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Introduction
In today's increasingly competitive global environment, human resource management (HRM) is recognized as a critical dimension of strategic management ([1] Armstrong and Long, 1994; [3] Beer et al. , 1984; [4] Budhwar, 2000; [5] Budhwar and Khatri, 2002; [6] Budhwar and Sparrow, 1997; [7] Cusworth et al. , 2004; [9] Fombrun et al. , 1984; [17] Lengnick Hall and Lengnick Hall, 1988; [21] Schuler and Jackson 1999; [22] Sheehan, 2005; [24] Ulrich, 1997). [25] Wright and McMahan (1992) explain that the field of HRM has sought to become integrated into the strategic management process through the emerging discipline referred to as strategic human resource management (SHRM). The concept of SHRM is now well documented in the literature ([1] Armstrong and Long, 1994; [3] Beer et al. , 1984; [4] Budhwar, 2000; [5] Budhwar and Khatri, 2002; [6] Budhwar and Sparrow, 1997; [7] Cusworth et al. , 2004; [9] Fombrun et al. , 1984; [17] Lengnick Hall and Lengnick Hall, 1988; [21] Schuler and Jackson 1999; [22] Sheehan, 2005; [24] Ulrich, 1997). It refers to ongoing efforts to align HRM policies and practices with business/corporate strategy.
The SHRM concept requires that the thrust and purpose of HR strategy should be determined while developing the organization's overall strategy and should be incorporated into the organization's strategic plan ([1] Armstrong and Long, 1994; [12] Guest, 1991). Human resource strategies are directional plans addressing people-related business issues. They are important because they help management determine how to manage people in support of business or corporate strategies. They provide alignment of human resource practices and business/corporate strategy. As noted by [1] Armstrong and Long (1994), the formulation of business/corporate strategy can be described as a process for developing a sense of direction which often described as a logical, step-by-step affair, the outcome of which is a formal written statement providing a definitive guide to the organization's long-term intentions.
[13] Holbeche (2001) noted that through the integration of HRM with the organization's business/corporate strategy, rather than HR strategy being a separate set of priorities, employees will be managed more effectively and organizational performance will improve (Armstrong, 1994; [12] Guest, 1991; [16] Legge, 1995). However, this in itself may not be enough. A more practical view of the importance of integration...