The Role of Internal Communication in Translating HR Strategies into HRM Systems

This paper discusses the association between SHRM and performance from a process perspective, analyzing the role of organizational communication as a factor that moderates the implementation of an HRM strategy.

The views of Spanish HR managers on the role of internal
communication in translating HR strategies into HRM systems
Natalia García-Carbonell* , Fernando Martín-Alcazar,Gonzalo Sanchez-Gardey
Business Management Department,University of Cadiz,Faculty of Business and Management,Glorieta Carlos Cano S/N, 11002,Cadiz,Spain
a r t i c l e i n f o
Article history:
Received 16 May 2015
Received in revised form
16 November 2015
Accepted 20 November 2015
Available online 22 December 2015
Keywords:
Strategic human resource management
(SHRM)
System strength
HR implementation
HR communication
a b s t r a c t
Although the literature has broadly examined the effects ofstrategic human resource management
(SHRM) on performance in the past two decades, the way the relationship manifests and the conditions
the strategies must meet to influence organization-level outcomes are still unresolved.This paper dis-
cusses the association between SHRM and performance from a process perspective, analyzing the role o
organizationalcommunication as a factor thatmoderates the implementation ofan HRM strategy.
Applying partial least squares modeling to a sample of120 Spanish HR managers,we confirm the
moderating role of communication,and suggest that communication makes the outputs of the strategic
decision-making process explicit and fosters a shared understanding of HRM in Spanish firms.
© 2015 Elsevier Ltd.All rights reserved.
1. Introduction
Although strategic human resource management (SHRM) as a
discipline has evolved rapidly and has demonstrated its relevance
in the past few decades, inconsistent results concerning the way in
which human resources contribute to achieving strategic objectives
are still common (Guest, 2011; Lengnick-Hall, Lengnick-Hall,
Andrade,& Drake, 2009; Monks, Kelly, Conway,& Flood, 2013;
Woodrow & Guest,2014).Specifically,Huselid and Becker (2011)
criticize most studies for focusing on HR content.Fewer models
explain the process through which the HRM strategy is formulated
and implemented, even though these internal dynamics have
important implications. In this line of research, this paper proposes
a process model that aims to extend prior research on HR
communication to include the formulation and implementation of
HRM systems.As explained below,success in the implementation
of an HRM strategy requires that the system is implemented to be
distinctive,consensual and consistent (Bowen & Ostroff,2004).For
this to occur,the HRM system should not only be designed on the
basis of the vertical (external fit) and horizontal (internal fit) con-
ditions,but should also be communicated adequately.
However,one of the most relevant problems in this context is
the notable disparities between what senior management teams
want to transmit, what is communicated (Khilji & Wang, 2006), and
even what is finally perceived by managers and employees (Nishii
& Wright, 2008).It is possible to generate an HR message at the
strategic apex of the organization that will be transmitted to the
rest of the company through different hierarchical levels and
managers. In this long and complex dynamic,the central meaning
of the message may change, producing different and in some cases
conflicting HRM information: formulated at the top level,imple-
mented at the operating level and perceived at the individual level.
This pitfall leads us to pay special attention to the importance of HR
communication processes,where the generation of consistent
messages to avoid ambiguous interpretations and the transmission
processesto maintain their original meaning require further
attention.
Considering these arguments,the purpose of the paper is to
examine,through HR managers'opinions,the influence of appro-
priate internal communication when translating HR strategies into
HRM systems.In this analysis, we attempt to contribute to the
existing SHRM literature exploring the moderating role of
communication in the proposed model.
To show how the analysis was conducted, the remainder of the
paper is organized into three sections.The second section (Litera-
ture review) examines previous work on SHRM to explain the
complete process and presents the foundation on which the
* Corresponding author.
E-mail addresses:[e-mail](N. García-Carbonell),fernando.
[e-mail] (F.Martín-Alcazar),[e-mail] (G.Sanchez-Gardey).
Contents lists available at ScienceDirect
European Management Journal
j o u r n a lhomepage: w w w . e l s e v i e r . c o m / l o c a t e / e m j
http://dx.doi.org/10.1016/j.emj.2015.11.007
0263-2373/© 2015 Elsevier Ltd.All rights reserved.
European Management Journal 34 (2016) 269e281

proposed modelis built. Additionally,we review the factors that
affect an organization's capability to formulate HRM strategies and
implement consistent HRM systems. In the third section (Empirical
study),we deepen our examination of the last stage of the proc-
essdimplementationdby focusing on two aspects: (1) HR man-
agers' perceptionsof system strength and (2) the moderating
influence of internalcommunication mechanisms.We propose a
model derived from the theoretical discussion, which is empirically
tested by applying partial least squares (PLS) modeling to a sample
of 120 Spanish HR managers.The final section considers the con-
clusions, implications and limitations of the study, as well as future
lines of research.
2. Literature review
2.1. The HRM strategic process: implications for the formulation and
implementation of an HRM system
As explained above,the paper is an attempt to contribute to
previous research by opening the “black box” of SHRM by exploring
the “murky chain of links between HR goals and performance
outcomes” (Boxall,Ang,& Bartram,2011,p. 1508).To perform this
analysis,we start from the classicaldistinction between the two
main elements of SHRM described by Wrightand Snell (1991),
Martín-Alcazar, Romero-Fernandez, and Sanchez-Gardey (2005)
and Monks et al.(2013): (1) HRM strategy and (2) HRM systems.
An HRM strategy is usually defined as the strategic orientation
explicitly or implicitly adopted by organizations to manage their
human resources.If it is consistently designed,the HRM strategy
provides guiding principles for other HRM initiatives,and assures
management coherence.An HRM system,on the other hand,re-
flects the co-ordination of a specific set of practices designed to
implement the HRM strategy (Martín-Alcazar et al.,2005,p. 648).
As previous studies suggest,both dimensions of SHRM are closely
related,but more research seems to be necessary to explain the
problems that organizations find in translating HRM strategies into
specific management practices.
To explain these dynamics fully,it is necessary to adopt a pro-
cess perspective,differentiating between formulation stages,in
which the HRM strategy is defined,and implementation processes,
linked to the design of HRM systems.Drawing on traditional stra-
tegic arguments,Wright, Snell,and Jacobsen (2004) described the
specific stages through which this process takes place, providing a
valuable starting point for the analysis of the links between
formulated,implemented and perceived HRM.The process starts
with generic strategic stages,while final stages are much more
HRM specific (Lundy, 1994).From a contingent point of view,the
first part of the process contains three different but related activ-
ities: (1) environmentalscanning by which managers analyze the
environment to obtain relevant information to adapt,maintain or
change the current strategy (Floyd & Lane, 2000); (2) strategic issue
interpretation through which decision makers assign meaning to
information gathered in the previous stage,categorizing it as op-
portunity or threat and assessing the feasibility,favourability and
urgency of the possible strategic responses (Chattopadhyay,Glick,
& Huber,2001; Julian & Ofori-Dankwa,2008); and (3) criticalHR
identification whereby top managers and HR executives examine
the firm's stock ofhuman capitalfrom an internal viewpoint to
determine human capital needs to face external challenges.Man-
agers identify core employees who represent a basis for an HRM
strategy,assessing theirvalue and uniqueness,and how these
factors contribute to sustainable competitive advantages (Lepak &
Snell,2002).
In the implementation phase of the strategic process, the system
of HRM practices is designed and executed according to
information obtained in previous stages,namely,environmental
scanning,strategic issue interpretation and criticalHR identifica-
tion. Hence,top managers and HR directors will jointly define the
HRM system that needs to be designed as an integrated bundle of
HR practices (Martín-Alcazar et al.,2005),a process whereby the
strategy is translated into specific actions.As Fig.1 shows, HRM
systems describe the implemented strategy. Building a proper HRM
system demands special attention because it must include implicit
external and internal determinants to create a unique and specific
set of policies and practices. In the SHRM literature, the contingent
approach in the first part of the HRM strategy formation process is
known as the vertical fit condition; it is internal in terms of business
strategies and external in terms of environmental conditions.
However, designing HRM systems not only requires this
contingent view, but also the configurational perspective to ensure
that HR policies and practices are internally coherent and consis-
tent, reaching the horizontal fit (Martín-Alcazar et al., 2005;
Samnani & Singh,2013).In this context,the step between formu-
lated, implemented and perceived HRM systems is communication.
As with the HRM system definition, communication strategies are
determined by the results of prior stages.Consequently,their
design will not be universal,but will suit particular HR strategies
and systems.As explained in the following sections, the main
argument for the proposed model(Fig.1) is that because ofthe
notable disparities between the strategies defined by senior man-
agement teams and what is actually communicated and perceived
(Khilji & Wang,2006),the role played by internal communication
needs to be reconsidered. As Fig. 1 shows,we propose to examine
communication as a moderator of the HRM strategy for-
mationeimplementation process,which has a strong impact on
individual reactions to HRM practices.
The perceived dimensions of our model will include the system
strength construct (Bowen & Ostroff,2004).Following Bowen and
Ostroff's (2004) logic,we argue that if the HRM system is defined
consistently concerning both vertical(contingent approach) and
horizontal (configurational approach) dimensions,it will be posi-
tively received by different organizationalmembers,leading to a
stronger impact on their behavior and performance. HR managers'
perceptions of the “strength”of the implemented system will
determine their understanding of how well the HR practices
function. In fact, because the three dimensionsof the system
strength construct are closely related to vertical ddistinctiveness
and consensus dimensionsd and horizontal fit dconsistency
dimension,respectively (Delmotte,De Winne,& Sels,2012),they
may be particularly useful in assessing the for-
mulationeimplementationeperception cycle.
2.2. Determinants of HRM system definition
After identifying core employees,senior managementteams
must specify HR policies based on the information obtained from
both inside and outside the organization. Previous studies suggest
that two factors determine a firm's capability to define a consistent
HRM system: (1) HRM system flexibility or the ability to reconfig-
ure established HR policies, and (2) the degree of managerial
discretion held by executives responsible for strategic HRM de-
cisions.The literature stresses the complexity of the definition of
flexibility in HRM. Some authors explain it using multidimensional
constructs (Bhattacharya,Gibson, & Doty, 2005; Ketkar & Sett,
2009). Wright and Snell (1998) suggestthat HR flexibility in-
cludes three dimensions: flexibility related to skills,behaviors and
HRM practices. In this study, we focus on the flexibility of practices,
measuring the flexibility of HRM systems as a whole.We propose
that the greater the flexibility is,the greater a firm's capability to
adapt to environmental and organizational conditions.
N. García-Carbonell et al./ European Management Journal 34 (2016) 269e281270

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