HR Strategies
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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.
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