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plex interaction. Anotherbenefit of the 5-P Model is that it highlightsjust how significant the strategy-activity linkcan be, as the case liistories included in this articleillustrate.Before we discuss the individual componentsof the 5-P Model, however, we need to
consider the element that sets it aU in motion.
DEFINING STR^VTEGIC NEEDS
Typically, organizations define (or redefine)
their strategic business needs during times of
turbulence. As such, these needs reflect management's
overaU plan for survival, growth,
adaptability, and profitability. Internal characteristics
(e.g., culture, the nature of the busi-
Randall S. Schuler Is research professor
at the Stern School of Business, New York
University. His interests include international
human resources management,
human resources strategy, entrepreneurship,
and the interface of competitive strategy
and human resources issues. He has
authored or edited more than twenty-five
books, including International Dimensions
of Human Resource Management, Personnel
and Human Resource Management,
Case Problems in Management and
Organizational Behavior, Human Resource
Management in the Information Age,
Managing Human Resources, and Managirig]
Job Stress. In addition, he has contributed
more than twenty chapters to books of
collected readings and published more
than eighty articles in professional journals
and academic proceedings. Currently, he
is associate editor of the Journal of Business
and Economic Studies and is on the
editorial boards of Human Resource
Planning, Human Resource Management,
Organization Science, The international
Journal of Human Resource Management,
Asia Pacific Human Resource Managemerit,
and Journal of High Technology Manage-,
ment Research. He is a fellow of the
American Psychological Association.
19
EXHIBIT 1
THE 5 - P MODEL: LINKING STRATEGIC BUSINESS NEEDS & STRATEGIC HR MANAGEMENT ACTIVITIES
ORGANIZATIONAL STRATEGY
Initiates the process of identifying
strategic business needs and
provides specific qualities to them
INTERNAL CHARAQTERISTICS i EXTERNAL CHARACTERISTICS
STRATEGIC BUSINESS NEEDS
Expressed in mission statements or
vision statements and translated into
strategic business objectives
\
STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES
Human Resources Philosophy "1
Expressed in statements defin- J
ing business values and culture J
Human Resources Policies ^
Expressed as shared values \
(guidelines) J
Human Resources Programs ^
Articulated as Human Resources \
strategies J
Human Resources Practices "i
For leadership, managerial, and J
operational roles J
Human Resources Processes ^
For the formulation and implemen-J
tation of other activities I
Expresses how to treat and
value people
Establishes guidelines for
action on people-related business
issues and HR programs
Coordinates efforts to facilitate
change to address major peoplerelated
business issues
Motivates needed role behaviors
Defines how these activities are
carried out
ness) as weU as external characteristics (e.g.,
the state of the economy, critical success factors
in the industry) may well influence the
defirution of needs. But the biggest factor affecting
strategic HR management is not a particular
characteristic so much as it is experience
with this mod