lOMoARcPSD|10935195
Summary SHRM - Samenvatting Strategic Human Resource
Management
, lOMoARcPSD|10935195
Summary SHRM: Bosselie
Chapter 1: Introduction: SHRM in the 21th century
Introduction:
It is concluded in both theory and practice that employees matter and that the management
of employees -hrm- is a potential source for achieving organizational goals. SHRM is a
relatively young discipline, but with a growing importance for organizations operating in a
dynamic and continuous changing environment. Organizational change is inevitable for most
contemporary organizations.
The new economy:
The 1990s introduced a new concept mainly focused on the shift from a manufacturing and
production economy into a service sector asset-based economy: the new economy. The old
economy goes back to traditional industries such as the steel, construction and motor
industries. Work was characterized as physical and aimed on mass production. The new
economy is dominated by emerging branches of industry, including the information
technology sector. The rise of the world wide web acted as a facilitator for the rise of the
services industry. Work in the new economy can be characterized as high knowledge
intensity, web-based organizing, contacts through internet.
Organizational change and competitive advantage:
The relevance of optimal coping with change is embedded in the concept of competitive
advantage. Competitive advantage represents and organization’s position in comparison to
its direct competitors. In other words, competitive advantage tells us something about how
well the organization is doing in comparison to others in the same branch of industry or in
the same region.
MHRM, IHRM and SHRM:
This book uses a very broad and pragmatic definition of HRM: HRM involves management
decisions related to policies and practices that together shape the employment relationship
and are aimed at achieving individual, organizational and societal goals. The authors identify
three major sub-fields
MHRM covers the sub-functions of human resource policy and practice, including
recruitment and selection, induction and socialization, and training and development.
Micro HRM (MHRM) covers the sub functions of covers the sub functions of HR policy
and practice including recruitment & HR policy and practice including recruitment &
selection, induction & socialization, and training selection, induction & socialization, and
training & development. & development. MHRM is closely related to the studies in
MHRM is closely related to the studies in Organizational Behaviour and Occupational
Organizational Behaviour and Occupational Psychology often focused on the impact
of Psychology often focused on the impact of single HR practices on employee
, lOMoARcPSD|10935195
attitudes and single HR practices on employee attitudes and behaviours (Wright &
Boswell, 2002)
IHRM is concerned with HRM in MNCs and HRM 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.
International HRM (IHRM) is concerned with HRM is concerned with HRM in multinational
companies (MNCs) and HRM in multinational companies (MNCs) and HRM across
borders (Brewster, 2004). IHRM is across borders (Brewster, 2004). IHRM is
focused on issues such as the transferability of focused on issues such as the
transferability of HR practices across business units in different HR practices across
business units in different countries, the optimal management of countries, the
optimal management of expatriates and the impact of different expatriates and
the impact of different institutional country contexts on human institutional
country contexts on human resource management. 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.
Strategic Human Resource Management (SHRM) focuses on issues of linking HRM to the
focuses on issues of linking HRM to the business strategy, designing high performance
business strategy, designing high performance work systems and adding value through
good work systems and adding value through good people management in an attempt
to gain people management in an attempt to gain sustained competitive advantage
(Delery & sustained competitive advantage (Delery & Doty, 1996). The concept of ‘fit’
plays a central Doty, 1996). The concept of ‘fit’ plays a central role within SHRM. role within
SHRM.
, lOMoARcPSD|10935195
Three perspectives:
Multidimensional strategic HR model in this book includes the following key
characteristics:
-A multi-actor perspective
-A broad societal view with an emphasis on with an emphasis on different
institutional contexts, for example, on the different institutional contexts, for example, on
the level of branches of industry, regions and countries; level of branches of industry, regions
and countries.
-A multi-level perspective including the individual employee perspective and the
strategic organizational perspective.
This model is inspired by the European approaches to HRM. This approach is reflected in
Paauwe’s view on HRM. He argues that:
-Human resources are something more than just ‘resources’
-HRM is not concerned solely with financial performance.
-HRM focuses on the exchange relationship between employee and organization
-the shaping of the employment relationship takes place in an era of continuous
tension between the added value and moral values.
Human resources are people with feelings, emotions, interests, norms and values. Their
behavior inside and outside the organization is not solely determined by economic
rationality. Other factors can affect and influence employee attitudes and behavior including
sympathy towards others, willingness to put extra effort into the job and personal norms
and values for action. HRM focuses on the exchange relationship between the employee and
the organization. The exchange relationship refers to the bargain between the employee, on
the one hand, and the employer on the other. The employment relationship contains
different contract types. First, the relationship concerns legal aspects mostly written down in
a contract. Second, the employment relationship involves economic aspects. Third, the
employment
Tensions:
HRM operates in an area of continuous tension between added value and moral values. The
added value represents the economic side of organizing work and mainly represents the role
of HRM in creating economic value and increasing financial performance of an organization.
The moral values reflect the notion of employees as human beings with feelings, emotions,
opinions, norms and values. There is ‘hard’ HRM, focused only on the economic part. Soft
HRM is focuses on on the human side of organizing.
Traditionally, a distinction is made between the Anglo-Saxon and the Rhineland models. The
Anglo-Saxon approaches mainly focus on creating shareholder value in terms of profits and
market value with little or no attention to other stakeholders including trade unions and
work councils. The Rhineland models, acknowledge multiple stakeholders and their interests