Classical vs. Resource Based Theory
CRITICALLY EVALUATE THE CONTRIBUTION OF STRATEGIC HRM IF THE STRATEGIC BUSINESS PLAN IS FORMULATED AS
(a) A CLASSICAL (or prescriptive ) BUSINESS STRATEGY
(b) A RESOURCE-BASED (or capability) BUSINESS STRATEGY.
Introduction
‘Strategic HRM involves keeping abreast of the times and developing organizational strategies that prepare organizations not only to respond to changing environmental pressures but proactively to seize the initiatives in their various markets.’ (Holbeche, 2009 p29)
The opening statement encompasses all that this review sets out to accomplish, which is to define the roles of strategic human resource management on the Classical approach of a business strategy and that of the Resource –Based approach to business strategy, to identify their similarities, to compare their weaknesses and strengths and to evaluate their importance in the 21st century business environment. The review aims to elaborate among other things, succinct definitions of the following terms; Strategy, Strategic HRM, Classical approach, Resource-based approach, and to discuss the input of SHRM on the use of such models.
Definitions
What is strategy?
In simple terms, strategy means specific planning, a precise and proper scheming of plans and ideas for a particular purpose. Grant (2005) defines it as organization or individual’s plan on how to achieve goals (p18) , while Johnson, Scholes and Whittington assert with a broader definition by giving that;
‘Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.’ (p9).
Both definitions agree that strategy involves some form of planning, and while the latter terms it a configuration of resources, the former simply states it as how an individual or organization achieves its goals.
(a) A CLASSICAL (or prescriptive ) BUSINESS STRATEGY
(b) A RESOURCE-BASED (or capability) BUSINESS STRATEGY.
Introduction
‘Strategic HRM involves keeping abreast of the times and developing organizational strategies that prepare organizations not only to respond to changing environmental pressures but proactively to seize the initiatives in their various markets.’ (Holbeche, 2009 p29)
The opening statement encompasses all that this review sets out to accomplish, which is to define the roles of strategic human resource management on the Classical approach of a business strategy and that of the Resource –Based approach to business strategy, to identify their similarities, to compare their weaknesses and strengths and to evaluate their importance in the 21st century business environment. The review aims to elaborate among other things, succinct definitions of the following terms; Strategy, Strategic HRM, Classical approach, Resource-based approach, and to discuss the input of SHRM on the use of such models.
Definitions
What is strategy?
In simple terms, strategy means specific planning, a precise and proper scheming of plans and ideas for a particular purpose. Grant (2005) defines it as organization or individual’s plan on how to achieve goals (p18) , while Johnson, Scholes and Whittington assert with a broader definition by giving that;
‘Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.’ (p9).
Both definitions agree that strategy involves some form of planning, and while the latter terms it a configuration of resources, the former simply states it as how an individual or organization achieves its goals.
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