Summary of all lectures of the SHRM course in 2020/2021 academic year of pre-master Business Administration. The summary consists of the information from all powerpoint slides with associated notes.
Strategic Human Resource Management
Lecture 1
Employability: career potential
Why is SHRM important for your future job?
In history SHRM was called personal management, that was not a good operationalization because
that in particular meant retrospectively looking at the personal functioning in the previous year and
you manage them and give them feedback for the coming year.
HRM expresses that you do not have to manage your personal but also the resources of your
personal. This means that you sometimes have to say goodbye to someone to optimize your
organization.
HRM deals with the aliments of individual goals and organizational goals.
HRM Important for employees:
Low salary: money and being part of a family (work is social network).
High salary: money is not an issue; you want to be purposeful and get meaning out of your work.
As an HRM manager you have to know the needs of all your employees. Otherwise you get people
with burnouts or very good employees who leave because they are not satisfied.
Ambitions are a strong predictor for career success.
Management history
In history there was no HR function in a management team because they did not think it would add
money and value to a firm.
Now they know it does. It predicts employee outcomes and organizational performance.
Examples HR practices;
- Education
- Training and development
- Teambuilding
- Succession planning
- Selection and socialization
Examples employee outcomes;
- Happy and doing well (performance)
- Turnover (leave of employees of your company)
- Intention to turnover (grey absence they are not really absent but they are absent
minded)
If for instance in a situation where in outplacement is needed, for example downsizing or
whistleblowing or there is a negative atmosphere. It is possible that very talented people might
leave, people that you don’t want to see leaving.
,It is important to communicate well. When you don’t share information in time, employees will fill it
in in their own mind (creates a lot of damage).
‘’… employees matter and the management of employees (Human Resource Management) is a
potential source for achieving organizational goals.’’
SHRM in the 21st Century
Impact of organizational change
Schnabel (?) spoke about the 5 I’s about the 21st century
- Internationalization is increasing
Across the globe organizations have to deal with an increasing internationalization
- Individualization is increasing
More and more managers have to deal with individual preferences, needs, affinities because
people want to make sure that they can fulfill their affinities at work and in their private life.
Sustainable careers = happy, healty and productive
- Informalization
Across the globe you see that organizations are becoming flat, we have less hierarchical
levels. Management functions are changing.
- Informatization
Technological changes, ICT, labor markets and organizations have to deal with increasing
informatization.
- Intensification
Individuals are more network orientated and they also want to combine the importance of
striving to reach their career goals. Also spending more time with family and friends in
relation to a job.
Competitiveness
Organizations more and more have to deal with competitiveness in all kinds of levels:
- Sustainability
- Globalization
- Technology
Three perspectives (MHRM, IHRM & SHRM)
- Micro HRM
Organizational behavior, protecting the well being of people. Here we combine psychological
insights, organizational behavior, OB literature, together with HRM.
Focused on the individual employee development
- International HRM
Deals with multinational companies, expatriates (expats).
Repatriation (coming back after your expatriation) is quite a shock.
- Strategic HRM
Where we aline the micro focus with the strategy/organizational level and perspective.
Stakeholder perspective
We take the responsibility as HRM researchers to take into account perspectives, feelings,
responsibilities of individual employees, supervisors, partners of employees, team members, work
counsels, labour markets representatives, society as a whole.
Across the globe, institutional pressure or institutional differences (for example retirement age) is
very different. Work perspective is different.
,Balanced approach
‘In the strategic balance model, organizational success can only be achieved when financial
performance and societal performance of an organization are above average in the particular
population in which the organization is operating’
We try to balance employee at work + employee at home. The objectives of all the different
stakeholders, long term perspectives and short-term perspectives.
A balanced approach means that you not only into HRM on a short term, but you also protect your
employees and human resources for the longer term.
Organizational changes;
- Acquisitions
- Mergers
- Reorganizations
- Strategic alliances
- Private equity interventions
- Global crisis
- Financial crisis
- Ageing population
- Etc.
(All have impact on organizations and impact on employees)
HPWS = high performance work systems
Predict competitive advantage of companies.
Competitive advantage;
- Is important for organizational survival
- And is at least partly manageable by human resource management
Three HRM perspectives:
Micro HRM (MHRM)
‘Covers the sub functions of HR policy and practice including recruitment & selection, induction &
socialization, and training & development.’
Deals with inflow, throughflow and outflow of the individual employee.
People entering your organization (recruitment, selection, get to know the culture of the
organization).
Training and development, people can make promotion, give them more responsibility.
People are leaving the organization; intention to leave, turnover, outplacement.
International HRM (IHRM)
‘is concerned with HRM in multinational companies (MNCs) and HRM across borders. IHRM is
focused on issues such as the transferability of HR practices across business units in different
countries, the optimal management of expatriates and the impact of different institutional country
contexts on human resource management.’
Focusses on differences between countries, institutional differences, societal differences. But, also
differences in the way people interact with one another.
Strategic HRM (SHRM)
‘Focuses on issues of linking HRM to the business strategy, designing high performance work systems
and adding value through good people management in an attempt to gain sustained competitive
advantage. The concept of ‘fit’ plays a central role within SHRM.’
, Three perspectives in studying SHRM practices
- A multi-actor perspective
Multiple stakeholders including employees, managers, HR professionals, works councils,
trade unions, top management, shareholders, financiers and government.
- A broad societal view
With an emphasis on different institutional contexts, for example, on the level of branches of
industry, regions and countries.
- A multi-level perspective
Including the individual employee perspective and the strategic organizational perspective.
Nestedness of the data: members of the same teams are more highly correlated than members
across different teams.
Paauwe (2004) – put HRM on the map in the Netherlands
- Human resources are something more than just ‘resources’
- Human resource management is not concerned solely with financial performance
- Human resource management focuses on the exchange relationship between employee and
organization
Exchange relationship = the psychological contract - if he works for me he wants money, but
also a pack on the shoulder sometimes.
- And the shaping of the employment relationship takes place in an era of continuous tension
between the added value and moral values.
Boxall & Purcell (2008) – authors of the masters book (next year)
- HRM covers all workforce groups, including core employees, peripheral employees and
contingent workers.
HRM is focused on each and every employee. The cleaners of the building are even so
important as the managing part.
- HRM involvers line and specialist managers, and is not solely aimed at employees.
- HRM is all about managing work and people, collectively and individually.
- HRM is embedded in industries and societies.
Lecture 2
The more fit (alignment) the better!
How does the environment impact the organization?
What is relevant in light of our purpose (why), mission (how) and vision (what)?
‘Enactment’ is needed. Misfits cost a lot of money and reduce individual and societal well-being.
- Why are you there as a company/organization?
You have to know about your own believes and values, what is meaningful to you? Why do
you want to contribute to society?
Who do you want to attract/inspire/commit to your organization? (scan the environment)
- How you can accomplish that purpose
- (What) How you envision the results of your effort in the market.
There needs to be a link (fit) between strategy and HRM. That was not the case in history, right now
it is more and more possible to fit those together.
If you don’t see the link with the environment, you might underperform.
If there is a misfit between what you do and what society wants/needs you to do, it can cost a lot of
money but it can also effect wellbeing in the long or short term
Example of a misfit is a strike (pilots of EasyJet)
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