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A key theme running through many of the models is integration, which according to Guest (1987) lies at the heart of HRM. He identifies integration at three levels:

integration of HRM policies with business strategy;

integration of a set of complementary HRM policies;

integration of HRM into the line management function.

1.1.3 The Role of Management

According to Storey (1992), best practice indicates that the extent to which the transition process from traditional personnel functions to strategic HRM functions can be achieved will be influenced significantly by the belief and support of senior management in the added value that HRM can contribute to the organisation. More importantly, this belief must be visibly demonstrated, for example by committing additional resources to the development of HR strategy and the building up of HR skills levels. As a first step, the head of HR should be afforded a genuine role in the formulation of key business decisions. This contribution must be an integral part of the business strategy formulation process, so that HR issues are accorded a key priority as opposed to simply being added on to, or indeed excluded from, the core business of the organisation. On an ongoing basis, heads of HR should also be enabled to have a genuine input into decisions taken at top management level which have implications for HR. Clearly, if the head of HR is to be enabled to play a genuine role in ensuring that HRM issues become a top management priority, it is important that the professionalism accorded to HR, for example through the development of expertise in integrating HR and business strategies, begins at this level.

1.2 Definitions: Innovative HR Programmes

According to Agarwala (2003), defines innovative human resource programmes of a company can be described as:

'Any intentional introduction or change of HRM program, policy, practice or system designed to influence or adapt employee the skills, behaviours, and interactions of employees and have the potential to provide both the foundation for strategy formulation and the means of strategy implementation that is perceived to be new and creates current capabilities and competencies' (Agarwala, 2003).

1.2.1 Innovative HR Programmes

According to James (2002), innovative programmes can be grouped into a set of new initiatives which are associated with the process of developing a strategic approach to HRMenhancing its competitiveness. A few of these include:

Reducing costs through shared services centres, self-service, and outsourcing.

Develop uniform HR processes recognising local regulatory requirements to help foster a low-cost, administrative delivery model. Create a self-service culture for employees and managers. Establish global employee shared services centres focused on delivering HR administrative support to multiple geographic areas, thereby reducing administrative overhead. Outsource key services that can be more efficiently managed and administered externally.

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