INTRODUCTION
The term, Strategic Human Resource Management, conveys the sense of human
resource management in a strategic context. In order for this to take place there has to
be some connection made with the strategic process through which the aims of an
organization are managed, that is, its strategic management.
If a global company is to function successfully, strategies at different levels need to inter-
relate. Throughout the first half of our century and even into the early eighties, planning
with its inevitable companiopn, strategy- has always been a key word, the core, the
near-ultimate weapon of good and true management. In this lecture we examined the
theoretical debates on the nature and signaficance of the new HRM model.
LEARNING OUTCOMES
SHRM
SHRM deals with `those HR activities used to support the firms competitive strategy.
Miller (1989):
The means of aligning the management of human resources with the strategic content of
the business.
Much of the literature provides evidence that strategic integration is not well developed
and advances reasons why to achieve it would be beneficial to organizations.
Organisation advocated an increase in the input of human resource considerations at
strategic planning, an attitude of treating employees as assets, more participation and
involvement for employees, effective and open communications, less rule-oriented
policies and practices, better training and career development opportunities, reward and
recognition tied to performance.
The analytical framework of the Harvard model offered by Beer consists of six basic
components:
• Situational factors
• Stakeholders interests
• Human resource management policy choices
• HR outcomes
• Long-term consequences
• Feedback through which the outputs flow directly into the organization and to the
stakeholders
The central hypothesis of Guests model is that if an integrated set of HRM practices is
applied in a coherent fashion, with a view to achieving the normative goals of high
commitment, high quality and task flexibility, then superior individual performance will
result. The Guest model has six components:
• An HRM strategy
• A set of HRM policies
• A set of HRM outcomes
• Behavioural outcomes
• A number of performance outcomes
• Financial outcomes.
According to Hendry and Pettigrew (1986), strategic Human resource Management has
four meanings:
• The use of planning
• A coherent approach to the design and management of personnel systems
based on an employment policy and manpower strategy and often underpinned
by a philosophy.
• Matching HRM activities and policies
• Seeing the people of the organization as a strategic resource for the
achievement of competitive advantage.
The whole concept of strategic HRM is predicted on the belief that HR strategies should
be integrated with corporate or business strategies. Strategic integration is necessary to
provide congruence between business and human resource strategy so that the latter
supports the accomplishment of the former and indeed, helps to define it. The aim is to
provide strategic fit and consistency between the policy goals of human resource
management and the business.