Strategic human resource management
Week 1:
Chapter 1:
Case study 1: Corona Crisis
- 2major challenges: impact of covid on healthcare and the way the crisis has changed
our way of working
→ incorporate strategic human resource management challanges related to
organisational continuity
Theory of HRM:
-employees are considered an organisations most valuable asset
-employees matter and the management is a potential source for achieving organisational
goals
-Organisational change affect inevitably the employee → success change highly depends on
changing people in their attitude, behaviour and cognition and requires building a resilient
workforce
The new economy:
-1990 shift from manufacturing and production economy into service sector based economy
-dominated by emerging branches of industry including communication and information
technology..
→ these developments lead to the internet (worldwide web) and computer age but also
facilitated the rise of the services industry in the new economy
-assets are less tangible and embedded in reputation
-work can be characterised by high knowledge intesitivity, web based organising and
contacts through internet connections and integration of work design, technology and
services delivered
-old economy still exists in developing countries and cheap labour conditions
-a common practice is organisational change with major implications for employees
The changing world of work in modern orgas:
-the shift to the new economy had a major impact on the nature of jobs in the society
-computer has become essential
-technoligy has created opportunities for alternative work designs
-working at home → better work life balance
-flexible working arrangements
-aging population but also lack of inflow of young employees
,MHRM, SHRM and IHRM:
-HRM involves management decisions related to policies and practies that together shape
the employment relationship and are aimed at achieving individual, organisationla and
societal goals
→ the multidimensonal is inspired by the european approaches of HRM
Pauwee’s :
-argues that
1. Human resources are more than just resources
2. Not concerned solely with financial performance
3. Focuses on the exchange relationship between employee and orga
4. Shaping of employment relationship takes place through continuous tension between
the added value and moral values
Tensions:
→ between added value and moral values
- Added value represents the economic side of organising work and represents the
role of HRM in creating economic value and the increase of financial performance
- The moral value reflects the notion of employees as being human beings with
feelings etc.
Legge:
→ distinction between ‘hard’ HRM (resource as focus) and ‘soft’ HRM (human as focus)
,→ also argue that HRM not the same as HR and it should also include work design, whether
or not to use teams for a job, degree of job rotation,
→ HRM is embedded in industries and societies
Distinction:
1. Anglo-saxon:
-focus on creating shareholder value (profit) with no attention to other stakeholder
2. Rhein städte model:
-acknoledge multiple stakeholder
-taking into account employees interests in terms of weel-beingn and societal interest
The balanced approach:
→ sustained competitive advantage depends on balancing market demands and institutional
pressures
→ good (taking account of the people interests and different stakeholders) and bad (narrow
and unitarist perspective) people management can be linked with it
Strategic balance model
→ organisational succcess can only be achieved when both the financial performance and
the societal performance of an orga are both above average
-exclusive high scores are bad for the long term of an orga
Framing HRM:
→ Bolman and Deal present four different perspectives for studying orgas
1. Structural frames:
-gain understanding of the different parts of an orga
-very technical way
-strong links with the strategic contingencies in the 1960’s
2. HR Frame:
-employment relationships
-’family’
-needs, skills and relationships
3. Political frame:
-issues of power
-heavy emphasis on the different parties (share and stake holders)
4. Symbolic frame:
-meaning and identity
-culture and metaphor
-closely related to te cultural approaches in 1980s
, Chapter 2:
Casestudy 2: easy Jet
- Combination of web-based organising, standardisation of processes and cost
reduction practices contributed to their success
- Overall goal: cost reduction and optimal service quality
- Very standardised
- Challanges: 1. Attracting and retaining pilots 2. Limited career opportunity for crew
members 3. Increased competition
→ it illustrates the alignment of organisations strategy and work design in term of web-based
organisation, starndisation of processes and cost reduction processes
-strategic fit = members being responsable for clothes
-organisational fit= only 2 aircrafts and this way less training
→ notion of fit and alignment are very important for SHRM
Best practice vs best fit:
1. ‘Best fit school’ = HRM is more effective when aligned with its internal and external
context
2. ‘Best practice school’ = universalistic perspective, take the best practice already
given and apply
Pfeffers 7 practices:
→ ‘building profit by putting people first’
Week 1:
Chapter 1:
Case study 1: Corona Crisis
- 2major challenges: impact of covid on healthcare and the way the crisis has changed
our way of working
→ incorporate strategic human resource management challanges related to
organisational continuity
Theory of HRM:
-employees are considered an organisations most valuable asset
-employees matter and the management is a potential source for achieving organisational
goals
-Organisational change affect inevitably the employee → success change highly depends on
changing people in their attitude, behaviour and cognition and requires building a resilient
workforce
The new economy:
-1990 shift from manufacturing and production economy into service sector based economy
-dominated by emerging branches of industry including communication and information
technology..
→ these developments lead to the internet (worldwide web) and computer age but also
facilitated the rise of the services industry in the new economy
-assets are less tangible and embedded in reputation
-work can be characterised by high knowledge intesitivity, web based organising and
contacts through internet connections and integration of work design, technology and
services delivered
-old economy still exists in developing countries and cheap labour conditions
-a common practice is organisational change with major implications for employees
The changing world of work in modern orgas:
-the shift to the new economy had a major impact on the nature of jobs in the society
-computer has become essential
-technoligy has created opportunities for alternative work designs
-working at home → better work life balance
-flexible working arrangements
-aging population but also lack of inflow of young employees
,MHRM, SHRM and IHRM:
-HRM involves management decisions related to policies and practies that together shape
the employment relationship and are aimed at achieving individual, organisationla and
societal goals
→ the multidimensonal is inspired by the european approaches of HRM
Pauwee’s :
-argues that
1. Human resources are more than just resources
2. Not concerned solely with financial performance
3. Focuses on the exchange relationship between employee and orga
4. Shaping of employment relationship takes place through continuous tension between
the added value and moral values
Tensions:
→ between added value and moral values
- Added value represents the economic side of organising work and represents the
role of HRM in creating economic value and the increase of financial performance
- The moral value reflects the notion of employees as being human beings with
feelings etc.
Legge:
→ distinction between ‘hard’ HRM (resource as focus) and ‘soft’ HRM (human as focus)
,→ also argue that HRM not the same as HR and it should also include work design, whether
or not to use teams for a job, degree of job rotation,
→ HRM is embedded in industries and societies
Distinction:
1. Anglo-saxon:
-focus on creating shareholder value (profit) with no attention to other stakeholder
2. Rhein städte model:
-acknoledge multiple stakeholder
-taking into account employees interests in terms of weel-beingn and societal interest
The balanced approach:
→ sustained competitive advantage depends on balancing market demands and institutional
pressures
→ good (taking account of the people interests and different stakeholders) and bad (narrow
and unitarist perspective) people management can be linked with it
Strategic balance model
→ organisational succcess can only be achieved when both the financial performance and
the societal performance of an orga are both above average
-exclusive high scores are bad for the long term of an orga
Framing HRM:
→ Bolman and Deal present four different perspectives for studying orgas
1. Structural frames:
-gain understanding of the different parts of an orga
-very technical way
-strong links with the strategic contingencies in the 1960’s
2. HR Frame:
-employment relationships
-’family’
-needs, skills and relationships
3. Political frame:
-issues of power
-heavy emphasis on the different parties (share and stake holders)
4. Symbolic frame:
-meaning and identity
-culture and metaphor
-closely related to te cultural approaches in 1980s
, Chapter 2:
Casestudy 2: easy Jet
- Combination of web-based organising, standardisation of processes and cost
reduction practices contributed to their success
- Overall goal: cost reduction and optimal service quality
- Very standardised
- Challanges: 1. Attracting and retaining pilots 2. Limited career opportunity for crew
members 3. Increased competition
→ it illustrates the alignment of organisations strategy and work design in term of web-based
organisation, starndisation of processes and cost reduction processes
-strategic fit = members being responsable for clothes
-organisational fit= only 2 aircrafts and this way less training
→ notion of fit and alignment are very important for SHRM
Best practice vs best fit:
1. ‘Best fit school’ = HRM is more effective when aligned with its internal and external
context
2. ‘Best practice school’ = universalistic perspective, take the best practice already
given and apply
Pfeffers 7 practices:
→ ‘building profit by putting people first’
