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Summary SHRM

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  • September 10, 2022
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  • 2019/2020
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Samenvatting SHRM
College 1
Hoorcollege
- Strategic HRM deals with the alignment between personal goals and goals of the organization.
o Personal goals: Meaning/purpose. In lower educated job-fields, people find money more
important, because they don’t have a base-line salary.
o Organizational goals: Optimizing profit.
- HR-practices (education, teambuilding, talent management, socialization)  Employee outcomes
(wellbeing, turnover and intention to turnover (employees leaving the company), satisfaction
from work)  Organizational outcomes (revenue, profit).
- Employees matter and the management of employees (human resource management) is a
potential source for achieving organizational goals.
- Nowadays, there are five factors that are important on HRM:
o Impact of organizational change, like internationalization. Companies also become more
informal. Informatization: ICT and computers becomes more important.
o Competitiveness in all kinds of ways: Technology, sustainability.
o Three perspectives:
 MHRM: Micro-HRM. Focused on the individual employee
 IHRM: International-HRM.
 SHRM: Strategic-HRM. Align the personal and the organizational perspective.
o Stakeholder perspective
o Balanced approach
- Organizational change has its impact on organizations and employees: Acquisitions, Mergers,
Reorganizations, Strategic alliances, Private equity interventions, Global crisis, Financial crisis,
Ageing population, Etc.
- The relevance of optimal coping with change is embedded in the concept of competitive
advantage.
- Competitive advantage is (1) important for organizational survival and (2) at least manageable by
human resource management.
- Micro HRM (MHRM): Covers the sub functions of HR policy and practice including recruitment &
selection, induction & socialization, and training & development.
MHRM is closely related to the studies in Organizational Behaviour and Occupational Psychology
often focused on the impact of single HR practices on employee attitudes and behaviours.
- International HRM (IHRM): 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.
- Strategic HRM (SHRM): 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 (Delery & Doty, 1996). The concept of ‘fit’ plays a central role within
SHRM.
- Three Perspectives in Studying SHRM Practices:
o Multi-actor perspective: Multiple stakeholders, including employees, managers, HR
professionals, top management, shareholders, enz.
o Broad societal view: Has an emphasis on different institutional contexts.
o Multi-level perspective: Employee perspective and strategic organizational perspective.

,- Paauwe (2004):
o Human resources are something more than just ‘resources’;
o Human resource management is not concerned solely with financial performance;
o Human resource management focuses on the exchange relationship between employee
and organization;
o 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):
o HRM covers all workforce groups, including core employees, peripheral employees and
contingent workers;
o HRM involves line and specialist managers, and is not solely aimed at employees;
o HRM is all about managing work and people, collectively and individually;
o HRM is embedded in industries and societies.
- The 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 (Deephouse, 1999).

Chapter 1
- Employees are ‘the organization’s most valuable assets’.
- Employees matter and the management of employees (HRM) is a potential source for achieving
organizational goals.
- Organizational change: Process between two different situations that affect an organization and
its HRM.
- Competitive advantage: The relative stronger position of an organization in comparison to other
organizations in the (geographical) region or in the same branch of industry.
- An organization with competitive advantage is doing better than its competitors irrespective of
the actual firm performance (negative or positive). In the case of losses, the organization is still
doing better than its competitor and in the case of profits, the organization makes more profits
than the others.
- The rise of the new economy created a shift from (traditional) production to services.
- Human Resource Management (HRM): Involves management decision related to policies and
practices that together shape the employment relationship and are aimed at achieving individual,
organizational and societal goals.
- HRM is divided in three major sub-fields:
o MHRM: Human Resource (HR) policy and practice, including recruitment and selection,
induction and socialization, and training and development. It’s closely related to the
studies in organizational behaviour and occupational psychology that focus on the impact
of single HR practices on employee attitudes and behaviours.
o IHRM: Concerned with HRM in MNCs and across borders. It focuses 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
HRM.
o SHRM: Focuses on issues of linking HRM to the business strategy, designing high-
performance work systems (HPWSs) and adding value through good people management
in an attempt to gain sustained competitive advantage. The concept of ‘fit’ of the business
strategy and HRM plays a central role within SHRM.

,- Stakeholders of an organization represent all groups inside and outside an organization that can
affect its strategy and goals.
- The multidimensional strategic HR model includes the following key characteristics:
o Multi-actor perspective: Multiple stakeholders, including employees, managers, HR
professionals, work councils, trade unions (vakbonden), top management, shareholders,
financiers and government.
o Broad societal view: With an emphasis on different institutional contexts, for example on
the level of branches of industry, regions and countries.
o Multi-level perspective: Including the individual employee perspective and the strategic
organizational perspective.
- The multidimensional approach argues that:
o Human resources are something more than just ‘resources’.
o HRM is not concerned solely with financial performance.
o HRM focuses on the exchange relationship between employee and organization.
o The shaping of the employment relationship takes place in an era of continuous tension
between the added value and moral values.
- The employment relationship contains different contract types:
o Legal aspects: Mostly written down in a contract.
o Economic aspects: How much effort an employee puts into the job in working days and
how much the employer will pay.
o Psychological contract: Concerning all things that are not written down but are expected
from both actors.
o Social aspects: Related to the relationships and networks employees have within an
organization.
- Anglo-Saxon / Anglo-American model: Approach in IR and HRM that is typical for the USA, which
mainly focuses on the added value of people management to shareholder value.
- Rhineland model: Approach in IR and HRM that is typical for many western European countries
that acknowledges multiple stakeholders affecting the employment relationship in organizations.
- “Organizational success can only be achieved when financial performance and societal
performance of an organization are above average in the particular population.”
- Balanced approach / Strategic balance model: Blends the insight from an economic perspective
with the insight from an institutional perspective in order to create a balanced and sustainable
position within the organization.
- Four different perspectives/frames for studying organizations:
o Structural frame: Gain an understanding of the various (structural) parts of an organization.
o HR frame: Focuses upon the employment relationship.
o Political frame: Examines issues of power.
o Symbolic frame: Builds on meaning and identity.

College 2
Hoorcollege
- Strategy: An organization’s intention to achieve certain goals through planned alignment (or fit)
between the organization and its environment.
1. Goal-based strategy: Based on the organization’s vision (what) and mission (how) (inspired
by its purpose, beliefs and values= why).
2. Strategic formulation: The process of forging a cohesive integrated set of strategies
designed to deal with the environment and achieve the business strategic goals.

, 3. Strategy implementation: The actions the organization takes to execute the strategy it has
formulated.




- Organizational Field: A community of organizations that partakes of a common meaning system
and whose participants interact more frequently and fatefully with one another than with actors
outside the field.
- Competitive strategy: Markets to enter and how to compete them.
- Financial strategy: How to fund the business.
- Operational strategy: Which supplies, technologies and methods.




- HR strategy: How to recruit, organize, develop and motivate people.
- What does an individual need? Key assumption: HR policies and practices/leadership can
influence individuals’ basic psychological need satisfaction and performance!
1. Need for autonomy: Ability to self-organize one’s behaviour.
2. Need for competence: Feeling of being skilled and able to master and effectively deal with
one’s work environment (e.g., job challenge and new skill development).
3. Need for relatedness or belongingness: To be connected to and associated with others.
Having the sense of being significant to others and a member of a group.
4. Need for structure: Low tolerance for ambiguity and a strong preference for well-ordered
situations and tasks.

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