International Bulletin of Business Administration ISSN: 1451-243X Issue 7 (2010) © EuroJournals, Inc. 2010 http://www.eurojournals.com
Strategic Human Resource Management (SHRM): A Paradigm Shift for Achieving Sustained Competitive Advantage in Organization
Benjamin James Inyang Department of Business Management, University of Calabar P.M.B. 1115 Calabar, Nigeria E-mail: benji1955.unical@yahoo.co.uk Tel: +234 8033773403 Abstract The human resource of an organization offered the potential synergy for sustained competitive advantage, when properly deployed, maintained and utilized. From the onset, the traditional HRM, the formal system for managing people in organization, concerned itself essentially with transactional and administrative
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SHRM is evolving as a new approach to the management of people, and specifically focusing on integrating the human capital to business strategy to enhance organizational competitiveness. According to Aswathappa (2004:39), “the advent of SHRM has brought forward the issues of linkages between the employer-employee relationships and wider organizational strategies and corporate objectives”. “The field of strategic human resources management has enjoyed a remarkable ascendancy during the past two decades, as both an academic literature and focus on management practice” (Becker & Huselid, 2006:898). The transition from the older HR practice with focus on staff matter to a subject of re-birth which focuses on linking people as organizational asset with the business strategy of the firm (Niehaus, 1995) means that the HR professional is performing a new and more challenging responsibility that requires new competencies and skills. He has to think outside the traditional organizational box of HR – and develop a radically different approach to manage the human capital and create a fit between HR architecture and business strategy formulation and implementation in the firm. The HR architecture, according to (Becker & Huselid, 2006:899) “is composed of the systems, practices, competencies, and employee performance behaviors that
HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.
As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright,
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.
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.’
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.
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
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,
The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]
The integrative model of human resource SHRM includes elements of both the control-based and the resource-based SHRM. Desired outcome dictates the elements that will be employed. HR policies can employ elements of commitment, collaboration, traditional and paternal control as needed to support its business strategy. Commitment strategies seek and develop internal talents to meet skill needed. Employees are seen as business partners and competitive advantage agents. Traditional HR and collaborative HR strategies have elements of externally acquiring physical resource or skills. External recruiting in the case of traditional HR strategy and subcontracting and hiring of consultants as part of the collaborative strategy can be used to provide competitive advantages to firms. External talents while providing short term advantages can be a disadvantage in the long term due to cost and potential threat to the firm business. The paternalistic HR strategy provides rewards for employees who learn and follow the company prescriptive directive for success.
The Strategic Human Resource Management (SHRM) is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Thus human resource is considered as important asset to organizations to achieve sustained competitive advantage (SCA) and optimize organizational performance. The Resource Based View (RBV) or approach, best explains the human resource as a source of competitive advantage that culminates to superior performance. Therefore, the RBV approach to SHRM in this essay is argued and established as a better alternative from other approaches such as Best practice approach and Contingency approach. Down the line, its managerial implications in terms of HR actions
The focus of this paper is on the relationship between Strategic Human Resource Management (SHRM) and organisational performance outcomes, specifically sustained competitive advantage. Using the resource-based view (RBV) of the firm as an underpinning theoretical framework, this paper examines several components of Strategic HRM including human capital (i.e. employees) capability and behaviour, human resource systems (policies and practices) and
The research done in this proposal attempts to find the role of Human Resources Management for the smooth running of an organization through effective implementation of HRM strategies. HRM today has a much broader range of functions than traditionally it use to have over a decade ago. HR manager also has a lot of
Introduction: HRM plays a vital role in supporting business strategies while taking any business decisions at higher level of organizations. Human Resource Management which can make the effective use of human resource in order to enhance organizational performance and as a strategic business partner, human resources management can justify adequate funding for human resources activities. This assignment aims to investigate different human resource management issues. It will also provide us a clear view about the role and importance of HRM in achieving organisational effectiveness. It discusses about the formulation and implementation of HR strategies along with the contemporary issues impacting SHRM.
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