ABSTRACT
Theory and research suggests that technical human resource management (HRM) effectiveness, which involves psychometrically sound HRM practices designed to achieve specific short-term objectives, is a required foundation to successfully implement a Strategic Human Resource Management (SHRM) process. The purpose of this investigation was to assess whether Canadian organizations had achieved this level of technical HRM. Results suggest that the majority of Canadian organizations do not have the foundation for the development of a SHRM process.
The human resource (HR) function can provide organizations with a sustained competitive advantage, and thus improve firm performance (Becker & Gerhart, 1996). With traditional methods of differentiation offering less likelihood of a competitive advantage, Becker, Huselid, Pickus & Spratt, (1997) suggest that organizations seeking a competitive advantage must focus on developing a strategic role for HRM systems. It has been proposed that for Human Resource Management to be considered strategic (SHRM) HR practices must be linked (1) to each other, (2) to the HR strategy, and (3) to the organization=s strategy (Jackson & Schuler, 1995). Huselid, Jackson and Schuler (1997) dichotomized HRM activities into (1) Technical HRM and (2) SHRM. Technical HRM involves psychometric guidelines that focus on specific short-term objectives (e.g. valid selection programs for hiring). Effective technical HRM involves the following (1) selection practices that are validated, (2) performance systems that have been developed to minimize rating errors, (3) compensation systems that are linked to performance, and (4) training that is evaluated to assure transfer to the job. If organizations have not yet achieved at least moderate levels of technical HRM effectiveness then they lack the foundation required to