Role of HRM in Strategy Formulation
1- Administrative Linkage - lowest level of integration: Focus only on day-to-day activities.
2- One-Way Linkage: Firm's strategic planning function develops the strategy plan and then informs the HRM function of plan then HRM design systems and/or programs that implement strategic plan.
3- Two-Way Linkage: allows consideration of HR issues during the strategy formulation process. integration in 3 sequential steps: strategic planning inform HRM function of the strategies → HR executives analyze the HR implication of strategies & present them to strategic group → after strategic group decision, strategy plan will be passed to HR to implement.
4- Integrative Linkage: based on continuing rather than sequential interaction - HR executive is an integral member of the senior management team - HR function built right into both strategy formulation and implementation.