ABSTRACT
This chapter explains the primary area of adoption, formulation, and implementation of Human Resources (HR) strategy. A market orientation offers an overarching philosophy in guiding business actions, with organizational leaders using information generated from the marketplace to develop strategic plans. The adoption of strategy-compatible HRM practices reflects the notion of external fit, which posits that there should be consistency between the values and aims guiding the firms system of HRM practices and its overall competitive strategy. The health care sector offers an additional example of sector-/industry-specific pressures affecting the adoption of HR strategies. Globalization is another important catalyst for the adoption of innovative new business practices, including HR practices and strategies. A counterweight to globalization is the continuing influence exerted by national cultures. Aside from sectorial, national and cultural influences on HR strategies, organizational technology has been and continues to be a powerful predictor of the HR policies and practices adopted by organizations.
