Personnel Management vs Strategic Hrm

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

Schuler, R. S., & MacMillan, I. C. (1984). Gaining competitive advantage through human resource management practices. Human Resource Management, 23(3),

The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.

Human resource management faces many challenges and operates in a constant environment of change. Two of the most important challenges to the role of human resource management in the future is the ability to move to a strategic human resource model and the capacity

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

In this chapter, we discussed the various elements of human resources management. Also the review of some existing literature relevant to the study, is made to refer to some scholars work related to the topic under study.

Traditionally Personnel management was usually expected to work on a short time scale, (i.e. dealing with immediate problems such as local industrial relations issues or urgent staff shortages) rather than taking a long-term strategic view of people management issues. “Note the implications for this longer-term perspective for all HR issues and the necessity for an articulated strategy for HRM, which should not only be coherent in itself but should be informed by and support the business strategy of the organisation” (Henderson, 2011)

Theme to consider: What is strategically managing human resources? How do we distinguish it from ‘plain HR’?

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.

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.

According to Storey (2001:5) Human Resource management is defined as ‘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 integrated array of cultural, structural and personnel techniques.’

The nexus between human resource management and organisational performance represents an issue of strategic importance to organisations. Hence, many HRM practices were regarded as being more important than others in contributing to organisations’ competitive advantage. ( Delery and Doty ,1996 ; Tzafrir, 2006 ). Several HRM practitioners and academics tried to integrate such useful practices into a ‘set’ that can be universally applicable to all organisations. ( MacDuffie 1995 ; Pffefer 1998 ; Wood 1995 ) . However, that last two decades witnessed increasing studies that acknowledged the significance of context and strategy when identifying HRM practices that are vital to success. ( Boxall and Purcell 2011 ; Clinton and Guest

Human resource management consists of planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished. Human resources are a critical, if not the source of, competitive advantage for the business, rather than, say access to capital or use of technology. Thus attention needs to be paid, at a strategic level, to the nature of this resource and its management, as this has impact on the performance of the organisation, however defined. Batt and Banerjee (2012) found that, in an analysis of strategic HR research articles in British and American journals, the link between

As human resource (HR) management started to replace personnel management to become one of the important inter-functions of the organization, some people may question what make this subcategory of management has important impact on the operation of organisation. Then started to research the strategic value of human resources. Hendry and Pettgrew (1986, cited in Storey, 2007) define that strategic human resource management (SHRM) is a usage of planning consistent HR practices or policies that align with strategy of the organisations to create sustainable competitive advantages (SCA). There are three main approaches in SHRM, which are the best practice (universalist), the best-fit (contingency) and the resource-based. Below this article will briefly introduces theses three approaches, and critically analyse the limitation of these approaches.

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