Exam
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StrategicroleofPMDfuction.pptxLearning outcomes
At the end of this workshop you should be better able to:
Understand how HRM has evolved as a discipline
Know and understand the concepts of horizontal and vertical integration
Recognise when a perspective on HRM is strategic or operational.
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Think about …
What is strategic HRM? How does it contribute to organisational strategy and performance? See the evolution of HRM on the next slide.
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Evolution of HRM
High
Low
1890 - 1913
1914 - 1939
1945 - 1979
1980 – 1990s
Organisational scope
“Welfare
Officer”
“Labour Manager”
Personnel
Management
Human Resource
Management
Human Capital
HR Business Partner
People
Timeline / Period
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Emergence and evolution of the term ‘HRM’ (Kaufman article)
”The main contribution of this article, however, comes from the insights it provides for understanding the past and present of SHRM and useful research directions going forward” (Kaufman, 2015).
Pre-1970s:
Personnel and administration, payroll, ‘time and motion’, health and safety, ‘training’.
1980s:
Recognition of humans as assets, resources to be managed.
1990s:
Recognition of need to align people management with organisational objectives; potential to ‘add value’, ‘be the difference’, give the competitive edge; humans different from other resources.
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Kaufman, B.E. (2015) ‘Evolution of HRM as seen …’ Human Resource Management. May – June 2015. 54(3): 389 – 407.
Key strategic questions to ask
What does your organisation want to achieve in the next 2 - 5 years?
To achieve this, what do we need from our people?
High commitment, high performance or high involvement (three approaches to achieve these)
How do we as HRM people want to achieve this?
Three different types of strategy
What must we remember in all of this?
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What is Strategic HRM?
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A Framework for Strategic Human Resource Management
“The critical managerial task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization” (p. 37).
“Strategy in their treatment is thus an integrated plan of action to accomplish the mission of the enterprise (p. 34).”
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Fonbrun, C.J., Devanna, M.A. & Tichy, N.M. (1984) Strategic Human Resource Management. Wiley: London.
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(1) What is Strategic HRM? One view
The concept of Strategic HRM: Chris Hendry and Andrew Pettigrew, 1986
Strategic HRM 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 to some explicit business strategy.
Seeing the people of the organisation as a ‘strategic resource’ for the achievement of ‘competitive advantage’.
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Hendry, C. and Pettigrew, A. (1986) The practice of Strategic Human Resource Management. Personnel Review. 15(5): 3-8.
Chris Hendry, (Centre for Corporate Strategy and Change, School of Industrial and Business Studies, University of Warwick),
Andrew Pettigrew, (Centre for Corporate Strategy and Change, School of Industrial and Business Studies, University of Warwick)
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(2) What is Strategic HRM? Another view
The concept of Strategic HRM: John Purcell, 2001
Strategic HRM is emergent rather than a deliberate process:
“Big strategies in HRM are most unlikely to come, ex cathedra, from the board as a fully formed, written strategy or planning paper. Strategy is much more intuitive and often only ‘visible’ after the event, seen as ‘emerging patterns of action’. This is especially the case when most of the strategy, as in HRM, is to do with internal implementation and performance strategies, not exclusively to do with external market ploys.”
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Purcell, J. (2001). The Meaning of Strategy in Human Resource Management. In Storey, J. (Ed.),
Human Resource Management: A Critical Text. Thomson Learning: London. (pp. 59 - 77).
John Purcell (2001)
John Purcell, (University of Bath School of Management)
Ex cathedra- with the full authority of office
Emergent strategy: unlikely to come from the senior team as a written strategy or plan.
Evolves from patterns of action.
Strategy individual to organisation- internal implementation, performance strategy
Less to do with external factors and more related to internal factors
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(3) What is Strategic HRM? And another …
The concept of Strategic HRM: Michael Armstrong, 2006
Strategic HRM as an integrated process:
“Strategic HRM is essentially an integrated process that aims to achieve ‘strategic fit’. A strategic HRM approach produces HR strategies that are integrated vertically with the business strategy and are ideally an integral part of that strategy, contributing to the business planning process as it happens. Strategic HRM is also about horizontal integration, which aims to ensure that the different elements of the HR strategy fit together and are mutually supportive.”
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Armstrong, M. (2006) A handbook of Human Resource Practice. Kogan Page: London.
Michael Armstrong (Honours graduate in economics from the London School of Economics, Managing Partner of e-reward.uk, Chief Examiner Employee Reward for the CIPD from 1997-2001)
Horizontal and vertical integration- HR strategy fits and supports the organisation
Must integrate strategy into the organisation- make it fit
This is in opposition to the emergency HRM idea
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(4) And one more …
Martin McCracken, 2016:
“The human resources business partner (HRBP) role is advocated as a way for human resource (HR) professionals and the HR profession to become more strategic and less transactional, necessitating the development of different competencies.”
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McCracken, M.G. et al. (2016) Human resource business partner lifecycle model: exploring how the relationship between HRBPs and their line manager partners evolves over time. Human Resource Management Journal. 27(1): 58 - 74.
What would ‘transactional HRM involve?
They work closely with their business area and help it to implement the business strategy from a people perspective. For example, if the strategy is to drive sales, the HRBP will help the business to create a culture and people approach which will support this.
https://www.cipd.co.uk/careers/career-options/hr-business-partner-roles
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Vertical and Horizontal Integration
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Types of Integration
Vertical Integration:
The extent to which Human resource strategy is integrated with the wider business strategy (‘external fit’) Example: Growth and recruitment.
Horizontal Integration:
The extent to which aspects of Human resource management are integrated with each other. Example: Appraisal and Learning and Development.
Key issue:
Increased specialisation has resulted in fragmentation and the creation of specialist posts within HR.
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Farnham, D. (2010) Human Resource Management in context. CIPD: London. (p. 149)
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Vertical and horizontal integration
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Rees, G. and Smith, P. (2018) Strategic Human Resource Management. SAGE: London. (p. 85).
External environmental forces
PESTEL, Porter’s 5 Forces
Firm
Mission and Strategy
Structure
HRM
Selection
The HRM Cycle
Performance
Appraisal
Rewards
Training
Fombrun, C.M., Tichy, N.M. and Devanna, M.A. (1984) Strategic Human Resource Management. John Wiley: New York.
What is Strategic HRM/PMD?
Approaches to Strategic HRM:
High-performance management approach: The development of a number of interrelated processes which together make an impact on the performance of the firm through its people in such areas as productivity, quality, levels of customer service, growth, profits and shareholder value.
High-commitment management model: Emphasises the importance of enhancing mutual commitment. A form of management which is aimed at eliciting commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organisation are based on high levels of trust.
High-involvement management: Involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement.
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What’s the difference?
What might HRM put in place?
High-performance management approach: Example: relating engagement initiatives linked to performance. Performance- based pay.
High-commitment manegemtn model: Employees choose to behave in a way favourable to the organisation. Given sutonomy and certain freedoms which give trust. For example: flexible working initiatives.
High-involvement management: employees as partners. Respect. For example: employee voice schemes.
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Organisation: SHRM
Working in your groups, can you give an example of an organisation which practices SHRM?
Are they emergent or integrated?
Do they use horizontal and vertical integration?
What kind of approach do they take?
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