Stonehouse et al. (2004)

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Strategic HRM

"Probably the most important determinant of the success of global strategy is the leadership and management of a transnational's human resources"

People are very important to the success of a firm and so they need to be used as effectively as possible. The HR strategy needs to be aligned with the corporate strategy, particularly if the business is globalised.

According to Walker (1992), an HR manager:

1. Defines opportunities for overcoming barriers to achievement
2. Encourages new thinking
3. Tests management commitment for actions
4. Instils a sense of urgency and commitment to action in people
5. Establishes long-term courses of action over 2-3 years
6. Provides strategic focus for managers and to develop their talent

Anthony (1993) identified 6 features of HR strategy:

1. Recognition of the impact of the external environment
2. Recognition of the impact of competition and the dynamics of the labour market
3. Long-range focus (3-5 years)
4. Choice and decision-making focus - decisions which define the direction of the firm
5. Consideration of all personnel
6. Integration with corporate strategy and functional strategies - HR needs to be fully integrated into the firm and be aware that they each affect each the other

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