Strategy and HRM in nonprofit organizations: evidence from Canada

Unlike other sectors, human resources (HR) of nonprofit organizations cannot be replaced with investment in physical capital. Moreover, the importance of HR has been further heightened by changes in the operating environment of the sector. Using the Miles and Snow (1978) strategic typology, this paper explores strategic HRM in public service nonprofits by examining the importance attached to HRM based on their strategic types. The results of a survey of 79 nonprofits and 7 case studies suggest that strategic HRM was not evident in nonprofit organizations. Defenders, analysers, and prospectors were not different from reactors in the importance they attach to recruitment, compensation and labour relations. However, training was found to be more important among defender than prospector nonprofits. The lack of alignment between HRM and strategy highlights the need for nonprofits to find a way to address their HR capacity challenges and enhance effectiveness of strategy.