Essay Question 1: ‘Critically assess whether strategic HRM leads to ‘high performance’’
Introduction
There is a controversy whether the Strategic Human Resources Management (SHRM) leads to ‘high performance’. A general idea of SHRM is that “the linkage of management and deployment of the individual within the firm to the business overall and its environment whereas HRM is the activities that take place under this area.” Truss and Gratton (1994). It spotlights on long-term strategy.
Two theoretical perspectives to the Strategic Human Resources Management (SHRM) will be introduced and compared to determine whether they manage to ‘high performance’ or not. First, the Universalist approach is ‘one best way’ of dealing human resource to
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The second type is ‘Internal fit’ and it can also interpret to ‘horizontal fit’. HR policies and practices are all fit together so that they are in coherence. They are also mutually reinforcing and are applied continuously. Jeffrey Pfeffer’s (1998) seven practices are adopted. Lastly, ‘Line management integration’ is when line managers act as a critical character in implementing HRM strategy. ‘Best-fit’ HRM suggests that the best to manage people will vary depending on organizational circumstances, and hence, the link to business strategy is key.
Empirical evidence of SHRM model * A large company – Tarmac
The UK quarrying company Tarmac has over 12500 employees at present. The operations function is key to overall company’s performance. It needs the support of finance managers, zone managers and HR managers. A finance manager delivers financial and management accounts to contribute the strategic decision-making process by forecasting financial performance. A zone manager manages operational performance. They meet and improve targets for cost, quality, delivery, safety and business ethics shown in key performance indicators (KPIs). Lastly a HR manager ensures business managers apply HR policies and procedures.
The company’s goal is to achieve objectives by motivating all individuals working together as one team across the business units and functions. Each objective has its strategies. The followings practices
The ‘‘best fit’’ approach promotes the concept that strategic HR should be inextricably linked to the formulation and implementation of strategic corporate and business objectives (Wilton, 2011). This means that the HR strategy is concerned with matching the employee’s role behaviour with the company‘s mission, values and goals. Wilton (2011) explains this by giving an example whereby if a company‘s business strategy is based on delivering a high quality service, then the HR strategies and policies need to focus on the quality of its employees. This would be achieved by rewarding attitudes and behaviour that match this approach. Boxall and Purcell (2008) support this idea by highlighting that companies may fail if they do not adapt to their environment. The best fit approach therefore aims to improve organisational performance by integrating all activities in such a
CRITICALLY COMPARE AND CONTRAST THE 'BEST FIT', 'BEST PRACTICE' AND 'RESOURCE-BASED VIEW', MODELS OF HRM STRATEGY AND EXPLAIN HOW EACH APPROACH IS ARGUED TO CONTRIBUTE TO IMPROVED ORGANISATIONAL PERFORMANCE.
This paper examines the positive and some negative aspects of Strategic Human Resource Management (SHRM) and explores the varying possibilities used to successfully facilitate SHRM within organisations. The significance and advantages of SHRM for organisations is vast and historically evident, consequently the vast literature pertaining to SHRM benefits, restricts a comprehensive report covering all aspects and therefore is beyond the limitations of this paper.
Strategic human resource management is best defined in line with the original concept of strategic, integrated and coherent approach to employment, development and well being of the people/ personnel working within the organisation ( Armstrong M. , 2012). Boxhall and Purcell (2003) describe HRM as all those
To address my research question on why there is a need for the presence of a relationship between strategic management and strategic human resource management, and how we can make this relationship come about. Firstly, I started off by defining the two concepts of human resource management as well as strategic management. Secondly, I discussed the organisational history and the role of HR in the past, and where it (HR) is going. Thirdly, I discussed the existence, importance and implication of this relationship. Lastly, I discussed the means of making this relationship come
The concept of strategic human resources management tends to focus on organization wide human resource concerns and addresses issues that are related to the firms business both short-term and long term. Strategic human resource management derive from human resource management, which the influence of strategic human resource management will be addressed. Human resource departments need to transform human resources to strategic human resource as to ensure the effectiveness of the objectives of the organisation are achieved. More and more authors are still reshaping and redefining the broadly accepted definition of strategic human resource management however according to Caliskan (2010:102) mentions that many authors stand firm that strategic human resource management is concerned with the role of human resource management systems play in firm performance. In addition to that it highlights the importance of people management, as to improve the organisations performance and gain competitive advantage. In order to address the question of, what influence does the strategic human resource management play in the performance of an organisation. First issue of why is it important for organisations to have an effective and
In brief, a strategic perspective of HRM that requires simultaneous consideration of both external (business strategy) and internal (consistency) requirement leads to superior performance of the firm. This performance advantage is achieved by:
This essay will discuss and analyse Strategic Human Resource strategies and how these strategies impact on an organization 's performance and how literature supports or dispels these claims. This essay will focus specifically on High Performance Work Systems and how they impact the organisation and also the individual employee as “The proponents of Strategic human resource management make bold claims about its relevance to and its positive impact on organisational performance.” This essay will discuss those bold claims and determine how positive it is for the organisation’s performance.
Strategic human resource management on the other hand involves the process of developing a consistent and accurately aligned collection of corporate practices, strategies as well as policies aimed at facilitating the achievement of a given organization's strategic objectives as indicated in the work of Mello (2002). Some of the Strategic human resource management (SHRM) practices include the activities, actions and decisions related with
This essay will seek to explore the link between Human resource management and business performance. To be successful in this, a number of resources will be used. To get a sound basis, definitions of HRM and performance will first be made. Once definitions have been made, the essay can then explore the link. High performance work practices (HPWP) will be the main theory examined in this essay and others will be used to be able to provide a critical view. The models will include the AMO model also the best fit and best practice view will also be considered. A range of references will also be used to get the views from a range of studies these include Guest, Sels at el
For the contingency perspective otherwise known as best fit HRM, there are no universal prescriptions of HR policies and practices. It is all contingent on the organisation’s context and culture and its business strategy. To gain a full picture of this perspective, one must examine both forms of best fit – internal and external fit.
The purpose of this paper is to review academic literature of the different frameworks/models proposed by different researchers and eventually propose a framework of choice which will help leaders to better manage their Human Capital (HC) and understand how to incorporate HR policies into everyday decision making and long term planning. First we start by defining Strategic Human Resource Management (SHRM). We then look into what purpose it serves in an organisation. Then we look into the different models of SHRM how these models compare with each other. Literature review intends to develop a new framework which is a combination of two frameworks, The Harvard Model and the Warwick model of SHRM.
Extensive research within Human Resource Management (HRM) has been in linking HRM with Business strategy, in order to achieve better organisational performance. This is partly because of the increasing economy of knowledge, making human capital more of a base for competitive advantage. It all stems from the focus of management and analysis of organisations such as The Hawthorne Studies in the 1920’s and then the success of Total Quality Management in Japan during the late 1960’s. Beginning in the 1980’s academics such as Miles & Snow started to link HR with strategy, the organisational perspective grew and a move away from bureaucracy and control systems started to be seen. This was in contrast to the Industrial Relations perspective but still we saw the emergence of semi – prescriptive frameworks of HRM that were analytical and associated with performance. In the 1990’s the first main models of HR strategy formulation began to materialize.
Strategic human resource management (SHRM) is a design and an approach for managing the companies human resources and the needs of their employees along with goals of the company, it requires thinking ahead and making the new ways for the organization to meet requirements of their employees and the employees should fulfil the requirements of the organization as well as achieving the sustainable competitive advantages(Bratton&Gold,2012).The SHRM has three approaches
Moreover, even those who argue against this universal model, admit the importance of taking lessons from it. (Boxal and Purcell 2011) . The purpose of this essay is not to engage in the broad debate regarding universalistic and contingency approaches of HRM, but to assess empirically; to what extent a universal approach can fit with different strategies and be applied in different contexts. Thus, it will be argued that although strong evidence exists in support of best fit approaches, a best practice approach that improves organisational effectiveness can be applied to a certain level in organisations.