Model of the Stategic HRM

 

Model of the Strategic HRM

According to the “Study lecture note”“The strategic approach to human resource management applies the concept of strategy to managing a firm’s human resources. This approach has six key elements as shown below”

§  Explicitly recognizes the impact of the outside environment.

§  Explicitly recognizes the impact of competition and the dynamics of the labor market.

§  Has a long-range focus (three to five years).

§  Focuses on the issue of choice and decision making

§  Considers all personnel, not just hourly or operational employees.

§  Is integrated with overall corporate strategy and functional strategies.


 

Strategic Context

 


Image Source :https://hr.university/wp-content/uploads/2021/12/3A-Strategic-Context-1024x694.jpg


According to the CFI Team (2022)“Human Resource Management (HRM) is a collective term for all the formal systems created to help in managing employees and other stakeholders within a company. Human resource management is tasked with three main functions, namely, the recruitment and compensation of employees, and designated work. Ideally, the role of HRM is to find the best way to increase the productivity of an organization through its employees. Despite the ever-increasing rate of change in the corporate world, the HRM role is not likely to change in a significant way” 

                                                                    Image Source:  Armstrong, M. and Taylor, S. (2014)


   The concept of SHRM implies that HR strategies

“must be totally integrated with corporate/business strategies in the sense that they both flow from and

contribute to such strategies. But as Brewster (2004) argued, HR strategy will be subjected to considerable”.

“ To a very large extent, the philosophy of SHRM is underpinned by the resource-based view. This states that it is the range of resources in an organization, including its human resources, that produces its unique character and creates a competitive advantage. The resource-based view is founded on the ideas of Penrose (1959: 24–25), who wrote that the firm is ‘an administrative organization and a collection of productive resources and saw resources as a bundle of potential services. It was expanded by Wernerfelt (1984: 172), who explained that strategy ‘is a balance between the exploitation of existing resources and the development of new ones.  Resources were defined by Hunt (1991: 322) as ‘anything that has an enabling capacity.  The concept was developed by Barney (1991: 102), who stated that a firm is said to have a competitive advantage when it is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy. This will happen if their resources are valuable, rare, inimitable, and non-substitutable. He noted later (Barney 1995: 49) that an environmental analysis of strengths, weaknesses, opportunities, and threats (SWOT analysis) was only half the story: ‘A complete understanding of sources of a firm’s competitive advantage requires the analysis of a firm’s internal strengths and weaknesses as well.’ He emphasized that”:

“Taking into account the concepts of the resource-based view and strategic fit, Delivery, and Doty (1996:

802) contended that ‘organizations adopting a particular strategy require HR practices that are different

from those required by organizations adopting different strategies and that organization with ‘greater

congruence between their HR strategies and their (business) strategies should enjoy superior performance’ (ibid: 803). They identified three HRM perspectives”:

 

1 The universalistic perspective

2 The contingency perspective

3 The configurational perspective

 

The concept of strategic fit stresses that when developing HR strategies, it is necessary to achieve

congruence between them and the organization’s business strategies within the context of its external

and internal environment. Armstrong, M. and Taylor, S. (2014)

 

                    Image Sorce:  https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTkR-Ms2zF3LRlbQJIY4zjZ_1HJhbk4-XTFqQ&usqp=CAU  

Reference:

Armstrong, M. and Taylor, S. (2014) Armstrong’s Handbook of Human Resource Management Practice. 13th ed. London: Kogan Page publishers.

[online] CFI Team [Available on] October 26, 2022, access on 22nd November 2022

[online]HR University [Available at] What is Strategic Human Resource Management? - HR University access on 23rd November 2022

[online]Study lecture notes [Available at] The Strategic Approach To Human Resource Management (studylecturenotes.com) access on 23rd November 2022

Comments

  1. Anuradha ChanakaNovember 25, 2022 at 9:47 AM

    Very Broad Topic Ajitha, Yes HRM is Improving ,Developing And Moderating day by day For Gaining The Best Result, in Change of Social, Cultural And Economical.

    ReplyDelete
  2. Sajith LakmalNovember 26, 2022 at 11:55 PM

    Agreed with your content.As per your content, SHRM plays big role to achieve organisation's goals. It is not limited to recurting function. Human resources is dynamic and not easy to control like other resources of the organisation. That is why we need SHRM

    ReplyDelete

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