4. Stage 4 – Functional integration. It is characterized by decentralization and integration of
various activities. HR executives have managerial behavior and cooperative engagement
with business goals through a collaborative relationship between line management and
human resources. At this stage HRM to ‘‘know, reacts and incorporates environmental
changes identified in the strategic planning process’’ (p. 488).
5. Stage 5 – Integration strategy. ‘‘The focus is on flexibility, adaptability and
cross-functional integration crusade. It is characterized by teamwork, strategic
management, highly developed ability to monitor and highly responsive ability to the
environment’’ (p. 486). At this stage the HRM is integrated and involved in organizational
management, it has global skills and a proactive role in long-term planning (adapted from
Meshoulam and Baird, 1987).