Introduction
Human Resource Management (HRM) has effectively been an integral part of organizations’ since the end of the 19th century. There has been continuous shift in name change, focus and responsibilities of HRM, with the role progressively evolving since the days of the industrial revolution, reflected in the change of terms from Welfare Officers, Personnel Management, Human Resource Management (HRM) and most recently Strategic Human Resource Management (SHRM).
Many academics have written different viewpoints and articles on the concept of Strategic Human Resource Management (SHRM).
This research will predominantly review the underpinning concept of SHRM: the resource based view (RBV); the universalistic and contingency
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The term Strategic HRM as a broadly used term, was coined in the early 1980’s, as discussed in one of the earliest research papers on the subject (Tichy, Fombrun and Devanna 1982). SHRM is generally concerned with systematically linking people with the organisation and more specifically, about the integration of HRM strategies into corporate strategies. This theory is backed up more recently by Martin-Alcazar et al . (2005), SHRM is ‘the integrated set of practices, policies and strategies through which organisations manage their human capital, that influences and is influenced by the business strategy, the organisational context and the socio-economic context’.
It is reasoned that a clear strategy and an effective workforce to carry out that strategy, is fundamental to the long term profitability of an organisation, this precipitated changes in the nature of the HR function from being reactive, prescriptive and administrative to being proactive, descriptive and executive (Boxall, 1994; Legge, 1995).
Resource Based View (RBV)
The philosophy of SHRM is underpinned by the Resource Based View (RBV), the implication is that it is the range of resources in an organization, including its human resources, that produces its unique character and creates competitive advantage. HRM delivers added
HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.
As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright,
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
This artifact was a seminar paper written as a literature review to address topics, theories, issues, and trends in HRD in the course Seminar in Human Resource Development. This artifact considers strategic human resource management (SHRM) practices in terms of what human resource (HR) practitioners are doing and how it affects the organizations they are doing it in and the field of human resource development (HRD). Definitions of SHRM are represented as; a human resource system designed for the mandates of business strategy and a planned model of human resources activities to allow the organization to achieve its goals. It reports SHRM information found in literature and relates it to the study of HRD. I selected this artifact because it compares and contrasts SHRM approaches of HRD and analyzes each of their strengths and weaknesses. Additionally, the artifact evaluates and clarifies the importance of SHRM to HRD and its purpose and goal within an organization.
The Society for Human Resource Management (SHRM) is the largest expert alliance committed to human resource management in the world. The main objective of the foundation is
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
Using the CHRM Decision-Making Framework, consider an organisation’s actual or potential SHRM response to influential factors and link them to the organisation’s internal HRM.
The integrative model of human resource SHRM includes elements of both the control-based and the resource-based SHRM. Desired outcome dictates the elements that will be employed. HR policies can employ elements of commitment, collaboration, traditional and paternal control as needed to support its business strategy. Commitment strategies seek and develop internal talents to meet skill needed. Employees are seen as business partners and competitive advantage agents. Traditional HR and collaborative HR strategies have elements of externally acquiring physical resource or skills. External recruiting in the case of traditional HR strategy and subcontracting and hiring of consultants as part of the collaborative strategy can be used to provide competitive advantages to firms. External talents while providing short term advantages can be a disadvantage in the long term due to cost and potential threat to the firm business. The paternalistic HR strategy provides rewards for employees who learn and follow the company prescriptive directive for success.
HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural, and personnel techniques. (Storey, 1995)
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic management of
SHRM research examines how HR practices can be used as a mechanism to achieve strategic organisational outcomes. The study of HPWS is a stream of research within SHRM that focuses on identifying the HR practices that can be used in combination with each other to attain higher
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic
Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.
In order to come to a sufficient definition and understanding of SHRM and its potential for the organization a discursive analysis is required on the scope of strategy and HR as isolated fields.
Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative