Study on Strategic integration of Human Resource Management

1
Study on Strategic integration of Human Resource
Management
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CONTENTS

• LIST OF ORIGINAL PUBLICATIONS ....................
  .....................................  4
• INTRODUCTION......................................
  ..................................................
  ...... 5
• Scope and aim ....................................
  ..................................................
  ..........  5
• Methodological note and the structure of the thesi
  s....................................   12
• 1. Strategic integration of HRM...................
  ................................................ 
  13
• 1.1 External fit .................................
  ..................................................
  ......  14
• 1.2 Fit between macro- and micro-level HRM .......
  .................................  22
• 1.3 Internal fit .................................
  ..................................................
  .......  24
• 2. Role of managers in strategic HRM..............
  ...........................................  28
• 3. Organisational performance and strategic HRM...
  ..................................   34
• Summary and conclusions ..........................
  ................................................. 
  38
• References........................................
  ..................................................
  ..........  42
• SUMMARY IN ESTONIAN ..............................
  .............................................  50
• ACKNOWLEDGEMENTS .................................
  ............................................  55
• PUBLICATIONS......................................
  ................................................ .
  ... ..57
• CURRICULUM VITAE..................................
  .......................................... ... ..1
  39
• ELULOOKIRJELDUS...................................
  ............................................ .. ..
  142

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Scope and aim   The concept of strategic human
resource management has played a key role in
management research and practice for the last
three decades (Guest 1987 Boxall and Purcell
2011). Ongoing analysis within the field
generally focuses on how human resource
management (HRM) can add strategic value and
contribute to the organisational success.
According to this approach, originating from the
private sector, people are a key resource and a
critical element in an organisations
performance. The main rationale for strategic HRM
thinking is that by integrating HRM with the
organisations strategy and by applying
particular sets of human resource (HR) policies an
d practices, employees will be managed more
effectively, individual and organisational
performance will improve, and therefore success wi
ll follow (Holbeche 2001 Farnham 2010).
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The term HRM, defined as a strategic and coherent
approach to the management of people who
contribute to the achievement of organisations
objectives, has entered the management vocabulary
as a replacement for personnel management
(Armstrong 2000). Although HRM is regarded
to have many similarities to personnel
management, as just old wine in new bottles,
the main defining characteristic of HRM is
considered to be its strategic focus (Guest 1989
Legge 2005). In order to emphasise this
focus even more, often the adjective
strategic is added to HRM, referring to HRM as
a strategic function which does not only
build organisations performance, but also
is forward- looking and creates competitive
advantage (Holbeche 2001). Strategic highlights
the need for the determination of long-term goals
of an organisation, the undertaking of courses of
action and the allocation of resources necessary
for carrying out these goals (Goldsmith 1997
Armstrong 2000).
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