Week 1 Discussion/Human Resource Strategy.pdf

Week 1 Discussion/Human Resource Strategy.pdf

www.ccsenet.org/ijbm International Journal of Business and Management Vol. 6, No. 8; August 2011

ISSN 1833-3850 E-ISSN 1833-8119 280

Human Resource Strategy: A Tool of Managing Change for Organizational Excellence

Dr. Muna Kalyani

Sr. Lecturer, P.G. Department of Business Administration, Utkal Unviersity Bhubaneswar 751004, Odisha, India

Tel: 91-986-115-5206 E-mail: dr.munakalyani@yahoo.com

Mahima Prakashan Sahoo Prof. in Management, Synergy Institute of Engineering & Technology

Dhenkanal, Odisha, India E-mail: mpsahoo@gmail.com

Received: February 9, 2011 Accepted: March 17, 2011 doi:10.5539/ijbm.v6n8p280 Abstract Organizational excellence is at a crossroads today. The drastic change in the business scenario call for a speedy transformation of mission, vision, core values, core competence, management style, policy framework, management system, structures, process, renewal mechanism etc. of organization. Any change program would revolve around people – changing their mind set, behaviour and motivational level. Human resource (HR) strategy can play an important role in helping organizations achieve change. HR has always been central to organizations, to-day it has taken on an even more central role in building a firm’s competitive advantage. Success increasingly depends on “people- embodied know-how”. Thus, includes the knowledge, skills, and abilities imbedded in an organization’s member. In fact, the key to a firm’s success is based on establishing a set of core competencies – integrated knowledge sets within an organization that distinguishes it from its competitors and deliver values to customers. Globalised economy has resulted in new business concerns, where future and success depends on how well change is managed. The dynamic of change becomes one of the central facets of any business where the role, function and process of HR must be redefined in the context of change. HR Strategies and practices explain how to manage the transition smoothly, rapidly and successfully and make the organization competitive always. Competitiveness is the best parameter which determines the survival of enterprises and organizational excellence in this scenario. Keywords: Strategic change management, Turnaround tool, Transition management 1. Introduction Organization can rarely stand still for long. In highly competitive environments, where competition is global and innovation is continuous, change has become a core competency of organization. We live in an age of transition. One of the few things of real permanent in our world is change. It has become an inescapable fact of life; a fundamental aspect of historical evolution, its pace is ever accelerating at an exponential rate, if a business remains where it is, the disconnect will soon become an unbridgeable gap. 1.1 Human Resource (HR) Organization have come to realize, over the years, that improving technology and cutting costs, enhance performance only up to a point. To move beyond that point, the organization’s people are its most important resource. In the end, everything on organization does depend on people. Low cost of high quality cars like Toyota and Saturns is not just a product of sophisticated automated machines. Instead, these are the result of committed human resource all working hard to produce the best cars at the lowest possible cost (Dessler, 2002). HR – an intellectual asset – the sum total of the knowledge, skills and competencies that an organization processes and channelizes for sustained organizational excellence. Excellence is surpassing on outstanding achievement, achievable by the use of HR strategy as tool. The future and success of every organization depends on how well manager handle change. Both success and growth serve as the means for managing change. Increased competition, high customer requirements of quality, innovation, variety and responsiveness and technological progress contribute to change in to-day’s business. These standards often separate the winner from the losers in today’s competitive world. Managing this is a difficult process, but indeed essential. Organization can excel and achieve sustained organizational excellence through HR, if they are able to meet the following criteria.

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The resources must be of value: HR a source of organizational excellence when they improve the efficiency or effectiveness of the company. Value is increased when employees find ways to decrease costs, provide something unique to customers, or some combination of the two. Empowerment programs, total quality initiatives, and continuous improvement efforts of companies are intentionally designed to increase the value. The resources must be rare: HR a source of achieving organizational excellence when their knowledge, skills and abilities are not equally available to competitors. Organizations invest a great deal to hire and train the best and brightest employees in order to gain advantage over their competitors. The resources must be difficult to imitate: HR, a source of achieving organizational excellence when its capabilities and contributions cannot be copied by others. Creating a unique culture through teamwork is difficult to imitate. The resources must be organized: HR a source of organizational excellence when their talents are combined and deployed to work on new assignments at a moment’s notice. Teamwork and cooperation are two other pervasive methods for ensuring ‘an organized way of achieving excellence’. The resources must be committed to deliver: HR a source of building commitment, creating a synthesis of employees and employers goals so that employees want to do their jobs as if they own the company – takes a multipronged effort, in which HR plays the central role in achieving organizational excellence. The resource must be responsive to market: Meeting customer expectation is essential for any organization. In addition to focusing on international issues, HR must also meet customer requirements of quality, innovation, variety and responsiveness. These standards often separate the winners from the losers in today’s competitive world. How well does a company understand its customer’s needs? How fast can it develop and get a new product to market? How effectively has it responded to special concerns? These standards require organizations to constantly align their processes with customer needs to enhance organizational excellence. The resources must be strategic: HR expenditures are now viewed as a strategic investment rather than sample a cost to be minimized because skills, knowledge and abilities are among the must distinctive and renewable resources upon which a company can draw their strategic advantage for greater excellence. Strategies increasingly depend on strengthening organizational responsiveness and on building committed work teams, and these put in a central role. In a fast changing globally competitive and quality oriented industrial environment, its often the firm’s HR-who provide the organizational excellence. 1.1.1 Human Resource Strategy With the changing dynamics, the HR functions becoming more strategic in nature, there is greater need for HR strategy. HR strategy means accepting the HR function as a strategic partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities such as recruiting, retaining, motivating, rotating and rewarding personnel. Strategy formulation is concerned with making decisions with regard to defining the organization’s vision and mission, establishing long and short range objectives to achieve the organization’s vision and selecting the strategy to be used in achieving the organization’s objectives. Strategy implementation is concerned with aligning the organization structure, systems and processes with the chosen strategy. It involves making decisions with regard to matching strategy and organizational structure and providing organizational leadership pertinent to the strategy and monitoring the effectiveness of the strategy in achieving organization’s objectives. Implementing change of strategic dimensions is likely to involve persuading employees to make changes in their working styles and methods. HR strategy greatly recognizes HR’s partnership role in the strategizing process to achieve organizational excellence in all respects through a highly committed and competent workforce, preferably in a non-union environment. HR strategy as a tool for organizational excellence – leads to new order of things, a change in the organizations HR functions, structure, systems and the overall attitudes of people. It triggers and sets into motion a cycle of continuous and dynamic change. It propels change in all aspects of the HR outlook, systems, beliefs, structure and expectation of business and serves the purpose of aligning the HR functions with the business functions. The HR strategy is interacting with business strategy lead to a movement in the organizations portion and perspective through a domino effect. A change analysis directs the HR strategy formulation and execution to incorporate the appropriate processes in tune with change. That is why it is said, HR strategy is dynamic strategy, a strategy where each year the evolution cycle needs to be repeated or may be after a few years burnt down to look at things a fresh. 1.1.1.1 HR and Corporate Strategy The most striking change in HR’s role is its growing importance in developing and implementing strategy. Traditionally strategy – the company’s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage was a job primarily done for the company. To-day things are different. Strategies increasingly depend on strengthening organizational responsiveness and building committed work team, and these put HR in a central role. In a fast changing globally competitive and

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quality oriented industrial environment, it’s often the firm’s employees themselves- it’s human resources- who provide the competitive key. It is, thus, now increasingly common to involve HR in the earliest stages of developing and implementing the firm’s strategic plan, rather than letting HR just react to it. Thus, HR’s strategic role can play a pivotal role to meet HR challenges for today’s and future’s managers. It differentiates itself from its competitors by offering superior customer service, high quality product with better features and guaranteed on fine deliveries. It is the people who are behind every success. Machines do not have new ideas, solve problems, or grasp opportunities. Only people who are involved and thinking can make a difference. Every auto plant across the world has basically the same machinery. But how people are utilized and involved varies widely from one company to another. 1.1.1.1.1 Strategic Role of HR to Meet the Challenges A HR strategy refers to a firm’s deliberate use of human resources to help it gain or maintain an edge against its competitors in the market place (Butler, J.E., Ferris, G.R. and Napier, N.K. 1991). A strategy is a course of action chosen with a view to achieve certain objectives. HR’s primary objectives are to be sensitive to the changes and challenges. Globalization has resulted in new business concerns that focus on customer satisfaction, quality, cost-consciousness, restructuring and downsizing, outsourcing, instituting pay-performance plan, reducing health care costs, retraining employees and other challenges. Globalization has brought in a lot of opportunities and challenges for the corporate sector. Most corporations are required to operate in global markets and are therefore required to be of world class in their products, services and approach. Even if a corporation decides to operate in local markets, it has to face global competition due to opening up of markets and hence can not remain a passive local player. The corporation has to think globally in order to service competition. All HR strategies should be aligned with corporate business strategies and plans. No matter what the specific strategy of an organization is, in a global economy organizations can not escape the reality of addressing the challenges and issues and to-day it is a central responsibility of HR strategy. 2. HR & Strategic Business Planning (SBP) SBP is an important tool for projecting the long-term business goals of a business. The SBP process is a detailed process in which the nature of the business is considered and appropriately projected; it is a method through which future competitiveness is planned and forecast. Resources, competencies, technological capacities, product lines, market share and position and financial capital are all given close consideration in strategic planning. The SBP process carries out a detailed analysis of the strengths, weaknesses, opportunities and threats. The strengths and weaknesses are internal factors, while opportunity and threat are external factors affecting a business. Different aspects of business such as product, market, finance, HR, technology etc. are studied in detailed based on which the short term and long term business plans, product differentiation, market segment, financial implications etc. are worked out. Besides focusing on market, product, finance and technology, focus on HR is one of the key aspects of the SBP process. It is only the proper management of employee assets that a business can fulfill its financial, products, marketing, sales and profit goals. A well-organized, comprehensive, SBP focusing on all aspects at all levels, can lead to high employee performance. SBP and HR strategy are integrative nature of business success is illustrated in Exhibit-1 SBP is a continuous process, business has to evolve its strategic business plans (SBPs) from time to time, learn to become competitive keeping in mind its capabilities. The capabilities of a business enable to gain an edge over its competitions. This capability is generated and developed by HR. For example, an organization wants to start a new business or expand the business of computer software then in that case it is inevitably essential to examine whether right kind of qualified and experienced software personnel are available or not. If yes, in what numbers and what kind? If all the other aspects of running a business are favorable but HR is not, the organization can not develop or maintain a growth path. Growth is integrated with HR. HR helps in preparing a sound SBP vision and value, structure and roles along with recruitment and selection, training and development, communications and concerns etc. This potential impact of HR on business environment consolidates its unique capabilities which encase its competitive advantage continually. It works towards strengthening its value addition through its competitive advantage over others. It is also necessary for a business to define itself from the impact of a continually changing environment. 3. A Model of HR Strategy as Competitive Advantages in Managing Change The model is evolved through literature review of management innovations such as Quality Circle, Quality of Work Life, Total Quality Management, HR Reengineering, Kaizen and HR Six Sigma. All these align immensely the HR strategic role with business processes to achieve dramatic improvement in cost, quality, service and speed, and often separate the winners from the losers in today’s competitive world. How well does a company understand its customers’ needs? How fast can it develop effectively has it responded to special concerns? “Better, faster, cheaper ……….” These standards require organization to constantly align and rapidly respond to their processes with customer needs and competitor’s moves. This model is an eight steps sequential process integrating alternative HR practices with business processes to provide a competitive edge to the organization in the changing scenario. It is illustrated in Exhibit-2.

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Step One: HR practices are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies and commitment are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. Today, HR is heavily involved in the execution of most firms downsizing and restructuring strategies by out placing employees, flexible pay structure, contract and leasing employees, employee reference system, flexible time management, cost reduction, retraining employees etc these enrich firms’ ability to create a highly committed, competent and customer oriented workforce. Step Two: The environmental scanning process provides inputs for the designing, developing and managing of the HR practices. It is a cumulative and consolidated process calls for facilitating the analysis of the organization’s internal and external environment. It needs to have a way to deal with threats and opportunities, with strengths and weakness a way to help to determine how to be winners. The external environment is the interplay of social, economical, political and technological forces, whereas the internal environment is the delicate balancing culture, structure and the HR processes and systems. Step Three: Vision drives an organization. The HR vision is the driving force which provides a long-term direction towards building the competencies and commitment of employees to remain competitive in the business. HR vision is the transformation of beliefs to goals, culture to strategy, dreams to reality. It is the essence of organizational life. Step Four: Once the vision is in place, the analysis and assessment of external of internal parameters and changes taking place in the environment are identified, HR should be audited to locate weak points and identify which skills need to be upgraded. All HR audits are to be viewed as proactive tools of identifying the present state of being, and the flaws and gaps in the processes marching ahead. While exploring and investigating the current HR practice, it enables to provide the information, how to bridge the flaws and gaps. The other resource audit is a stock-taking process of various dimensions of resources such as financial, physical, marketing, infrastructure etc. These give a better alignment of HR with other resources in the total development. This alignment can be used to assess and benchmark the maturity level of HR functions in organization and make it more business driven. Step Five: Strategic planning is essentially for organizational success, and its key function is to help the organization achieve its goals by effectively organizing its people. Despite the fact that most organizations recognize the importance of planning and plan continuously, many of them struggle to achieve their goal, largely because of a failure to link business plans with the way in which people are managed. The adequate quality and quantity of HR available at a given situation to run a business is very crucial. HR makes thinks happen and hence should be a focal point within the process of defining business strategy. It is necessary to link HR issues with SBP. While formulating SBP of the organization it is essential to diagnose, define and consolidate all the HR issues and integrate the results into the main HR strategy. Step Six: Defining objectives is a planning for the fulfillment of the HR vision which is a turning point for success. The objectives provide a sustained direction to an organization’s HR function and works as an important guide to HR strategy formulation by stating the long-term views of the organization towards its human resources. Once the long-term views are established, the same need to be further described in terms of what is required for the fulfillment of the HR vision. Objectives are the final outcome, which the HR function seeks to achieve through its existence and operation. Establishment, accomplishment and review of objectives are the essence of industrial success. Step Seven: Whereas an objective denotes what is to be achieved, an action plan refers to the means for the accomplishment of the objective. The focus in action planning is on “how” the objective is to be achieved. An action plan provides a vital link between the ends and means or the objectives and activities. It specifies the methods on activities required to achieve an objective. It describes what is to be done, how, when and by whom. Action planning also increases the manager’s confidence about the feasibility of an objective and clarifies accountability and contributions of different managers. Without an appropriate action plan a statement of objective is merely an aspiration. Step Eight: HR audit is a comprehensive evaluation of the current HR strategies, styles and culture, structures, systems, skills and competencies in the context of the short and long-term business plans of an industry. It provides inputs required to assess all aspects of competitiveness and assign the HR score for the industry on a number of dimensions. Its main objective is to align the HR function with business goals or to create a business driven HR function. Since it is comprehensive, it uses a variety of methods including interviews, observation, secondary data analysis, workshops. It has to be business-driven and comprehensive. There are numerous reasons why industries go for periodically HR audit, the main ones being growth and diversification, promoting professionalism, improving HR strategies and enhancing the direct contribution of HR to business. This audit has a tremendous impact in business in areas of strategic planning, role clarify, streamlining practices, better policies, top management styles, improvement in HR systems, focus on competence, culture and TQM interventions. Quality provides HR audit is vital in identifying the reasons for success or failure and in developing a definite plan of future action. This audit also throws up the inadequate of organizational structure and provides guidelines

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for the modification of management practices and policies with a view to reinforcing the desired behaviour towards the desired outcome which is very crucial for success in the competitive world. 4. Findings and Implications The main findings and implications of this article are, use of Strategic Business Planning (SBP) and A Model of HR strategy to take Competitive Advantages in changing business scenario while managing change. These are as follows:

1) The strategic business plans are important not just on a particular occasion, but on an ongoing basis. It should be a process and not an event.

2) To create the right kind of market position requires a continuous process of developing the strategic options, fully exploiting the HR potential, regularly assessing and reassessing the options and finally choosing the bust.

3) It is useless to talk big about HR issues without linking them to the SBPs. While formulating the SBPs of the business groups it is essential to diagnose, define and consolidate all the HR issues and integrate the results into the main HR strategy.

4) Human resources are the most precious resources of an organization. Strategic management of HR is the need of the hour.

5) The success of the HR strategy lies in its effective links with the business strategy. The best way of aligning and identifying the best fit of the set of HR systems with an organization’s growth is to attempt to fit the HR systems, particularly those related to recruitment and selection, training and development, appraisal and rewards with the growth stage of the organization. Their integration can be done either by considering the growth life cycle of the organization or the state of the system desired in line to the business strategy. Typically the organization’s life cycle is characterized by four stages start-up, growth, maturity and decline. To each stage a particular configuration of HR systems are deemed appropriate. For example, in terms of rewards a start-up organization should meet or exceed the labour market rate to attract needed talent.

6) The fulfillment of the requirement of people in terms of culture, motivation and satisfying work would perpetuate a feeling of belongingness and commitment.

7) A conducive environment characterized by a healthy climate, value of openness, proactive, trust, mutuality and collaboration is essential for developing human resources.

8) The HR function plans, monitors, coordinates, processes that are beneficial both to the individual and to the organization.

9) Human resources are a large reservoir of potential and can be strategically developed, utilized, and enlarged to a great extent for competitiveness and versatile organization excellence.

5. Conclusion Industries need to align their HR strategy with their business goals in order to face the increasingly competitive environment. In the current knowledge era Human Potential Management (HPM) is considered to be the best panacea to address the problems of business competitiveness. Human resources have always been central to organizations, but their strategic importance is growing in today’s knowledge-based industries. An organization’s success increasingly depends on the knowledge, skills and abilities of employees, particularly as they help establish a set of core competencies that distinguish an organization from its competitors. When employees’ talents are valuable, rare, difficult to imitate, and organized, an organization can achieve a sustained competitive advantage through people. References Aggarwal, vaneeta & Srinivasan. (2008). Organizatioal Learning: A Camparative Study of Indian and Multinatioal Organizations. Journal of Organizational behavior, VII(2), April:39-45. Asha, S. (2008). Organizational Climate and Employee Health. Journal of Organizational Behavior, VII(1), Journey:62-65. Breakelmans, William, Jonsson, Berth. (1976). The Diffusion of work Design Change Case. Columbia Journal of world Business, pp-28-29. Chanda A., and Kabre S. (2000). Human Resource Strategy: Architecture for Change. Response Book, Sage Publications, New Delhi, pp 146,147. D.A. Nadler and M.S. Gerstein. (1992). Designing High Performance Work System. pp 195, 196. Edward C. Gubman. (1998). The Talent Solution Aligning Strategy and People to Achieve Extraordinary Results. New York McGraw Hill Professional Publishing, pp 34-41. Farrell Dand Greenberu E. (2005). The Economic Impact of an Ageing Japan. The Makinsey Quarterly.

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John P. Kotter. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review, (March-April). J. P Feffer. (1994). Competitive Advantage through People. Boston, Harward Business School Press, 1994. Megginson LC. (1967). Personnel: A behavioral Approach to Administration. Homewood, Illnois Richard D Iruion Inc., 87 – 92. Michael Porter. (1985). Competitive Advantage. New York: The Free Press, 1985. Prahalad C.K., and G. Hamel. (1990). The Care Competence of the Corporation. Harvard Business Review, pp 79-91. Santra, Tirumala & Giri, Vijai N. (2008). Effect of Organizational Structure on Organizational Effectiveness through Face-to-Face Communication. Journal of Organizational Behavior, VII(2), April: 28-38. Vani, Sandhy & Srinivas, D. (2008). Organizational Effectiveness with Uniqueness: The Signature Experience. HRM Review, October: 37-40.

Exhibit-1. Elements of SBP process and HR strategic role for a business success

Identity capabilities of business

Encash on value additon

Learn to beat completion through the capabilities

of business

Strength the value Addition process

Aim at value additon

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Step One Step Two Step Three Step Four Step Five Step Six Step Seven Step Eight

Exhibit-2. A Model of HR strategy to take Competitive Advantages in managing change

Acquisition, Development, Motivation and Maintenance of

HR

Scan the external environment

Scan the internal environment

Build the HR Vision

Audit HR & other Resources

Align HR with other strategic Business Plans

Define Objectives

Integrate action plans: A Path towards Results

Periodically HR Audit

Fe ed

B ac

k

Week 1 Discussion/Links Between Business Strategy and Human Resource.pdf

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201124© 2011 IUP. All Rights Reserved.

Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks:

An Empirical Study

This study examines adoption of and alignment between business strategy and Human Resource Management (HRM) strategy in the Indian banking sector. It investigates whether or not a fit between a bank’s business strategy and its HRM strategy is associated with higher performance. For this purpose business strategy typology developed by ‘Miles and Snow’ was used, and ‘Bird and Beechlers’ human resource strategy, which includes accumulator, facilitator, and utilizer was used. The results of the present study reveal that a vast majority of the banks are not even found to be following a specific typology of either the HRM strategy or the business strategy.

Sunil Kumari*, Nisha Bamel** and Umesh Kumar***

* Deceased. She was then working as Associate Professor, Department of Commerce, Choudhary Devi Lal University, Sirsa, Haryana, India.

** Research Scholar, Department of Management Studies, BPS Women University, Khanpur Kalan, India. E-mail: nishabamel@gmail.com

*** Research Scholar (HRM and OB), Department of Management Studies, Indian Institute of Technology, Roorkee 247667, Uttarakhand, India; and is the corresponding author. E-mail: umeshbamel@gmail.com

Introduction With the advent of liberalization in India, the corporate world has been confronted with two major challenges: foreign competition and adjusting to the rapidly changing global business environment. This situation calls for organizational transformation at the corporate level. In this process of transformation, human capital of an organization can play a crucial role as it has become one of the most valuable resources in organizations (Pfeffer, 1994). Now it has been widely accepted that human capital possibly enhances the competitive advantage of organizations in the wave of hastened competition (Reich, 1990; and Stewart, 1990).

In the new millennium, the changing global scenario is set to unravel a major transformation which would have definite implications on corporate performance. The quest for improvement would, on the one hand, underscore the importance of physical capital accumulation for industrial development while on the other, the challenges of improving productivity and efficiency would reinforce the importance of human capital in accelerating corporate growth. In such a scenario, firms would inter alia endeavor to achieve excellence through optimum utilization of human capital. Human Resources (HR) constitute the most significant asset in an organization and this is more so in the case of a service organization like a bank. In fact, banks are basically human organizations requiring no other input (in the form of raw material) to produce the output (in the form of services). Thus, humans are the sole resource (in the form of inputs) in case of a bank. In other words, the quality of services produced by a bank is a function of or dependent upon solely the HR. Thus, the principal task before bank management

25Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

is considered to be utilization of its HR to the optimum level for securing better results. Resultantly, banks, as any other service organization, are obliged to pay greater attention to the effective and optimum utilization of their HR. This calls for aligning the HR strategy with the business goals at both the strategic and practical levels in order to face the twin challenges unleashed by the environmental change since the beginning of the previous decade. Appropriate HR strategies, policies and practices are all required to achieve organizational goals. This necessitates that the banks should decide the matters relating to the Human Resource Management (HRM) strategically rather than focusing on HR practices in seclusion (Liao, 2004). Contingency theory supports this association of business strategy and HR practices and concludes that HR practices are guided by business strategy. Researches also provide evidences that the organizations that associate business strategy and HR practices accomplish better performance than the companies that do not (Bird and Beechler, 1995; Huselid, 1995; MacDuffie, 1995; Delery and Doty, 1996; and Huang, 2001). In this paper, we focus on the relationship between business strategy and HRM strategy and the impact this relationship has on performance in the Indian banking sector. The rest of the paper is structured as follows: the next section deals with a brief literature review followed by discussion on methodology adopted. The next section discusses data analysis and results. Further a discussion and conclusion of the study, followed by direction for future research is presented in the final section.

Literature Review Each firm or bank tailors its particular strategy to fit its unique distinctive competencies, needs and circumstances. Business strategy can be understood as an integrated and coordinated set of obligations and events developed to take advantage of core competencies and to increase competitive advantage (Liao, 2004). These strategies are designed to gain on the organizational resources (Dess et al., 1995), and to guide the future course of actions which are directed to achieve end results (Slevin and Covin, 1997). Appropriate development and implementation of business strategy provides a firm with a clear image of its rival’s and self position in the business (Porter, 1985) and also raises its competitive advantage. Miles and Snow (1984) classified strategy into typology of prospector, defender and analyzer strategies, while Porter (1985) classified strategies into: cost leadership, differentiation and focus strategy. Schuler and Jackson (1987) further elaborated the research and tagged a little different from Porter to classify business strategy into three types: (1) cost-reduction, (2) innovation, and (3) quality enhancement. Many scholars employed varied approaches; this study is based on the Miles and Snow (1984) typology of business strategy. We chose this because this typology appears to fit well with our objective of the study. The prospector pursues market expansion and innovation, the defender strives to maintain market position and the analyzer seeks more combination of market expansion/innovation while endeavoring to preserve stability in the existing market.

Many organizations view HR department as an administrative function and ignore its importance as strategic partner. Such organizations are less likely to expect association of HRM practices and business strategy that increase bottom line business

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201126

results (Huselid et al., 1997). HRM practitioners have been raising their demand to align HRM practices with specific business strategies to enhance organizational performance (Miles and Snow, 1984; Porter, 1985; Schuler and Jackson, 1987; Schuler, 1989; and Van Eynde and Tucker, 1997). Scholars have also put their efforts in this direction to develop a formal HR strategy statement which provides a link between business strategy and HRM practices (Nininger, 1982; Rothwell and Kazanas, 1989; Sibson, 1992; and Storey, 1994).

Youndt and Snell (2004) defined six dimensions of HR practices—acquisition, development, egalitarianism, cooperation, documentation and information. Bird and Beechler (1995) in their study identified three HR strategies: accumulator, facilitator and utilizer. Delery and Doty (1996) in their study depicted that profit sharing, result-oriented appraisals, employment security, participation and internal career opportunities affect return on assets and return on equity in positive manner. Delaney and Huselid (1996) further enrich the list by adding findings of their empirical research on 590 firms that HRM practices, i.e., staffing selectivity, training, incentive compensation and promotion opportunities, enhance organizational performance. In another study, Koys (2000) identified employee development, recruiting/staffing, compensation, quality HR programs and client satisfaction as important HRM practices and argued that these contents improved the quality and profitability of business.

Wright and McMahan (1992) stated that in order to generate higher business outcomes, a high degree of fit must exist both between HR practices and organizational strategies. This internal fit, in the words of Doty and Glick (1994), maximizes the external fit of organization and its human capital which further creates synergistic effects (Delery and Doty, 1996). Many studies hold this fact true and rational; Martell and Carroll (1995) examined 115 business units and came up with the results that half of them linked business strategy with HRM strategy. Miles and Snow (1978) argued that their typology does not imply one best business strategy; any of the three strategy types can lead to higher performance.

On careful examination, the literature reveals that there is a positive association between the business strategy and HRM practices which further enable an organization to gain on its available capital and increase its competitive advantage.

Research Methodology In this study, HRM and business strategies of the ten selected banks are analyzed (through a set of indicators developed for this purpose). This will form the base of analyzing the match/mismatch between HRM and business strategies and the impact of such a match/ mismatch on their performance.

Study Design Considering the research problem in hand, it is obvious that the universe for the present study is the Indian banking industry. However, the Indian banking industry comprises of

27Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

several categories such as the public sector banks, old private banks (which came into existence prior to the liberalization process initiated in 1991), the new private sector banks, the foreign banks and the regional rural banks. But the present study is confined to the first two categories, viz., the public sector banks and the old private banks (hereinafter called ‘private banks’). Out of the above said two categories of banks, ten banks in all were chosen purposely. The selection of the banks was made on the basis of three factors taken together: (1) the cumulative effect of the geographical location of the banks, (2) size of the banks, and (3) their performance. Of the selected ten banks, seven are public sector banks and three are private banks. The ten selected banks are:

OBC : Oriental Bank of Commerce

CB : Corporation Bank

PSB : Punjab & Sind Bank

AB : Andhra Bank

IB : Indian Bank

UCO : UCO Bank

SBP : State Bank of Patiala

BR : Bank of Rajasthan Ltd.

J&K : Jammu & Kashmir Bank Ltd.

LVB : Lakshmi Vilas Bank Ltd.

Both the primary and secondary data were utilized for surveying the type of HR and the business strategies adopted by the selected banks. The primary data collected with the help of structured questionnaire (see Appendix) containing 12 questions was administered to the top management (General Manager/Deputy General Manager) of all the ten banks. The questionnaire contained a set of questions, viz., those related to HRM and business strategies pursued by the banks under study. The secondary data were collected from the published material available in different bank offices; staff training colleges; Indian Institute of Bankers, Mumbai; National Institute of Bank Management, Pune; Indian Banks Association, Mumbai; and trade union leaders. Besides this, data were also procured from the published journals and newsletters of the Reserve Bank of India, etc.

Criterion for Determination of Strategy Three typologies each of the HRM strategy (Accumulator, Facilitator and Utilizer) and business strategy (Defender, Analyzer and Prospector) were adopted for the present study. With the help of the questionnaire (containing 12 questions), it was ascertained which of the banks adopted which specific typology of HRM strategy and business strategy. Each of these 12 items was allotted one credit point and in this a total of 12 credit points— six for the HRM strategy and six for the business strategy—were allotted. Hence, the score of a bank on any typology of HRM or business strategy might range from 0 to 6. The median value of these numbers was calculated which turned out to be 3.5. However, since

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201128

in our scoring the outcomes are only in whole numbers, therefore, obviously, a minimum of 4 (rather than 3.5) credits have to be taken into consideration. Thus, in the process of awarding credits or credit points for a particular typology of the two strategies, those banks which scored 4 credits or above for a particular typology of HRM strategy or of business strategy were regarded to have adopted that particular typology of the respective strategy. Thus, for instance, if a particular bank has scored at least four credits for accumulator typology of HRM strategy then the bank is regarded to have adopted the accumulator HRM strategy. Banks having shown preference in less than four out of six credit ratings have been ignored and regarded as having not adopted any specific typology of strategy.

Analysis and Results

Human Resources Strategy In this section, the HR strategy pursued by the ten selected banks have been analyzed with the help of a set of indicators. It is on the basis of this analysis that it will be determined which HR strategy—accumulator, facilitator, utilizer—is adopted by a particular bank. This section is divided into six subsections, each dealing with a separate indicator applied to examine the HR strategy pursued by the ten chosen banks.

Mode of Recruitment The analysis of data collected from all the studied ten banks revealed that in terms of procurement of personnel all the selected public sector banks as well as private banks are following the facilitator strategy of HRM. It shows that banks recruit from both internal and external sources of labor.

Job Security From the standpoint of job security, all the selected banks (public sector as well as private) are pursuing the accumulator strategy of HRM. In an accumulator HRM strategy, job security is high as there is long-term association of the employees with the organization. In utilizer HRM strategy, job security is low as the recruitment or selection is need or task- based. The job security is moderate in facilitator HRM strategy.

Performance Appraisal System The existence or otherwise of performance appraisal system in the selected banks has been studied at two levels, viz., at the managerial level and at the lower level. The seven public sector banks as well as the three private banks) have adopted the utilizer strategy. In utilizer HRM strategy, proper performance appraisal system is a must as selection is closely matching with the immediate task and reward is based on result, i.e., result-oriented approach.

Utilization of Manpower Results proved that a majority of the selected banks have adopted the accumulator strategy insofar as the utilization of manpower is concerned. Only one bank has adopted the facilitator strategy whereas no bank has adopted the utilizer strategy.

29Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

An accumulator HRM strategy is based on maximum involvement and skill execution. It attempts to build up the HR of an organization through the acquisition of personnel with large, latent potential and development of that latent potential over time in a manner consistent with the needs of the organization, while a facilitator HRM strategy is found on generating new knowledge and new knowledge creation. It seeks to develop the HR of the firm as effectively as possible through the acquisition of self-motivated personnel and encouragement and support to personnel to develop, on their own, the skills and knowledge which they, the employees, believe are important.

Average Tenure The average tenure of service in the selected banks has been studied at two levels, viz., at the managerial level and at the lower level. If the average tenure of service is taken into consideration, accumulator strategy is found to be applicable in all the public sector banks as well as the private banks as the average tenure is sufficiently high in the case of all these banks, both for the managerial cadres and the lower levels. In accumulator HRM strategy, the job security is high and this leads to high average tenure.

Training For measuring the performance of the selected banks with regard to providing training to their personnel, following threefold scale has been developed:

1. Those banks, which have provided training to more than 70% of their employees, have been placed in the category of ‘High’ performers.

2. Banks having provided training to more than 40% but less than 70% of their employees have been placed in the category of ‘Moderate’ performers.

3. Banks that have provided training to less than 40% of their employees have been termed as ‘Low’ performers.

From Table 1 it becomes clear that insofar as training is concerned, two banks (one public sector bank and one private bank) have adopted the accumulator strategy (high level of training), while three public sector banks and one private bank have adopted the facilitator strategy (moderate level of training). The remaining four banks (three public sector banks and a private bank) are found to be following the utilizer strategy (low level of training) of HRM.

The position of training provided to their employees (as obtained from the respondents) is shown in Table 1.

Based on the above analysis (Table 2), it is concluded that except two banks, no bank, whether public sector or private sector, has been found to be adopting any typologies of HRM strategy. If we jointly analyze, we come to the conclusion that most of the banks have adopted accumulator HR strategy as out of 60 maximum credit points there are 31 credit points under this category. Thus, the banks have the approach of long-term investment in HR. Only two banks namely J&K Bank Ltd. and Corporation Bank have adopted clear cut HRM strategy, the others have adopted all the typologies partially.

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201130

Table 1: Average Percentage of Employees Undergone Training

S. No. Banks Category Percentage Level

1. OBC 60 Moderate

2. CB 93 High

3. PSB Public 35 Low

4. AB Sector 51 Moderate

5. IB Banks 60 Moderate

6. UCO 32 Low

7. SBOP 38 Low

8. BR 30 Low

9. J&K Private 80 High

10. LVB Banks

55 Moderate

Table 2: Human Resource Management Strategy Followed by Banks Under Study

Banks Accumulator Facilitator Utilizer Total Strategy Strategy Strategy Credit

Points

Oriental Bank of Commerce 3 2 1 6

Corporation Bank 4 1 1 6

Punjab and Sind Bank 3 1 2 6

Andhra Bank 3 2 1 6

Indian Bank 3 2 1 6

UCO Bank 3 2 1 6

State Bank of Patiala 2 2 2 6

The Bank of Rajasthan Ltd. 3 1 2 6

The J&K Bank Ltd. 4 1 1 6

The Lakshmi Vilas Bank Ltd. 3 2 1 6

Total 31 16 13 60

Business Strategy Business strategy adopted by the selected banks, as envisaged by the respondents, has been analyzed with the help of certain indicators in the present section. This analysis will help in discovering as to which business strategy—Defender, Analyzer, Prospector— has been adopted by the banks under study. This section is divided into six subsections, each dealing with a separate indicator applied to examine the business strategy pursued by the ten selected banks.

31Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

Market Strategy There are two significant yet related components of market strategy of a firm, viz., market segment and market share. While the former pertains to the clientele to which the firm caters to, the latter is the quantum of business done by the firm in relation to the other competitors. These two components of the market strategy of the banks under study have been dealt with below.

Market Segment: Regarding the market segment, a bank may be having three options and each one is a characteristic of a particular business strategy:

1. Concentrate on the existing market segment—Defender Business Strategy; 2. Develop new market segment—Prospector Business Strategy; or 3. Both, i.e., consolidate the existing market segment and simultaneously develop the

new market segment—Analyzer Business Strategy.

The respondents of selected banks have been asked to indicate their assessment about their concentration on the market segment. The responses are presented in Table 3.

Table 3: Market Segment

1. OBC X X 

2. CB X X 

3. PSB X X 

4. AB Public Sector Banks X X 

5. IB X X 

6. UCO X X 

7. SBOP X X 

8. BR  X X

9. J&K Private Banks X X 

10. LVB X X 

Total Score 1 0 9

S. No.

Banks Concentrate on the

Existing Market Segment

Develop New Market Segment

Category

Both (Concentrate

on the Existing and Develop the New)

From the results it becomes obvious that while the Bank of Rajasthan has been found to be adopting the defender business strategy, the remaining banks have adopted the analyzer business strategy.

Market Share: Table 4 shows that only one bank (the Bank of Rajasthan – a private bank) has regarded it better to concentrate on its existing market and thus has adopted the ‘Maintenance of Existing Market’. Six of the selected banks believe in moderate and steady growth while the remaining three rely on rapid growth in their market share. Of the six

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201132

Table 4: Market Share

1. OBC X  X

2. CB X X 

3. PSB X X 

4. AB Public Sector Banks X  X

5. IB X X 

6. UCO X  X

7. SBOP X  X

8. BR  X X

9. J&K Private Banks X  X

10. LVB X  X

Total Score 1 6 3

S. No.

Banks Maintenance of Existing Market

Share

Moderate and Steady GrowthCategory

Rapid Growth

Table 5: Control Mechanism

1. OBC X X 

2. CB X  X

3. PSB X X 

4. AB Public Sector Banks X X 

5. IB X  X

6. UCO X  X

7. SBOP X  X

8. BR  X X

9. J&K Private Banks  X X

10. LVB X  X

Total Score 2 5 3

S. No.

Banks Centralized DecentralizedCategory Combination of

Two

banks which believe in moderate and steady growth, four are public sector banks (Oriental Bank of Commerce, Andhra Bank, UCO Bank and State Bank of Patiala) and the remaining two are private banks (Jammu & Kashmir Bank and Lakshmi Vilas Bank). On the other hand, three of the banks that rely on rapid growth in market share are the public sector banks. These include the Corporation Bank, the Punjab & Sind Bank and the Indian Bank.

33Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

Control System

As is visible from Table 5, none of the chosen seven public sector banks have preferred to adopt the centralized control mechanism while there are two private banks, viz., Bank of Rajasthan and Jammu & Kashmir Bank that have adopted centralized control mechanism. The decentralized control mechanism has found favor with four of the selected seven public sector banks and one private bank. These include Corporation Bank, Indian Bank, UCO Bank and State Bank of Patiala (all public sector banks) and Lakshmi Vilas Bank (private bank). Three banks, viz., Oriental Bank of Commerce, Punjab & Sind Bank and Andhra Bank (all public sector banks) have preferred a combination of both the centralized and decentralized control mechanisms rather than leaning towards any one of the two mechanisms.

These findings make it obvious that insofar as the control mechanisms are concerned, two banks (both private) have adopted the defender business strategy, three (all public sector) have adopted the analyzer business strategy while five (which includes four public sector and one private) have adopted the prospector business strategy.

Environment and Business Strategy As per Table 6, among the selected public sector banks there is no bank which is relatively more internally focused. Of course, there is one private bank, viz., Lakshmi Vilas Bank which has shown more leaning towards its internal dynamics. In contrast to this, none of the selected banks (public sector as well as private banks) is found to be relatively more

Table 6: Environment and Business Strategy

1. OBC X X 

2. CB X X 

3. PSB X X 

4. AB Public Sector Banks X X 

5. IB X X 

6. UCO X X 

7. SBOP X X 

8. BR X X 

9. J&K Private Banks X X 

10. LVB  X X

Total Score 1 0 9

S. No.

Banks Exclusively Inter- nally

Focused

Exclusively Externally Focused

Category Both Internally and Externally

Focused

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201134

externally focused. In fact, a majority of the selected banks have been found to be both internally and externally focused. Thus, all the seven selected public sector banks, viz., Oriental Bank of Commerce, Corporation Bank, Punjab & Sind Bank, Andhra Bank, Indian Bank, UCO Bank and State Bank of Patiala, have been found to be both internally and externally focused. Similarly, two of the three private banks, viz., Bank of Rajasthan and Jammu & Kashmir Bank have also preferred the moderate philosophy thus giving almost equal weightage to both.

In terms of the relative focus on internal and external environment, it can be concluded that a majority of the banks have been found to be adopting the analyzer business strategy.

Degree of Structural Formalization

Table 7 reveals that three of the seven selected public sector banks (Corporation Bank, UCO Bank and State Bank of Patiala) have exhibited high degree of structural formalization. As against this no private bank has expressed its preference for high degree of formalization. The low degree of structural formalization has not been shown to be adopted by any of the selected public sector banks or even the private banks. In fact, a majority of the selected banks (seven of the ten banks) have preferred a moderate level of structural formalization (i.e., a midway avoiding the extremes). Thus, four of the seven chosen public sector banks (viz., Oriental Bank of Commerce, Punjab & Sind Bank, Andhra Bank and Indian Bank) have been found to be possessing moderate level of structural formalization. Further, all the three private banks have also been found to be having a moderate level of structural formalization (Table 7).

Table 7: Degree of Structural Formalization

1. OBC X  X

2. CB  X X

3. PSB X  X

4. AB Public Sector Banks X  X

5. IB X  X

6. UCO  X X

7. SBOP  X X

8. BR X  X

9. J&K Private Banks X  X

10. LVB X  X

Total Score 3 7 10

S. No.

Banks High ModerateCategory Low

35Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

This shows that regarding the degree or level of structural formalization, a majority of the selected banks have been found to be adopting the analyzer strategy.

Approaches Towards New Products The position regarding the approach of the selected banks towards introduction of new products in the market is shown in Table 8.

As is apparent from Table 8, the approach of none of the ten banks under study (both in the public sector as well as in the private sector) towards new products has been found to be ‘Low’ or ‘Very Low’. In fact, the attitude of a majority of the selected banks towards new products has been found to be ‘Moderate’ as two of the seven selected public sector banks (Oriental Bank of Commerce and Andhra Bank) preferred this sort of attitude towards new products. Further, among the private banks all the three preferred a ‘Moderate’ attitude towards the launching of new products in the market. Three public sector banks under study (Indian Bank, UCO Bank and State Bank of Patiala), however, showed a ‘High’ attitude towards introducing new products in the market. As against this, the ‘Very High’ attitude towards introduction and launching of new products in the market was shown by only two of the public sector banks, viz., Corporation Bank and Punjab & Sind Bank (Table 8).

From these findings it can be concluded that insofar as the introduction of new products in the market is concerned, a majority of the selected banks have been found to be adopting the analyzer strategy.

Based on the above analysis (Table 9), it is concluded that four public sector banks and one private sector bank have adopted analyzer business strategy. The remaining five banks have not adopted any typologies of business strategy. If we jointly analyze, we come to the conclusion that so far as business strategy is concerned, the studied banks have adopted

Table 8: Approach Towards New Products

1. OBC X X  X X

2. CB X X X X 

3. PSB X X X X 

4. AB Public Sector Banks X X  X X

5. IB X X X  X

6. UCO X X X  X

7. SBOP X X X  X

8. BR X X  X X

9. J&K Private Banks X X  X X

10. LVB X X  X X

Total Score 0 0 5 3 2

S. No. Banks Category Very Low Low Moderate High Very High

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201136

‘analyzer’ business strategy, implying that these banks have a conservative approach towards new products and market innovation.

Table 9: Business Strategy Followed by of Banks Under Study

Total Credit Points

Discussion and Conclusion As per its requirements, a firm may adopt any of the three typologies of HRM strategy, viz., accumulator, facilitator or utilizer (Bird and Beechler, 1995). Similarly, the business firms, in order to move in the desired direction with concerted efforts, also have to adopt a business strategy. Accordingly, to suit its purposes, the firm may adopt a defender, analyzer or prospector business strategy. But mere adoption of these two strategies is not enough; it is always desirable to have an incorporation of HRM strategy and the business strategy of the firm (Wright and Snell, 1998). It is advisable for a business firm to adopt a combination of either defender business strategy and accumulator HRM strategy, or to adopt analyzer business strategy and facilitator HRM strategy or to adopt prospector business strategy and utilizer HRM strategy. Experience stands witness to the fact that the firms with a match or fit between the different types of HR strategies and the business strategies usually have a higher profitability (Grant, 2002). Thus, it means that the two strategies ought to be congruent and if it is not so, i.e., if there is a mismatch between the two strategies, profitability of the firm is more likely to be affected adversely.

On the basis of the analysis of the data regarding the adoption of HRM strategy and business strategy followed by the selected banks, following observations have been made:

• The present study was woven around the basic theoretical premise that the banks adopting a fit between their HR and business strategies perform relatively better in comparison to those that do not. However, in the course of the study, it has been

Oriental Bank of Commerce 1 5 0 6

Corporation Bank 1 3 2 6

Punjab & Sind Bank 0 4 2 6

Andhra Bank 1 5 0 6

Indian Bank 0 3 3 6

UCO Bank 2 2 2 6

State Bank of Patiala 2 2 2 6

Bank of Rajasthan Ltd. 2 4 0 6

J&K Bank Ltd. 2 4 0 6

Lakshmi Vilas Bank Ltd. 2 3 1 6

Total 13 35 12 60

Banks

Defender Business Strategy

Analyzer Business Strategy

Prospector Business Strategy

37Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

found that only five banks are found to be following a specific typology of either the HRM strategy or the business strategy. There was only one bank, viz., the Jammu & Kashmir Bank, which was following specific typologies of both the strategies. In fact, rather than adopting a specific typology of the two strategies, their approach towards different typologies was staggering.

• Further, as many as six banks have been found to be not adhering to any specific typology of either the HRM strategy or of business strategy. This means that they have been adopting a mix of different typologies of the HR strategies and the business strategies as per the exigencies. One inference that may be drawn from the above is that the bank managements are not paying adequate attention to the adoption of strategies.

• None of the banks maintained a fit between the HRM strategy and the business strategy that they pursued. In fact, when the banks have not even been following any specific typologies of the HRM strategy and the business strategy, the question of maintaining a fit between the two does not arise. It may, therefore, be concluded that at least the sample statistics do not uphold the theoretical premise of maintaining a fit between the two strategies for better performance.

Our interview with HRM executives participating in this study suggest that, at least in Indian banks, little thought has been given to the need of adoption and aligning business strategy with HRM strategy. The managers had not yet developed a view of HRM as a strategy activity and consequently, did not see a need to align their HRM strategy with the business strategy. Future of banks shall be affected by the selection of HRM and business strategies in harmony with their mission and vision. The success of the same will depend upon its integration with/fit with HRM strategy. The present scenario is presenting a horrifying picture. The short-term contingency approach vis-à-vis adoption of HRM strategy will not prove to be beneficial to banks in the long run.

Recommendations for Further Studies Theoretically, it is being perceived that the firms having a fit between the HRM strategy and the business strategy that they are pursuing are more likely to outperform those firms which do not maintain such a fit. However, results of the present study reveal that a vast majority of the banks (among selected) are not even found to be following a specific typology of either the HRM strategy or the business strategy. Further research can be done to elaborate on the issue by having a large sample size and geographical area. Although there is no theoretical model developed to support the hypothesis, except for a few studies (Wright and Snell, 1998; Grant, 2002; and Wright et al., 2003, etc.), those targeted were from different sectors (manufacturing, heavy industry and service industry). In the Indian context also, there is a big need to explore the issue further to develop an effective and efficient strategic mix of HRM strategy and business strategy. 

The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201138

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39Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

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The IUP Journal of Business Strategy, Vol. VIII, No. 3, 201140

Appendix Instrument for Primary Data Collection

Section A: Demographic Details

1. Age: 2. Gender: M/F

3. Education: 4. Job Title:

5. Organization’s Name: 6. Total Job Experience:

7. Years in the Current Organization: 8. Years at Current Position:

Section B: Human Resource Strategy

In this section there are 6 questions containing choices as their answers. You only choose the one that is best suited to the query according to your experience in your current organization.

1. Majority of employees in your organization are recruited:

a. From internal resources

b. From external resources

c. Both internally and externally

2. Your job in your organization is:

a. Highly secured

b. Moderately secured c. Low secured

3. In your organization performance review is done:

a. In routine

b. Not always

4. My organization

a. Seeks development of employee abilities, skills and knowledge over time

b. My organization coordinates between accurate placement and flexible team structures

c. Moves employees to match abilities, skills and knowledge to specific tasks.

5. Majority of employees in your organization separate only:

a. At the time of retirement

b. During first few years of their career

c. During mid of their career

6. Attending training practices in your organization is

a. Mandatory for all

b. Not for all

c. Need-based

41Links Between Business Strategy and Human Resource Management Strategy in Select Indian Banks: An Empirical Study

Appendix (Cont.)

Section C: Business Strategy

In this section there are 6 questions containing choices as their answers. You only choose the one that is best suited to the query according to your experience in your current organization.

1. In your organization strategies are developed to:

a. Concentrate on the existing market segment

b. Develop new market segment

c. Consolidate the existing market segment and simultaneously develop the new market segment

2. Your organization focuses more towards

a. Maintenance of existing market share

b. Moderate and steady growth

c. Rapid growth

3. Control mechanism in your organization is:

a. Centralized

b. Decentralized

4. Environment and business strategy adopted by your organization are more:

a. Internally focused

b. Externally focused

c. Both internally and externally focused

5. Degree of structural formalization in your organization:

a. High

b. Moderate

c. Low

6. Approaches towards new products: a. Very low

b. Low

c. Moderate

d. High

e. Very high

(Note: All the information provided by you will be kept confidential and will be used only for academic purposes. No commercial gain will be rendered on the basis of information provided by you).

Reference # 33J-2011-09-02-01

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