Assignment

Strategic Human Resource Management Approaches to Organizational

Performance among a Multigenerational Workforce

Literature Review

STUDENT AUTHOR #26

OLM 550: Strategic Human Resource Management

Peirce College

Dr. Cathy M. Littlefield

October 10, 2016

ABSTRACT:

This review examines the impact of strategic human resource approaches to organizational performance among a multigenerational workforce. Over the last three decades, there has been extensive research in the field of strategic human resource management. This study discusses the origin of the field, a number of SHRM concepts and models and practices applied. The important role of integration SHRM in the strategic planning of the organization is emphasized as well as the practices applied to a multigenerational workforce. We will also not the inconsistencies in theory and practice.

Introduction

The purpose of this literature review is to explore the impact of strategic human resource management on organizational performance among a multigenerational workforce. The research contributed to explaining the various models of strategic human resource approaches to organizational effectiveness, recruiting and retaining a multigenerational workforce, identifying the similarities and gaps in the research, and the need for further study.

A Review of the Professional and Academic Literature

Searches for peer-reviewed academic journal articles and dissertations and other research documents began with the EBSCOhost and Google Scholar search engines. Academic textbooks were also utilized. The literature review has five main categories: a) origin and definition of strategic human resource management (SHRM), b) SHRM concepts and models, c) SHRM role in strategic planning, d) SHRM applied to a multigenerational workforce, e) the benefits of SHRM for organizational performance.

The Origin of Strategic Human Resource Management

Many researchers have determined the early 1980s as the birth period of the strategic human resource field. During the 1980s, the focus was on establishing the importance of humans as assets to organizations. Further research shifted in the 1990s and focused on the importance of recognizing that people need to be aligned with the organizational goals. Interest in the field has continued to soar since its birth. Kauffman goes further to identify the year of 1984 as the exact year of the birth of the SHRM field (Rees & Smith, 2014; Wright, 1998; Kauffman, B, 2015).

Researchers have defined SHRM as “the pattern of planned HR deployments and activities intended to enable a firm or an organization to achieve its goals” (Wright, 1998; Noe, Hollenbeck, Gerhart, Wright, 2000). There is no widely accepted definition; however, a broader view of SHRM can link the HR practice and strategy to the overall organizational strategy (Rees & Smith, 2014). The research shows that there is much ambiguity surrounding the definition of SHRM.

Strategic Human Resource Management Concepts and Models

Researchers identify four components of SHRM that contributes to organizational effectiveness: 1) Human Resources (the people), 2) Activities (policies and practices by which the organization’s people are deployed for competitive advantage), 3) A plan to fit the stages of the organization, 4) Achieved goals for effective organizational performance (Wright, P. 1998)

External Fit Model: Earlier research identifies HRM’s fit with the organization’s following stages of development: Stage I – Initiation; Stage II – Functional Growth; Stage III – Controlled Growth; Stage IV – Functional Integration; Stage V – Strategic Integration. More recent research expounded on the fit model and identifies it as the Life-Cycle model, where HRM fits strategy with the organization’s stage of growth or the product-life cycle. The literature examines the HRM external and internal fit models. Researchers argue that structure, systems, and management must fit the organization’s stage of development. External forces such as economic and technology are prompting organizations to see the importance of involving HR to accomplish their goals and objectives. As external forces change, the organization must change to continue to fit the environment and remain competitive. In turn, HR must change. This is usually a top-down approach (Baird & Meshoulan, 1988; Rees & Smith, 2014).

Internal Fit Model: Earlier research examines the HRM strategy internally and argues that structure, systems, and management practices must both fit and support each other. Later research supports this claim and determined the more aligned the fit among structure, task, people, and administrative processes, the more effective the organizational performance. Existing research identifies six strategic components of HRM to fit the organization’s needs. They are: 1. Management awareness, 2. Management of the function, 3. Portfolio of programs, 4. Personnel skills, 5. Information technology, and 6. Awareness of the environment (Baird & Meshoulan, 1988). Wright (1998) “identified a notion of fit (both vertical and horizontal) as a central assumption to empirical and theoretical examinations of SHRM”, pg. 190. He focused on the horizontal fit, which is also called “bundles.” Rees & Smith (2014) built on this notion and argue that if we purposefully design our HR system and build it to allow factors such as selection, training, performance evaluation to be interdependent and support each other, this will significantly improve organizational performance.

The Role of SHRM in Strategic Planning

Earlier researchers demonstrate that in order for an organization to perform at its maximum, the HRM function must be deeply involved in the organization’s strategic planning process. There are four ways in which HRM should be involved: 1) contribute to the strategic plan in terms of people-related concerns as well as alternative strategies, 2) have in depth knowledge of the organization’s strategic goals, 3) know the sort of employee attitudes, skill sets, and behaviors would best support the organization’s strategic plan, 4) create training programs to develop the desired attitudes, skills, and behaviors (Noe, Hollenbeck, Gerhart, & Wright, 2000). A few years later, the research supports this claim and indicates the role of HR has advanced to a more strategic role, which necessitates HR practitioners to collaborate closely with senior management to link HR objectives to the overall organization’s objectives (Hawthorne, 2004). Such alignment is an important process and outcome of SHRM. More recent research further supports this claim by arguing for HR to be involved in identifying the organization’s mission, vision, and objectives as an important element to determine the organization’s goals and examine how to achieve them (Alagaraja, 2013; Rees & Smith, 2014).

SHRM Practices applied to a Multigenerational Workforce

Recruitment and Selection: The literature examines a SHRM approach to recruitment and selection (R&S). The traditional approach centered on whether if the person fit the job, presuming the person was the best candidate to perform the job. A strategic approach would determine how to best align R&S to support a particular organizational strategy or goal, for example, to address an external force to remain competitive. When considering recruitment and selection of a multigenerational workforce, research shows that the millennial generation desires more than a pay check as a motivator. They desire to balance their work and personal life. This requires the SHRM function within organizations to think creatively when developing benefits packages to remain competitive and to gain the most talented candidates. The Millennial generation is interested in organizations with good reputations, who practice social responsibility, and promotes a meaningful work environment (Delcampo, Haggerty, Haney, & Knippel, 2011; Rees & Smith, 2014).

Training, Development, Compensation, and Rewards: Examiners of the SHRM field determined that HR practitioners must approach compensation, benefits and incentives to appeal to the needs of each generation. As people plan to retire, they will desire increase time off instead of increased compensation. The younger generations may desire increased flexibility in their job assignments with opportunities to develop their skill sets to apply to new responsibilities in the future. Studies show that Generation X and Generation Y employees expect to have flexibility and balance between work and their personal lives. As part of succession planning, HR professionals my seek the generational perspectives by implementing a flexible work environment in order to recruit and retain Generation X and Generation Y workers (Crumpacker & Crumpacker, 2007). As millennials continue in their desire for personal education and develop their skill sets, the prospect of learning within their organizations is very much appealing and imperative to them. Studies show that a desire to learn in one’s organization demonstrates commitment with an intention to remain in the organization, thus cutting down on hiring costs (Jenkins, 2008; Delcampo, Haggery, Haney, Knippel, 2011). Further research of work-life balance shows that it is an important element of total reward. Employers recognize this fact and work to ensure their multigenerational workforce is able to balance their time at work as well as their family obligations, and community work. HRM programs may include flexible work, special leave, dependent care, telecommuting, compressed work week schedules, etc. (Rees & Smith, 2014).

Job Analysis and Design: Job analysis is the process for obtaining detailed job descriptions. Job design includes decision making about what tasks are included in a particular job. The design of positions should have an imperative link to the organizational strategy because the strategy drives whether the tasks will be new or performed in a different manner (Noe, Hollenbeck, Gerhart, & Wright, 2000). The benefits of effective job analysis are: 1) jobs can undergo design and redesign to omit unnecessary tasks or to combine tasks to meet departmental priorities, 2) job analysis links the recruitment and hiring process to the job description, 3) job analysis is needed to ensure equitable compensation, 4) assist with the development performance standards to serve as useful tools for performance management, 5) helps identify health and safety hazards or work conditions that require special training (Hawthorne, 2004). Earlier researchers identify three critical factors in job design to enable workers to 1) visualize4 their work as meaningful, 2) use caution so they sense accountability for the results, 3) to obtain feedback for improvement (Bolman & Deal, 2013).

SHRM for Organizational Performance and Effectiveness

SHRM strategies that include job analysis and work redesign add to the goal of enhancing organizational performance and its workforce. Analyzing work for the purpose of redesigning creates a positive work environment. The benefits included are: 1) workers are able to foster a sense of collaboration to enable them to learn new processes and build their skill sets, 2) employees are able to recognize key competencies, 3) employees are able to focus on the overall picture, 4) employees are able to reexamine traditional jobs and establish new approaches. A common idea across the literature over the last three decades identifies the motivation of researchers for classifying the importance of SHRM because it assists organizations with identifying and implementing methods for using their human resources to increase organizational effectiveness and sustain a competitive advantage. Job redesign promotes job enrichment and promotes satisfaction among employees. Investing in employee management and job satisfaction is one of the most cost-saving investments an organization can make to improve organizational effectiveness (Hawthorne, 2004, Bolman & Deal, 2013, Rees & Smith, 2015, Kauffman, 2015).

Conclusion

In conclusion, the literature shows that when organizations involve strategic human resources management in the organization’s strategic plan and implement its practices for recruitment and selection, job design, training, and compensation among a multigenerational workforce, this has the potential to improve organizational performance. Research does show inconsistency in the concepts, which makes it difficult to assess the known and unknown in the SHRM field. There are a number of research points that need to be addressed in the 21st Century research that includes the level of analysis, definition, and measuring effectiveness. There is a gap between theory and practice. Research over the last few decades show that there is a common denominator, which emphasizes the theory that the strategic function of HRM serves organizations well to achieve a higher level of organizational performance (Wright, 1998; Rees & Smith, 2014; Kauffman, 2015).

References