Shrm Models 4z3v2m

Business Strategy and HRM

Core reader – chapter 1 Armstrong Chapters 1 & 2

Class activity  In

groups, discuss the personnel policies that your organisation has.

 Identify

the similarities and differences between different organisations in your group.

 Why

are all organisations not the same?

What is Strategy?

Business and Corporate Strategy ‘the direction and scope of an organisational over the long term which achieves competitive advantage for the organisation through it configuration of resources within a changing environment to fulfil stakeholders expectation’ Johnson & Scholes 2002: 10

Principal elements Johnson & Scholes 2002 

Establishing the long-term direction of the organisation  Driving the organisation forward to achieve sustained competitive advantage  Determine the scope of the organisations activities  Matching their internal resources and activities to the environment to achieve strategic fit  Recognising that top level decisions have major implications for operational activities  Appreciate that the values and expectations of senior decision makers play a sizable part in the development of strategy.

Three levels of strategy   

Corporate strategy Business or competitive strategy Operational strategy

Whittington’s Typology of Strategy PROCESSES Deliberate

SYSTMATIC

CLASSICAL OUTCOMES

Pluralistic

Profit maximising

EVOLUTIONARY

PROCESUAL Emergent

Source: Marching ton & Wilkinson 2002 p213

Vertical integration 



Unitarist perspectives – no issue to vertical integration - Classical – devolution through hierarchy, objectivity of people seen as non complicated - Evolutionary – responding to customer demand brining view of subjectivity of people, mixed with coercion and power Pluralist perspectives – barriers to vertical integration in practice – tensions, contradictions, - Processual- micro political perspective - Systemic – external determinants, limiting employer

Class activity for next week  

Using Wittington’s Typology, examine your own organisation and decide how it is best described. Identify from your own organisations examples of the principal elements of strategy.

What is HRM

See as a key differentiator for competitive advantage,

Research Into HRM  No

single definition  Large and diverse theoretical background  Formal models – ‘hard’ and ‘soft’

Definitions ‘A strategic, coherent and comprehensive approach to the management and development of the organisations human resources in which every aspect of that process is wholly integrated within the overall management of the organisation. HRM is essentially an ideology.’ Armstrong, M. (1992) human resource management: strategy and action. Kogan page.

. ‘A diverse body of thoughts and practice, loosely unified by a concern to integrate the management of personnel more closely with the core management activity of organisations.’ Goss, D. (1994) principles of human resource management. Routledge.

. ‘Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques’. Storey, J (ed.) 1995) human resource management: A critical text, Routledge.

Theoretical Background F W Taylor – scientific management  Frank and Lilian Girbreth – work study methods (now developed into performance 

management)    

    

Elton mayo – human relations – behaviour orientation humanistic and people centred Kurt Lewin – models of change Neo-human relations and socio-technical theorists – team based development Deaming – total quality Pascale and Athos – investigation of Japanese working practices Tom Peters – pursuit of excellence Charles handy, Chris Argris, Edgar Schein, - nature of work and organisation Henry Mintzberg – research with managers and leaders – planning and strategy Rosabeth Moss Kanter – organisational change

Shift to HRM Beliefs and assumption s

Enhanced Competition

Strategic Response Line Managers seize the initiative

Attitude and behaviour changes:  Commitment  Customer orientation  Quality  Flexible working

Changes in key levers

Implications for industrial relations

Competitive performance

Performance is seen as a function of all the HR components, selecting people who are best able to perform the jobs defined by the structure; appraising their performance to facilitate the equitable distribution of rewards, motivating employees by linking rewards to high levels of performance, and developing employees to enhance their current performance at work as well as to prepare them to perform in positions they may hold in the future

Contradictions and paradoxes      

The nature of HR practitioners authority Nature and focus of HR responsibility HR role of caring and controlling Leaders gaining control by giving it up Ambiguities and tensions in ‘soft’ ‘hard’ HRM models Wage effort contract requires both cooperation and control

Activity for next week 

Review the models of HRM, which one most suits your organisation and why?