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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
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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
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
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
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
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
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
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