PROPOSITIONS ABOUT THE DEVELOPMENT PROCESS

The following propositions about the formulation of HR strategy have been drawn up by Boxall (1993) from the literature:

● 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 influence on HR strategy but it is only one of several factors; 

● implicit (if not explicit) in the mix of factors that influence the shape of HR strategies is a set of historical compromises and trade-offs from stakeholders.

It is also necessary to stress that coherent and integrated HR strategies are only likely to be developed if the top team understands and acts upon the strategic imperatives associated with the employment, development and motivation of people. This will be achieved more effectively if there is an HR director who is playing an active and respected role as a business partner. Afurther consideration is that the effective implementation of HR strategies depends on the involvement, commitment and cooperation of line managers and staff generally. Finally, there is too often a wide gap between the rhetoric of strategic HRM and the reality of its impact, as Gratton et al (1999) emphasize. Good intentions can too easily be subverted by the harsh realities of organizational life. For example, strategic objectives such as increasing commitment by providing more security and offering training to increase employability may have to be abandoned or at least modified because of the short-term demands made on the business to increase shareholder value. 

The development process as described below takes place at different levels and involves analysing options and making choices. A methodology is required for the process that can be conducted by means of a strategic review. The methodology can be applied in three different ways. One of the most important aims in the development programme will be to align the HR strategy to the organizational culture and the business strategy by achieving vertical integration or fit.