Strategic human resource management and resource‐based approach: the evidence from the british manufacturing industry

The notion, that people management can be a key source of sustained competitive advantage, calls for the integration of Human Resource Management (HRM) and business strategy. Not surprisingly, the main debate in HRM is nowadays concerned with the relationship between strategic management and employee relations in the firm and therefore strategic HRM focuses on the overall direction of the organisation in pursuit of its stated goals and objectives. This paper explores the above relationship in the electronic manufacturing industry. It is based on empirical evidence and the findings of a survey of senior managers’ perception and views on strategic HRM.It is concluded that increasing core competencies of the firm, in particular HR, is one of the key elements to the success of the firm performance and that HR involvement in the development and implementation of business strategy leads to organisational effectiveness in this industry.