The document discusses different approaches to strategic human resource management (SHRM). Some see HRM and SHRM as interchangeable, focusing on strategic tasks like planning. Others view every HRM function as having strategic elements. A third perspective is that SHRM focuses on long-term strategic decision making, while HRM handles shorter-term operational activities. The document also analyzes views that see strategic aspects in all HRM content and those that see SHRM as implementing business strategies through appropriate HRM systems. In the end, the document consolidates these varying views into four categories: strategy-focused, decision-focused, content-focused, and implementation-focused.
1. DIFFERENING
APPROACHES TO
STRATEGIC
HUMAN RESOURCE
MANAGEMENT
• Ihab Mohamed tarek
• ID: 12105180
To : Dr. Reem Osman
2. INTRODUCTION
Strategic human resource management (SHRM) has emerged as a
significant issue in tandem with the increasing attention being given
by the companies to strategy.
The response of the corporation has been to attempt to build up a
sound internal configuration that includes human resource
management (HRM) systems.
The key to providing an effective response is to have an HRM
system attuned to strategic requirements.
3. DIFFERENT VIEWS ON
STRATEGIC HRM
SHRM is facing an 'identity crisis' and it is defined and viewed from
several perspectives.
Some of the major perspectives are:
1) HRM or Strategic HRM
2) Strategic Functions of HRM
4. 1- HRM OR STRATEGIC HRM
HRM and strategic HRM are considered identical and used
interchangeably by some authors. Mathis & Jackson (1985: 3-4)
define HRM as "the strategic planning and management of human
resources for an organization. . . HRM is more broadly focused and
strategic in nature“
HRM is seen as a strategic function focusing on tasks such as HR
planning or devising compensation policies and strategies.
This definition is similar to what Beer et al. (1984: 13) consider as
SHRM. In their words "we view HRM from strategic perspective”.
5. 2- STRATEGIC FUNCTIONS OF
HRM
Every function of HRM process has its own strategic elements.
These strategic elements of the functions of the HRM process are also
called strategic HRM.
For example, Torrington & Hall's (1995: xvi) Inputs, in their model,
act on the strategy, operations, and interactions levels requiring a
tiered response at the organization-level requires planning for jobs
and people, resourcing requires recruiting and formulating contracts
of employment.
Some other authors mention that every element of the HRM process
has some strategic aspects that could be termed as SHRM.
For example, Olian & Rynes (1984: 172) see a relation between the
stages of staffing process and the choice of selection needs to focus
on the strategic dimensions, as the type of knowledge, skills, and
abilities required for the job.
6. DISCUSSION ON THE
DIFFERENT VIEWS ON SHRM
There are several different views expressed by theoreticians from
time to time.
Here are three points around the discussions:
1) People are Strategic Resource
2) Planning Process
3) Competitive Advantage
7. 1- PEOPLE ARE STRATEGIC
RESOURCE
In HRM discipline every author agrees that people of the
organization should be viewed as not only resource asset, or capital
but also as human (Snell & Dean, 1992) or social (Beer et al., 1984)
resource, asset, or capital.
The distinction of strategic HRM in comparison to functional HRM is
that in the former case people of the organization are considered as
strategic human resource (Hendry & Pettigrew, 1986) in order to
attain competitive advantage.
8. 2- PLANNING PROCESS
Strategic HRM is a planning process. For example, Miller (1989: 51)
says that " the key is to make operational the concept of fit … of HRM
with the strategic thrust of the organization (and) the development of
operational linkages is what strategic HRM is all about".
For the purpose of this linkage it is necessary to formulate a long-run
plan and this planning process continues until final
implementation and feedback are completed.
9. 3- COMPETITIVE ADVANTAGE
The objective of SHRM is to create competitive advantage for the
organization.
The concept 'our people make the difference' is the outcome of that
theme.
For example, IBM has experienced are due, in large part, to its
ability to attract and retain skilled employees and managers. The
shifting nature and competitive challenges in computer marketplace
forced IBM to avoid employee layoff and termination.
Employees with a long service record with the company were
offered early retirement incentives and many production employees
were shifted to sales or activities in the company. These activities
illustrate that HRM is a crucial part of organizational success (Mathis
& Jackson, 1985: 2).
10. CONSOLIDATION OF
DIFFERENT VIEWPOINTS
An attempt to consolidate the different viewpoints led us to develop
a typology of the approaches based on the focus of a particular group
of thinkers in SHRM.
It presents a comparative chart of four approaches.
1) Strategy-focussed
2) Decision-focussed
3) Content-focussed
4) Implementation-focussed
11. 1- STRATEGY-FOCUSSED
APPROACH
Several authors (Mathis & Jackson, 1995 or Beer et al., 1984) view
HRM and SHRM as identical.
This means that HRM by its very nature is strategic.
The elements of HRM such as recruitment and selection or
compensation, do not operate in isolation, but are derivatives of the
requirements of the strategy that an organization employs.
Strategic planning dictates HRM planning.
12. 2- DECISION-FOCUSSED
APPROACH
According to Tichy et al. there are three management levels –
strategic (long-term), managerial (medium-term) and operational
(short-term)
The HR functions performed at the strategic management level is
SHRM.
The managerial- and operational- management level activities that
deal with medium- and short-term HR functions do not come under
SHRM. Rather these are functional HRM activities.
the strategic management level activities are directed to achieve
strategic goals.
the blending strategies requiring the creation of a fit between HRM
and strategy.
13. 3- CONTENT-FOCUSSED
APPROACH
Like Torrington & Hall (1995) in every element of HRM there are two
aspects, the strategic and the functional.
when HRM elements match with the organization's strategy, SHRM
emerges.
These strategic aspects are referred to as SHRM.
In the content-focussed approach, the functional aspects of HRM
elements can also be blended with the organization's strategy which
leads to the emergence of SHRM.
14. 4- IMPLEMENTATION-FOCUSSED
APPROACH
Thinkers like Miles & Snow (1984) express the view that
organizations have some competitive objectives that are achieved by
some business strategies.
In order to implement these business strategies, appropriate types
of HRM systems are required.
Such HRM systems are strategic in nature , this approach can be
termed as SHRM.
15. CONCLUSION
The differing views are consolidated under four groups wherein SHRM is
seen to be either strategy-focussed, decision- focussed, content-focussed,
or implementation-focussed.
There are two broad areas of HRM; Strategic HRM and functional HRM.
There are some strategic aspects in every element of the HRM process and
these are known as SHRM.
SHRM is a planning process and the resulting plan must be a long-term
plan.
Both strategic and functional types of HRM consider people merely as
assets, resource, or capital. In contrast, SHRM considers them as strategic
human asset, resource, or capital.
The main objective of SHRM, which arises as a natural corollary to the
definition of SHRM, is creating and sustaining competitive advantage for the
organization