Literature Review of Human Resource Management, theory versus practice

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Policy versus practice: Understanding the relationship between human resource management and organizational outcomes is one of the long-standing goals of macro human resources management research. – Kaifeng Jiang et al 2011 With rapid change in the economic environment managers and scholars have been motivated to seek competitive advantages through new sources. The role of a skilled, motivated and flexible workforce has become more prominent than traditional attributes such as technology, economies of scale or natural resources. This is illustrated in the growth of Human Resource Management (HRM) literature, which focuses on strategies to stimulate economic performance by sustaining and developing core competencies within a…show more content…
Conversely Jessica Miller from the SHRM Blog suggests that the effectiveness of parental strategic management is curtailed by its design limitations. The alignment of the policy or practice defines how a convention ‘fits’ within a workplace structure, therefore ineffective strategy is usually preceded by poor structural fit rather than poor implementation. Miller infers that “both good and bad parenting will have reciprocal impacts on a workforce”. Academic studies support these findings, Huselid (1997) performed a cluster analysis of four firms with different HR strategies. The weak clusters were characterised by poorly planned human capital goals that were irrelevant to the workplace. The high performance clusters reflected smart design supported with effective communication and above average levels of management support. The correlation of alignment and effectiveness of HR strategy is consistent with the prior work of Gehart & Milkovich (1992) that poor design is the underlying trait for 75% of failed SHRM policies. Human capital measurement is an elusive concept (Becker, 2002) and therefore empirical analysis has inherent inaccuracies. However both the anecdotal and empirical findings both suggest parental strategic management has an immediate impact on the workforce. They also cohesively support the concept that design, rather than implementation, is the
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