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Emphasizes that the achievement of sustained competitive advantage depends on the unique resources and capabilities that a firm brings to competition in its environment.
● Provides a rationale for generating strategic capability and ensuring that the organization has the people it needs to achieve sustained competitive advantage.
● Stresses that business and HR strategy and functional HR strategies should be aligned with one another.
The conceptual basis of strategic HRM
Strategic HRM is the interface between HRM and strategic management. It takes the notion of HRM as a strategic, integrated and coherent approach and develops that in line with the concept of strategic management (Boxall, 1996).
The fundamental characteristics of strategy
● Forward looking.
● The organizational capability of a firm depends on its resource capability.
● Strategic fit – the need when developing HR strategies to achieve congruence between them and the organization’s business strategies within the context of its external and internal environment.
How strategy is formulated
An emergent and flexible process of developing a sense of direction, making the best use of resources and ensuring strategic fit.
The aim of strategic HRM
To generate organizational capability by ensuring that the organization has the skilled, engaged, committed and well-motivated employees it needs to achieve sustained competitive advantage.
● The resource-based view states that it is the range of resources in an organization, including its human resources, that produces its unique character and creates competitive advantage.
● HRM delivers added value and helps to achieve sustainable competitive advantage through the strategic development of the organization’s rare, hard to imitate and hard to substitute human resources.
● For a resource to have the potential for creating sustained competitive advantage it should have four attributes: it must be a) valuable, b) rare, c) imperfectly imitable and d) non-substitutable (Jay Barney, 1991, 1995).
● Resource-based strategic HRM produces what Boxall (1996) refers to as ‘human resource advantage’.
● It provides a practical justification for key aspects of a firm’s HR policies and practices such as human capital management, talent management, knowledge management, and learning and development.
The three HRM ‘perspectives’ of Delery and Doty (1996)
● Universalistic perspective– some HR practices are better than others and all organizations should adopt these best practices.
● Contingency – to be effective, an organization’s HR policies must be consistent with other aspects of the organization.
● Configurational – relating HRM to the ‘configuration’ of the organization in terms of its structures and processes.
Strategic human resource management are "working to achieve the very organization, its objectives and its vision, through the translation of the general strategy of the organization into a detailed strategy and specializes in human resources issues and include the following: * Target to bring back the human resources management achieved to deal with the human element in the organization. * Vision determined by the management of what should be the practice in the field of human resources.........
* Specific strategic objectives required in the areas of configuration and operation, development and care of human resources. * Policies that governed the human resources management in making decisions and trade-offs between alternatives to achieve its strategic goals. * Strategic plans for the management of the resources needed to address the gaps in the available ones to reach performance in the areas of human resources to the levels achieved the goals and targets. * Monitoring and evaluation criteria adopted by the administration to verify the implementation of the strategy and access to specific achievements
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