The document discusses strategic human resource management (SHRM) and its role in the employment relationship, emphasizing the integration of HR practices with organizational goals for competitive advantage. It outlines various strategies, including business and operational approaches, and highlights practices such as recruitment, training, and employee involvement that contribute to high performance. The conclusion suggests that aligning HR practices with competitive strategies can enhance organizational effectiveness, though SHRM alone may not determine a firm's success.

1. STRATEGIC HUMAN RESOURCE
MANAGEMENT
Mohammad Ali Jaafar
Ph.D. Systems Mgmt.
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

2. DISCUSSION
What is meant by the term “Strategic Human
Resource Management” and how has it been
used to study the employment relationship?
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

3. HUMAN RESOURCE MANAGEMENT
“… human resource management (alternatively,
‘employee relations’ or ‘labor management’) includes
the firm’s work systems and its models of employment.
It embraces both individual and collective aspects of
people management. It is not restricted to any one
style or ideology. It engages the energies of both line
and specialist managers… and typically entails a blend
of messages for a variety of workforce groups.”
Purcell & Boxall (2003) P. 24
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

4. HUMAN RESOURCE MANAGEMENT
“HRM as a subject of study assumes that the interests of
employees and employers will coincide and is preoccupied
with the shared goal of organizational effectiveness that
marginalizes the interests of other stakeholders such as
employees. HRM is also predominantly focused on the
individual and seeks solutions to HR problems within the
firm, with an analytical focus on the motivations and
aspirations of individual employees.”
Bach (2005) P. 4
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

5. STRATEGY
“The determination of the basic long-term goals and
objectives of an enterprise and the adoption of courses
of action and the allocation of resources necessary for
carrying out these goals.”
Alfred Chandler, Strategy and Structure, (MIT Press, 1962), P. 13
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

6. STRATEGY
• At the core, its is the debate between best fit and best
practice
• Used for gaining a competitive advantage
▫ Innovation
 Offer something new; different from competitors
▫ Quality Enhancement
 Products and services
▫ Cost Reduction
 Attempt to be the lowest cost provider
• Optimal strategy depends on the wants and nature of
competitors
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

7. TYPES OF STRATEGY
• Business
▫ Examines correspondence between each firm’s
competitive strategy and its system of high
performance work practices
• Operations
▫ An internal approach; connected to the work
organization inside a firm
• Resource View
▫ Views human resources as sources of sustained
competitive advantage
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

8. STRATEGIC HRM
• “(S)trategic HRM is about how the employment
relationships for all employees can be managed
in such a way as to contribute optimally to the
organization’s goal achievement.” Legge (2005) P. 223
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

9. HR PRACTICES LINKED WITH COMPETITIVE
STRATEGY
• Recruitment
• Training
• Career Path
• Promotions
• Socialization
• Openness
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

10. HIGH PERFORMANCE PRACTICES
• Features
▫ Comprehensive selection/recruitment procedures
▫ Incentive compensation
▫ Extensive employee involvement/training
• Expected Results
▫ Improve knowledge, skills, and abilities of employees
▫ Increase motivation
▫ Reduce shirking
▫ Enhance retention of quality employees (reduce tenure
of non-performers)
Huselid (1995) P. 635
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

11. HIGH COMMITMENT PRACTICES
• Unique to the High-Performance Paradigm
▫ Sophisticated selection and training
 Emphasis on values, human relations skills, and knowledge
skills
▫ Behavior-based appraisal
▫ Single status policies
▫ Contingent pay systems
• Traditional Personnel Practices
▫ Job security
▫ Above market pay and benefits
▫ Grievance systems
Godard (2004) P. 351
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

12. CONCLUSION
Model of the Basic Strategic HRM Components
HUMAN CAPITAL POOL:
Knowledge, Skill, Ability
EMPLOYEE RELATIONSHIP BEHAVIORS:
Psychological Contracts, Citizenship, Discretion
Wright, P. Dunford, B. and Snell, S. (2001) Human Resources and the Resource Based View of the Firm, Journal of Management, 27:6
PEOPLE MANAGING PRACTICES:
Staffing, Training, Rewards, Appraisal,
Work Design, Participation, Recognition, Communication
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.

13. CONCLUSION
• Effectiveness can be increased by systematically
melding human resource practices with the
selected competitive strategy
• The success or failure of a firm is not likely to
turn entirely on its strategic human resource
management practices, but these practices are
likely to be critical
Mohammad Ali Jaafar,
Ph.D Systems Mgmt.