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CONTENTS
Introduction......................................................................................................1
References.......................................................................................................7
Figures.............................................................................................................8
INTRODUCTION
HUMAN RESOURCE MANAGEMNT
Sparrow and Hiltrop (1994) picked out four main approaches from this period:
D I F F E R E N T I N T E R PR E T A T I O N S O F H R M .
• Commitment
• Congruence
• Competence
• Cost effectiveness
• used sparingly
Sparrow and Hiltrop (1994), pointing out that this is a 'matching' model of
strategic HRM originally outlined by Tichy, Fombrun and Devanna (1982),
state that:
The New York variation on the matching model, outlined by Schuler and
Jackson (1987), looked at Michael Porter's generic competitive strategies
(quality enhancement, innovation and cost leadership or reduction) and
developed a set of 'needed role behaviours' for each strategy which,
according to Sparrow and Hiltrop (1994):
Planning choices: Informal ... Formal; Short-term ... Long-term; Explicit ...
Implicit job analysis; Job simplification ... Job enrichment; Low employee
involvement ... High employee involvement
STRATEGIC HRM
Strategic Human Resource Management (SHRM) is an effort to align human
resource strategy to business strategy. Strategic Human Resources starts
with understanding the goals of the business so that the people decisions are
aligned with the business objectives. Dave Ulrich, a professor of business at
the Ross School of Business, University of Michigan said, “Value is defined by
the receivers of HR work more than by the givers.” HR can provide value and
deliver strategic human resources through practices that attract, retain,
reward and develop top talent. The quality of talent in a business can be a
true differentiator.Becton & Schraeder., (2009)
SCOPE OF SHRM
Today it has been recognized that it is not just financial and technological
capital that provide companies with the competitive edge, but people, or
human capital. Without attracting and retaining the right people, in the right
jobs, with the right skills and training, an organization cannot succeed.
Therefore, people have been recognized as companies’ most important asset.
As the Federal Government moves toward a performance-based
management approach, we, too, need to realize the importance of our human
resources. A huge percentage of agencies’ budgets are spent on human
resources -- salaries, benefits, training, work life programs, etc. Nowhere else
do you make that substantial an investment and not measure the return. Not
only do a strategic use of human resources provide the competitive edge, but
several recent studies have confirmed that the quality and innovation of HR
practices impact business results Delery & Doty, (1996). These studies were
able to draw a correlation between increased quality of HR practices and
increased business success, M. Lengnick-Hall, Lengnick-Hall, Andrade, &
Drake, (2009). Among other benefits, HR alignment with mission
accomplishment increases HR’s ability to anticipate its customers’ needs,
increases the agency’s ability to implement strategic business goals, and
provides decision-makers with critical resource allocation information.
SHRM IN CONTEXT
Jackson & Schuler, (1995) are of the view that HRM can’t be understood in
isolation, we have to first understood the context. The theoretical Perspective
based in sociology, economics, management and psychology focus on
different aspects of the domain of RM in context. The perspectives which
have guided most of empirical studies are; (i). General System Theory, (ii).
Role Behavior Perspective (iii). Institutional Theory (iv). Resource
Independence Theory (v). Human Capital Theory (vi). Transaction Costs
Theory (vii). Agency Theory (viii). Resource Based Theory .
Figure 01