HR INVOLVEMENT IN STRATEGIC DECISIONS: IMPACT ON ORGANISATIONAL PERFORMANCE Jules Carrière University of Ottawa, Canada. jcarrier@uottawa.ca Abstract This study evaluates the extent to which involvement of the HR function in strategic planning predicts organisation performance according to development strategy type. Data were obtained from 639 organisations relating to three of the types of development strategy deined by Miles and Snow. The results indicate that the degree of involvement of the HR function in strategic decision-making is similar, whatever the intended strategy. They also show that for organisations following a prospector strategy, HR function involvement is positively linked to productivity/eficiency, to competitive position and to client acquisition and growth. Keywords: HR Involvement; Strategic Decisions; Organisational Performance; Development Strategy. Introduction While an organisation’s various functions (e.g. marketing, inance, accounting, human resources) have different roles, they share the common objective of assisting the organisation to achieve its goals. In fact, functional strategies that shape the value chain contribute to the creation of an organisation’s value proposition (Hill and Jones, 2009; Porter, 1980).The sig- niicance of this is particularly evident in relation to the role of the human resources (HR) function (Alagaraja, 2013; Jiang, Lepak, Hu andBaer, 2012). There are many reasons for involv- ing HR managers in strategic decision making. Lengnick-Hall and Lengnick-Hall (1988) maintain that involving the HR function provides a range of solutions for resolving complex organisational problems and ensures that human resources are considered in determining organisation goals and implement- ing strategic objectives. In the same vein, Bennett et al. (1998) contend that the more active the role of managers in develop- ing an organisation’s strategy, the more the strategy will be in a position to capitalize on the organisation’s human resources strengths. These authors support the position that organisations that integrate their HR function into their strategic decision planning will have HR practices better adapted to the demands of their activities and will improve their competitive position. Review of Literature Development strategies and involvement of the HR funcion In theory, HR managers who are fully involved as strategic planning partners will be in a better position to suggest and adapt HR practices to the organisation’s needs. However, the level of involvement of HR managers differs according to the type of development strategy an organisation pursues. As such, strategic human resource management’s early development focused on establishing the relation between particular sets of HR practices and an organisation’s strategy (Lengnick-Hall et al., 2009). For example, Wright and Snell (1991) and Bennett et al. (1998) posited that the development strategy may provide a determining contextual factor in the degree of HR function involvement in the strategic decision-making process. They suggested that the involvement of HR managers would be determined in part by the demands of the pressures ensuing from the strategy adopted by the organisation. The Miles and Snow (1978) model in particular has inspired a great deal of research on the links between HRM and development strategies, since this typology has a solid empirical base. Their typology suggests three basic types of strategy: defender, prospector and analyzer. Each of these strategies represents a model of adapting to the environment depending on whether the organisation must resolve a market problem, a technology problem or an administration problem. The classic model portrays defenders as organisations with a narrowly deined product/services market, rarely seeking new opportunities and aiming at internal eficiency and tight control. In a relatively stable environment, these organisations would make few strategic changes. This environment is associated with a high degree of technical specialization, formalization and centralization of power, with its dominant coalition centred on production and inance/accounting. Because such an organisation operates in a stable market and avoids change and risk, its personnel