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STRATEGIC HUMAN

RESOURCE MANAGEMENT

DISCUSSION

What is meant by the term Strategic Human


Resource Management and how has it been
used to study the employment relationship?

HUMAN RESOURCE
MANAGEMENT
human resource management (alternatively,
employee relations or labor management) includes
the firms work systems and its models of employment.
It embraces both individual and collective aspects of
people management. It is not restricted to any one
style or ideology. It engages the energies of both line
and specialist managers and typically entails a blend
of messages for a variety of workforce groups.
Purcell & Boxall (2003) P. 24

HUMAN RESOURCE
MANAGEMENT
HRM as a subject of study assumes that the interests of
employees and employers will coincide and is preoccupied
with the shared goal of organizational effectiveness that
marginalizes the interests of other stakeholders such as
employees. HRM is also predominantly focused on the
individual and seeks solutions to HR problems within the
firm, with an analytical focus on the motivations and
aspirations of individual employees.
Bach (2005) P. 4

STRATEGY
The determination of the basic long-term goals and
objectives of an enterprise and the adoption of courses
of action and the allocation of resources necessary for
carrying out these goals.
Alfred Chandler, Strategy and Structure, (MIT Press, 1962), P. 13

STRATEGY
At the core, its is the debate between best fit and best practice
Used for gaining a competitive advantage

Innovation

Quality Enhancement

Offer something new; different from competitors


Products and services

Cost Reduction

Attempt to be the lowest cost provider

Optimal strategy depends on the wants and nature of


competitors

TYPES OF STRATEGY
Business

Examines correspondence between each firms competitive


strategy and its system of high performance work practices

Operations

An internal approach; connected to the work organization


inside a firm

Resource View

Views human resources as sources of sustained competitive


advantage

STRATEGIC HRM
(S)trategic HRM is about how the
employment relationships for all employees
can be managed in such a way as to
contribute optimally to the organizations
goal achievement.
Legge (2005) P. 223

HR PRACTICES LINKED WITH


COMPETITIVE STRATEGY
Recruitment
Training
Career Path
Promotions
Socialization
Openness

HIGH PERFORMANCE
PRACTICES
Features

Comprehensive selection/recruitment procedures


Incentive compensation
Extensive employee involvement/training

Expected Results

Improve knowledge, skills, and abilities of employees


Increase motivation
Reduce shirking
Enhance retention of quality employees (reduce tenure of nonperformers)
Huselid (1995) P. 635

HIGH COMMITMENT
PRACTICES
Unique to the High-Performance Paradigm

Sophisticated selection and training

Emphasis on values, human relations skills, and knowledge skills

Behavior-based appraisal
Single status policies
Contingent pay systems

Traditional Personnel Practices

Job security
Above market pay and benefits
Grievance systems
Godard (2004) P. 351

CONCLUSION
Model of the Basic Strategic HRM Components
HUMAN CAPITAL POOL:
Knowledge, Skill, Ability

EMPLOYEE RELATIONSHIP BEHAVIORS:


Psychological Contracts, Citizenship, Discretion

PEOPLE MANAGING PRACTICES:


Staffing, Training, Rewards, Appraisal,
Work Design, Participation, Recognition, Communication

Wright, P. Dunford, B. and Snell, S. (2001) Human Resources and the Resource Based View of the Firm, Journal of Management, 27:6

CONCLUSION
Effectiveness can be increased by
systematically melding human resource
practices with the selected competitive
strategy
The success or failure of a firm is not likely
to turn entirely on its strategic human
resource management practices, but these
practices are likely to be critical