Critically Assess Whether Strategic Hrm Leads to ‘High Performance’’

2983 Words Apr 6th, 2013 12 Pages
Essay Question 1: ‘Critically assess whether strategic HRM leads to ‘high performance’’
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
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