HRM assignment Final
Strategic Human Resource Management: to fly or to soar
Human resources management is a function in the organisation that maximises the productivity and effectiveness of the employees through set of policies and procedures. Strategic Human resources management (SHRM) on the other hand is concerned with the introduction of the business strategy into the wider organisation to achieve a value added advantage through long term strategic view. SHRM was defined by Storey as: ‘A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of highly committed and capable workforce using an array of cultural, structural and personnel techniques.’ (Storey, 2001, p. 6)
In this report we shall review how applying the configurational approach of SHRM to the business ensures the agility of the organisation by enhancing the values of the all important three core fronts namely economical, customer and people added value to the organisation, and reviewing the drawbacks of the SHRM addressing the gap between the SHRM and performance. Then reviewing how competitors utilising the approach to achieve competitive advantage.
SHRM is a valuable tool when implemented in the organisation correctly. As the literature shows, the different approaches to the SHRM stemming from the basic reasoning; that is, the need for a high-performance culture in the organisation that would generate a distinct sustainable competitive advantage.
There are numerous empirical research papers that support the notion that there is a clear measurable link between an organisation strategic human resource management and its performance. One example of such can be found in the work of Huselid. In his works Huselid states that ‘ a one standard deviation increase in High Performance Work Practices yield a $27,044 increase in sales and a $3,813 increase in profits’ Huselid (1995: 648). This is a significant piece of work as it demonstrate
Human resources management is a function in the organisation that maximises the productivity and effectiveness of the employees through set of policies and procedures. Strategic Human resources management (SHRM) on the other hand is concerned with the introduction of the business strategy into the wider organisation to achieve a value added advantage through long term strategic view. SHRM was defined by Storey as: ‘A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of highly committed and capable workforce using an array of cultural, structural and personnel techniques.’ (Storey, 2001, p. 6)
In this report we shall review how applying the configurational approach of SHRM to the business ensures the agility of the organisation by enhancing the values of the all important three core fronts namely economical, customer and people added value to the organisation, and reviewing the drawbacks of the SHRM addressing the gap between the SHRM and performance. Then reviewing how competitors utilising the approach to achieve competitive advantage.
SHRM is a valuable tool when implemented in the organisation correctly. As the literature shows, the different approaches to the SHRM stemming from the basic reasoning; that is, the need for a high-performance culture in the organisation that would generate a distinct sustainable competitive advantage.
There are numerous empirical research papers that support the notion that there is a clear measurable link between an organisation strategic human resource management and its performance. One example of such can be found in the work of Huselid. In his works Huselid states that ‘ a one standard deviation increase in High Performance Work Practices yield a $27,044 increase in sales and a $3,813 increase in profits’ Huselid (1995: 648). This is a significant piece of work as it demonstrate
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