It has recently been suggested that the potentially dynamic and proactive role of employers in industrial relations be recognized (Kochan, McKersie, & Cappelli, 1984). Because incorporating the notion of strategic human resource management appears consistent with that suggestion, it is done here integrating frameworks of competitive strategy and human resource management practices using the rationale of needed employee role behaviors and cost and market conditions. This is then merged with business life-cycles stages creating a contingency framework for understanding the impact of strategic human resource management on industrial relations. This is done also using the rationale of cost and market conditions and needed employee role behaviors. The integrated competitive strategy-human resource management model is extended by inclusion of strategic targets and industry chain. The implications for industrial relations are laced throughout the discussion along with three sets of propositions. Implications for employers, employees, unions, and government are presented in the summary and conclusions. Here, the dynamic and proactive role of employers is placed into perspective.
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