AN EXPLORATORY STUDY OF HUMAN RESOURCE MANAGEMENT PRACTICES AND BUSINESS STRATEGY IN MULTI-UNIT RESTAURANT FIRMS Nor Khomar zyx lshak M A W Institute of Technology, Malaysia and Suzanne zyx K. Murrmann Virginia Polytechnic Institute and State University ABSTRACT zyxwvuts This paper provides exploratoly evEdence for the linkage among human resource management (HRM)practices, business strategy, andperformanceeffec- tiveness. #proposes that highperforming firms will have similar HRMpractices,and that those firms whose HRMpractices closely match its business strategy will have higher performance. Data were collected from 14 publicly-traded mufti-unit restaurant firms. A case study approach was taken to pmvide zyx an in-depth examinationof each firm. The results indicated that restaurant firms do have similar HRMpractices' emphasis. Someof thosepractkes werefound to support the firm's business strategy. Preliminary evidencesuggests that the strategy a firm devebps and implements for its restaurant managers will have a significant impact on the successful implementation of the firm's business strategy. An analysis of the qualitative data indicate that although the zyxwv HRM executives are involved in the firms' strategic planning process, the current acute labor shortage and high turnover problems demand them to focus on administrative issues instead. This study addresses the crifical need for empirical research that examines Hff M practices in restaurant firms. Key Words: Business strategy, strategy typobgy, human resource managementpractices, performance effectiveness. INTRODUCTION Traditionally,firms have consideredhuman resources-that is, employees-as aflexible commodity; able to be recruitedand trained on short notice, and readily laid zy off when sales drop. Angle, Manz and Van zyxwv de Ven (1985) further noted that firms assume that "the right mix of the right kinds of people, in the appropriate numbers, will be available: furthermore, that they will have the requisite knowledge and the motivation to carry out the firm's intended strategy" once the strategy has been formulated. With increasingcompetition, yhanges in pdpulationdemographics, and the critical problem with employee turnover, there is a growing awareness that the 8 1991 THE COUNCIL ON HOTEL, RESTAURANT AND INSTlTtJTlONAl. EDUCATION 143