Global Trends on

Human Resource
Management
Overview on
Strategic Human
Resource
Management:
 Introduction
 Strategic HRM is ‘the pattern of planned human resource
deployments and activities intended to enable an organization to
achieve its goals’ (Wright & McMahan, 1992, p. 298). The
definition subsumes the notion of human resource bundles or
configurations, as patterns of activities that develop over time
that support successful adaptation and organizational
performance.
 Strategic HRM can be regarded as a mindset underpinned by
certain concepts rather than a set of techniques. It provides the
foundation for strategic reviews in which analysis of the
organizational context and existing HR practices leads to choices
on strategic plans for the development of overall or specific HR
strategies. But strategic HRM is not just about strategic
planning; it is also concerned with the implementation of
strategy and the strategic behaviour of HR specialists working
with their line management colleagues on an everyday basis to
ensure that the business goals of the organization are achieved
and its values are put into practice.

2
BASIS OF
STRATEGI
C HRM

3
 Strategic HRM is based on
three propositions:
1) The human resources or human capital of an
organization play a strategic role in its success
and are a major source of competitive advantage.

2) HR strategies should be integrated with business

plans (vertical integration). As Allen and White
(2007) stress, ‘The central premise of strategic
human resource management theory is that
successful organizational performance depends
on a close fit or alignment between business and
human resource strategy.’ Boxallet al(2007) also
believe that ‘The major focus of strategic HRM
should be aligning HR with firm strategies.’

3) Individual HR strategies should cohere by being

linked to each other to provide mutual support
(horizontal integration).
 Comparison of
Personnel Management
and Human Resource
Management

5
 BASIS FOR
PERSONNEL MANAGEMENT  HUMAN RESOURCE MANAGEMENT 
COMPARISON

The branch of management that focuses on the

The aspect of management that is concerned
most effective use of the manpower of an entity,
Meaning with the work force and their relationship with
to achieve the organizational goals is known as
the entity is known as Personnel Management.
Human Resource Management.

Approach  Traditional Modern 

Treatment of manpower  Machines or Tools Asset 

Type of function  Routine function Strategic function 

Basis of Pay  Job Evaluation Performance Evaluation 
Management Role  Transactional Transformational 
Communication  Indirect Direct 
Labor Management  Collective Bargaining Contracts Individual Contracts 
Initiatives  Piecemeal Integrated 

Management Actions  Procedure Business needs

Decision Making  Slow Fast 

Job Design  Division of Labor Groups/Teams

Primarily on mundane activities like employee Treat manpower of the organization as valued
Focus 
hiring, remunerating, training, and harmony. assets, to be valued, used and preserved. 6

https://www.hrmexam.com/2019/05/17/difference-between-personnel-m
anagement-and-human-resource-management/