Aligning SHRM With Culture
Aligning SHRM With Culture
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JMD
36,10 Aligning organizational culture
and strategic human resource
management
1260 Teresa Harrison and Joshua D. Bazzy
Department of Management, University of the Incarnate Word,
Received 31 December 2016
Revised 22 May 2017 San Antonio, Texas, USA
10 July 2017
Accepted 14 July 2017
Abstract
Purpose – As strategic human resource management (SHRM) continues to grow as an important
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issue for organizations, it is imperative to examine all factors that contribute to the success and
failure of the organization’s human resources (HR) and strategy implementation. The purpose of this paper
is to demonstrate that organizational culture should be an integral factor when considering SHRM.
The authors also present a model for the strategy-culture-SHRM linkage and propositions to guide
future research.
Design/methodology/approach – The authors present a conceptual model proposing organizational
culture as a moderator of the relationship between an organization’s strategy and SHRM.
Findings – In addition to the conceptual model, the authors present a number of testable propositions for
determining how firm performance and effectiveness may depend on the linkage between strategy and the
utilization of HR as a competitive advantage.
Originality/value – Currently, there is a lack of research regarding the conceptualization of organizational
culture as a moderator between an organization’s strategy and SHRM. We discuss the importance of the
alignment of HR both as a source of competitive advantage and an influence on an organization’s strategy.
The authors integrate the current research to create arguments for testable propositions and future
research directions. The authors also argue that misalignments may occur which may prove detrimental to
the organization.
Keywords Organizational culture, Alignment, Strategy, Strategic human resource management
Paper type Conceptual paper
Strategic human resources management (SHRM) has been defined as “the pattern of
planned human resource deployments and activities intended to enable an organization to
achieve its goals” (Wright and McMahan, 1992, p. 298). Within SHRM, the goals being
achieved should typically be dictated by the organization’s strategy as there is an inherent
connection between strategy and SHRM. However, previous research has found that there
is often a discrepancy between intended and realized implementation of strategy
(Mintzberg and Waters, 1985), and by extension SHRM ( Jackson et al., 2014), thereby
making this connection at times tenuous at best. Moreover, research into strategy and
SHRM has been hampered by level of analysis issues (Buller and McEvoy, 2012) as well as
a lack of research examining factors that are unique to an organization which may result
in competitive advantage ( Jackson et al., 2014). The purpose of this paper is to address
these issues by examining the impact of organizational culture on the linkage between
strategy and SHRM. Specifically, we propose that discrepancies between intended and
realized strategies may be due, at least in part, to the culture of the organization which is
an important factor to overall organizational outcomes. Therefore, this paper contributes
to the SHRM literature by explaining how organizational culture moderates the
relationship between organizational strategy and implementation of SHRM and how
Journal of Management
Development misalignment may lead to detrimental outcomes.
Vol. 36 No. 10, 2017
pp. 1260-1269
Organizational culture has been described as the shared values and beliefs resulting
© Emerald Publishing Limited in a behavioral component (Smircich, 1983). Although organizational culture is influenced
0262-1711
DOI 10.1108/JMD-12-2016-0335 by national culture, the general consensus is that organizational culture is a separate
concept from national culture (Khilji and Wang, 2006; Sheehan et al., 2007). Within the Human
diverse workforce that comprises organizations within the USA, for example, there are resource
factors that bring people together toward a common goal beyond shared national values. management
Despite these common goals, what brings people together may, at times, detract from the
overall strategy.
As we demonstrate, alignment of organizational culture may influence the successful
implementation of a strategy. However, an organizational culture that is misaligned with 1261
strategy may also lead to unintended SHRM outcomes and result in negative firm
performance ( Jackson et al., 2014). This strategy-organizational culture-SHRM linkage is a
neglected area of research (Buller and McEvoy, 2012; Gratton and Truss, 2003;
Jackson et al., 2014; Molineux, 2013). For this reason researchers have suggested that
future research examine the relationship between strategy, culture, and SHRM (Boswell, 2006;
Jackson et al., 2014, Panayotopoulou et al., 2003; Wei et al., 2008).
First, we present the theoretical background to explain how organizational strategy and
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SHRM relate to organizational culture and how examining culture would allow for a multi-
level analysis of the relevant factors. Specifically, we propose that an organization’s culture
will moderate the implementation of SHRM practices based on how the culture aligns with
strategy, establishing congruence with SHRM. This is followed by a discussion of the
factors that may contribute to the cultural alignment or misalignment. We integrate this
research by presenting a model of the strategy-organizational culture-SHRM framework
and testable propositions. Finally, implications for research and practice and suggestions
for future research are discussed.
Theoretical background
SHRM includes various HR practices, which from the universalistic view, are considered
best practices (Delery and Doty, 1996). However, it is understood that the practices that are
best for one organization may differ from those that are best for another. The contingency
view maintains that the best practices are dependent on the “best fit” of the organization.
The configurational view introduced “bundles of practices” depending on the needs of
the organization. Regarding these views, these practices will vary based on the needs
of the organization (Delery and Doty, 1996). The following discussion will outline various
approaches to defining fit and explain why organizations would be well-served to consider
organizational culture when determining the fit in order to align their strategic and
SHRM practices.
Organizational outcomes
Southwest Airlines provides a classic real-world example of the potential impact of an
alignment between strategy, organizational culture, and SHRM. Southwest Airlines often
credits their organizational culture and their HRs with maintaining their strategy of a fun,
low cost airline (O’Reilly and Pfeffer, 1995). Through socialization of the organizational
Aligned
organizational culture
Consistent Improved
SHRM organizational
implementation outcomes
Figure 1. Organization
Conceptualization of strategy
aligned or misaligned Inconsistent Weakened
organizational culture SHRM organizational
within the implementation outcomes
organization strategy- Misaligned
SHRM linkage organizational culture
Organizational culture
Human
Strategy values (strategy supportive) SHRM focus resource
management
Low cost leadership Following rules Administrative/cost orientation
Employment security Hire from within
Efficiency/productivity Internal training
Differentiation Being flexible Creative orientation
Taking risks Hire from outside 1265
Innovation Less training
Superior customer service Customer experiences Service quality orientation
Quality Extensive training
Company reputation Rewards for service
Innovation Entrepreneurial behaviors Learning orientation
Table I.
Knowledge workers Creativity coaching Organizational culture
Risk taking rewards values moderating the
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Sources: Adapted from Jackson et al. (2014), Mathis and Jackson (2000), also see Porter (1980), Thompson strategy-SHRM
and Strickland (1998) linkage
members and a strong corporate culture aligned with the strategy, they have established a
high performance outcome. It merits noting that this is also consistent with RBV theory.
On the other hand, Arthur Andersen is another example. This company had a long
history of strong corporate culture and profitability before it was discovered that their
methods of business were less-than-desirable (i.e. Ferrell et al., n.d.). This is an instance
where the organizational culture became misaligned with the corporate strategy.
Organizational culture somehow became misaligned when the strategy shifted away from
its once strong ethical convictions resulting in detrimental organizational outcomes.
Therefore, we propose that the outcomes of organizations are, in part, dependent upon
the congruence between their strategies, cultures, and SHRM (see Figure 1):
P4. Organizations with aligned strategy and culture will experience increased
organizational outcomes than those with a misaligned strategy-culture relation.
Alternatively, if a strategy is developed that is lacking the supportive organizational culture
(see Table I), then misalignment may occur where the HR continue to operate in a fashion
that they have grown accustomed. In addition, if the unsupportive organizational culture
determines the functions of the HR, misalignment will continue to occur and negative
outcomes may result (see Figure 1).
Multi-level theory
In addition to considering the alignment between strategy, culture, and SHRM, researchers
must also consider additional levels of analysis. Individuals throughout hierarchical levels
of the organization, not only the top management team, must be considered to develop the
organizational culture and whether it is congruent with the strategy and SHRM.
Ostroff and Bowen (2000) suggest that little research has been conducted to determine
the factors that contribute most to HR system alignment and instead of focusing on
particular HR practices used to achieve goals researchers should also examine
organizational climate. In agreement and by extension, we suggest that one must
consider organizational culture. Ostroff and Bowen (2000) discuss an alignment between
strategy and climate (e.g. focusing on innovation skills if the climate is one of
implementation of innovation).
Schneider et al. (2003) suggest that the reason alignment in organizations has not been
thoroughly studied, especially regarding HR functions, is because the responses are usually
JMD from one source, an HR executive, rather than the employees within the firm. In addition,
36,10 they suggest that the surveyed practices are often too general and could be applicable to
many firms regardless of strategy. Finally, Rousseau (1990) suggests using both qualitative
and quantitative methods to determine the level of approval and agreement of values within
the organization.
management team wishes to implement a strategy that is not congruent with the
organization’s culture. The strategy may be inappropriate for the organization,
and organizational performance would be expected to be low. However, once a proper
strategy is selected which is aligned with the culture, the organization could turn itself
around with minimal impact, depending on the timing of the reaction.
Another area for future research is the organizational values in Table I. These are far
from exhaustive and cannot encompass every conceivable situation. Additional strategies
and values that are strategy supportive should be developed to include the resulting SHRM
practices that would promote alignment.
Future research should be conducted to determine the extent to which organizations that
have had intended vs implemented strategy and SHRM incongruence and also lacked
alignment with organizational culture. This could be a key indicator to the top management
team to take a leadership role in establishing and developing the supportive culture and
values needed first in order to implement a current strategy to continue success through the
SHRM functions. This may also uncover a timeframe to be utilized for a more successful
execution of the HR practice implementation and positive organizational outcomes.
Conclusion
We examined a gap in the literature regarding the impact of the organization’s strategy on
SHRM when taking into account organizational culture in order to develop propositions for
future research. In addition, a model was developed to show the resulting outcomes when
alignment or misalignment of culture is present in the strategy-SHRM linkage. We further
extend the literature by presenting a table of suggested organizational culture values
necessary to encourage a strategy-supportive culture.
Organizational culture should be studied as an important moderating variable in the
strategy-SHRM-performance linkage ( Jackson et al., 2014). The alignment of organizational
culture is imperative in order to determine successful HR practices that will shape the
organization. Finally, although there is “no one best culture;” the value is determined by
aligning the culture to achieve the best possible strategy-SHRM-outcome linkages.
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About the authors Human
Dr Teresa Harrison is an Assistant Professor in the H-E-B School of Business and Administration at resource
the University of the Incarnate Word in San Antonio, Texas. She earned her PhD in Business
Administration (concentration in Organizational Behavior) from the University of Texas at management
San Antonio. She has published articles in peer reviewed journals on topics such as factors influencing
the utilization of electronic selection as well as diversity in entrepreneurship. Results of her research
have been presented at the annual meetings of the Academy of Management, Society for Industrial and
Organizational Psychology, and the Southern Management Association. Dr Teresa Harrison is the 1269
corresponding author and can be contacted at: [email protected]
Dr Joshua D. Bazzy is an Assistant Professor in the H-E-B School of Business and Administration
at the University of the Incarnate Word in San Antonio, Texas. He holds a PhD in Industrial and
Organizational Psychology from the Haslam School of Business at the University of Tennessee.
He has published articles in peer reviewed journals on topics such as integrity testing, work ethic, ego
depletion, and counterproductive workplace behavior. He has also presented at Academy of
Management and Society for Industrial and Organizational Psychology meetings as well as
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other conferences.
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