HRM relates to the management
chapter two
Strategic human resource management John Bratton
If a global company is to function successfully, strategies at different levels need to inter-relate.1 Throughout the first half of our century and even into the early eighties, planning – with its inevitable companion, strategy – has always been a key word, the core, the near-ultimate weapon of ‘good’ and ‘true’ management. Yet, many firms, including
Sony, Xerox, Texas Instruments, …have been remarkably successful… with minimal official, rational, and systematic planning.2
Chapter outline
Introduction p. 38
Strategic management p. 38
Hierarchy of strategy p. 42
Strategic human resource management p. 46
HRM and organizational performance p. 60
Chapter objectives
After studying this chapter, you should be able to:
1. Explain the meaning of strategic management and give an overview of its conceptual framework.
2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management.
3. Explain the two models of strategic HRM, the matching model and the resourcebased model.
4. Comment on the various strategic HRM themes of re-engineering, workplace learning, trade unions and leadership.
5. Explain the methodological difficulties of measuring the link between HRM practices and organizational performance.
38
The Nature of Human Resource Management
Introduction
In the first chapter we examined the theoretical debates on the nature and significance of the new HRM model, in this chapter we explore various strategic issues associated with HRM. Just as the new HRM model is contested, so too is the notion of strategy. So before we look at some of the issues associated with the strategy–HRM concept, this chapter first examines strategic management concepts and framework and explores the links between business strategy and HRM. The second part of the chapter considers the problems associated with the ‘strategy’
Strategic human resource management John Bratton
If a global company is to function successfully, strategies at different levels need to inter-relate.1 Throughout the first half of our century and even into the early eighties, planning – with its inevitable companion, strategy – has always been a key word, the core, the near-ultimate weapon of ‘good’ and ‘true’ management. Yet, many firms, including
Sony, Xerox, Texas Instruments, …have been remarkably successful… with minimal official, rational, and systematic planning.2
Chapter outline
Introduction p. 38
Strategic management p. 38
Hierarchy of strategy p. 42
Strategic human resource management p. 46
HRM and organizational performance p. 60
Chapter objectives
After studying this chapter, you should be able to:
1. Explain the meaning of strategic management and give an overview of its conceptual framework.
2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management.
3. Explain the two models of strategic HRM, the matching model and the resourcebased model.
4. Comment on the various strategic HRM themes of re-engineering, workplace learning, trade unions and leadership.
5. Explain the methodological difficulties of measuring the link between HRM practices and organizational performance.
38
The Nature of Human Resource Management
Introduction
In the first chapter we examined the theoretical debates on the nature and significance of the new HRM model, in this chapter we explore various strategic issues associated with HRM. Just as the new HRM model is contested, so too is the notion of strategy. So before we look at some of the issues associated with the strategy–HRM concept, this chapter first examines strategic management concepts and framework and explores the links between business strategy and HRM. The second part of the chapter considers the problems associated with the ‘strategy’