The Role of Strategic Groups in Understanding Strategic Human Resource Management

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).

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.

"Human Resource Management will be regarded as valuable business partner and important organisational resource when the Business Units are satisfied with the results achieved through Human Performance and Process Improvement." This is how human resource management has been described by an unknown source and quoted in many books and journals on the same subject.

“It has been argued that a strategic approach to human resource planning is required as a foundation to ensure the alignment between an organisation’s competitive advantages? Hr strategies. Using examples, definitions and appropriate theory and models to illustrate your argument, demonstrate the the role of hr planning can play in achieving successful organisational outcomes.”

Proactive management of the employees of a company or organization. Strategic human resource management includes typical human resource components such as hiring, discipline, and payroll, and also involves working with employees in a collaborative manner to boost retention, improve the quality of the work experience, and maximize the mutual benefit of employment for both the employee and the employer.

Google was selected because the firm has some of the best HR practices. This has resulted in employees showing greater amounts of loyalty and helping the company to enter new markets. Evidence of this can be seen with some of many benefits provided by the company including: free child care, legal aid services, an in house physician, a gym, lunch room and gourmet meals. According to the firm, their focus is, "Designed to take care of the whole you and keep you healthy, whether physically, emotionally, financially or socially." This is showing how Google's HR department is one of the key tools they are using to attract and retain talent. Learning from them will help to offer specific insights about creating an effective HRM strategy. ("Benefits," 2012)

From what began in the back of their family garage, Criterion Furniture was built on the vision that Wally and Brain Smaill had. The brothers built their ready-to-assemble furniture business into one of the biggest in Australasia. This report will discuss how Criterion may use human resource management and strategic management in planning the future success of the organisation as well establishing their competitive advantage. Human resource management comprises a set of policies designed to improve results and competitive advantage (Schermerhorn et al., 2014). And strategic management is the process of formulating and implementing strategies to accomplish long-term goals (Schermerhorn et al., 2014). Using tools that define strategic management such as a SWOT and PESTE analysis as well as the ideas behind human resource management, this report will allow Criterion to see how they can work to improve their strategic direction and establish their competitive advantage.

Achieving competitive advantage throuch human resources requires human resources activities be managed from a strategic perspective. (Becton, 2009). In order for human resources professionals to act in a more strategic matter they must become equal partners with other professionals in implementation and formulation of strategy. Providing managers at all levels in organizations the awareness of a critical source of competitive advantage not from having the most ingenious product design or service, the best marketing strategy, state-of-the-art technology, or the most savvy financial management but from having the appropriate systems for attracting, motivating, and managing the organizations’ human resources. This can contribute to transitioning to various forms of change such as, fundamental mindsets, organizational views and knowledge, view of employees, time frame, risk, and response.

“Over the past decade a shift has occurred away from ideas of ‘personnel management’ towards HRM and concepts of people management” (Pass, S. & Hyde, P., 2005) This shift has been essential, as with the globalization of the market and more competitors, firms have found it more and more difficult to gain competitive advantage. In order to adapt to this changing environment, the firm’s traditional management system evolved to a more strategic approach towards human resource management. “Strategy is about building sustainable competitive advantage that in turns creates above average financial performance”. (Becker, B & Huselid, M., 2006) (Wielemaker, M. et al, 2005) states that before the shift, firms were seeking competitive advantage from

The modern day work place is undergoing a wide array of changes, all resulted from the numerous challenges impacting the internal and external environment of business enterprises. Some examples in this sense include the growing forces of globalization and market liberalization, the increasing cultural diversity in workplaces, the shift from a manufacturing economy to a service economy, or the advancement of technology.

Human Resource Management’s (HRM) organizational systems are considered to be the source of sustaining the competitive advantage; this means employees start to represent and to be considered as an important source of competitive advantage (Barney, 1991; Pfeffer, 1994). According to Fey et al. (2008), the choice of HRM’s practices is very significant since firm’s HR have the ability to create high benefits but also it represent the highest cost for the organization which can be controlled.

Strategic Human Resource Management is the joining of human resource activities and policies with strategic organisational goals for the benefit of achieving and maintaining quality performance of the organisation.

This essay will review the role of human resource management (HRM) in the strategy process. This will include the function of recruitment and training programs in HRM, the concept of strategic fit and how human resource management can lead to a competitive advantage.

How human resource(s) (departments) can contribute to the competitive advantages of the firm has been described thoroughly since the mid-1980s (e.g., Paauwe (2004) for an overview). In particular during the last years HR has had the opportunity to prove, that it can contribute to organizational success through the development of a more strategic role, i.e. delivery of efficient

The nexus between human resource management and organisational performance represents an issue of strategic importance to organisations. Hence, many HRM practices were regarded as being more important than others in contributing to organisations’ competitive advantage. ( Delery and Doty ,1996 ; Tzafrir, 2006 ). Several HRM practitioners and academics tried to integrate such useful practices into a ‘set’ that can be universally applicable to all organisations. ( MacDuffie 1995 ; Pffefer 1998 ; Wood 1995 ) . However, that last two decades witnessed increasing studies that acknowledged the significance of context and strategy when identifying HRM practices that are vital to success. ( Boxall and Purcell 2011 ; Clinton and Guest