Strategic HRM: key points

1. Strategic HRM: key points • What is strategy? • Why is it important? • Need to appreciate different approaches to strategy • Conventional ‘classical’ strategy dominated by market(ing)-based and resource-based approaches • However, concern over realism of these approaches – work of Whittington (2002) suggests other approaches to strategy Unlocking Human Resource Management Chapter 14

2. Strategic HRM: key points • Classical approaches assume • ‘top-down’ decision-making • senior managers have relevant information on which to base decision-making • senior managers act in a rational manner • implementation of strategy is fairly straightforward • Many reasons for believing strategic decision-making in practice is different Unlocking Human Resource Management Chapter 14

3. Strategic HRM: key points • In terms of classical approaches strategy operates at a number of levels • Helpful in terms of links between business and functional (HR, marketing) strategies • Business-driven HR suggests need to fit or adapt HR strategy to that of business • According to this view HR strategy needs to integrate (vertically) with business strategy and (horizontally) with its own and other functional strategies Unlocking Human Resource Management Chapter 14

4. Strategic HRM: key points • Much of strategic HRM literature concerned with ‘matching’ or with ‘best practice’ approaches • Realism of these has been questioned • Focus has also been on strategy formation rather than implementation • CIPD-sponsored work on ‘black box’ has led to refocus on role of line managers in implementation of HR initiatives Unlocking Human Resource Management Chapter 14

5. Strategic HRM: key points • Importance of Whittington work for our understanding of strategy • Classical strategy one of a number of approaches to thinking about strategy • All have implications as to how HR may influence strategy-formation process • Strategy formation part of a political process of decision-making • Leads to a view that HR needs a skills set that enables it to influence, negotiate, develop and sustain alliances Unlocking Human Resource Management Chapter 14

6. Learning summary By the end of this chapter you should: • Understand what is meant by strategy and strategic HRM • Understand the key differences between market and resource-based approaches to strategy • Appreciate the diversity of approaches to strategy Unlocking Human Resource Management Chapter 14

7. Learning summary • Appreciate the key role played by line managers in strategy implementation • Appreciate the contribution of ‘matching models’ and what the logic of business driven HRM means for the HR contribution • Appreciate how strategic HRM is meant to contribute to business performance Unlocking Human Resource Management Chapter 14