The strategic focus of HR
Recently we have witnessed the amalgamation of several streams of management into the strategic management literature including epistemology, organizational learning, the resource based view, organizational capabilities and competitiveness and innovation and new product development (Frost, 2003; Grant and Baden Fuller, 1995). Other streams focus on nature and processes and examine the internal focus, which includes impact of strategic management concepts and frameworks that managers use to develop competitive strategy (Clark, 1997). Researchers have contended that the concept of strategic human resource management has evolved into a bridge between business strategy and the management of human resources (e.g. Butler et al., 1991; Lengnick-Hall and Lengnick-Hall, 1988; Lorange and Murphy, 1984). On the other hand, Truss and
Gratton (1994) opine strategic human resource management as the overarching concept that links the management and deployment of individuals within the organization to the business as a whole and its environment. Ulrich (1997) further distinguished between strategic HR and HR strategy. He stated that strategic HR was the process of linking HR practices to business strategy. Thus, strategic HR deals with identifying the capabilities required of a business strategy and using HR practices to develop those capabilities.
On the other hand, he viewed HR strategy as building an agenda for the HR function and defining the mission, vision and priorities of the HR function. During the last decade, the personnel/HRM field has shifted from a micro focus on individual HRM practices to a debate on how HRM as a more holistic management approach may contribute to the competitive advantage of the organization (Fey et al., 2000). Researchers drawing largely on a behaviourist psychology perspective have addressed the link