LITERATURE REVIEW: STRATEGIC HUMAN RESOURCE MANAGEMENT
Introduction and Purpose 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.
General Findings of the Research
Organizational Success through Strategic Human Resource Management Strategic HRM is the outcome of combining an company’s strategic goals and objectives into the HR department to improve overall performance of the company (Jain, 2014). Jain (2014) provides key insights on strategic HRM, its process, key features, advantages, as well as limitations. This journal analyses how strategic HRM should be used, since it improves performance and develops a culture within the company that provides innovation, flexibility, and competitive advantage (Jain, 2014). Jain’s (2014) theory explains that HR
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The authors use different companies with various backgrounds (e.g. banking, retail, and health) to conduct their research about whether or not strategic HRM promotes innovation (Bal. et.al., 2014). They use a convenience sampling method due to time and cost restraints to develop a questionnaire. Their research reveals that practices, such as training-development, job analysis, performance evaluation and career management, creates innovated employees (Bal. et.al.,
In response to criticisms of the ‘best fit’ and ‘best practice’ approaches, the ‘resource based view’ model focuses on leveraging competitive advantage through both tangible and intangible organisational resources. However, questions arise regarding whether there is a best way of achieving strategic HRM. Evidence suggests that firms rarely adopt a single style of management and that it is likely that they use a mix of approaches for different groups (Wilton 2011).
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
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
Strategic Human Resource Management has been developed to give companies a competitive edge over other companies. Since widespread access to and the use of technology have resulted in tighter margins for maintaining a competitive edge,
It is important for HR Management to transform from being primarily administrative and operational to becoming more strategic contributor because of the involvement of competitive advantages through a company s’ employees. Strategic HR managers need proceed with the professional growth by hiring employees with high potential and giving them opportunity to learn and make lot of experience from their job roles where can access to brightest future in the industry. Secondly, the executive succession where the strategic HR managers will hiring the potential successors and grooming them with experience and advancement to be ready for replacement of the owner of company. A company can be in right direction if proceed with the strategic succession planning. Third is the labor cost efficiency. Strategic HR department mainly focus on their top performers who effort the most to organizational goals and long-term company success. A strategic HR philosophy ensures the employees satisfied perfect where by paid to
More firms’ business strategy can be better realized using the integrative model of HRM. Both employees and firms’ aspirations can be met if the right strategy is used. . HR professionals must be well trained to implement this strategy.
The strategic human resources management of the means every person from within organization from the top of management level to the bottom of ground staffs are doing things that make the organization successful. According to Schuler, R. S. (1992) strategic human resources management is defined about integration and adaption within organization .Its concern to ensure HR management is fully integrated with the strategy and these HR policies are adjusted and used by the employees and their line managers as part of their everyday work.
HRM is 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 array of cultural, structural, and personnel techniques. (Storey, 1995)
Generally, when one thinks of the role of Human Resources, many people will think first of the role that HR plays in important functions such as staffing, training, retention, and the development of workplace policies. While these are all important functions for Human Resource Management, the evolution of HRM is such that it is important to think of these functions in terms of the impact they have on the overall strategic vision for the company. Key HRM functions can be split up into two different categories. These include those functions that relate directly to the employee such as staffing, retention, training and development, but also those functions that relate more to company policies and government regulations. Examples include compensation and benefits strategies, the development of basic workplace policies, and adherence to regulations that are enforced by government. Each of these functions play important roles in the implementation of an overall strategic vision for the company, and ensuring that HRM understands the role that it plays is important for making sure that HRM policies are in line with the company 's long-term strategy. One excellent example of the way in which the role of Human Resources plays out in the context of a long-term strategy is that of Walmart 's HR practices and the way they fit into the overall business strategy of the organization. With that said, in order to understand the HRM of
There are three major organizational properties: human resources, financial resources and technological resources. HRM is an individual approach to service management which seeks to attain competitive advantage during the strategic deployment of an extremely committed and capable workforce, using a selection of cultural, structural and personnel techniques. (Storey, 1995). From this definition HRM is a mixture of people-oriented management practices that views employees as assets, not costs; and its major aim is to make and maintain a skilful and dedicated workforce to grow competitive advantage. The differences in the
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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.
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