...The Critical evaluation of Strategic Human Resource Management approaches By Willem van Mourik Over the past decades more and more companies have formulated a Human Resource Management policy for their employees. Where some employers see their staff as important resources to achieve a competitive advantage, others see them as valued assets and a source of competitive advantage (Guest, 1999). The way personnel were managed can be seen as the most significant reason to gain a competitive advantage over others (Salaman, Storey and Billsberry, 2005). In the 19th century and large parts of the 20th century labour was seen as abundant and economists classified it as the main variable costs (Salaman, Storey and Billsberry, 2005). People where hired and fired very quickly and pay was give on a performance related basis. Organizations and their managers did not want to invest in their personnel and their skill development. According to Kirkaldy and Flanders (1965), the decades before SHRM existed managing labour were based on productivity bargaining (Kirkaldy and Flanders, 1965). This period can also be described as the traditional HRM era. This all changed in the 1980’s when several big organizations started to think of new concepts and aspirations to create a competitive advantage over their rivals. British Airways for example demanded their staff to take the ‘commitment approach” instead of just complying. The airline had to make a bald move due to the enormous competition in...
Words: 3123 - Pages: 13
...Resource Management? Human Resource Management (HRM) involves the practice of managing people and has been practiced since the first century “with Columella, a Roman farmer and former soldier whose De Rustica featured one of the earliest tracts on people management” (Rowley and Jackson, 2011 p.xx). HRM covers a broad spectrum of employee related affairs, ranging from selection and recruitment to training and development, employee reward, and performance management (Beardwell and Clark, 2010). Some of the objectives of Human Resource (HR) are to ensure staff motivation, to effectively manage change in the organisation and most importantly to maintain good employee/employer relationship. This essay seeks to give a general overview on the origins and meaning of HRM, reviewing the main models of HRM, the link between HRM and performance, and finally assessing the impact of HRM in multinational corporations. The origins of HR in the UK traces back to the 80’s when government reforms were been implemented to reshape the framework of industrial relations in the country. Due to “the restructuring of the economy” there was a decline in manufacturing industries, a “rise the service sector” and an increase in “new industries based on high tech products and service” (Beardwell and Clark, 2010 p.7). The economic changes were promoted by “the political climate of Thatcherism” through “entrepreneurialism and antiunion legislations which encouraged firms to introduce new labour practices and reorder...
Words: 1084 - Pages: 5
...1: Changing Recruitment At Mercado Supermarkets Now day’s most of the organization wants to have a better place in market and keen to attract a major volume of available customers. To achieve that goal with success organizations have to put best strategies in practice for the workplace and as well as have the finest team of employees. In past, some of the organisations were using traditional method of recruiting, like word of mouth recruitment method; within the company advertisement or newspapers. In present time it is very hard for the organization to find and attract all the different kind of job applicant for the various roles within the organization. To resolve this issue organization use different methods of strategies, often implemented by Human Resources Management. The purpose of this essay to outline the range of technologies used by firm to attract staff and analyse which particular methods would be most appropriate to attract different type of applicant to Mercado Supermarkets (include different types of position required within Mercado). The use of internet brought the phenomenal change in individual’s life style. It affected most of the organization in different ways. And at the same time it has force Human Resources Management Strategies to change its policies and procedure to deal with numerous issues of business. Now most of the businesses using different types of technologies to capture as much market as possible; depends on the size of the business as well. The...
Words: 2729 - Pages: 11
...discussion between promoters of best practice and best fit approaches has sparked widespread controversy in the human resource management (HRM) area. The topic has gained much scholarly attention because it not only addresses a theoretical controversy but also possesses a high degree of practical managerial significance. The essay has the aim to analyse best practice and best fit approaches in HRM of a multinational enterprise. The reader receives insight into Lincoln Electric's organization through a case-study analysis of practical HR approaches serving as a basis for developing practical managerial implications in the last part of the paper. 2. Critical evaluation of "best practice" and "best fit" practices in HRM 2.1 Best practice approach The best practice approach claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009). Best practice models imply a close connection between HR practices and organizational performance and are often associated with high commitment management (Paauwe & Boselie 2003). Empirical research in the best-practice field shows similar groups of HR polices which are especially suitable for maximizing performance irrespective of market and product strategies (Peffer 1998, Guest 2000). Best practice bundles of activities are characterized as mutually compatible HR activities which forge high levels...
Words: 2675 - Pages: 11
...HR should be aligned with the Organizations Goals to increase employee engagement and the company's bottom line. Companies are more successful when HR is aligned and the results are reflected in better profitability. HR strategic planning defines how the organizations goals will be achieved through people by integrate HR policies and practices, which should be tailored to fit the needs of the organization. Having the right people in the right place at the right time to meet or exceed standards of the job. Maersk's was experiencing a rise in Employee turnover, had become a publicly traded company and competition was on the increase. HR had to analyze the situation, form a strategy and implement it. Maersk was expanding globally and trends in the broader market became increasingly mobile. The work force changed, talent, needs and practices also changed. Finding and retaining high-quality talent was becoming a bigger challenge. One advantage of hiring internally is that promoted employees are already familiar with the policies and culture. Hiring internally may also improve employee morale and loyalty. Disadvantages of hiring internally are potential narrowing of thinking, stale ideas (inbreeding), smaller talent pool (fewer applicants) and internal politics will occur (possible discontent of rejected applicants, new subordinates may not respect new boss). One advantage of hiring externally is that new candidates can provide new ideas or fresh perspectives. Another is...
Words: 1977 - Pages: 8
...the ‘best fit’, BP and RBV models of HRM strategy – explain how EACH approach is argued to contribute to improve organizational performance. As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright, P. 2008). If competitive advantage is understood as a set of organisational capabilities that would lead to superior performance over competitors, then, HRM strategy is essentially the process of defining and enhancing appropriate systems that maximise people’s added value (Wilton, 2011). The key debate which will be explored is whether there is a best way of achieving strategic HRM. This essay will therefore critically engage in this theoretical debate by comparing and contrasting three SHRM models and explore how each can make a contribution towards improved organisational performance. Boxall and Purcell (2008) highlight that there is significant debate regarding approaches to strategic HRM when they discuss three theoretical contrasting models, namely ‘‘best fit’’, ‘‘best...
Words: 2847 - Pages: 12
...Strategic Human Resources Management What is meant by a strategic approach to HRM? How can a strategic approach to HRM be a source of competitive advantage to an enterprise? Illustrate your view by reference to relevant literature and case studies drawn from GSN406 course materials. “The most powerful of the strategic configurations of power remains people... you must work on developing an organizational espirit de corp that aligns the hearts and minds of your staff with the aims of the business”. (Boar 1997, p. 196) Acronyms used in this paper: HR Human resources HRM Human Resources Management SCA Sustainable Competitive Advantage SHRM Strategic Human Resources Management Student: Jason D Bingham Student no.: Unit: GSN406 HR Management Issues Assessment: 1 (15% weighting) Word limit (( 1000) 1047 (excl. list of references etc.) Lecturer: Due date: Friday 25 May 2001 Table of contents 1.0 Introduction 1 2.0 Definitions 1 2.1 Human Resource Management 1 2.2 Strategic management 1 2.3 Competitive advantage 1 3.0 Strategic approaches to HRM 1 4.0 How SHRM can provide competitive advantage 2 5.0 Validation of SHRM: Case studies of successful firms 3 ...
Words: 1663 - Pages: 7
...has become more essential. In recent years, many individuals demanded for a more strategic approach to managing people in a firm, rather than the traditional methods, and thus the idea of strategic human resource management (SHRM) was adopted. Strategic human resource management is a branch of human resource management, and it can be defined as ‘ the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.’ (Sinha, R 2007). This essay is going to focus on how strategic human resource management helps organizations achieve a sustained competitive advantage. Sustainable competitive advantage is the position a firm develops in relation to its competitors that are not duplicable an unsurpassable than its competitors. Recently scholars have come to the basis of HR skills and competences as sources of competitive advantage. Human resource practices as well as competitive strategies are based on the assumption that employee behaviors are needed for each type of competitive strategy and that these behaviors can be attained by using human resource practices (Storey, J). This shows the importance of using human resource practices (models) in order to achieve competitive advantage. This is an important topic because strategic human resources refer to the long term human resources that lead to the...
Words: 2329 - Pages: 10
...HRM ESSAY HOW IS HRM INFLUENCING IN A COMPETITIVE WORLD BY MARIA MEMON BBA 5C SUBMITTED TO:MS SALEHA HAROON "In a global competitive world, you gotta win. When you win, you give back." ~ Jack Welch~ Human Resource management or the personnel management, in a sense means getting things done by its people. It is an essential role that is eventually played by every manager. HRM is basically about how one manage its people in a effective way in order to gain more productivity and HR means ‘human resource’ that show the people viewed as a resource in an organization, if effectively managed can bring productivity and can be a competitive advantage for an organization. Before putting an argument on how HRM is influencing in a competitive world we need to realize that HR is more than maintaining personnel functions. Corporate and economic development dictated that businesses to remain competitive, needs to view HRM as an evolutionary function. In this essay certain issues and challenges have been discussed that influence HR to remain competitive in this modern world. Firstly it is told about employees are the competitive advantage of a company and to manage it effectively is the primary goal of an organization. This essay is also about how workforce diversity can bring positive and negative impact on organization it is also about how rapid technological changes and globalization had bring challenge for HR professional. The basic point on which this essay focus is about...
Words: 3116 - Pages: 13
...Essay Title: ‘Assess the state of the evidence in favour of HRM’s impact on organisational performance. Do the supporters of HRM’s strategic contribution have enough of a case?’ Word Count: 3,105 Abstract The evidence in favor of HRM’s impact on organizational performance is growing, however some doubt has cast on these studies. Thus, this essay suggests that the evidence of HRM-performance linkage is weak because theoretical and methodological issues remain among most of these studies. So, this essay will mainly analyze theories concerning on HRM and firm performance relationships and methodological problems in empirical studies. As there are flaws in both theories and the process of studying the relationships, this essay concludes that the evidence in favor of HRM’s impact on organisatioanl performance is weak. It seems that it is better to pay more attention to the HRM’s theories and methodologies in order to further the understanding the correlation between HRM and firm performance. TABLE OF CONTENTS 1. Introduction 4 2. Evidence of previous studies 5 3. Theoretical evidence 8 3.1 Categorizing theories 9 3.1.1 Strategic theories 9 3.1.2 Descriptive theories 11 3.1.3 Normative theories 11 3.2 Conceptual theories 13 4. Methodological issue 15 4.1 Measurement of HRM 16 4.2 Measurement of performance 17 5. Conclusion 18 1. Introduction Human resource managers have been worrying about the inability to prove their contribution...
Words: 3635 - Pages: 15
...“Best Perspectives to Human Resource Management” Author: Arrey Mbongaya Ivo ©2006 African Centre for Community and Development (www.africancentreforcommunity.com ) All rights reserved. Table of Contents 1.0 Introduction, Perspectives in Management and the genesis of Human Resource Management 1.1 Scientific or Closed management, Human Relations or Semi open system, Open System or Contingency system 1.2 Personnel management/ Personnel Manager 1.3 The genesis of Human Resource Management(HRM)/Defining Human Resource Management 1.4 What is ‘Hard’ and ‘Soft’ HRM? 1.5 The Debate between Human Relations(HR) and Human Resource Management(HRM) 1.6 The Human Resource Manager and his role 2.0 Attempting a framework for Human Resource Management(HRM) 2.1 Using HRM as a style, a strategy and an outcome 2.2 Is HRM a restatement of Personnel Management? 2.3 Is HRM a new managerial discipline? 2.4 HRM as a resource-based dimension of management 2.5 The Strategic and international possibilities of HRM 3.0Using some models of HRM to critically assess HRM “Hard” and “Soft” Approaches. 3.1The Harvard Model 3.2The Michigan Model 3.3Guest comparative models 3.4The ‘Choice Model’ and its benefits. 4.0The influence of senior management and their Effectiveness 4.1 policy makers 4.2 senior managers and their frames of reference 4.3 The more effective the better the policies 4.4 The Japanese example 5.0 Conclusion, limitations and proposals 5.1HRM a widespread contemporary, evolving & contingent...
Words: 6510 - Pages: 27
...Introduction The following essay will trace the development of Human Resource Management/Personnel Management. Within this essay the origins of personnel management will be described and how the Human Resource Management (HRM) developed from that process. A brief discussion on the development of the ‘factory system’ and a description of the employee working conditions within these ‘factory systems’ will be discussed. Also included will be an outline on how these ‘factory systems’ operated and what this meant for the employees. The development of the ‘Welfare Tradition’ will be discussed and how it relates the Human Resource Management of today. The role the ‘welfare officers’ played in businesses and the changes that was brought about will also be discussed. After the ‘Welfare Tradition’ came the ‘Scientific’ movement. The changes in businesses that the ‘Scientific Movement’ brought about will be looked at. F.W Taylor’s ‘Principles of Scientific Management’ will be explored and the affects his principles had on businesses. The ‘Behavioural Science’ movement will be discussed along with Elton Mayo’s ‘Human Relation School of Thought’ and his experiment widely known as the ‘Hawthorn Studies’. The impact this had on businesses and the affect this had on the managers and workers will be included. The growth of trade unions and the affect they had on employers and employees will be discussed along with Jeffrey Pfeffer’s seven key HRM practices and a brief analysis of their meaning...
Words: 3327 - Pages: 14
...1. 0 Introduction The aim of this essay is to analyze and comment on the selection practices based on the movie “Charlie and the Chocolate Factory”. Scott (2005) states that “Charlie and the Chocolate Factory” was filmed in 2005 based on children’s book by Roald Dahl. The movie reveals a story about poor young boy – Charlie, who lives in town, where located chocolate factory owned by famous confectioner - Willy Wonka. Soon, Willy Wonka decides to allow 5 children to visit his factory and distributes five Golden tickets hidden in the five chocolate’s bars to the unknown locations. The one who will find golden ticket will be allowed to visit chocolate factory. Moreover last child left will win the main prize. Thus, five children, who found the Golden tickets are: Augustus Gloop – rude and glutton guy, who lives only for food; Veruca Salt – spoilt child, who demands whatever she wants from her parents by screaming at them; Violet Beauregarde – impudent girl, whom mind completely taken by gum chewing; Mike Teavee – bot, who addicted to television; and Charlie Bucket – very polite and shy boy, who is protagonist in this movie. Throughout all movie, Wonka applies selection processes, because he needs to identify one child, who fits his demands and choose him as a future manager of the factory (Billsberry and Gilbert, 2007) . Thereby, he observes each child’s behavior, when they are taking a tour through his factory and eliminate those, who failed his perceptions about a good...
Words: 2635 - Pages: 11
...Business strategies and human resource management: uneasy bedfellows or strategic partners? John Purcell University of Bath Bath BA2 7AY 01225 386567 J.Purcell@bath.ac.uk 1 Business strategies and human resource management: uneasy bedfellows or strategic partners? One of the assignment questions for this year’s class studying ‘Strategy and Human Resource Management’ (a very popular course) was: Does, and should, competitive strategy determine the design of a firm’s HR system? Give illustrations to support your answer. One of the great advantages in working in a university which has top students is that you can ask them questions you are not quite sure how to answer yourself! The best students gave clear examples of such a link and then got stuck in to the ‘should’ part of the question often noting the critical difference between competitive strategy and business strategy. Some even went further into corporate strategy, the resource based, and knowledge based view as well as ethics, culture and institutional setting. Surprisingly none of them questioned what was meant by a firm’s HR system. I will follow the same line of argument in this paper with thanks to the students, very few of whom have any intention of becoming HR professionals. We start with some of the classics in strategy and HRM, go on to look briefly at some major studies, or the ones that have influenced my thinking. Thereafter the paper notes the problems with the assumed link with competitive strategy as a dominant...
Words: 6146 - Pages: 25
...The ethical dimension of human resource management Human Resource Management Journal London 2000 --------------------------------------------------------------------------- Authors: Diana Winstanley Authors: Jean Woodall Volume: 10 Issue: 2 Pagination: 5-20 ISSN: 09545395 Subject Terms: Studies Human resource management Business ethics Classification Codes: 9175: Western Europe 9140: Statistical data 6100: Human resource planning 2400: Public relations Geographic Names: United Kingdom UK Abstract: The relative absence of debate about ethical issues within the area of human resource management is addressed. IT is argued that ethics is not about taking statements of morality at face value; it is a critical and challenging tool. The discussion starts with what should be familiar terrain: ethical arguments that uphold a managerialist position, such as ethical individualism, utilitarianism, and "Rawlsian" justice. Other theories are then introduced that broaden the field of ethical concern in an endeavor to be more socially inclusive: stakeholding and discourse theory. Copyright Eclipse Group Ltd. 2000 Full Text: Until very recently the field of business...
Words: 9380 - Pages: 38
