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SHRM lecture notes
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Lecture notes of 64 pages for the course Strategic Human Resource Management at RU (notes - shrm)
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Hoorcollege 1 – Introduction SHRMEmployability is career potential. SHRM expresses that you not only have to manage your
personnel but also the resources of your personnel. SHRM is about the alignment of
individual and organizational goals.
Employee turnover means that employees leave the company can be good and bad.
“…employees matter and the management of employees (human resource management) is a
potential source for achieving organizational goals.”
Strategic Human Resource Management in the 21st Century
• Impact of organizational change Snabel spoke about the 5 i’s: (1)
internationalization and (2) individualization (e.g. managers have to take into account
individual preference more and more) are increasing. (3) Informalization
(organization are becoming flatter, less hierarchical levels power distance). (4)
Informatization (technological changes, ICT). (5) Intensification (individuals more
network orientated, protecting work-life balance).
• Competitiveness
• Three perspectives (MHRM, IHRM & SHRM)
• Multiple stakeholder perspective take into account perspectives, feelings,
responsibilities of stakeholders.
• Balanced approach try to balance work-life and balance short and long term goals.
Organizational change
• Acquisitions
• Mergers
• Reorganizations
• Strategic alliances -impact on organizations
• Private equity interventions
-impact on employees
• Global crisis
• Financial crisis
• Ageing population
• Etc.
Organizational Change and Competitive Advantage
The relevance of optimal coping with change is embedded in the concept of competitive
advantage.
Competitive advantage:
• Is important for organizational survival;
• And is at least partly manageable by human resource management.
Three HRM perspectives
1. Micro HRM – MHRM inflow, throughflow and outflow of individual employees.
2. International HRM – IHRM focus on differences between countries, societies, etc.
3. Strategic HRM – SHRM
,Micro HRM
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 (Wright & Boswell, 2002).
International HRM
International HRM (IHRM) is concerned with HRM in multinational companies (MNCs) and
HRM across borders (Brewster, 2004). 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
Strategic Human Resource Management (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 (Delery & Doty,
1996). 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.
Paauwe (2004)
• 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 (psychological
contract) between employee and organization;
• 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)
• HRM covers all workforce groups, including core employees, peripheral employees
and contingent workers;
• HRM involves 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
,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).
The Balanced Approach in HRM
• Goals of the individual employee;
• Organizational goals;
• Societal goals.
Hoorcollege 2 – Strategic Human Resource Management and Context
Six Component Model
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!
Fit-theory: understanding ‘The Shaping of Employment Relations and (S)HRM in relation to
Performance
Multiple Fits in SHRM:
• Internal/horizontal fit fit between HR practices.
• Vertical/strategic fit fit between strategy and market environment and HR strategy.
• Institutional fit all things that are influenced by regulations and other things.
• Organizational fit
• Person-environment fit (see Chapter 7) (Person-job fit & Person-organization fit)
important to attract people that have the same values and purposes. You have to find
alignment with your employees but also with your environment.
Understanding the Concept of Strategy
• Strategy: An organization’s intention to achieve certain goals through planned alignment
(or fit) between the organization and its environment (De Wit & Meijer, 1998 in Boselie,
2014, p. 23).
• Goal-based strategy based on the organization’s vision (what) and mission (how) (inspired
by its purpose, beliefs and values= why).
• Strategic formulation is the process of forging a cohesive integrated set of strategies
designed to deal with the environment and achieve the business strategic goals.
• Strategy implementation is the actions the organization takes to execute the strategy it has
formulated.
, The business environment and the
general environment affect the
organization.
SWOT (strengths, weaknesses, opportunities, threats) analysis based on Population or
Organizational Fields
ORGANISATIONAL FIELD: “A community of organisations that
partakes of a common meaning system and whose
participants interact more frequently and fatefully with one
another than with actors outside the field (Scott, 1995, p. 6).”
Should organizations take a broader view on the
environment? yes, you should include the organisational
field. Organisational fields can be affected by other
organisational fields.
Afb. 2: Earlier there was not much fit between strategy and HRM so no SHRM. Least to
most preferred.
Strategic Choice or Agency (see Figure 2.4, p. 30)
Extent of strategic choice available to firms? See Child (1997)
1. Hyper-determinism
2. Hyper-voluntarism
Boxall and Purcell (2008: 43): “…firms are neither fully constrained by their environment nor
fully able to create it.”
Oliver (1997): Organizations not only comply to (pressures from) their environments, but
also change these!
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