...Chapter two Strategic human resource management John Bratton Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. ‘If a global company is to function successfully, strategies at different levels need to inter-relate.’ 1 ‘An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.’ 2 ‘The [human resources–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.’ 3 Chapter outline Introduction p.38 Strategic management p.38 Strategic human resource management p.45 Human resource strategy models p.49 Evaluating strategic human resource management and models of human resources strategy p.56 Dimensions of strategic human resource management p.59 International and comparative strategic human resource management p.61 Chapter objectives After studying this chapter, you should be able to: 1. Explain the meaning of strategic management and give an overview of its conceptual framework 2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management (HRM) 3. Explain three models of human resources (HR)...
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...Introduction Over the last twenty years, numerous studies and researches on the companies’ HR system have moved ever more towards the strategic aspect of this function, rather than the operational one. This shift of interest in the direction of the strategic HR has been substantially determined by the major changes occurred in the external environment in which organizations operate and in their internal environment as well. As Ulrich et al (2001) have argued the HR function was traditionally seen as a primarily executive and professional, with the HR staff focused on administering remunerations, payroll and operational functions. However, from the 1990s, a new emphasis on strategy and the importance of HR system emerged and researchers began to recognise the impact of the HR system in the company’s larger strategy (Ulrich et al, 2001). As stated before, this growth of interest in the strategic HRM has been affected by numerous dramatic competitive changes, growth of new technologies and regulatory reforms that the economic system has seen in the past decades (Boxall e Purcell 2008). Particularly, according to Bas (2012), today’s fast-changing competitive landscape requires that every company needs a clearly defined competitive strategy and in this sense, HR function can assume a strategic partnership role and be a facilitator for the implementation of the strategy. The aim of this article is to critically evaluate how both internal and external aspects of the environment...
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...Strategic Human Resource Management is the practice of aligning business strategy with that of HR practices to achieve the strategic goals of the organization. The aim of SHRM (Strategic Human Resource Management) is to ensure that HR strategy is not a means but an end in itself as far as business objectives are concerned. The idea behind SHRM is that companies must “fit” their HR strategy within the framework of overall Business objectives and hence ensure that there is alignment between the HR practices and the strategic objectives of the organization. Evolution of SHRM With the advent of new economy industries like IT and the mushrooming of the service sector, organizations all over the world realized that human resources must be viewed as a source of competitive advantage as opposed to treating it much the same way in access to technology or capital is concerned. What this means is that the practice of HRM is being viewed as something that promotes the business objectives of the firms and not merely another factor in the way the firm is managed. How does SHRM fit in with Strategy? With the advent of today’s economy where services account for a major share of the GDP and the fact that the service sector is essentially people centric, it is imperative that the people first approach be embraced by the organizations for sustainable business strategy. The practice of SHRM demands a proactive and hands on approach by the management as well as the HR department with regards...
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...STRATEGIC HRM Introduction to HRM: Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organization. HRM is often referred to as "strategic HRM". It has several goals: - To meet the needs of the business and management (rather than just serve the interests of employees); - To link human resource strategies / policies to the business goals and objectives; - To find ways for human resources to "add value" to a business; - To help a business gain the commitment of employees to its values, goals and objectives Human resources management –It’s a main concern of management, using people in the organization. The rules and practices involved in delivery to the people or H.R.M. It is the process of acquiring, training, appraising and compensating employees and of attending to their labour relations, health and safety, and fairness concern. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. (Dessler ET all, page 2, 2009) Sainsbury’s Plc: Sainsbury’s is one of the leading food retailers in the United Kingdom and also operates property and financial services. Sainsbury’s H.R.M department is a big part of the company and have their own mission statement that...
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...University of West Alabama Human Resource Management at Work © 2008 Prentice Hall, Inc. All rights reserved. 1–2 Basic HR Concepts • The bottom line of managing: Getting results • What Is Human Resource Management (HRM)? – The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. © 2008 Prentice Hall, Inc. All rights reserved. 1. Explain what human resource management is and how it relates to the management process. 2. Give at least eight examples of how all managers can use human resource management concepts and techniques. 3. Illustrate the human resources responsibilities of line and staff (HR) managers. 4. Provide a good example that illustrates HR’s role in formulating and executing company strategy. 5. Write a short essay that addresses the topic: Why metrics and measurement are crucial to today’s HR managers. 6. Outline the plan of this book. 1–3 • HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals. © 2008 Prentice Hall, Inc. All rights reserved. 1–4 1 Line and Staff Aspects of HRM • Line manager – A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. • Staff manager – A manager who assists and advises line managers. © 2008 Prentice...
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...Assignment Questions Question #1: (250 each part) a) Provide a brief description of the models of HRM discussed in the first chapter of the textbook, and explain how each one related to strategic human resource management. First there is the Fombrun, Tichy and Devanna model which “emphasizes the fundamental interrelatedness and coherence of HRM activities” (Bratton & Gold, 2012, pg. 18, para. 3). There are four main components consisting of selection, appraisal, development and rewards that attribute to the HRM cycle. This model ignores different stakeholder interests, situational factors and management’s choice, but gives strength to the “coherence of internal HR policies and the importance of ‘matching’ internal HR policies and practices to the organization’s external business strategy” (Bratton & Gold, 2012, pg. 18, para. 3) Second, is the Harvard model, which addresses the issue of management’s goals and the specific HR outcomes. The Harvard model has six components: situational factors, stakeholder interests, HRM policy choices, HR outcomes, Long-term consequences and a Feedback loop. Each of the components are a result of the previous which effects the HR outcomes and the long term consequences; and the feedback loop carries the outputs directly into the organization and to the stakeholders. The Guest model looks at labour management in the context of goals, employee behaviour, performance and long-term financial outcomes. “Managers are advised to consider...
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...What do HR professional need to put in place to ensure: (1) they act ethically; (2) the organisation acts ethically HR professionals are expected to be proactive as their actions and ideas influence organisation objectives, policies and procedures. Therefore, HR professionals needs to demonstrate consistent and high level of integrity in the form of reliability, honesty, equality, transparency and fairness that help motivate staff and further engagement. To act ethically HR professionals need demonstrate certain behaviours and actions such as: * Adhere with the principles which guide HR profession. These principles are also enunciated by CIPD through Code of Professional Conduct * HR Professionals must adhere with the highest standards of integrity, honesty, diligence, ethical and professional behaviour * Recruitment and selection processes should be fair, transparent and ensures equality * Ensure continually develop professional knowledge and competence of their employees and make sure that equal opportunity, fairness and transparency is provided * HR professionals must comply with the government laws and regulations * Develop, administer and advocate policies and procedures that foster fair, reliable and equitable treatment for all. Organisation ethics is the foundation of all businesses. It is the attitude, values and behaviour an organisation reflects on their employees and all stakeholders. To ensure organisation act ethically: * Organisation...
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...EXECUTIVE SUMMARY OBJECTIVE OF PROJECT • To know about Groupon business module. • To know about the training and development process of the employee. • Analysis of employee attrition and retention. SCOPE OF PROJECT • All the activities of employees into an organisation come under the horizon of HRM. • The division included in HRM are recruitment, payroll, Performance Management, training and development, industrial. One important division is training and development. INTRODUCTION OF COMPANY Groupon a portmanteau derived from group coupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, and the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. By October 2010 Groupon served more than 150 market in North America and 100 markets in Europe, Asia and South America and had 35 million registered users. The idea for Groupon was created by now-CEO and Pittsburgh native Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefk of sky, who provided $1 million in "seed money" to develop the idea. In April 2010, the company was valued at $1.35 billion. According to a December 2010 report conducted by Groupon's marketing association and reported in Forbes Magazine and the Wall Street Journal, Groupon was "projecting that the company is on pace to make $1 billion in sales faster than any...
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...validity of strategic human resource management practices and their effects on company performance on the basis of service sector, ownership and private-public organizations. Data were collected from several articles (mentioned in the reference section) and studies about different range of strategic HRM practices. The findings indicate that a valid set of strategic HRM practices (training, participation, results-oriented appraisals, and internal career opportunities) affect both service performance and financial performance. HRM strategies may be influenced by the decisions taken on strategy (the nature of the business currently and in the future) and by the structure of the enterprise (the manner in which the enterprise is structured or organized to meet its objectives). In an enterprise with effective HRM policies and practices, the decisions on HRM are also strategic decisions influenced by strategy and structure, and by external factors such as trade unions, the labor market situations and the legal systems. In reality most firms do not have such a well thought-out sequential model. But what we are considering here is effective HRM, and thus a model where HRM decisions are as strategic as the decisions on the type of business and structure. This study explores the three important questions in the context of Bangladesh mentioned below: 1. Whether extent of impact of strategic HRM varies from sector to sector within service sector? 2. Whether influence of strategic HRM depends...
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...Task 1, A review for senior managers Assume that you work as a newly appointed human resources manager in an organisation to answer the following question. AC1.1 explain the importance of strategic human resource management in organization. learners need to explain the importance of strategic human resource management and the need for adopting both a medium and long term perspective in respect of human resource management. AC1.2 assess the purpose of strategic human resource management activities in an organization. AC1.3 evaluate the contribution of strategic human resource management to the actievement of an organization's objectives. learners need to assess the purpose of strategic human management and evaluate how it contributes to organizational objectives. the link between corporate strategy and human resource management strategy needs to be made clear to show their interrelationship and how the human resource management strategy supports andcontributes to organizational purposes. Task 2. A human resource plan. the learner works as a human resources manager in an expanding organization. AC 2.1 analyse the business factors that underpin human resource planning in an organization. learners need to analyse the business factors that dictate the need to plan human resources by looking internally at the organization's requirement, as well as considering the influence of external environmental factors. AC 2.2 assess the human resource requirements in a...
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...Dr. Nut-tapon Nimmanphatcharin (ดร ณัฐพล นิมมานพัชรินทร์) BB.A., GD.Mgt., MB.Mgt., MBA (Inter Bus), Ph.D. (Mgt) Strategic Management Research Group Faculty of Business Administration, Siam University 235 Petkasem Road, Phasicharoen, Bangkok 10163 Tel. (662) 457-0068 FAX (662) 457-3982, 467-3174 In the past, the personnel will do their paperwork manually (manual recording practices). However, as paperwork requirements grew, and the organisations needed more and more information about their employees, there is a need to use the computer-based management information system that getting data and information of the employees to be assessed. In this case, the state-of-art system was introduced and implemented to the organisations. According to Raymond (1998), the status of personnel data was becoming more important due to the development of government laws and regulations through the Equal Employment Opportunity (EEO), Affirmative Action Program (AAP), and Occupational Health and Safety Administration (OHS). Because of these organisation needed to provide the reports showing that the personnel practices complied with the laws. Thus, there is a need to use the computer-based system to provide accurate information effectively and efficiently to the national government with statistics or data that are readable. All organisations need to keep records about their personnel, for instance, to comply with taxation requirements, for use in emergencies...
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...Systems Consideration in HRIS In today’s knowledge economy, organizational success depends almost disproportionally on the performance of Human Resources (HR). To increase the effectiveness of Human Resource Management (HRM) organizations are becoming more dependent on human Resource Information Systems (HRIS). A HRIS organizes employee applicant and qualifications, organizational demographics, recruiting, professional development, performance appraisals, payroll, retention, and attrition. Organizations that implement HRIS’s improve the organizations administrative efficiency with faster information processing, improved employee communications, greater information accuracy, lover costs and overall HR productivity improvements (Beadles, 2005). When selecting a HRIS, Human Resources (HR) should consider the efficiencies of using software as a service, the inefficiencies of various Microsoft Access based database software, the risks involved with integrating and combining multiple products into one system, and the consequences of improper database maintenance. In analyzing HRIS’s that would be beneficial in my current organization I chose to focus on HRIS Pro by Micro Systems, and MyHRIS by Nuview Systems. Commercial Database Systems HRIS-Pro information management software allows organizations greater effectiveness in managing HR functions and responsibilities. The advantages of HRIS-Pro are the information systems cost, modular flexibility, expansion capabilities,...
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...9-406-010 REV: OCTOBER 16, 2006 THOMAS J. DELONG Infosys (A): Strategic Human Resource Management How do you feel when you look around and realize that 80% of your colleagues have been in the company for less than 24 months? — an Infoscion On November 13, 2003, the HR leadership team led by Hema Ravichandar, head of human resources for Infosys Group, left the conference room with a mixture of excitement and apprehension; a feeling that, they decided dryly, was familiar after a strategy meeting with the chairman and chief mentor of the Infosys Group, Narayana Murthy, and the CEO, Nandan Nilekani. The cofounders had set a new and aggressive milestone for the HR group, the latest in a long line of challenging goals that had been set for them. By 2007, the cofounders wanted HR to ensure that Infosys was on the Top Ten lists of both Best Performing companies and Best Employers. It sounded innocuous enough to an outsider, but this HR team knew better. To the best of its knowledge, no large organization had ever been able to achieve this distinction because of the tension inherent between the need to control costs for financial performance and the spending required for employee satisfaction. As the team walked back from the meeting, they were reminded of the painful and humbling experience in 2003 that had made Infosys sharply aware of the difficulties ahead as it transitioned from a small to a large company. The decade since Ravichandar joined Infosys in 1992...
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...Because It is the most dynamic and Technology driven area in any business. Supply Chain Management is not a division in any company, rather it is a function of it. And I do not like to stick to any particular area. I want to explore more and more, and SCM gives that opportunity. SC professional gets a chance to work with market of Raw material, Purchasing, Production, and ,Distribution, Logistics, and market of Final Goods. Internet Staffing Methods vs. Traditional Methods HRM 594 Strategic Staffing Keller Graduate School (DeVry University) September 17th, 2013 We live in an era of technology that is changing the way the traditional workplace operates. Within the last two decades, dependence on technology as a means of conducting business has caused human resources to increase its recruiting functions from utilizing print media to posting vacancies on the Internet to attract prospects. Such practice improves the time it takes to hire a candidate, eliminates steps in screening and overall saves on costs that traditional method drained from a company’s budget. From the job seeker’s perspective, the hiring process is greatly enhanced. “In our fast moving society we no longer want to wait for Thursday's paper, which contains the appointments section, nor do we want to post our CVs in the mail the following day, then wait for weeks for a reply” (Online Recruitment Marketing Counsel, 2003). The use of the Internet means the entire world has access to...
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...Human resource (HR) database systems are in vast abundance throughout the business world today. HR database systems help HR professionals manage and carry out basic functions needed to achieve organizational goals and objectives. Column Case Management HR and HR Quick are two commercial HR database systems. Column Case HR is an easy to implement, web-based HR Services delivery solution addressing collaboration, content management, workflow automation, and integration features to improve organizational performance. Column Case HR advantages include multi-language support, 24-hour access, security features, it capitalizes on HR talent productivity and organizational performance, computerizes and regulates organizational practices and communication, and improves information distribution with extremely versatile, case-specific workspaces. Column Case HR only disadvantage would be its price; smaller businesses might not have the resources to afford its services. HR Quik is a Human Resource Management System that simplifies the processes and procedures of tracking employee information and generating forms that are critical to the employment process. HR Quik advantages include affordability, user-friendly; can easily track history of job, salary, and manager changes, track benefits plans by employee, employment forms are easily generated and ready to print, and running reports are hassle free. HR Quick also doesn’t have any management features that would allow the company to manage...
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