Integrating of Strategy and HumanResource Management
The experiences of several organizations provide good examples of the integration of strategy and human resource management. One such example is provided by the experiences of People’s Bank, a financial services company headquartered in Bridgeport, Connecticut. Massive changes began to take place in the business environment of banking with deregulation and relaxation of ceilings on interest. Money markets began to drain off funds that ordinarily went into banks’ deposits, forcing them to rely on more expensive sources of funds. Further, the money center
banks began to compete in the same middle markets as regional banks. People’s, which ...view middle of the document...
Further, human resource planning was more fully integrated the strategic planning process through synchronization of its scanning processes with the bank’s overall environmental scanning process.
The experiences of the U.S. Navy provide another example of the integration of strategy and human resource management. As a result of its linkage of strategic planning with human resource management, the Navy was able to pursue a proactive strategy that provided lower labor costs. In the Navy’s case, its human resource planners analyzed the labor cost savings of a strategy involving its civilian employees that would substitute local wage policies for national wage policies. By developing human resource forecasts to determine labor market reactions to these changes, planners could determine whether sufficient labor supplies would be available
with the cost saving strategy In this example, the planners also examined the impact of the reduction of private sector middle management positions and found that higher-quality employees could behired.
Ingersoll-Rand’s experiences with one of its divisions also provide a good example of the outcome of a strong linkage between strategy and human resource management. Ingersoll- Rand’s rock-drilling division was...