RELATIONSHIPS AMONG BUSINESS STRATEGIES, HUMAN RESOURCE MANAGEMENT SYSTEMS, AND EMPLOYEE RELATIONS STRATEGIES AND THEIR EFFECT ON FIRM PERFORMANCE

Strategic Human Resource Management (SHRM) has become synonymous with describing the functional relationship between business strategy and human resource management. More specifically, Wright and McMahan (1992) described SHRM as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals (p. 298). It follows that strategy or more accurately, strategic choice determines the approach to human resource management. Miles and Snows (1978) strategic typologies including reactor, defender, analyzer and prospector, gained prominence over the past several decades as the standard barer of strategic choice and how strategy impacts human resource management practices.This research expands upon Miles and Snows (1978) model of strategic typologies to include a broader view of contingent influences on strategic choice, and other key human resource management and employee relations typologies that are specific to firm performance. DeSarbos (2003) model of firm capabilities and environmental uncertainty, first contemplated by Conant et al (1990); Zajac and Shortell (1989) and Hambrick (1983), added to the robustness of contingent factors in determining strategic choice. Dyer and Holders (1988) model of human resource strategic typologies consisting of inducement, investment and involvement, and Sissons (1989) employee relations typologies followed in testing the relationships among these typologies and their impact on firm performance. Hypotheses were tested to determine the internal consistency between HR systems and the relationship among typologies on firm performance.Primary data were collected from 70 chief executives and senior human resource executives from 35 companies in the Yorkshire and Humber counties of northeastern England. Financial performance data were collected from secondary sources found in the public domain. There was significant support for internal consistency and the covariation of HR systems and performance. There was also support for the relationship among typologies including human resource management systems, employee relations strategy and business strategy. However, there were no significant interaction effects between human resource, employee relations and business strategy on performance measures.