Integrating Business and Resourcing Strategies

The philosophy behind the HRM approach to resourcing is that it is people who implement the strategic plan. As Quinn Mills (1983) has put it, the process is one of ‘planning with people in mind’.

The integration of business and resourcing strategies is based on an understanding of the direction in which the organization is going and of the resulting human resource needs in terms of:

● numbers required in relation to projected activity levels; 

● skills required on the basis of technological and product/market developments and strategies to enhance quality or reduce costs; 

● the impact of organizational restructuring as a result of rationalization, decentralization, delayering, mergers, product or market development, or the introduction of new technology – for example, cellular manufacturing; 

● plans for changing the culture of the organization in such areas as ability to deliver, performance standards, quality, customer service, team working and flexibility which indicate the need for people with different attitudes, beliefs and personal characteristics.

These factors will be strongly influenced by the type of business strategies adopted by the organization and the sort of business it is in. These may be expressed in such terms as the Boston Consulting Group’s classification of businesses as wild cat, star, cash cow or dog; or Miles and Snow’s (1978) typology of defender, prospector and analyser organizations. 

Resourcing strategies exist to provide the people and skills required to support the business strategy, but they should also contribute to the formulation of that strategy. HR directors have an obligation to point out to their colleagues the human resource opportunities and constraints that will affect the achievement of strategic plans. In mergers or acquisitions, for example, the ability of management within the company to handle the new situation and the quality of management in the new business will be important considerations.