ORG 535 Wk 5 – Practice: HRM Strategy

HRM–Strategy Linkage

The goal of this activity is to understand the linkages between HRM and strategy formulation

This activity is important because a disconnect between strategy formulation and strategy implementation can be a contributing factor to past strategic failures, and how an optimal strategy can be created.

A strategy is only as good as its implementation, and the success of strategy implementation often falls on the ability of a company’s human resources department to make plans a reality. However, this does not mean that HRM is only relevant at the strategy implementation stage; for many companies, linkages between HRM and strategic management can guide strategy formulation so that the optimal strategy can be created. The following scenario walks you through a manager’s decision-making process as she creates a strategy for determining the extent to which linkages should exist between her company’s HRM and strategic management process.

Read the following case and answer the questions that follow.

Sandra is an HR executive for her company and has been put in charge of overseeing a major strategic shift for her organization. This is the third such change in strategic direction in the past five years, and it is “make or break” time for her company. The company CEO believes that the disconnect between strategy formulation and strategy implementation was a major contributing factor to past failures. Specifically, the past two strategic choices did not reflect the actual capabilities and strengths of the people in the organization. Based on lessons learned from past failures, Sandra needs to change the company’s strategic approach.

Preventing Job Withdrawal

Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal.

In this exercise, please read the following mini-case and answer the questions that follow.

Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of her performance. This led to most of them (including her immediate boss) becoming extremely critical and less than friendly with her. When this began to happen, Michelle reminded herself that her position at Battelle was just a job. The most important aspects of her life were her family and her love for outdoor activities including hiking and skiing. Every chance she got, Michelle updated her resume and searched websites like Monster.com and CareerBuilder.com for opportunities elsewhere that would allow her to quit her current job. In the meantime, she found herself constantly showing up late for work and taking a day or two off every other week.

Michelle had wanted to voice her concerns, but since her manager was part of the problem, she did not know whom to speak to about her issues. She eventually set up a meeting with her boss’s boss, where she was able to air her grievances. He was supportive and told her he understood her concerns. Since he did not want her to leave the company, he decided to find a position in another group that Michelle could apply for, and hopefully obtain, through an internal transfer.

The series of behaviors that Michelle demonstrated to avoid her job suggests that she was experiencing