presentation shrm
Post on 28-Nov-2014
117 Views
Preview:
TRANSCRIPT
www.company.com
Strategic human resource management
Mandy Waber & Ana Grethe
Company LOGO
www.company.com
Agenda• Problem statement• Modes of theorizing in SHRM• Strategic human capital management in SME’s• HR and the resource based view of the firm• Case• Conclusion
Company LOGO
www.company.com
Problem statement
Company LOGO
How can HRM be a contribution to the strategic management of
operations?
www.company.com
Modes of theorizing in strategic human resource management
Tests of universalistic, contingency, and configurational performance predictions
Which are the 3 modes of theorizing in SHRM?• Universalistic perspective• Contingency perspective• Configurational perspective
Company LOGO
www.company.com
Universalistic perspective
Company LOGO
“ Best practices” approach, some HR practices are always better than others
It requires 2 steps:-Important strategic HR practices must be identified-Arguments that relate individual practices to organizational performance
www.company.com
• Internal career opportunities• Formal training systems• Appraisal measures• Profit sharing• Employment security• Voice mechanisms• Job definition
What are the 7 strategic HR practices?
www.company.com
Contingency perspective
• Organisations HR policies must be consistent with other aspects of the organization (vertical fit).
• The HR practices must interact with the firm’s strategy to result in organizational performance.
• The relationship between the use of a specific employment practice and organizational performance is contingent on organization’s strategy.
www.company.com
What are the 3 ideal strategic profiles?
• Prospectors: highly innovative, experimentation and not efficient.
• Analyzers: Moderately innovative, not initiative of change, but followers.
• Defenders: Rarely innovative, narrow and stable product domain, efficient production and little R&D.
www.company.com
Configurational perspective
• Based on holistic principle of inquiry.• Assumption of equifinality.• Equifinality: multiple unique configurations of
relevant factors that can result in maximum performance.
• How is a pattern of multiple independent variables related to a dependent variable? The combination of HR practices has a bigger effect than the sum of individual practices
www.company.com
Configurational perspective
• In order to be effective, companies need both horizontal and vertical fit.
• Vertical fit: Congruence of the HR system with other organizational characterstics (strategy)
• Horizontal fit: Internal consistency of the organization’s HR policies and practices.
www.company.com
Characteristics of employment systems
Market-type system Internal system
Can a company also use a hybrid structure, as combination of the systems just mentioned?
www.company.com
Characteristics of employment systems
Market-type system Internal system
-Hiring outside organization-No formal training-Little socialization-Results-oriented measures-Use of profit sharing-Little employment security-Little voice for employees-No clear job definitions
-Hiring inside organization-Formal training provided- Great amount of socialization-Behavior-oriented results- Little use of profit sharing- much employment security-Employees participate in decision making-Jobs very tightly defined
www.company.com
Market-type system vs. internal system, which one is better?
www.company.com
Advantages market-type system
Advantages internal system
-You can look for talented people outside your organization.-People from outside organization can bring new ideas-Results-oriented measures leads to good results-The use of profit sharing reduces the agency problem
-Employees feel secure-Employees feel that they have a say in the company-Employees know that they can get promotions, which leads to more motivation-Behavior-oriented results leaves room for failure, and therefore also innovation
www.company.com
Human resources and the resource based view of the firm
The resource based view
is another way for HRM
to justify its position in
an organization.
www.company.com
Value proposition of HRM
www.company.com
• HRM is definitely valuable. • Human capital advantage refers to talented and motivated
employees, which are valuable, and human resource practices support that.
• People are becoming more and more important in organizations, especially because of the knowledge and expertise people have.
www.company.com
• Off course every company has human resources, so in that way HRM is not heterogenously divided.
• However, the different HR practices companies use are heterogeneously divided.
www.company.com
• Human resource management on its own is not immobile.
• However a good system of human resource practices, which is well aligned with the human capital pool and the whole organization, is often difficult to copy, which may be based on 3 things:
- The role of history- Causal ambiguity- Social complexity
www.company.com
Can good human resource practices create a sustainable competitive advantage?
www.company.com
Areas in HRM that can create a sustainable competitive advantage
www.company.com
Empirical SHRM research
• HR practices can have a profound impact on accounting and market-based measures of performance (Huselid, 1995).
• HR practices are related to labor productivity (Koch and McGrath (1996).
• The value and uniqueness of skills are associated with different types of HR systems within the same organization (Lepak and Snell 1999)
• Most emperical research applying the RBV has failed to test its fundamental hypotheses, it only assesses 2 variables: HR practices and performance
www.company.com
The convergence of RBV and SHRM
Potential bridges between HR and strategy:
• Core competencies• Dynamic capabilities• Knowledge-based views of the firm Potential
bridges between HR and strategy:
www.company.com
Core competencies as a bridge between HR and strategy
• Core competences and skills are inseperable of the employees who comprise the competences.
• The behavioral aspects of employees and the supportive nature of people management systems to development/maintenance of the competency.
www.company.com
Dynamic capabilities as a bridge between HR and strategy
• Dynamic capabilities are resources that can match and create market change.
• Dynamic capabilities require that organizations establish processes that enable them to chnage their routines, services, products and even markets.
• Human resource practice can create flexibility and adaptability to the market.
www.company.com
Knowledge-based theories as a bridge between HR and strategy
• The generation, transferring, integrating and protecting of knowledge is becoming more important in every firm.
• Many firms start recognizing that the key to successful knowledge management requires attending to the social and cultural systems of the organization.
www.company.com
www.company.com
• Movie: Is HRM strategic?
• http://www.youtube.com/watch?v=AzNL0gEZcLU
top related