INRODUCTION
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.
STRATEGIC HUMAN RESOURCE
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Many find this model to be attractive given both its analytical and prescriptive nature (Pettigrew & Hendry 1990; Boxall, 1992). However Armstrong (1987) argues that the human (soft) aspect in this model may conflict with the business focus.
The Michigan model proposed by Fombrun, Tichy and Devanna (1984), consist of five factors namely, selection, performance, appraisal, rewards and human resource development. It emphasises the interrelatedness of the HRM activities. Contrary to the Harvard model it treats people as any other resource which can be used to achieve business goals (Truss, Gratton, Hailey, McGovern & Stiles, 1997). Hence it has a ‘hard’ focus that is, a focus on organizational growth and performance (Bratton & Gold, 2001). Another major drawback is that it views organization and employee goals to be mutual (Walton, 1985) thus ignoring the concept of conflict or diversity (Bagshaw, 2004) or the influence of the external environment (Walton, 1985; Bratton & Gold, 2001) which ultimately can lead to market failure (Chuang, Church, Zikic, 2004).
The Warwick model proposed by Hendry & Pettigrew (1990) draws on the Harvard model and further extends the analytical aspects. The authors argue that “better descriptions of structures and strategy-making in complex organizations,
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
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
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.
Furthermore, as businesses continue to evolve so do their primary functions. Like Whole Foods, many companies today are expanding the use of strategic human resource management. In fact, now more than ever, executives are working closely and strategically with their human resources divisions in developing creative ways to implement proper policies, practices, and systems that can successfully influence employees’ attitude and performance” (Noe, Hollenback, Gerhart, & Wright, 2015, p. 5).
Human resource management refers to the process of dealing with people or controlling them. It plays an important role in effective utilization of human resources and bringing effective people in an organization (Attridge, 2009). With the following research at DaVita, one shall come to know about the standard model of HRM and how it is employed in the strategic planning of an organizational structure.
Human Resource Management (HR) is a function in an organisation aimed at maximizing employee performance in relation to the employer 's set standards and strategic objectives. The primary focus of HR is concentrated upon the management of employees, and on the policies and systems within and outside the organisation. (Boxall & Purcell, 2011). “Strategic Human Resource Management (SHRM) aims to align the functions and processes of HR with the strategic aims and objectives and competitive advantage of an organisation.” (Hartel, Fujimoto, Strybosch & Fitzpatrick, 2006). After all, the key characteristic of HR is ‘integration.’ The role of HR and HR Professionals can be linked to four main SHRM theories, namely: Jackson & Schuler (1995), Kochan & Barocci (1985), Klatt, Murdich & Schuster (1978) and Lundy & Cowling (1996).
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
One of the current trends in strategic human resources management (strategic HRM), is research regarding whether a company’s human resources department should put more effort in the strategic or organizational aspect of the company. Should a company focus more towards one aspect than on the other? In order to find answers to this question, researchers are using different theories, methodologies, evidences, gabs in research, and conclusions. The purpose of this literature review is to collect knowledge about the current thinking and research of the function of strategic HRM to improve the overall performance of a company.
Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.
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
Few HRD professionals would disagree that practice plays an important role in learning and retention. Using your knowledge of the conditions of practice, what sort of practice do you think would be most effective for training mechanics in a new installation procedure for automobile air-conditioners? How about for training new managers to comply with a new Employee Assistant Programme Act.
The relationship between an organisation’s strategic management and the management of its human resources is concerned with SHRM (Boxall, 1996). In SHRM, the HR department is more involving in acquiring and creating human capital resource which can ultimately realize the organization strategic goals. HR leaders are required to ensure that its procedures and plans align with the corporate business strategy as a whole. HR leaders should be able to visualize the complete system of HR activities from beginning to end to deliver the expected commercial results. External environments such as government policies, demographic, and labour market influence on the design of SHRM
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
There is now a general acceptance of a stakeholder theory of the modern organization (see, e.g.[1, 2,3]). Such a theory implies that managers have a duty to stakeholders. Stakeholders are defined as those groups who have a stake in or claim on the firm. Translated to the human resource development (HRD) context it suggests that each stakeholder group has a right not to be treated as a means to some end and should therefore participate in determining the future direction of human resource development activities within the organization.
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