MICHAEL ARMSTRONG. Armstrong's Handbook of Management and Leadership. Armstrong's Essential Human Resource Management Practice. Armstrong's. Michael Armstrong 3rd Edition Chapter # 03 - Free download as Powerpoint The concept of strategic human resource management (strategic HRM) and. The right of Michael Armstrong to be identified as the author of this work has . Strategic human resource management (SHRM) is an approach to the devel-.
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by Michael Armstrong Taken from: Strategic Human Resource Management, Second Edition by Strategic Planning for Human Resources Management. The right of Michael Armstrong to be identified as the author of this work has been asserted by HRM defined 37; The resource-based view of strategic HRM 39;. pdf. Michael Armstrong th edition 10 HUMAN RESOURCE MANAGEMENT capital management: practice and strategy 36; Human capital measurement 37;.
These stakeholders may be external point was made in their classic statement that: Achieving Strategic Fit 5. The prophesies: Its contributions. High-performance management aims. Linking learning, involvement and performance management.
J What is human resource Human Resource Management. Journal of Management Paauwe. Harvard Business Review. Wiley Resource Management. J From personnel management to Keenoy. J Storey. Human Resource Routledge. Organizational Keegan. G Strategic human resource March—April.
B 29 2. A When chief executives discover Osterby. C and Pettigrew. Industrial Relations. M A Noon. M HRM: K The morality of HRM.
McGraw-Hill 30 4. D Skinner and T Clark. New eds P Blyton and P Turnbull. R S and Jackson. New Perspectives Storey. A Human resource testing inside the black box. New and Stiles.
P Soft and hard models of York. S E Strategic Human business partnership. K Human resource management: Reassessing Human York. Blackwell Human Resource Management. T HRMism and the images of human resource management. The International perspectives. J Human Journal of Management Studies.
D E Personnel management: You should also understand: It is a and McMahan Managers nature and its aims.
This what business the company will be in and forming means that they operate as part of the management a strategic vision of where the organization needs to team.
It then covers: But they will also fit. It starts with an analysis of the meaning sion and strategies. This is followed by a description of how strate.
Schuler and Jackson Baird and Meshoulam The chapter continues with a summary of the distinctive features of strategic HRM and ends with an examination of how HR The concept of strategy strategies are developed and implemented when an Strategy is the approach selected to achieve specified SHRM approach is adopted.
As defined by Chandler SHRM has been described by Boxall adopting a broad and long-term view of where the as the interface between HRM and strategic business is going and managing it in ways that ensure management.
A good strategy is one that works. Pettigrew and Whipp In the words of but they also cover how those goals will be attained. In practice. Economic turbulence was insufficiently considered. Some years ago. It is concerned with both ends and means. Kanter and their validity always hinges on large loose It is about deciding reality. Quite the reverse. The second characteristic of strategy is the recog- In this sense a strategy is a declaration of intent: Quinn Many people still believe and act as if Strategy has three fundamental characteristics.
Dreaming up a strategy anticipation gets converted into foolish numbers: As Boxall SHRM is about both HR practice organizations develop their business and strategies and the strategic management activities of HR strategies. SHRM has three main objectives: This concept of what the business does and plans to do. But this is not always the of strategic choice which is always there and the case. Boxall and Purcell A strategy. Alvesson It is based on two key ideas.
He noted that. HR professionals. It is essentially process: The third objective. In theory. SHRM involves the exercise conquer a new market. Precise forecasts ending with derived policies and practices. Critical evaluation of the In these circumstances. Diversity of strategic processes. Vertical integration ness strategy and human resource strategy.
It has been pointed out by Truss Business strategy formulation and implementation is a complex. Wernerfelt Hendry and Conclusions Pettigrew suggest that there are limits to the extent to which rational HR strategies can be drawn The difficulties mentioned above are real. They have to take into petitive position. HR strategy will be subjected to considerable tage. These are perfectly strategies laudable broad objectives but they need to be more If. The resource-based view is founded on the external pressure.
These may mean that HR strat. Too often the out- come is a platitudinous statement such as: But as Brewster unique character and creates competitive advan- argued. The rela- tionship between the pursuit of policies in these areas and individual and organizational performance may be difficult to establish.
HR strategists must make every effort to understand the business The qualitative nature of HR model of their organization ie a picture of an issues organization that explains how it achieves competitive advantage and makes money and the plans for Business strategies tend. To a very large extent. It was expanded by The question: Resource dependence theory Pfeffer and effective deployment of resources. The key to a resource-based approach commented: Resource-based strategy is therefore con- can establish its identity and frame its strategy.
This will happen if substituted by its rivals. This means strategic fit between resources and ment of the human or intellectual capital of the opportunities. He noted later Barney As Ulrich In He was only half the story: He also observed ibid: The challenge to organizations competitive advantage and profitability — in is to ensure that they have the capability to find.
The aim is to develop strategic capabil. To discover these resources and departmental cooperation and executive develop- capabilities. Its concern is to ensure that: Delery and Doty Schuler It provides a justification for attaching ticular strategy require HR practices that are different importance to resourcing activities.
They identified three HRM perspectives: This followed demands of the competitive environment. But it has the business strategies should enjoy superior per- following limitations: This defined in the same terms. Strategic human resource management is largely about integration and adaptation. Perspectives on SHRM based view Taking into account the concepts of the resource- The resource-based view has had considerable based view and strategic fit. It emphasizes that HR strategies should be congru.
As the organization grows 3 Analysers. The basic premise planning. This means matching their strat- egy to one of the ideal types defined by theories The best fit model is in line with contingency theory. They human resource management develops through a are usually not the initiators of change. The life cycle model is based on the theory that the 2 Defenders.
Another approach to best fit is the proposition that organizations will be more effective if they adopt a policy of strategic configuration Delery The best fit model and Doty. Prospectors have low levels of formalization and specialization and high levels of decentralization. Consistent with growth also in markets where new products are and development models it can be suggested that constantly required.
They operate programmes. They lack Three strategies aimed at achieving competitive consistent well-articulated strategies and do advantage were identified by Porter This is in prospectors and engage in more long-term line with product life cycle theory.
There 1 Prospectors. They have more mechanistic or of this model was expressed by Baird and bureaucratic structures than prospectors and Meshoulam They have The life cycle model relatively few hierarchical levels. This rubric has been attacked by HR policies and practices with strategy.
Paauwe There is. He has also criticized the best practice or Cappelli and Crocker- credible to claim that there are single contextual Hefter Purcell As Dyer and Holder It is not a number of commentators.
They neglect the valuable by being rare and imperfectly imitable? On the contrary. Becker and planning and the manner in which they are and Gerhart argued that the idea of best carried out. This is the process of horizontal integration. In a sense. Grade structures can define ligence tests would depend on the situation in career ladders in terms of competency requirements which the decision was made.
SHRM is holistic: They set required for the successful performance of a role out aspirations that are expressed as intentions.. But standards of behaviour or performance required. It is not interested in isolated programmes HR strategies and techniques. They concluded that a firm with bundles dling can improve performance.
What can be done. But there are a of associated HR practices should have a higher number of inhibiting factors. The research by combining vertical or external fit and horizontal or MacDuffie and others has shown that bun- internal fit. HR strategies indicate what the organization wants Bundling can take place in a number of ways. Their study managers that bundling will benefit the of various models listing HR practices that create organization and them.
The main argument our. They are not just a laundry list of everything for articulating HR strategies is that unless you that the organization would like to do. But there are still strong regulated rather than controlled by sanctions and. The two types of HR strategies are: HRM recruitment and selection procedures. As suggested arguments for a systematic approach to identifying by Chesters Reeves Others go into much more ie things the strategy is supposed to achieve.
Some strategies are simply very general key elements: High-commitment management ence. But an ment. There is no such thing as Thompson High-commitment through an emergent.
Richardson and strategies are different. One of the defining characteristics of HRM is its They were writing about business strategy. High-performance management aims. General HR strategies It is about taking strategic decisions. Money is easy to get hold of. Specific HR strategies training and incentives. In an industry of fast followers. The key differentiator on its business goals and meet the needs of its anything any company does is fundamentally stakeholders..
There are three broad strands to the Organization and People Strategy: Criteria for an effective HR strategy 1 Reward and recognition: Its contributions. It is necessary first to involve essential contribution at the stage when business line managers in the development of HR strategy strategies are conceived. These can be the basis for implementation activities along the way.
Penguin Classics. HR strategies are skills. But the organization and its other stakeholders. Too often. As Gratton HR strategies are implemented The HR strategy then derives directly from these by line managers. This contribution may be more managers are much more likely to work than things done to line managers.
But there is still room for HR to make an of line managers. To a large extent. The notion of best practice incorrectly its resource capability. It takes the notion of HRM as strategies that are integrated with the business a strategic.
More realistic than best practice. HR strategies should be congruent with the context and circumstances of the organization. M and Long. A Distinctive Armstrong. T Human resource Boxall.
I Managing two fits Chandler. Journal of Human Resource Management. S M and Lawler. J B Looking inside for competitive universality. Academy of Management 9 4. G W Strategic human forecasts of corporate performance. M Critical perspectives on strategic Brewster.
CIPD Cappelli. P and Crocker-Hefter. M and Baron. Human resource management and planning. J and Luna-Arocas. C European perspectives of human HRM. J Creating strategic impact: H D Modes of theorizing Studies. D F Managing with Dual Strategies: C Martin Chuzzlewit. J E and Doty. People Management. References Abell. The Oxford and where do we need to go?. Academy of Management Executive. Free Press Macmillan Alvesson. Bureau resource-based view of the firm.
A D Strategy and Structure. Academy of Digman. S The impact of Dickens. B E and Gerhart. Evolving Boxall. L and Reeves. L and Meshoulam. Journal of Management Delery.
R High- pp 52—67 involvement work practices and firm performance. Strategic HRM. A Strategic HRM: International Journal of Human Resource The route to improved business performance. Palgrave New York.
J B Firm resources and sustained pp 32—35 competitive advantage. P M Wright and D Ulrich. J Strategy and Human Mastering the present. IPM Organizational Dynamics. J People and Performance: How Hendry. R L and Butler. People management research?. Industrial Relations competitive strategies with human resource Review. J The Human Equation. Harvard Blackwell Business Review. M The competition. S E Linking manufacturing performance.
Blackwell Macmillan. Leading HR. R M The resource-based theory of and sustaining superior performance. J The meaning of strategy in human and performance. H Crafting strategy. J B Strategies for Change: Logical Management. D E Human resource management Purcell.
Blackwell Human resource management and firm Pfeffer. Oxford University Press in eds P Sparrow. R The Naked Manager. R Managing Change Stavrou. Blackwell 21 1. Academy of Management Management. A Human resource people management impacts on organizational management: R and Thompson.
Jossey-Bass Schuler. Academy of Management Miles. C C Organizational Executive. R London. R S Strategic human resource Mabey. A and Whipp. Organizational Dynamics. Wiley Porter. F L and Hunter. J Human management: R E and Snow. M E Competitive Advantage: Creating Grant. Structure and process. C for Strategic Success.
C and Charalambousa. M A dependence approach. Irwin Hunt. C Paauwe. J and Davis-Blake. M and Cooper. California Management Review. J P Human resource bundles and Schuler. L A Real step change. Palgrave Firm. Journal of Management Inquiry.
R M The Change Masters. K and Whittington. Impact of People Management Practices on 4 4. M Hird and Penrose. Psychological Lawler. Achieving Introduction: Performance-led HR. A Hesketh. A literature review. D and Johnson. S The resource-advantage theory of Richardson. Kogan Page organizational wage structures: E E High Involvement Management. J Best practice or best fit: Thompson Learning. Human Resource Management Journal.
New Journal. J E Is the resource- 33 3.
G The Challenge of Pfeffer. A Understanding Strategic Management. S A and Jacobsen. C Soft and hard models of HRM. R E From control to commitment pp —72 in the workplace. V H Hailey. H H March—April. P Stiles and C Truss. P M and McMahan. Journal of Management. Irwin Wright. International Journal Oxford. D A new mandate for human unifying framework for exploring fit and flexibility resources. Strategic Management Journal. P M and Snell. B A resource-based view of the firm.
S Human resource strategy: G C Theoretical Truss. A A and Strickland. S High commitment management Management. Concepts and Cases. S A Towards a Ulrich. The International Thompson. Human Resource Planning. HR practices and the Purcell Becker and Huselid Taking account of the internal and external environments in which the organiza- tion operates. The effective delivery of of mutually reinforcing practices. As illustrated in Figure 3. Becker and Huselid HR techniques such as organization development.
The more strategically minded system approach views HRM as an integrated and coherent bundle Times have not changed. The organization of the HR opment.
Business Review article Level three is the strategic engagement. It plays a key part one organization to another and from one level to in the creation of an environment that enhances another in the same organization. This first model was later modified by Ulrich HR and business strategies.
Becker and The HR function delivery Huselid But one of the issues explored by Francis and Keegan In a sense the HR function is in the delivery business through their research is the tendency for a focus — providing the advice and services that enable on business performance outcomes to obscure the organizations and their line managers to get things importance of employee well-being in its own right.
These methods of The HR delivery model describes They quoted the view of Ulrich and Brockbank how those services are provided. In his influential Harvard Chapter 8.
Level two to me is tools. The HR function and its members have to model described in Chapter 1. The role reward and employee relations. The IRS will have line managers as their customers. In this article Johnson clearly depend on the size of the business.
HR survey of HR roles and responsibilities found business partners make up the third leg. These employees employees to HR staff was They are that the median ratio of employees to HR practi.
The overall ratio was A survey by typically includes a vice president of HR. The CIPD survey on workforce of around 1. Crail sequent versions of the model. One leg of the stool 3. The most number of professionally qualified practitioners. For SMEs the median ratio of managers and specialists work. The second sized enterprises SMEs. Senior managers look at the HR to spend more time on value-adding activities. Centres of expertise two elements. Gratton At the same time.
And as Reilly com. Business partners common 29 per cent. HR has to be responsive — clear about what it is there for It is necessary to evaluate the contribution of the HR and what services it offers. Project staff work on projects that emerge from strategic liver the HR requirements emerging from various projects. The prime criteria for evaluating the work respondents to assess HR effectiveness were: They are a key point of contact for people leaders on tion of recruitment.
Solutions consultants deal with operational queries referred diversity and performance. Centres of expertise Solutions consultants Centres of expertise cover areas such as reward. Unlike shared services staff. The staff in the centres are to them from the people advisory helpline — mainly issues specialists in their respective fields.
HR can be found in the HR service centre. Tyson and Fell Every centre of expertise is a cost centre. The roles of HR professionals and coaches. Research within which they work and their own capabilities. The competencies required are demand- The roles of HR professionals vary widely accord- ing.
The new structure means there is functions such as recruitment. HR officer. So Belbin Team Inventory. The transactional functions also provide been that specialist knowledge is now organized into services for their professional counterparts. In contrast. Sears tors. The various roles are described below. HR manager. In other words. Transactional functions include of the HR shared services function. The latter is one of the most demanding strategies. The strategic HRM ing guidance on matters related to upholding core skills and knowledge they need to carry out this role values and ethical principles.
They HR strategy. The role of HR advisers or assistants is primarily that of delivering effective HR services within their. HR directors or heads of the HR function. At a transactional level organizational capability — the capacity of the organ.
But for many derives directly from these challenges in order HR people the emphasis is on transactional activities to create real solutions and add real value.
The importance of this aspect of their work of the business or operational strategy of should not be underestimated by focusing too much the organization. HR professionals have a strategic role when they are textual and organizational factors. The HR strategy then help to meet the needs of employees.
Line managers tend to judge HR professionals on the quality and The strategic contribution of HR efficiency of the services they provide. They help to improve are described in Chapter They do this by advising on how and time-consuming areas in which they give advice the business can achieve its strategic goals and provide services.
As described later in this chapter. HR practitioners work machine. This has had the competitive advantage. They then you can forget about any big ideas. As an HR specialist commented to Caldwell involved with them in implementing business strategy Example — business partnering at added approach means creating value through HR initiatives that make a significant contribution to the Automobile Association AA organizational success. But the term is often used more and facilitating change.
Strictly speaking. Syrett noted The notion of HR professionals as business partners that whatever strategic aspirations senior HR prac- has seized the imagination of HR people. In essence.
Perhaps it is preferable for whom they provide services in order to ensure to emphasize that the role of HR professionals is that these services support the achievement of those to be part of the business rather than merely being goals. Critical evaluation of the business While they will not be responsible for the formulation of HR strategies they may contribute to them within partner concept their own speciality.
In the language ployee champions and change agents. But Ulrich cannot be blamed for innovations. They will need to understand It can be argued that too much has been made of the business goals of the departments or managers the business partner model. They have to: In HR speak. The following are guidelines effectiveness.
This facile assumption means that people change by providing advice and support on its can too readily devise elegant solutions that do not introduction and management. The danger. HR specialists who try to draw rests as much on the effectiveness of the attention to themselves simply by promoting the process of implementation line manager buy-in latest flavour of the month.
It has to be reason for failure. Caldwell solve the problem because of the hazards encoun.
Drucker This continues in the age of Ulrich. The most important aspect of values is the ethical To succeed in this requires skills in influencing. By implication. This may arise because the ethics and responsibility become optional. The pressure on HR opportunity to contribute to the management of practitioners in the private sector is to promote the people in organizations.
The problem purgatory. In the public sector. They will be affected by ambigu- with ambiguity was well described by Guest and ity and questions on the status of the profession and King The HR function has an inward-looking tendency to identify professional expertise How HR professionals carry out these roles de. This appears to apply more strongly to people management than to most other activities.
All this demands competency in a number of areas and Much management activity is typically messy and requirements to adopt certain behaviours. They have well and act responsibly. And in the UK. As suggested by talent management. They also commented that: It has not been concerned with the totality of professional the organization but often with issues which have Professionalism in HR as in other fields can be de- not only been parochial but esoteric to boot.
CIPD spends Fletcher this is characterized by: This was later called standards. Even more loosely. What it means to be an HR making circles because it has frequently not earned one. As they observed. Some managers have them. On the basis of their research. The implementation of policies to enhance training required to implement the practice. Guest and as people managers — Hutchinson and King Purcell and his colleagues noted that dealing with people management activities such as performance is perhaps the aspect of their work in which line management.
Performance bureaucratic or time-consuming. As Guest What makes the dif. A further factor affecting the role of line managers To which can be added that better implementation is their ability to do the HR tasks assigned to them.
HR proposes but the line disposes. HR innovators. The best known ethical values. HR function. The HR system Professionalism in HR The HR system as part of the HR architecture Professionalism is defined generally as the consists of the interrelated and jointly supportive conduct exhibited by people who are providing HR activities and practices.
Ambiguities in the role of HR architecture HR practitioners HR architecture includes the HR systems and The activities and roles of HR specialists and the processes and employee behaviours as well as demands made upon them appear to be quite clear the structure of the HR function. HR professionals are required to uphold The HR delivery model the standards laid down by their professional body. Human Resource Management. D London. A and Hird. B E and Huselid. C Appraisal and Feedback: Making and performance.
R Champions. H and Keegan. S and Caldwell. Survey report. Palgrave Macmillan. M HR roles and responsibilities D HR 5 January.
M A and Ulrich. R Rhetoric. D E and King. L The Humpty Dumpty effect: G and Boon. Human Resource Gratton. References Becker. Linking people. C of HRM: CIPD pp — Industrial work systems and managerial perceptions of HR Relations Journal. IRS Employment resource management: Review P The Practice of Management. M A Strategic human benchmarking the HR function. C Big hat no cattle? Search inside document. The use of planning; 2. Matching HRM activities and policies to some explicit business strategy 6.
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