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The term, Strategic Human Resource Management, conveys the sense of human resource management in a strategic context. In order for this to take place there has to be some connection made with the strategic process through which the aims of an organization are managed, that is, its strategic management. If a global company is to function successfully, strategies at different levels need to interrelate. Throughout the first half of our century and even into the early eighties, planning with its inevitable companion, strategy- has always been a key word, the core, and the near-ultimate weapon of good and true management. In this lecture we examined the theoretical debates on the nature and significance of the new HRM model.
Strategic Human Resource Management is an approach to making decisions on the intentions of the organization concerning people-essential components of the organization’s business strategy. It is about the relationship between HRM and Strategic management in the organization. Strategic HRM refers to the overall direction the organization wishes to pursue in achieving its objectives through people. Strategic HRM can be regarded as an approach to dealing with longer-term people issues as part of the strategic management thrust of the business. It covers macro-organizational concerns relating to structure and culture, organizational effectiveness and performance, matching resources to future business requirements, and the management of change.
Defined by Wright and Snell (1989):
SHRM deals with `those HR activities used to support the firms competitive strategy.
Strategic Human Resource Management encompasses those decisions and actions, which concern the management of employees at all, levels in the business and which are directed towards creating and sustaining competitive advantage.
It includes the responsibility to identify and interact in the social. The need for a Concept Much of the literature provides evidence that strategic integration is not well developed and advances reasons why to achieve it would be beneficial to organizations. Tichy and Devanna model of HRM: The early HRM model developed by Fombrun (1984) emphasizes the interrelatedness and the coherence of human resource management activities. technological and economic environments in which the organization is and will be doing business.The means of aligning the management of human resources with the strategic content of the business. and the ultimate test of the reality of strategic HRM is the extent to which it has stimulated such action. He wrote that three core elements are necessary for firms to function effectively: . 2. THE CONCEPT OF STRATEGIC HUMAN RESOURCE MANAGEMENT 1. less rule-oriented policies and practices. an attitude of treating employees as assets. and that there is explicit consideration of human resource dimensions. The organization at all levels establishes responsibility and accountability for human resource management. political. reward and recognition tied to performance. Human Resources – a strategic issue • • • • There is an overall corporate purpose and that the human resource dimensions of that purpose are evident. Models and frameworks of strategic human resource management a) The Fomburn. 3. more participation and involvement for employees. SHRM should provide guidelines for successful action. Organization advocated an increase in the input of human resource considerations at strategic planning. effective and open communications. A process of developing strategy within the organization exists and is understood. better training and career development opportunities. THE AIMS OF SHRM SHRM aims to provide a sense of direction in an often-turbulent environment so that organizational and business needs can be translated into coherent and practical policies and programmers.
with a view to achieving the normative goals of high commitment.• • • Mission and strategy Organization structure Human resource management They defined strategy as a process through which the basic mission and objectives of the organization are set. • Operational levels: day-to-day management But their most important conclusion war that: HR systems and organizational structures should be managed in a way. which is congruent with organizational strategy. The Guest model has six components: • • • • An HRM strategy A set of HRM policies A set of HRM outcomes Behavioral outcomes . then superior individual performance will result. The central hypothesis of Guests model is that if an integrated set of HRM practices is applied in a coherent fashion. high quality and task flexibility. and a process through which the organization uses its resources to achieve its objectives. b) The Harvard Model of HRM The analytical framework of the Harvard model offered by Beer consists of six basic components: • Situational factors • Stakeholders interests • Human resource management policy choices • HR outcomes • Long-term consequences • Feedback through which the outputs flow directly into the organization and to the stakeholders C) The Guest model of HRM David Guest (1989) has developed a more prescriptive theoretical framework. reflecting the view that a core set of integrated HRM practices can achieve superior individual and organizational performance. They also made a distinction between the three levels of managerial work: • Strategic levels: policy formulation and overall goal setting • Managerial levels: concerned with the availability and allocation of resources to carry out the strategic plan.
Strategic HRM .TRATEGIC HUMAN RESOURCE MANAGEMENT . • A cohesive top management team. STRATEGIC INTEGRATION: INTEGRATING BUSINESS AND HR STRATEGIES The whole concept of strategic HRM is predicted on the belief that HR strategies should be integrated with corporate or business strategies.• • A number of performance outcomes Financial outcomes. • A clear expressed business strategy which had been implemented successfully. Matching HRM activities and policies Seeing the people of the organization as a strategic resource for the achievement of competitive advantage. • Well articulated missions and values. strategic Human resource Management has four meanings: • • • • The use of planning A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy and often underpinned by a philosophy. • A positive focus on well understood critical success factors • The organization offers a closely related range of products or services to customers. Strategic integration is necessary to provide congruence between business and human resource strategy so that the latter supports the accomplishment of the former and indeed. helps to define it. visionary and often charismatic leadership from the top. THE MEANING OF STRATEGIC HRM According to Hendry and Pettigrew (1986). The aim is to provide strategic fit and consistency between the policy goals of human resource management and the business. A personnel/HR director who plays an active part in discussing corporate/business issues as well as making an effective and corporate/business-oriented contribution 1. THE REQUIREMENTS FOR STRATEGIC HRM Strategic HRM is most likely to be practiced in organizations with the following characteristics: • Strong.
The term.com/Documents/MBA/HRM/LEC . conveys the sense of humanresource management in a strategic context. Strategic Human Resource Management.. In order for this to take placethere . www..prdatta.