Strategic Human Resource Management
Preparation for the exam
- Lectures
- Two books
- Questions
Green – new topic
Red – important for the exam
Orange – most important part of a definition/ topic
Blue – information from lectures
Summary Strategic Human Resource Management: a Balanced Approach - Paul
Boselie (2 edition)
Chapter 1. Introduction: SHRM in the 21st century.
!!! Five I’s
Nowadays organizations are really characterized by a lot of organizational changes.
Snabel spoke about the five I’s!!!
1. Internationalization is increasing. Across the globe organizations must deal with an
increasing of internationalization.
2. Individualization is increasing. More and more managers must deal with individual
preferences, needs, infinities. Because people want to feel sure that they can fulfil their
infinities in work and in their private life.
3. Informalization. Across the globe we see that organizations become flatter. We have
less high radical levels. So that means that also management functions are changing.
4. Informatization is increasing. Technological changes and ICT.
5. Intensification. Individuals are more network oriented. And they also want to combine
their job goals and family, work life balance.
New economy
In the 1990s there was a shift from a manufacturing and production economy into a service
sector asset-based economy - the new economy.
The old economy was characterized by physical tasks, job design, mass production, low-
skills workers and high degree of unionization. The new economy is dominated by
information technology and financial institutions.
Competitive advantage
At least partly is manageable by HRM
Competitive advantage tells us something about how well the organization is doing in
comparison to others in the same branch or industry.
- better financial performance (bigger sales, higher profit)
- non-financial performance (organization’s reputation in relation to customers and
potential employees)
MHRM, IHRM and SHRM
- MRHM: Micro HRM - covers the sub-functions of HR policy and practices. Focus
on the impact of single HR practices on employee attitudes and behaviours. Organizational
behaviour and psychology.
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,- IHRM: International HRM - is concerned with HRM in multinationals and across
borders. Focus on issues as the transferability of HR practices across borders, management of
expatriates and impact of different country contexts.
- SHRM: Strategic HRM – focuses on issues 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. High-performance
working systems
!!! Three perspectives
- A multi-actor perspective: multiple stakeholders (including employees, management, trade
unions, government, shareholders etc.)
- A broad societal view: with an emphasis on different institutional contexts (level of
branches, industry, regions and countries)
- A multi-level perspective: including the individual employee perspective and the strategic
employee perspective
Anglo-American perspective has more focus on the profit side, while European perspective
has mor multi-actor perspective
Contract types
The employment relationship is the focus of HRM and can be characterized by the
following four contract elements:
1. Legal contract: written down in the contract and describes the rights and
obligations of both the employee and employer.
2. Economic or transactional contract: the employee and the employer determine
how much effort the employee puts into the job reflected in the number of working
days and how much the employee will pay.
3. Psychological contract: all things that are not written down but are expected form
both actors (promotions). Exchange relationships between an organization and an
employee
4. Sociological contract: related to the relationships and networks employees have
within the organization (relationships between employees or in the team).
!!! Added value and moral value
- Hard HRM: focuses on the economics (added value)
- Soft HRM: focus on the human side of organizing (moral value)
!!! Polder model
Polder model = the Netherlands, discuss about everything, communication with all
stakeholders.
Polder Model is a system in which “one speaks with one another until one has reached some
form of agreement and all responsibilities have evaporated. Thereafter we have 'done it
together' and no one can be held accountable for the outcomes, not even if these outcomes are
failing policies.”
Rhineland models (polder model): focus on employee interests in terms of well-being and
societal interests.
!!! The balanced approach
The Balanced Approach in HRM (everyone’s goals are equally included):
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,- Goals of the individual employee
- Organizational goals
- Societal goals
In the strategic balance model, organizational success can only be achieved when financial
performance and societal performance (offer employment security) of an organization are
above average.
Framing HRM
Four different perspectives for studying organizations:
1. Structural frame: rules, roles, goals, policies, technology and environment
2. HR frame: needs, skills and relationships
3. Political frame: issues of power.
4. Symbolic frame: builds on meaning and identity (culture).
!!! Anglo-Saxon or Anglo-American models
Anglo-Saxon or Anglo-American models: focus on creating shareholder value.
3 factors that lead to a better performance:
1. autonomy (the desire to be self-directed). If you want engagement, being self-directed
is better than to be managed (employee management)
2. mastery (the urge to get better at something)
3. purpose
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, Chapter 2. SHRM and Context.
The Clifton Strength domains
- Executing (these people make things done) – arranger, achiever
- Influencing (these people speak up and make sure others are heard) – activator,
communication
- Relationship building (these people build strong relationships that hold a team
together) – relator, individualization
- Strategic thinking (these people absorb and analyze information that informs better
decisions) – learner
A talent is a natural pattern of thoughts, feelings, or behavior that you can apply
productively.
By investing in it, it becomes a strength.
Engagement – people are enthusiastic about their work
The 12 elements of engagement
Firstly, you better focus on the basic needs, then on individual, etc.
Enactment
Enactment = Scanning & analysing the context of the organization
!!! Best practice versus best fit
- The best fit school: argues that HRM is more effective when it is aligned with its internal
and external context.
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