp 215–47
Wood, S, de Menezes, L M and Lasaosa, A (2001) High
involvement management and performance,
Paper delivered at the Centre for Labour Market Studies,
University of Leicester, May
Wright, P M and Snell, S A (1998) Towards a unifying
framework for exploring fi t and fl exibility in
strategic human resource management, Academy of
Management Review, 23 (4), pp 756–72
Wright, P M, Snell, S A and Jacobsen, H H (2004) Current
approaches to HR strategies: inside-out versus
outside-in, Human Resource Planning, 27 (4), pp 36–46
Discussion #1
What other non-narcotic medication options can you offer to
this patient?
The goal of treatment for all pain is elimination. In cases of
chronic pain, this is less likely to occur, and a more realistic
goal might be to reduce the pain to a tolerable level to
maximize function and quality of life. As with acute pain
management, it is desirable to meet treatment goals with
minimum side effects (Woo & Robinson, 2016).
I would prescribe for this patient an NSAID like Ibuprofen 800
mg 1 tab orally every 6 hours as needed for pain. I would add
Omeprazole 20 mg 1 tab orally daily before breakfast to
minimize GI discomfort.
What patient education is needed with them?
The most common side effects of Ibuprofen are dizziness,
epigastric pain, heartburn, constipation, nausea, rash, edema,
fluid retention, headache, and vomiting. Nonsteroidal anti-
inflammatory drugs (NSAIDs) may increase the risk of serious
cardiovascular thrombotic events, myocardial infarction (MI),
and stroke. NSAIDs increase the risk of serious GI adverse
events, including bleeding, ulceration, and gastric or intestinal
perforation, that can be fatal (Advil, Motrin, 2019).
What would you do if the patient and his wife tell you that none
of them work for him?
I would recommend lifestyle modifications like weight loss,
exercises, healthy diet. He could benefit from physical therapy,
massage, acupuncture, and relaxation techniques like deep
breathing and meditation.
Discussion 3
You are concerned that this patient may have a substance abuse
problem.
What screening testing is available for you to use that is
reliable and valid?
Comprehensive urine drug testing is performed when the drug
abuse habit of the patient is unknown but suspected.
Naloxone challenge test: This test is performed to assess
physical dependence. An intramuscular injection or IV, 0.2-0.8
mg of naloxone is administered. A positive test is indicative of
physical dependence and consists of typical withdrawal
symptoms and signs. These symptoms and signs usually last for
30-60 minutes. This test is found to be very helpful before
starting opiate antagonists for maintenance therapy. Starting
opioid antagonists, such as naltrexone, soon after detoxification
may cause withdrawal symptoms and discourage patients from
further treatment (Dixon, 2018).
What strategies would you suggest for this patient if he was
found to have a problem?
Current guidelines recommend comprehensive treatment with
pharmacological agents such as methadone, buprenorphine, or
buprenorphine combined with naloxone as well as psychosocial
therapy. Acute opioid-related disorders that require medical
management include opioid intoxication, opioid overdose, and
opioid withdrawal. Treatment of chronic opioid abuse includes
opioid agonist therapy (OAT), psychotherapy, and treatment of
acute pain in patients already on maintenance therapy (Dixon,
2018).
What type of referrals would you make?
Patients who need pain management beyond the acute phase
should be referred to another provider with this expertise. We
must document the referral in the patient’s health record. We
should consider referral also for patients who seek opioids
beyond when they are likely to be needed (The role of the Nurse
in preventing opioid abuse, 2017).
Discussion #2
You are concerned that this patient may have a substance abuse
problem.
What screening testing is available for you to use that is
reliable and valid?
There are two appropriate screening tests for this patient to
determine if he has a substance abuse problem:
CAGE-AID questionnaire; an addiction risk tool, used to
determine whether a patient may be suffering from addiction.
The questions are focused on past drug and/or alcohol
abuse (Woo & Wynne, 2012).
DAST-20 screening tool; uses a similar set of questions to
assess for chemical dependency. The questions admittedly seem
to assume drug abuse and are probablynot as appropriate as
the CAGE-AIDquestionnaire for patients in whom chemical
dependency is more possible than probable (Woo & Wynne,
2012).
What strategies would you suggest for this patient if he was
found to have a problem?
According to Woo & Wynne (2012) Although opiates carry a
high risk for physical tolerance, as well as having “street
value,” they are still appropriate for the treatment of severe
pain. If the patient is found to have a chemical dependency
problem, initiating a pain contract may be appropriate.
Obtaining informed consent should be done as well prior to the
start opiate therapy and documented in the patient’s medical
record. Not using partial agonists or mixed-agonists for patients
who have a history of chemical dependency or who may be
currently using opiate derivatives, is another useful strategy
(Woo & Wynne, 2012).
What type of referrals would you make?
Referrals that may be beneficial for this patient include a
Physical Therapy consultation, to aid in increasing his activity
level and possibly developing an exercise routine. Also, an
evaluation by a Clinical Psychologist, to further evaluate and
monitor his cognitive-behavioral status (Woo & Wynne, 2012).
Discussion 4
After some investigating, you find that Howard actually is
seeing a pain specialist who has given him epidural injections
and prescribes medication for him.
How does that impact any intervention that you may consider?
A statewide prescription drug-monitoring program would assist
in evaluating whether the patient is obtaining prescriptions from
other prescribers, in addition to the pain specialist. This vital
information would validate the decision to decrease and/or
adjust my prescribing of all medications for this patient,
including controlled substances. For monitoring of
prescriptions, the patient would be instructed to bring all
medication vials to each scheduled appointment. To identify the
patient’s illicit and prescribed drug use, routine urine drug
screening will also be performed at each appointment (Woo &
Wynne, 2012).
What other pharmacological options could you offer him?
Woo & Wynne (2012) A pharmacological option recommended
for this patient is the pure opioid
agonist Methadone(Dolophine); Usual starting dose for
moderate to severe pain in opioid-naïve patients, 2.5 mg orally
Q8-12 hrs. for adults and children greater than or equal to 50
kg. Larger doses may be required for analgesia during chronic
therapy (Vallerand & Sanoski, 2019).
What nonpharmacological options could you suggest?
Suggestive nonpharmacological options include weight loss (if
indicated), increased activity which may include an exercise
routine, setting personal goals and identifying effective coping
mechanisms to assist with stress management (Woo & Wynne,
2012).
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3HR StrategiesKey concepts and termsHigh commitment .docx

  • 1. 3 HR Strategies Key concepts and terms High commitment management • High performance management • HR strategy • High involvement management • Horizontal fi t • Vertical fi t • On completing this chapter you should be able to defi ne these key concepts. You should also understand: Learning outcomes T • he purpose of HR strategy Specifi c HR strategy areas • How HR strategy is formulated • How the vertical integration of • business and HR strategies is achieved
  • 2. How HR strategies can be set out • General HR strategy areas • The criteria for a successful HR • strategy The fundamental questions on • the development of HR strategy How horizontal fi t (bundling) is • achieved How HR strategies can be • implemented 47 48 Human Resource Management Introduction As described in Chapter 2, strategic HRM is a mindset that leads to strategic actions and reac- tions, either in the form of overall or specifi c HR strategies or strategic behaviour on the part of HR professionals. This chapter focuses on HR strategies and answers the following ques- tions: What are HR strategies? What are the main types of overall HR strategies? What are the main areas in which specifi c HR strategies are developed? What are the criteria for an effective HR strategy? How should HR strategies be developed? How should HR strategies be
  • 3. implemented? What are HR strategies? HR strategies set out what the organization intends to do about its human resource manage- ment policies and practices and how they should be integrated with the business strategy and each other. They are described by Dyer and Reeves (1995) as ‘internally consistent bundles of human resource practices’. Richardson and Thompson (1999) suggest that: A strategy, whether it is an HR strategy or any other kind of management strategy must have two key elements: there must be strategic objectives (ie things the strategy is sup- posed to achieve), and there must be a plan of action (ie the means by which it is pro- posed that the objectives will be met). The purpose of HR strategies is to articulate what an organization intends to do about its human resource management policies and practices now and in the longer term, bearing in mind the dictum of Fombrun et al (1984) that business and managers should perform well in the present to succeed in the future. HR strategies aim to meet both business and human needs in the organization. HR strategies may set out intentions and provide a sense of purpose and direction, but they are not just long-term plans. As Gratton (2000) commented: ‘There is no great strategy, only great execution.’
  • 4. Because all organizations are different, all HR strategies are different. There is no such thing as a standard strategy and research into HR strategy conducted by Armstrong and Long (1994) and Armstrong and Baron (2002) revealed many variations. Some strategies are simply very general declarations of intent. Others go into much more detail. But two basic types of HR strategies can be identifi ed; these are: 1) general strategies such as high-performance working, and 2) specifi c strategies relating to the different aspects of human resource management such as learning and development and reward. HR Strategies 49 General HR strategies General strategies describe the overall system or bundle of complementary HR practices that the organization proposes to adopt or puts into effect in order to improve organizational per- formance. The three main approaches are summarized below. 1. High-performance management High-performance management or high-performance working aims to make an impact on the performance of the organization in such areas as productivity, quality, levels of customer service, growth and profi ts. High-performance management practices include rigorous recruit- ment and selection procedures, extensive and relevant training
  • 5. and management development activities, incentive pay systems and performance management processes. These practices are often called ‘high-performance work systems’ (HPWS) which, as defi ned by Appelbaum et al (2000), comprise practices that can facilitate employee involvement, skill enhancement and motivation. Thompson and Heron (2005) refer to them as ‘high-perform- ance work organization practices’ which, they say, ‘consist of work practices that invest in the skills and abilities of employees, design work in ways that enable employee collaboration in problem solving and provide incentives to motivate workers to use their discretionary effort’. This term is more frequently used than either high-commitment management or high-involve- ment management, although there is a degree of overlap between these approaches and an HPWS and the terms ‘high performance’ and ‘high commitment’ are sometimes used interchangeably. 2. High-commitment management One of the defi ning characteristics of HRM is its emphasis on the importance of enhancing mutual commitment (Walton, 1985b). High-commitment management has been described by Wood (1996) as: ‘A form of management which is aimed at eliciting a commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures exter- nal to the individual, and relations within the organization are based on high levels of trust.’
  • 6. The following defi nitions expand these statements. 50 Human Resource Management High commitment management defi ned, Wood (1999) High-commitment management is generally characterized as entailing, a) a particular orientation on the part of employers to their employees, based on an underlying conception of them as assets to be developed rather than as dispos- able factors of production, and b) the combined use of certain personnel prac- tices, such as job redesign, job fl exibility, problem-solving groups, team working and minimal status differences. Approaches to achieving high commitment, Beer et al (1984) and Walton (1985b) The development of career ladders and emphasis on trainability and • commitment as highly valued characteristics of employees at all levels in the organization. A high level of functional fl exibility with the abandonment of poten- • tially rigid job descriptions. The reduction of hierarchies and the ending of status
  • 7. differentials. • A heavy reliance on team structure for disseminating information (team • briefi ng), structuring work (team working) and problem solving (quality circles). SO U RC E RE V IE W Wood and Albanese (1995) added to this list: job design as something management consciously does in order to provide jobs that • have a considerable level of intrinsic satisfaction; a policy of no compulsory lay-offs or redundancies and permanent employment guar- • antees with the possible use of temporary workers to cushion fl uctuations in the demand for labour; new forms of assessment and payment systems and, more specifi cally, merit pay and • profi t sharing; a high involvement of employees in the management of quality.
  • 8. • As defi ned above, there are many similarities between high- performance and high-commit- ment management. In fact, there is much common ground between the practices included in all of these approaches as Sung and Ashton (2005) comment. HR Strategies 51 Comparison of approaches, Sung and Ashton (2005) In some cases high performance work practices are called ‘high commitment practices’ (Walton, 1985a) or ‘high involvement management’ (Lawler, 1986). More recently they have been termed ‘high performance organizations’ (Lawler et al, 1998) or ‘high-involvement’ work practices (Wood et al, 2001). Whilst these studies are referring to the same general phenomena the use of different ‘labels’ has undoubtedly added to the confusion. SO U RC E RE V IE
  • 9. W However, a study of the literature shows that the most frequently used term is ‘high-per- formance management’, which is why in this book it is given more detailed consideration in Chapter 12. 3. High-involvement management As defi ned by Benson et al (2006): ‘High-involvement work practices are a specifi c set of human resource practices that focus on employee decision making, power, access to informa- tion, training and incentives.’ The term ‘high involvement’ was used by Lawler (1986) to describe management systems based on commitment and involvement, as opposed to the old bureaucratic model based on control. The underlying hypothesis is that employees will increase their involvement with the company if they are given the opportunity to control and under- stand their work. He claimed that high-involvement practices worked well because they acted as a synergy and had a multiplicative effect. This approach involves treating employees as part- ners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement. The aim is to create a climate in which a continuing dialogue between managers and the members of their teams takes place in order to defi ne expectations and share information on the organization’s mission, values and objectives. This establishes mutual understanding of what is to be achieved and a
  • 10. framework for managing and developing people to ensure that it will be achieved. The practices included in a high-involvement system have sometimes expanded beyond this original concept and included high-performance practices. For example, as noted above, high- performance practices usually include relevant training and incentive pay systems. Sung and Ashton (2005) include high-involvement practices as one of the three broad areas of a high- performance work system (the other two being human resource practices and reward and commitment practices). 52 Human Resource Management Examples of general HR strategies A local authority As expressed by the chief executive of this borough council, their HR strategy is about: having a very strong focus on the overall effectiveness of the organization, its direction and how it’s performing; there is commitment to, and belief in, and respect for indi- viduals, and I think that these are very important factors. A public utility The only HR strategy you really need is the tangible expression of values and the imple- mentation of values… unless you get the human resource values
  • 11. right you can forget all the rest. (Managing Director) A manufacturing company The HR strategy is to stimulate changes on a broad front aimed ultimately at achieving competitive advantage through the efforts of our people. In an industry of fast followers, those who learn quickest will be the winners. (HR Director) A retail stores group The biggest challenge will be to maintain (our) competitive advantage and to do that we need to maintain and continue to attract very high calibre people. The key differen- tiator on anything any company does is fundamentally the people, and I think that people tend to forget that they are the most important asset. Money is easy to get hold of, good people are not. All we do in terms of training and manpower planning is directly linked to business improvement. (Managing Director) Specifi c HR strategies Specifi c HR strategies set out what the organization intends to do in areas such as: Human capital management – obtaining, analysing and reporting on data that inform • the direction of value-adding people management, strategic, investment and opera- tional decisions.
  • 12. Corporate social responsibility – a commitment to managing the business ethically in • order to make a positive impact on society and the environment. HR Strategies 53 Organization development – the planning and implementation of programmes • designed to enhance the effectiveness with which an organization functions and responds to change. Engagement – the development and implementation of policies designed to increase • the level of employees’ engagement with their work and the organization. Knowledge management – creating, acquiring, capturing, sharing and using knowl- • edge to enhance learning and performance. Resourcing – attracting and retaining high quality people. • Talent management – how the organization ensures that it has the talented people it • needs to achieve success. Learning and development – providing an environment in which employees are encour- • aged to learn and develop. Reward – defi ning what the organization wants to do in the longer term to develop and • implement reward policies, practices and processes that will
  • 13. further the achievement of its business goals and meet the needs of its stakeholders. Employee relations – defi ning the intentions of the organization about what needs to • be done and what needs to be changed in the ways in which the organization manages its relationships with employees and their trade unions. Employee well-being – meeting the needs of employees for a healthy, safe and support- • ive work environment. Criteria for an effective HR strategy An effective HR strategy is one that works in the sense that it achieves what it sets out to achieve. Its particular requirements are set out below. Criteria for an effective HR strategy It will satisfy business needs. • It is founded on detailed analysis and study, not just wishful thinking. • It can be turned into actionable programmes that anticipate implementation • requirements and problems. It is coherent and integrated, being composed of components that fi t with and • support each other.
  • 14. 54 Human Resource Management How should HR strategies be formulated? Propositions about the formulation of HR strategy, Boxall (1993) The strategy formation process is complex, and excessively rationalistic • models that advocate formalistic linkages between strategic planning and HR planning are not particularly helpful to our understanding of it. Business strategy may be an important infl uence on HR strategy but it • is only one of several factors. Implicit (if not explicit) in the mix of factors that infl uence the shape of • HR strategies is a set of historical compromises and trade-offs from stakeholders. SO U RC E RE V IE W
  • 15. Strategic options and choices The process of formulating HR strategies involves generating strategic HRM options and then making appropriate strategic choices. It has been noted by Cappelli (1999) that: ‘The choice of practices that an employer pursues is heavily contingent on a number of factors at the organi- zational level, including their own business and production strategies, support of HR policies, and cooperative labour relations.’ The process of developing HR strategies involves the adop- tion of a contingent approach in generating strategic HRM options and then making appro- priate strategic choices. There is seldom if ever one right way forward. ‘Inside-out’ and ‘outside-in’ approaches to formulating HR strategies Research conducted by Wright et al (2004) identifi ed two approaches that can be adopted by HR to strategy formulation: the inside-out approach and the outside-in approach. They made the following observations about the HR-strategy linkage: It takes account of the needs of line managers and employees generally as well • as those of the organization and its other stakeholders. As Boxall and Purcell (2003) emphasize: ‘HR planning should aim to meet the needs of the key stake- holder groups involved in people management in the fi rm.’
  • 16. HR Strategies 55 At the extreme, the ‘inside-out’ approach begins with the status quo HR function (in terms of skills, processes, technologies, etc) and then attempts (with varying degrees of success) to identify linkages to the business (usually through focusing on ‘people issues’), making minor adjustments to HR activities along the way… On the other hand, a few fi rms have made a paradynamic shift to build their HR strategies from the starting point of the business. Within these ‘outside-in’ HR functions, the starting point is the business, including the customer, competitor and business issues they face. The HR strategy then derives directly from these challenges to create real solutions and add real value. They suggested that ‘the most advanced linkage was the “integrative” linkage in which the senior HR executive was part of the top management team, and was able to sit at the table and contribute during development of the business strategy’. In reality HR strategies are more likely to fl ow from business strategies, which will be domi- nated by product/market and fi nancial considerations. But there is still room for HR to make a useful, even essential contribution at the stage when business strategies are conceived, for example, by focusing on resource issues. This contribution may be more signifi cant if strategy formulation is an emergent or evolutionary process – HR strategic issues will then be dealt
  • 17. with as they arise during the course of formulating and implementing the corporate strategy. Issues in developing HR strategies Five fundamental questions that need to be asked in developing HR strategies have been posed by Becker and Huselid (1998): 1. What are the fi rm’s strategic objectives? 2. How are these translated into unit objectives? 3. What do unit managers consider are the ‘performance drivers’ of those objectives? 4. How do the skills, motivation and structure of the fi rm’s workforce infl uence these per- formance drivers? 5. How does the HR system infl uence the skills, motivation and structure of the workforce? But many different routes may be followed when formulating HR strategies – there is no one right way. On the basis of their research in 30 well-known companies, Tyson and Witcher (1994) commented that: ‘The different approaches to strategy formation refl ect different ways to manage change and different ways to bring the people part of the business into line with business goals.’ In developing HR strategies, process may be as important as content. Tyson and Witcher (1994) also noted from their research that: ‘The process of formulating HR strategy was often as
  • 18. 56 Human Resource Management important as the content of the strategy ultimately agreed. It was argued that by working through strategic issues and highlighting points of tension, new ideas emerged and a consen- sus over goals was found.’ There are two key issues to be addressed in developing HR strategies: achieving vertical fi t or integration and achieving horizontal fi t or integration (bundling). 1. Achieving vertical fi t – integrating business and HR strategies Wright and Snell (1998) suggest that seeking fi t requires knowledge of the business strategy, knowledge of the skills and behaviour necessary to implement the strategy, knowledge of the HRM practices necessary to elicit those skills and behaviours, and the ability quickly to develop and implement the desired system of HRM practices. When considering how to integrate business and HR strategies it should be remembered that business and HR issues infl uence each other and in turn infl uence corporate and business unit strategies. It is also necessary to note that in establishing these links, account must be taken of the fact that strategies for change have also to be integrated with changes in the external and internal environments. Fit may exist at a point in time but
  • 19. circumstances will change and fi t no longer exists. An excessive pursuit of ‘fi t’ with the status quo will inhibit the fl exibility of approach that is essential in turbulent conditions. An illustration of how HR strategies could fi t vertically with one or other of the competitive strategies listed by Porter (1985) is given in Table 3.1. Table 3.1 Achieving vertical fi t between HR and business strategies HR strategy Competitive strategy Achieve competitive advantage through innovation Achieve competitive advantage through quality Achieve competitive advantage through cost-leadership Resourcing Recruit and retain high quality people with innovative skills and a good track record in innovation Use sophisticated selection procedures to recruit people who are likely to deliver quality
  • 20. and high levels of customer service Develop core/ periphery employment structures; recruit people who are likely to add value; if unavoidable, plan and manage downsizing humanely HR Strategies 57 HR strategy Competitive strategy Achieve competitive advantage through innovation Achieve competitive advantage through quality Achieve competitive advantage through cost-leadership Learning and development Develop strategic capability and provide encouragement and
  • 21. facilities for enhancing innovative skills and enhancing the intellec- tual capital of the organization Encourage the development of a learning organization, develop and implement knowledge management processes, support total quality and customer care initiatives with focused training Provide training designed to improve productivity; inaugurate just-in-time training which is closely linked to immediate business needs and can generate measurable improvements in cost- effectiveness Reward Provide fi nancial incentives and rewards and recognition for successful innovations Link rewards to quality performance and the
  • 22. achievement of high standards of customer service Review all reward practices to ensure that they provide value for money and do not lead to unnecessary expenditure The factors that can make the achievement of good vertical fi t diffi cult are: The business strategy may not be clearly defi ned – it could be in an emergent or evolu- • tionary state, which would mean that there would be little or nothing with which to fi t the HR strategy. Even if the business strategy is clear, it may be diffi cult to determine precisely how HR • strategies could help in specifi c ways to support the achievement of particular business objectives – a good business case can only be made if it can be demonstrated that there will be a measurable link between the HR strategy and business performance in the area concerned. Even if there is a link, HR specialists do not always have the strategic capability to make • the connection – they need to be able to see the big picture, understand the business drivers and appreciate how HR policies and practices can impact on them.
  • 23. Table 3.1 continued 58 Human Resource Management Barriers exist between top management and HR – the former may not be receptive • because they don’t believe this is necessary and HR is not capable of persuading them that they should listen, or HR lacks access to top management on strategic issues, or HR lacks credibility with top management as a function that knows anything about the business or should even have anything to do with the business. It is up to HR practitioners in their strategic role to overcome these problems by getting to know what the business is aiming to do and what drives it (this should be possible even when strategies are ‘emergent’), understanding just how HR practices make an impact, and achiev- ing access to strategic business decision making by demonstrating their credibility as an inte- gral part of the management of the business. 2. Achieving horizontal fi t (bundling) Horizontal fi t or integration is achieved when the various HR strategies cohere and are mutu- ally supporting. This can be attained by the process of ‘bundling’, which is carried out by fi rst identifying appropriate HR practices; second, assessing how the items in the bundle can be linked together so that they become mutually reinforcing; and fi
  • 24. nally drawing up programmes for the development of these practices, paying particular attention to the links between them. The use of high-performance, high-involvement or high- commitment systems as described earlier in this chapter is an integrating process. The essence of these systems is that they each consist of a set of complementary work practices that are developed and maintained as a whole. Other integrating activities or processes are talent management, performance manage- ment and the use of competencies. The factors that inhibit the achievement of horizontal fi t are diffi culties in: deciding which bundles are likely to be best; • actually linking practices together – it is always easier to deal with one practice at a • time; managing the interdependencies between different parts of a bundle; • convincing top management and line managers that bundling will benefi t the organi- • zation and them. These can be overcome by dedicated HR professionals, but it is hard work. Setting out the strategy There is no standard model of how an HR strategy should be set
  • 25. out; it all depends on the cir- cumstances of the organization. But the typical areas that may be covered in a written strategy are set out below. HR Strategies 59 Typical areas that may be covered in a written HR strategy Basic considerations – business needs in terms of the key elements of the busi- • ness strategy; environmental factors and analysis (SWOT/PESTLE) and cultural factors – possible helps or hindrances to implementation. Content – details of the proposed HR strategy. • Rationale – the business case for the strategy against the background of business • needs and environmental/cultural factors. Implementation plan – an action programme, defi nitions of responsibilities • and resource requirements and arrangements for communication, consulta- tion, involvement and training. Costs and benefi ts analysis – an assessment of the resource implications of the • plan (costs, people and facilities) and the benefi ts that will accrue, for the organ- ization as a whole, for line managers and for individual employees. (So far as possible these benefi ts should be quantifi ed in terms of added
  • 26. value or return on investment.) Implementing HR strategies All too often, 80 per cent of the time spent on strategic management is devoted to designing strategies and only 20 per cent is spent on planning their implementation. It should be the other way round. It is necessary to plan with implementation in mind. Because strategies tend to be expressed as abstractions, they must be translated into pro- grammes with clearly stated objectives and deliverables. It is necessary to avoid saying, in effect: ‘We need to get from here to there but we don’t care how.’ Getting strategies into action is not easy. Too often, strategists act like Mr Pecksmith who was compared by Dickens (1843) to ‘a direction-post which is always telling the way to a place and never goes there’. The term ‘strategic HRM’ has been devalued in some quarters; sometimes to mean no more than a few generalized ideas about HR policies, at other times to describe a short- term plan, for example, to increase the retention rate of graduates. It must be emphasized that HR strategies are not just programmes, policies, or plans concerning HR issues that the HR department happens to feel are important. Piecemeal initiatives do not constitute strategy. The problem with strategic HRM as noted by Gratton et al
  • 27. (1999) is that too often there is a gap between what the strategy states will be achieved and what actually happens to it. The 60 Human Resource Management factors they identifi ed as contributing to creating this say/do gap between the strategy as designed and the strategy as implemented include: the tendency of employees in diverse organizations only to accept initiatives they per- • ceive to be relevant to their own areas; the tendency of long-serving employees to cling to the status quo; • complex or ambiguous initiatives may not be understood by employees or will be per- • ceived differently by them, especially in large, diverse organizations; it is more diffi cult to gain acceptance of non-routine initiatives; • employees will be hostile to initiatives if they are believed to be in confl ict with the • organization’s identity, eg downsizing in a culture of ‘job-for- life’; the initiative is seen as a threat; • inconsistencies between corporate strategies and values; •
  • 28. the extent to which senior management is trusted; • the perceived fairness of the initiative; • the extent to which existing processes could help to embed the initiative; • a bureaucratic culture, which leads to inertia. • Barriers to the implementation of HR strategies Each of the factors listed by Gratton et al (1999) can create barriers to the successful imple- mentation of HR strategies. Other major barriers include failure to understand the strategic needs of the business, inadequate assessment of the environmental and cultural factors that affect the content of the strategies, and the development of ill- conceived and irrelevant initia- tives, possibly because they are current fads or because there has been an ill-digested analysis of best practice that does not fi t the organization’s requirements. These problems are com- pounded when insuffi cient attention is paid to practical implementation problems, the impor- tant role of line managers in implementing strategies, and the need to have established supporting processes for the initiative (eg, performance management to support performance pay). Approaches to implementation An implementation programme that overcomes these barriers needs to be based on:
  • 29. a rigorous preliminary analysis of the strategic needs of the business and how the strat- • egy will help to meet them; HR Strategies 61 a communication programme that spells out what the strategy is, what it is expected to • achieve and how it is to be introduced; the involvement of those who will be concerned with the strategy, eg line managers, in • identifying implementation problems and how they should be dealt with; the preparation of action plans that indicate who does what and when; • project managing the implementation in a way that ensures that the action plans are • achieved. HR strategies – key learning points Purpose of HR strategy To articulate what an organization intends to do about its human resource manage- ment policies and practices now and in the longer term. General HR strategy areas High-performance management, high-
  • 30. commitment management and high- involvement management Specifi c HR strategy areas Human capital management, corporate social responsibility, organization develop- ment, engagement, knowledge manage- ment, employee resourcing, talent management, learning and development, reward, employee relations, and employee well-being. Criteria for an effective HR strategy satisfi es business needs; • founded on detailed analysis and • study; can be turned into actionable • programmes; is coherent and integrated; • takes account of the needs of line • managers and employees generally as well as those of the organization and its other stakeholders. Fundamental questions on the development of HR strategy What are the fi rm’s strategic objec- • tives and how are these translated into unit objectives?
  • 31. What are the ‘performance drivers’ • of those objectives and how do the skills, motivation and structure of the fi rm’s workforce infl uence these performance drivers? How does the HR system infl uence • the skills, motivation and structure of the workforce? How the vertical integration of business and HR strategies is achieved Understand what the business is aiming to do and what drives it, and how HR prac- tices make an impact on these drivers. 62 Human Resource Management HR strategies – key learning points (continued) How horizontal fi t (bundling) is achieved Identify appropriate HR practices, assess how these items can be bundled together so that they become mutually reinforcing, and draw up programmes for the development of these practices, paying particular atten- tion to the links between them. How HR strategies can be set out
  • 32. The format will vary but may typically be set out under the following headings: Basic considerations. • Content. • Rationale. • Implementation plan. • Costs and benefi ts analysis. • How HR strategies can be imple mented Analyse business needs and how the • HR strategy will help to meet them. Communicate full information on • the strategy and what it is expected to achieve. Involve those concerned in identify- • ing implementation problems and how they should be dealt with. Prepare action plans. • Plan and execute a programme of • project management that ensures that the action plans are achieved. Questions
  • 33. 1. Critically evaluate the following statement by Lester Digman (1990): ‘Since most strate- gic decisions are event-driven rather than programmed they are unplanned. Accordingly they should be seen in terms of preferences, choices and matches rather than exercises in applied logic.’ 2. You have been asked to write an article for your CIPD branch newsletter on ‘What are the main characteristics of an HR strategy?’ You have also been asked to include exam- ples from your own organization or a published article or book. Draft an outline of the article. 3. A colleague says to you: ‘It’s all very well talking about integrated HR strategy but what does it mean for us?’ Reply. HR Strategies 63 References Appelbaum, E, Bailey, T, Berg, P and Kalleberg, A L (2000) Manufacturing Advantage: Why high performance work systems pay off, ILR Press, Ithaca, NY Armstrong, M and Baron, A (2002) Strategic HRM: The route to improved business performance, CIPD, London Armstrong, M and Baron, A (2004) Managing Performance: Performance management in action, CIPD,
  • 34. London Armstrong, M and Long, P (1994) The Reality of Strategic HRM, IPD, London Becker, B E and Huselid, M A (1998) High performance work systems and fi rm performance: a synthesis of research and managerial implications, Research on Personnel and Human Resource Management, 16, pp 53–101, JAI Press, Stamford, CT Beer, M, Spector, B, Lawrence, P, Quinn Mills, D and Walton, R (1984) Managing Human Assets, The Free Press, New York Benson, G S, Young, S M and Lawler, E E (2006) High involvement work practices and analysts’ forecasts of corporate performance, Human Resource Management, 45 (4), pp 519–27 Boxall, P F (1993) The signifi cance of human resource management: a reconsideration of the evidence, The International Journal of Human Resource Management, 4 (3), pp 645–65 Boxall, P F and Purcell, J (2003) Strategy and Human Resource Management, Palgrave Macmillan, Basingstoke Cappelli, P (1999) Employment Practices and Business Strategy, Oxford University Press, New York Dickens, C (1843) Martin Chuzzlewit , Chapman & Hall, London Digman, L A (1990) Strategic management – Concepts, decisions, cases, Irwin, Homewood, IL Dyer, L and Reeves, T (1995) Human resource strategies and fi rm performance: what do we know and
  • 35. where do we need to go?, The International Journal of Human Resource Management, 6 (3), pp 656–70 Questions (continued) 4. Prepare a presentation for your fellow students on ‘What makes a good HR strategy?’ Illustrate with examples. 5. You have received an e-mail from your boss, the HR director, with the message: ‘We hear a lot about integrating the HR strategy with the business strategy but what does this mean? What are the problems in doing it? How do we overcome these problems?’ Reply. 6. Thompson and Harley (2007) wrote that the move has not been to abandon control in favour of commitment (cf Walton, 1985a) but towards the introduction of softer con- trols, ie ‘towards practices intended to generate commitment through a combination of culture-led changes and delegation of authority’. Soft controls are presented as a package of high-commitment practices. To what extent is this picture of high-commitment practices as manipulative true? 64 Human Resource Management Fombrun, C J, Tichy, N M and Devanna, M A (1984) Strategic Human Resource Management, Wiley, New
  • 36. York Gratton, L A (2000) Real step change, People Management, 16 March, pp 27–30 Gratton, L A, Hailey, V H, Stiles, P and Truss, C (1999) Strategic Human Resource Management, Oxford University Press, Oxford Lawler, E E (1986) High Involvement Management, Jossey- Bass, San Francisco, CA Lawler, E E, Mohrman, S and Ledford, G (1998) Strategies for High Performance Organizations: Employee involvement, TQM, and re-engineering programs in Fortune 1000, Jossey-Bass, San Francisco, CA Porter, M E (1985) Competitive Advantage: Creating and sustaining superior performance, New York, The Free Press Richardson, R and Thompson, M (1999) The Impact of People Management Practices on Business Performance: A literature review, IPD, London Sung, J and Ashton, D (2005) High Performance Work Practices: Linking strategy and skills to performance outcomes, DTI in association with CIPD, available at http://www.cipd.co.uk/subjects/corpstrtgy/ Thompson, P and Harley, B (2007) HRM and the worker: labour process perspectives, in (eds) P Boxall, J Purcell and P Wright, Oxford Handbook of Human Resource Management, Oxford University Press, Oxford Thompson, M and Heron, P (2005) Management capability and
  • 37. high performance work organization, The International Journal of Human Resource Management, 16 (6), pp 1029–48 Tyson, S and Witcher, M (1994) Human resource strategy emerging from the recession, Personnel Management, August, pp 20–23 Walton, R E (1985a) From control to commitment in the workplace, Harvard Business Review, March– April, pp 77–84 Walton, R E (1985b) Towards a strategy of eliciting employee commitment based on principles of mutuality, in (eds) R E Walton and P R Lawrence, HRM Trends and Challenges, Harvard Business School Press, Boston, MA Wood, S (1996) High commitment management and organization in the UK, The International Journal of Human Resource Management, 7 (1), pp 41–58 Wood, S (1999) Human resource management and performance, International Journal of Management Reviews, 1 (4), pp 397–413 Wood, S and Albanese, M (1995) Can we speak of a high commitment management on the shop fl oor? Journal of Management Studies, 32 (2), pp 215–47 Wood, S, de Menezes, L M and Lasaosa, A (2001) High involvement management and performance, Paper delivered at the Centre for Labour Market Studies, University of Leicester, May Wright, P M and Snell, S A (1998) Towards a unifying
  • 38. framework for exploring fi t and fl exibility in strategic human resource management, Academy of Management Review, 23 (4), pp 756–72 Wright, P M, Snell, S A and Jacobsen, H H (2004) Current approaches to HR strategies: inside-out versus outside-in, Human Resource Planning, 27 (4), pp 36–46 Discussion #1 What other non-narcotic medication options can you offer to this patient? The goal of treatment for all pain is elimination. In cases of chronic pain, this is less likely to occur, and a more realistic goal might be to reduce the pain to a tolerable level to maximize function and quality of life. As with acute pain management, it is desirable to meet treatment goals with minimum side effects (Woo & Robinson, 2016). I would prescribe for this patient an NSAID like Ibuprofen 800 mg 1 tab orally every 6 hours as needed for pain. I would add Omeprazole 20 mg 1 tab orally daily before breakfast to minimize GI discomfort. What patient education is needed with them? The most common side effects of Ibuprofen are dizziness, epigastric pain, heartburn, constipation, nausea, rash, edema, fluid retention, headache, and vomiting. Nonsteroidal anti- inflammatory drugs (NSAIDs) may increase the risk of serious cardiovascular thrombotic events, myocardial infarction (MI), and stroke. NSAIDs increase the risk of serious GI adverse events, including bleeding, ulceration, and gastric or intestinal perforation, that can be fatal (Advil, Motrin, 2019). What would you do if the patient and his wife tell you that none of them work for him? I would recommend lifestyle modifications like weight loss, exercises, healthy diet. He could benefit from physical therapy,
  • 39. massage, acupuncture, and relaxation techniques like deep breathing and meditation. Discussion 3 You are concerned that this patient may have a substance abuse problem. What screening testing is available for you to use that is reliable and valid? Comprehensive urine drug testing is performed when the drug abuse habit of the patient is unknown but suspected. Naloxone challenge test: This test is performed to assess physical dependence. An intramuscular injection or IV, 0.2-0.8 mg of naloxone is administered. A positive test is indicative of physical dependence and consists of typical withdrawal symptoms and signs. These symptoms and signs usually last for 30-60 minutes. This test is found to be very helpful before starting opiate antagonists for maintenance therapy. Starting opioid antagonists, such as naltrexone, soon after detoxification may cause withdrawal symptoms and discourage patients from further treatment (Dixon, 2018). What strategies would you suggest for this patient if he was found to have a problem? Current guidelines recommend comprehensive treatment with pharmacological agents such as methadone, buprenorphine, or buprenorphine combined with naloxone as well as psychosocial therapy. Acute opioid-related disorders that require medical management include opioid intoxication, opioid overdose, and opioid withdrawal. Treatment of chronic opioid abuse includes opioid agonist therapy (OAT), psychotherapy, and treatment of acute pain in patients already on maintenance therapy (Dixon, 2018). What type of referrals would you make? Patients who need pain management beyond the acute phase should be referred to another provider with this expertise. We must document the referral in the patient’s health record. We should consider referral also for patients who seek opioids beyond when they are likely to be needed (The role of the Nurse
  • 40. in preventing opioid abuse, 2017). Discussion #2 You are concerned that this patient may have a substance abuse problem. What screening testing is available for you to use that is reliable and valid? There are two appropriate screening tests for this patient to determine if he has a substance abuse problem: CAGE-AID questionnaire; an addiction risk tool, used to determine whether a patient may be suffering from addiction. The questions are focused on past drug and/or alcohol abuse (Woo & Wynne, 2012). DAST-20 screening tool; uses a similar set of questions to assess for chemical dependency. The questions admittedly seem to assume drug abuse and are probablynot as appropriate as the CAGE-AIDquestionnaire for patients in whom chemical dependency is more possible than probable (Woo & Wynne, 2012). What strategies would you suggest for this patient if he was found to have a problem? According to Woo & Wynne (2012) Although opiates carry a high risk for physical tolerance, as well as having “street value,” they are still appropriate for the treatment of severe pain. If the patient is found to have a chemical dependency problem, initiating a pain contract may be appropriate. Obtaining informed consent should be done as well prior to the start opiate therapy and documented in the patient’s medical record. Not using partial agonists or mixed-agonists for patients who have a history of chemical dependency or who may be currently using opiate derivatives, is another useful strategy (Woo & Wynne, 2012). What type of referrals would you make? Referrals that may be beneficial for this patient include a Physical Therapy consultation, to aid in increasing his activity
  • 41. level and possibly developing an exercise routine. Also, an evaluation by a Clinical Psychologist, to further evaluate and monitor his cognitive-behavioral status (Woo & Wynne, 2012). Discussion 4 After some investigating, you find that Howard actually is seeing a pain specialist who has given him epidural injections and prescribes medication for him. How does that impact any intervention that you may consider? A statewide prescription drug-monitoring program would assist in evaluating whether the patient is obtaining prescriptions from other prescribers, in addition to the pain specialist. This vital information would validate the decision to decrease and/or adjust my prescribing of all medications for this patient, including controlled substances. For monitoring of prescriptions, the patient would be instructed to bring all medication vials to each scheduled appointment. To identify the patient’s illicit and prescribed drug use, routine urine drug screening will also be performed at each appointment (Woo & Wynne, 2012). What other pharmacological options could you offer him? Woo & Wynne (2012) A pharmacological option recommended for this patient is the pure opioid agonist Methadone(Dolophine); Usual starting dose for moderate to severe pain in opioid-naïve patients, 2.5 mg orally Q8-12 hrs. for adults and children greater than or equal to 50 kg. Larger doses may be required for analgesia during chronic therapy (Vallerand & Sanoski, 2019). What nonpharmacological options could you suggest? Suggestive nonpharmacological options include weight loss (if indicated), increased activity which may include an exercise routine, setting personal goals and identifying effective coping mechanisms to assist with stress management (Woo & Wynne, 2012).