The Integrative Model of Human Resource Strategy Formulation

The Integrative Model of Human Resource Strategy Formulation

The Integrative Model of Human Resource Strategy attempts to establish a true integration between the corporation's overall strategy, the HR strategy, and certain operational systems. The model is derived from the combination of rational and progressive approaches, relying on "Strategic Reference Points" (SRPs). SRPs are outstanding objectives or patterns organizational decision-makers use to assess their approaches so they can adopt strategic decisions to develop the HR strategy. As part of this process, decision-makers consider and combine 2 main variables:

LABOR MARKET: The amount of attention to the internal labor market or the external labor market (SRP1). This implies the degree or extent to which the human resource strategy will consider providing the required employees, skills or competencies from the "inside" versus from the "external market" (build or buy).
CONTROL: The quantity and quality of control over the labor process or the labor product (SRP2). This implies the degree or extent to which the human resource strategy considers monitoring personnel behavior and productivity.

This results in four major strategies: Paternalistic Strategy, Commitment Strategy, Secondary Strategy, and Free-Agent Strategy.

Note that the words "process" and "product" in the picture refer to the quantity and quality of control over the labor process or labor product.

These are the features of each of the four strategic patterns in the Integrative Model:

SECONDARY STRATEGY: This strategy is appropriate for simple, recurring and standardizable occupations for which the required workforce is adequately available in the labor market outside the corporation and there is no need to train and maintain such employees.
PATERNALISTIC STRATEGY: This strategy is also applied for simple, recurring and standardizable occupations, but with the difference that the corporation management prefers to maintain and upgrade the existing employees and coordinate them with the organizational culture of the corporation.
FREE-AGENT STRATEGY: This strategy is appropriate for sophisticated and specialized occupations causing high costs for the corporation because such occupations are only temporary needed or for a short term.
COMMITMENT STRATEGY: This strategy is also used for sophisticated and specialized occupations, but the corporation constantly needs experts active in such businesses and their replacement is not easily feasible.

References:
Bamberger, P., & Meshoulam, I. (2000), "Human Resource Strategy", Newbury Park, CA: Sage.
Dariush Gholamzadeh and Sonya Jalali (2013), "Integrative Approach in Human Resources Strategy Formulation" (Case study: MDN Company), Social and Behavioral Sciences №75, pp.479 – 487.

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David Wilson
Manager, Canada

Application of the Integrative Model of Human Resource Strategy Formulation

Hi Sarah, I like the model and the ability to integrate HR and corporate strategies. Have you used the model? What has been the most challenging part of the model to implement? How difficult has it been to implement new HR strategies? Has the model been easy to operationalize? Are the model's strategies a way of focusing on how to recruit and retain various occupations? I look forward to a further discussion of this model. Your support of 12manage is greatly appreciated.

Sarah Daghman
Lecturer, Russian Federation

Challenges and Difficulties while Applying This Model

Hi David, thank you for your reaction and questions, I hope I give you the answers you are looking for.

Have you used the model? No, I haven't personally, but I have read studies on how to use this integrative model to form a human resources strategy for a company.

What has been the most challenging part of the model to implement?
The most challenging part of implementing this model is the fact influential people of an organization should measure the value of each determining variable of strategic reference points for each strategic occupation of the corporation. After processing the data, the strategic coordinates of the occupations are determined and the appropriate strategic pattern of each occupation is identified.

How difficult has it been to implement new HR strategies?
There are many barriers to the successful implementation of new HR strategies, such as the failure to understand the strategic needs of the business, inadequate assessment of the environmental and cultural factors that affect the content of the strategies, and insufficient attention to the important role of line managers in implementing strategies.

Has the model been easy to operationalize?
It is not difficult. But In order to develop a strategy for human resources, there should be a distinguished difference between organizational jobs in terms of strategic reference points of the integrative model.
Four strategic occupation groups can be identified:
- Managerial Occupations: jobs that undertake the responsibility for planning, organizing, leading, and controlling the affairs of the organization.
- Major Occupations (Key Occupations): jobs that are responsible for the main missions of the organization.
- Specialized Occupations: jobs that support the main 2 occupations.
- Service Occupations: simple jobs that provide necessary facilities for the above occupations..

David Wilson
Manager, Canada

Added Information

Hi Sarah: Thanks for the added information. I find the model to be interesting and perhaps useful. I'll have to read more about the model. Based on my past experience, the Integrative Model of HR Strategy Formulation should allow an organization to develop strategies related to these 4 occupational groups. I have also looked at linking these occupational groups with job families and integrated HR services. Thanks for participating with 12manage. I look forward to your further posts.
Regards,
David.