Strategic Integration
HRM strategies should be integrated with corporate or business strategies. Miller (1989) believes that for this to happen, initiatives in HRM must be consistent with those in other functions and consistent with an analysis of the product-market situation. There must be a fit between HR strategy and the rest of the organisation. Therefore, the HR strategy is influenced by many organisational factors.
Business Change
Changes may involve takeovers and mergers, which may bring in a new management philosophy, corporate culture and style Old values need to be replaced by new ones Staffing policies can be different in many ways, eg job descriptions, working practices, shift patterns, skills needed, welfare benefits
Location of Operations
Moving operations means moving the workforce or making them redundant and recruiting new staff It could involve opening new branches (eg, shops) Choice of location may be influenced by availability of potential skilled workforce, government grants, local labour force costs, market opportunities in the area
Impact of Technology
Usually more efficient and cheaper than labour In some industries has involved wide scale redundancies (eg News International) Trade unions often resist requires consultation Involves retraining staff
Business Competition
Often means bringing down prices but also consistently innovating products and services May involve introducing excellence strategies in service industries, with implications for recruitment and selection, development and performance management (see BGS case) In manufacturing, will involve employing the best skilled staff and establishing R&D department Can involve moving to cheaper labour areas (eg, call centres of bank)
Employee Development
Government has an influence standards in schools, support for apprenticeship training, etc Employee development strategies of competitors may have to be copied to attract staff Sound employee development plan is an integral part of the workforce plan