Stonehouse et al. (2004)

Management > Global Strategic Management > Lectures > Independent Research > Stonehouse et al. > Strategic HRM > Problems

Problems

There are problems with integrating HRM with global and transnational strategies:

1. The firm has multiple business strategies (especially if the firm operates in different markets), so a different HRM strategy might be needed for each. For example, in Europe organisational autonomy is more restrictive than the US, due to factors such as culture and legislation, trade unions and a controlled labour market
2. If the business strategy changes, then so does the HR strategy, "as it involves the internal structure and culture of the organisation"
3. HRM is qualitative, so it is not easy to prove its effectiveness on the performance of the organisation
4. HRM is long-term and large scale, but easily subverted. It cannot be a quick-fix job, as this undermines the culture of the firm

It must be remembered that business strategy, HRM and HR practice are affected by and interact with the external environment.