Strategic Human Resource Management

tubacitychiropractorManagement

Nov 8, 2013 (3 years and 9 months ago)

231 views

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Title

Words of wisdom

‘If a global company is to function successfully,
strategies at different levels need to inter
-
relate.’

‘An organization’s [HRM] policies and practices must fit
with its strategy in its competitive environment and with
the immediate business conditions that it faces.’

‘The [HR
-
business strategy] alignment cannot
necessarily be characterized in the logical and sequential
way suggested by some writers; rather, the design of an
HR system is a complex and iterative process.’

Strategic Human Resource
Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Chapter outline

Strategic Human Resource
Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Introducing strategy and HRM

A strategic approach to Human Resource
Management:

A managerial process requiring human
resource policies and practices to be
linked with the strategic objectives of the
organization.


Strategic Human Resource
Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Introducing strategy and HRM

What determines how HR strategy is
formulated?

Does HR strategy really matter?

How do corporate decisions impact on HRM?

How does HRM impact on the ‘bottom line’?

Key questions

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Strategy)

Strategy:

A specific pattern of decisions and actions
undertaken by the upper echelon of the
organization in order to accomplish
performance goals.


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Strategic Management)

Strategic Management:

A continuous activity that requires a
constant adjustment of three major
interdependent poles:

the values of senior management,

the environment,

the resources available.


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.1 The three traditional poles of a strategic plan

Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Models of Strategic Management)

Model of Strategic Management:

Mission & goals

Environmental analysis

Strategic formulation

Strategy implementation

Strategy evaluation


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.2 The strategic management model

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Models of Strategic Management)

Environmental analysis:



Internal organizational strengths and
weaknesses



External environment for opportunities
and threats


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Models of Strategic Management)

Strategic formulation:

Involves senior managers evaluating the
interaction between strategic factors and
making strategic choices that guide
managers to meet the organization’s goals.


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Models of Strategic Management)

Strategy implementation:

Focuses on the techniques used by
managers to implement their strategies
(e.g. leadership style, organizational
structure, control systems, management of
human resources).


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic Management (Models of Strategic Management)

Strategy evaluation:

Determines to what extent the actual
change and performance match the
desired change and performance.


Strategic Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.3 Hierarchy of strategic decision making

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Hierarchy of Strategy (Corporate Strategy)

Corporate Strategy:

Describes a corporation’s overall direction
in terms of its general philosophy towards
growth and the management of its various
business units.

WHAT BUSINESS ARE WE IN?


Hierarchy of Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Hierarchy of Strategy (Corporate Strategy)



Establishing investment priorities and
steering resources into the most attractive
business units



Initiating actions to improve combined
performance of business units



Improving synergy between related
business units to increase performance



Making decisions re diversification

Corporate Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Hierarchy of Strategy (Business
-
Level Strategy)

Business
-
Level Strategy:

Deals with decisions and actions
pertaining to each business unit in order to
make each unit more competitive in its
market
-
place.

HOW DO WE COMPETE?


Hierarchy of Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.4 Porter’s competitive strategies

Business
-
Level Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Hierarchy of Strategy (Business
-
Level Strategy)

Low
-
cost leadership:

To increase market
-
share by having the lowest unit
-
cost
and price compared with competitors.

Differentiation strategy:

Distinguishing products from competitors by providing
distinctive levels of service or quality
-

the customer is
prepared to pay a premium price.

Business
-
Level Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Hierarchy of Strategy (Functional
-
Level Strategy)

Functional
-
Level Strategy:

Pertains to the major functional operations
within the business unit (including
research and development, marketing,
manufacturing, finance and HR) to
maximise resource productivity.

HOW DO WE SUPPORT THE BUSINESS
-
LEVEL COMPETITIVE STRATEGY?


Hierarchy of Strategy

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic HRM (Concepts and Models)

Definitions:

OUTCOME: organizational systems designed to
achieve sustainable competitive advantage
(Snell).

PROCESS: of linking HR practices to business
strategy (Ulrich) with HR strategy as the
outcome.

Strategic Human Resource
Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.5 Environment as a mediating variable for human resource management
strategies

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Strategic HRM (Concepts and Models)

Integration of business strategy and HR
strategy:



Linking of HR policies and practices with the
strategic management process of the
organization



Internationalization of the importance of HR on
the part of line managers



Integration of the workforce into the
organization to foster commitment

Strategic Human Resource
Management

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.6 Devanna et al.’s strategic human resource

management ‘matching’ model

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

HR Strategy Models

HR Strategies:

The patterns of decisions regarding HR policies
and practices used by management to design,
work and select, train and develop, appraise,
motivate and control workers.

HR Strategy models

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

HR Strategy Models

Control
-
based model:

Management structures and HR strategy are
instruments and techniques to control all
aspects of work
-

to secure high productivity and
profitability.

The HR strategy will be consistent with the
organization’s competitive strategy.

Creates structural tensions between
management and employees.

HR Strategy models

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

HR Strategy Models

Resource
-
based model:

The sum of people’s knowledge and expertise,
and social relationships, has the potential to
create competitive advantage.

Exploits the distinctive competencies of a work
organization (its resources and capabilities).

Leadership capabilities are critical to harnassing
the firm’s human assets.

HR Strategy models

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.7 The relationship between resource endowments, strategies and
sustained competitive advantage

Resource
-
based model

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

HR Strategy Models

Integrative model:

Integrates management control model with
reward
-
effort exchange.

Characterizes two main dimensions of HR
strategy: acquisition & development, locus of
control.

Four dominant types of HR strategy:
commitment, collaborative, paternalistic,
traditional.

HR Strategy models

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Figure 2.8 Categorizing human resource management strategies

Integrative model

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Integrative Model

Commitment HR strategy
focuses on the internal
development of employee’s competencies and outcome
control.

Traditional HR strategy
focuses on the external
recruitment of competencies or process
-
based controls.

Collaborative HR strategy
subcontracts work to external
independent experts giving autonomy and evaluating
performance on end results.

Paternalistic HR strategy
offers learning opportunities
and internal promotion as trade for compliance with
process
-
based control mechanisms.

Integrative model

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Evaluating SHRM

Limitations:



Focus on strategic decision
-
making



Absence of internal strategies



Conceptualization of managerial control

Evaluating SHRM &

HR Strategy Models

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Dimensions of SHRM

Important themes:



HR practices and performance



Re
-
engineering organizations and work



Leadership



Workplace learning



Trade unions

Dimensions of SHRM

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

International & Comparative HRM

International HRM:

HRM issues, functions and policies and
practices that result from the strategic activities
of MNCs and that impact the international
concerns and goals of those enterprises
(Scullion).

Emphasizes the subordination of national culture
and national employment practices to corporate
culture and HRM practices (Boxall).


International & Comparative HRM

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

International & Comparative HRM

Comparative HRM:

Systematic method of investigation relating to
two or more countries that has analytical rather
than descriptive implications.

Involves activities that seek to explain the
patterns of HRM institutions and HR practices in
selected countries.


International & Comparative HRM

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Chapter summary (1st half)

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Chapter summary (2nd half)

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Exhibit 2.1 Air National’s management structure

CASE STUDY: Air National

Web support material to accompany
Human Resource Management: Theory and practice
, Third edition


© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Exhibit 2.2 Key characteristics of Air National’s strategic human resource
management and empower

development approach

CASE STUDY: Air National