Strategic Human Resource Management
Introduction – Strategic HRM
According to Pons,(2008) Most organizations, design
their HR processes to encourage certain desirable staff behaviors (norms) which
is believed to maximize the chance of organizational success. This set of
processes is called strategic human resource management (SHRM). In the same
manner strategic HRM is an approach that defines how, the organization’s goals
will be achieved through people by means
of HR strategies and integrated policies and practices (Armstrong, 2009).
Further Strategic Human Resources Management is defined as a method of managing
human resources that supports long-term business goals and results through a
strategic framework. SHRM focuses on long-term resource allocation issues under
the evolving nature of organizational goals and work and provides information
for other human resource strategies (such as rewards or performance) to
determine how to integrate them into the overall business strategy ( CIPD, 2020). In the same way, Strategic human resource management can be defined as
the linking of human resources with strategic goals and objectives in order to
improve business performance and develop organizational culture that foster
innovation, flexibility and competitive advantage (Boxall,1992).
According to (Purcell,1999) strategic HR
Management focuses on actions that differentiate the business from its
competitors. Strategic HR Management
refers to HR that is co-ordinated and consistent with the overall business
objectives to improve business performance. As (Baird and Meshoulam ,1998) sated that Business
objectives are accomplished when human resources practices, procedures and
systems are developed and implemented based on organizational needs. On the
other hand Greer,(2001) explains that more comprehensive academic definition of
strategic human resource management specifies the following: Strategic human resources management is
largely about integration and adaptation. Its concern is to ensure that:
(1) Human resources
(HR) management is fully integrated with the strategy and the strategic needs
of the firm;
(2) HR policies cohere
both across policy areas and across hierarchies; and
(3) HR practices are
adjusted, accepted, and used by line managers and employees as part of their
everyday work.
Aims of Strategic HRM
The fundamental aim of
strategic HRM is to generate organizational capability by ensuring that the
organization has the skilled, engaged, committed and well-motivated employees
it needs to achieve sustained competitive advantage. (Armstrong, 2009). Schuler (1992) stated that Strategic human resource
management is largely about integration and adaptation. Alvesson, (2009) wrote
that strategic HRM is about managing the employee relationships in a way to achieve organizational heights.
Armstrong ,(2014) shows
that SHRM has three main Elements
ü First to achieve integration – the vertical alignment
of HR strategies with business strategies and the horizontal integration of HR
strategies.
ü The second objective is to provide a sense of
direction in an often turbulent environment so that the business needs of the
organization and the individual and the collective needs of its employees can
be met by the development and implementation of coherent and practical HR
policies and programmes.
ü The third objective is to contribute to the
formulation of business strategy by drawing attention to ways in which the
business can capitalize on the advantages provided by the strengths of its
human resources.
Concept of Strategy
A strategy is Plan of
action designed to achieve long term or over all goals. According to (Chandler,1962)
The determination of long term goals and objectives an enterprise and the
adoption of courses of action and allocation of necessary resources carrying
out those goals.
Figure 1.0 Model of strategic change and human resource
management
Source: Hendry and Pettigrew (1990
).
Hendry and
Pettigrew (1990) have adapted the Harvard model, illustrated in Figure 1.0,
attempts a theoretically integrative framework encompassing all styles and
modes of HRM and making allowances for the economic, technical and
socio-political influences in society on the organizational strategy.
The Formulation of Strategic HRM
The formulation of
corporate strategy is best described as process for developing a sense of direction,
making the best use of resources and ensuring strategic fit. (Armstrong, 2009). According
to Mintzberg (1987) Strategy can be deliberate – strategy can realize the
intentions of senior management. Further strategy is described in theory
Strategy is a systematic process.
· Think and act.
· Formulate and
implement.
Armstrong (2006) says
that SHRM often been described as this was a step-by-step logical operation, and the
result is a formal written statement that provides clear guidance for the
organization's long-term intentions.
Armstrong, M ( 2006) A Hand Book of
Human Resources Management Practice, 3rd Edition.
Armstrong, M ( 2009) A Hand Book of
Human Resources Management Practice, 11th Edition.
Armstrong, M ( 2014) A Hand Book of
Human Resources Management Practice, 14th Edition.
Baird,L and Meshoulam,I (1998) Two Fits
of Strategic HRM.
Boxall, F. P (1992) Strategic human
resource management: beginnings of a new theoretical sophistication?.
Boxall,J and Purcell,P (2003) Strategy
and Human Resource Management, Industrial and labour relations review.
Chandler,J (1962) Strategy and
Structure.
Charles.R.G (2001) Strategic Human
Resources Management , 2nd edition. https://www.cipd.co.uk/knowledge/strategy/hr/strategic-hrm-factsheet#6744
C.Henry and A.Pettigrew (1990) Human
Resources Management, An Agenda for the 1990’s
Mintzburg.H (1987) Strategy Concept 1 ,
Five Ps for strategy. Pons, D. (2008).
Project management for new product development. Project Management Journal,
DOI: 10.1002/PMI.
Schuler.R.S (1992)Strategic Human
Resources Management , Linking people with the needs of business.
Agreed with your views Manjula. Further, Human Resource Management (HRM) is a strategic and coherent approach to the management of an organization’s most valued assets-the people working there who individually and collectively contribute to the achievement of its objectives (Armstrong, 2006). Storey (1989) regards HRM as a set of interrelated policies with an ideological and philosophical underpinning. In this age of rapid technological development, the importance of human resources hold the key to the development and growth of an organization.
ReplyDeleteThank you for your valuable feedback Udiya111, yes I agree with you and Armstrong (2009) further explains the overall purpose of human resource management is to ensure that the organization is able to achieve success through people. HRM aims to increase organizational effectiveness and capability – the capacity of an organization to achieve its goals by making the best use of the resources available to it
ReplyDeleteHi Manjula. Nice explanation. I would like to add something to this. There are some methods for strategic human resource management, including resourcing, training and development, employee relations and reward management. They are mainly related to the procedure through which individuals are employed and managed in an organization. Thanks to strategic Human Resource Management, characteristics such as commitment and capability are considered important in employment of people that in turn help to obtain competitive advantage for the organization (Mahshid, 2014).
ReplyDeleteHi Mahesh Rathnayake , thank you for your value added comment, I totally agree you however Wright ( 2004) explains that Often, when consider how HR practices influence firm’s performance, it has to focus on training or staffing practices . However, these are more “best practices” than strategies. Porter (1985) described Competitive advantage is to achieve it, firms select markets in which they can excel and present a moving target to their competitors by continually improving their position.
DeleteI agree Manjula, SHRM is a management approach that involves HR strategies which aims at enhancing organisational performance and tests the effect of the strategies on organizational performance (Boxall, 2007).
ReplyDeleteThank you Priya, in the same way as Armstrong (2011) stated Strategic HRM addresses broad organizational concerns relating to changes in structure and culture, organizational effectiveness and performance, matching resources to future requirements, the development of distinctive capabilities, knowledge management.
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