STRATEGIC HUMAN RESOURCE MANAGEMENT

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STRATEGIC HUMAN RESOURCE MANAGEMENT
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DISCUSSION
What is meant by the term Strategic Human
Resource Management and how has it been used to
study the employment relationship?
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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
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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

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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
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STRATEGY

• At the core, its is the debate between best fit
  and best practice
• Used for gaining a competitive advantage
• Innovation
• Offer something new different from competitors
• Quality Enhancement
• Products and services
• Cost Reduction
• Attempt to be the lowest cost provider
• Optimal strategy depends on the wants and nature
  of competitors

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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

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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

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HR PRACTICES LINKED WITH COMPETITIVE STRATEGY

• Recruitment
• Training
• Career Path
• Promotions
• Socialization
• Openness

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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 non-performers)

Huselid (1995) P. 635
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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
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CONCLUSION
Model of the Basic Strategic HRM Components
EMPLOYEE RELATIONSHIP BEHAVIORS Psychological
Contracts, Citizenship, Discretion
HUMAN CAPITAL POOL Knowledge, Skill, Ability
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, 276
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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