Linking staffing and training practices with business strategy: A theoretical perspective

There is a growing recognition that in order to remain competitive in a constantly changing environment, firms should make human resources a significant part of their long‐range business strategy plans (Burack, 1992; Dyer, 1984; Tichy, Fombrun, and Devanna, 1984; Sandy, 1990). The staffing and training practices that a firm adopts are critical in ensuring that skills match business requirements. This article examines the nature of these practices and proposes that appropriate linkages between a firm's staffing and training practices and its business strategy will lead to higher firm performance. Four kinds of staffing and training practices are examined: (1) skill source used, (2) functional emphasis on skills, (3) emphasis on breadth of skills, and (4) quality emphasis.