Chapter 4 - Answers to review questions in textbook, page 94
1. Write a short paragraph on the benefits that can be derived from the
strategic human resource management process.
Answer: (Introduction to chapter 4)
The strategic human resource management process is often an after thought in
organisations but there are numerous benefits from this process. These include
that it can contribute to the goal accomplishment and survival of the company, it
can support and successfully implement given corporate and business strategies
of the company, it can create and maintain a competitive advantage for the
company, it can improve the responsiveness and innovation potential of the
company. The strategic human resource management process can also increase
the number of feasible strategic options available to the company, participate in
strategic planning and influencing the strategic direction of the company as an
equally entitled member of top management and improve cooperation between
the human resource management department and line managers.
2. One of the early definitions to be found in the strategic human resource
management literature is that of Tsui. Discuss briefly.
Answer: (Sec 4.1)
Tsui describes strategic human resource management as follows:
The concept of strategic human resource management tends to focus on
organisation-wide human resource concerns and addresses issues that are
related to the firm's business, both short-term and long-term. It is particularly
useful for designing specific human resource programmes, policies, systems or
management practices at the organisational or business level. It also suggests
that the line executive is the most important constituent for the human resource
function.
This definition clearly supports the 'proactive' approach to be found within the
literature. With this approach HR professionals participate in the strategic
planning process and can, as a result of limitations in the company's HR
situation, potentially influence the formulation of the company strategy. Other
authors also describe this concept such as Dyer and Holder, they describe it as
follows: “Strategic human resource management consists of three major tasks.
The first task, which arises during the formulation of business strategies, is to
assure that the HR issues and implications of various alternatives or proposals
are fully considered (their desirability and feasibility). The next task involves
establishing HR goals and action plans - that is HR strategies (at all levels) - to
support the business strategies. And the final task requires working with line
managers as principal clients to ensure that established action plans are indeed
implemented.”
From the above definitions it is clear that two major issues or aspects need to be
in place within the organisation before the SHRM process can function
1
, successfully. The first of these is the presence of a strategic management
process; the second, the restructuring of the HRM function itself.
3. At a strategic level, HR professionals fulfil their strategic partner role and
are involved in corporate and human resource planning. Identify the four
features of this role, according to Casio.
Answer: (Sec 4.1)
For the HR function to operate at the strategic level, it needs to reorganise the
existing HR administrative function into three distinct levels, namely strategic,
operational and functional.
At the strategic level, HR professionals fulfil their strategic partner role and are
involved in corporate and human resource planning. Casio identifies the following
four features of this role:
● Senior human resource professionals meet regularly with their
counterparts in line management to formulate and to review broad human
resource strategies (those designed to promote innovation, quality enhancement,
or cost control).
● Senior human resource professionals participate fully in all top-level
business strategy sessions. This permits early evaluation of proposals in terms of
their feasibility and desirability from a human resources perspective, as well as
an early warning of upcoming human resource management issues.
● Human resource professionals at all levels work closely with line
managers on an ongoing basis to assure that all components of the business
strategy are implemented adequately.
● The human resource management function itself is managed strategically.
It has its own departmental strategy that identifies priorities, directs the allocation
of resources, and guides the work of various specialists (e.g. compensation,
labour relations).
The other two levels are operational and functional, although a discussion on
these two levels are not required to answer this question it has been included
here for clarity purposes.
At the operational level, the HR team develops action plans to meet present
labour needs, and at the functional level it will carry out the many activities which
ensure that employees are at the right place at the right time and cost. Take, for
example, the performance appraisal function. At the strategic level a decision will
be made regarding what will be valued in the long term. At the operational level,
appraisal systems that relate current conditions and future potential will be set
up. At the functional level, the actual appraisal system will be implemented
annually and day-to-day control systems will be put in place.
Once the new HR structure has been finalised, it is important that proper
communication links are established with line management. This relationship can
2
, be enhanced by having regular meetings with line managers, circulating relevant
HR reports to them and establishing a computerised HR system that allows
access by all stakeholders.
4. Give four reasons (according to Rothwell & Kazanas) why the relationship
between strategic management and strategic human resource management
is non-existent.
Answer: (Sec 4.2)
If the functioning of an organisation is to be successful, the relationship that must
exist between strategic management and SHRM cannot be ignored. However, in
many cases, this relationship between the two processes within a company is
non-existent for a number of reasons. Rothwell & Kazanas have named a few:
top managers do not perceive a need for a relationship;
HR practitioners are perceived as 'personnel experts' not 'experts in
business';
HR information is sometimes incompatible with other information used in
strategy formulation; and
conflicts may exist between short-term and long-term HR needs.
5. What are the four essential components of HR strategies, according to
Dyer & Holder?
Answer:
To implement the SHRM process, one needs HR strategies. Dyer & Holder make
the following remarks regarding HR strategies:
While a wide variety of issues are addressed in such strategies, at a minimum
they include four components:
● mission statement or a set of prioritised goals for the function and the
major subfunctions (e.g. training, compensation);
● a proposed organisation structure;
● a programme portfolio to outline priorities and policies; and
● a budget to address the issue of resource allocation.
6. Explain Tichy's human resource management cube model, which indicates
the important relationship between strategic management and strategic
human resource management. In your discussion focus on:
1 the basic problems that confront organisations
2 the design of three systems to solve these problems
3 aids required to manage these systems, and
3
1. Write a short paragraph on the benefits that can be derived from the
strategic human resource management process.
Answer: (Introduction to chapter 4)
The strategic human resource management process is often an after thought in
organisations but there are numerous benefits from this process. These include
that it can contribute to the goal accomplishment and survival of the company, it
can support and successfully implement given corporate and business strategies
of the company, it can create and maintain a competitive advantage for the
company, it can improve the responsiveness and innovation potential of the
company. The strategic human resource management process can also increase
the number of feasible strategic options available to the company, participate in
strategic planning and influencing the strategic direction of the company as an
equally entitled member of top management and improve cooperation between
the human resource management department and line managers.
2. One of the early definitions to be found in the strategic human resource
management literature is that of Tsui. Discuss briefly.
Answer: (Sec 4.1)
Tsui describes strategic human resource management as follows:
The concept of strategic human resource management tends to focus on
organisation-wide human resource concerns and addresses issues that are
related to the firm's business, both short-term and long-term. It is particularly
useful for designing specific human resource programmes, policies, systems or
management practices at the organisational or business level. It also suggests
that the line executive is the most important constituent for the human resource
function.
This definition clearly supports the 'proactive' approach to be found within the
literature. With this approach HR professionals participate in the strategic
planning process and can, as a result of limitations in the company's HR
situation, potentially influence the formulation of the company strategy. Other
authors also describe this concept such as Dyer and Holder, they describe it as
follows: “Strategic human resource management consists of three major tasks.
The first task, which arises during the formulation of business strategies, is to
assure that the HR issues and implications of various alternatives or proposals
are fully considered (their desirability and feasibility). The next task involves
establishing HR goals and action plans - that is HR strategies (at all levels) - to
support the business strategies. And the final task requires working with line
managers as principal clients to ensure that established action plans are indeed
implemented.”
From the above definitions it is clear that two major issues or aspects need to be
in place within the organisation before the SHRM process can function
1
, successfully. The first of these is the presence of a strategic management
process; the second, the restructuring of the HRM function itself.
3. At a strategic level, HR professionals fulfil their strategic partner role and
are involved in corporate and human resource planning. Identify the four
features of this role, according to Casio.
Answer: (Sec 4.1)
For the HR function to operate at the strategic level, it needs to reorganise the
existing HR administrative function into three distinct levels, namely strategic,
operational and functional.
At the strategic level, HR professionals fulfil their strategic partner role and are
involved in corporate and human resource planning. Casio identifies the following
four features of this role:
● Senior human resource professionals meet regularly with their
counterparts in line management to formulate and to review broad human
resource strategies (those designed to promote innovation, quality enhancement,
or cost control).
● Senior human resource professionals participate fully in all top-level
business strategy sessions. This permits early evaluation of proposals in terms of
their feasibility and desirability from a human resources perspective, as well as
an early warning of upcoming human resource management issues.
● Human resource professionals at all levels work closely with line
managers on an ongoing basis to assure that all components of the business
strategy are implemented adequately.
● The human resource management function itself is managed strategically.
It has its own departmental strategy that identifies priorities, directs the allocation
of resources, and guides the work of various specialists (e.g. compensation,
labour relations).
The other two levels are operational and functional, although a discussion on
these two levels are not required to answer this question it has been included
here for clarity purposes.
At the operational level, the HR team develops action plans to meet present
labour needs, and at the functional level it will carry out the many activities which
ensure that employees are at the right place at the right time and cost. Take, for
example, the performance appraisal function. At the strategic level a decision will
be made regarding what will be valued in the long term. At the operational level,
appraisal systems that relate current conditions and future potential will be set
up. At the functional level, the actual appraisal system will be implemented
annually and day-to-day control systems will be put in place.
Once the new HR structure has been finalised, it is important that proper
communication links are established with line management. This relationship can
2
, be enhanced by having regular meetings with line managers, circulating relevant
HR reports to them and establishing a computerised HR system that allows
access by all stakeholders.
4. Give four reasons (according to Rothwell & Kazanas) why the relationship
between strategic management and strategic human resource management
is non-existent.
Answer: (Sec 4.2)
If the functioning of an organisation is to be successful, the relationship that must
exist between strategic management and SHRM cannot be ignored. However, in
many cases, this relationship between the two processes within a company is
non-existent for a number of reasons. Rothwell & Kazanas have named a few:
top managers do not perceive a need for a relationship;
HR practitioners are perceived as 'personnel experts' not 'experts in
business';
HR information is sometimes incompatible with other information used in
strategy formulation; and
conflicts may exist between short-term and long-term HR needs.
5. What are the four essential components of HR strategies, according to
Dyer & Holder?
Answer:
To implement the SHRM process, one needs HR strategies. Dyer & Holder make
the following remarks regarding HR strategies:
While a wide variety of issues are addressed in such strategies, at a minimum
they include four components:
● mission statement or a set of prioritised goals for the function and the
major subfunctions (e.g. training, compensation);
● a proposed organisation structure;
● a programme portfolio to outline priorities and policies; and
● a budget to address the issue of resource allocation.
6. Explain Tichy's human resource management cube model, which indicates
the important relationship between strategic management and strategic
human resource management. In your discussion focus on:
1 the basic problems that confront organisations
2 the design of three systems to solve these problems
3 aids required to manage these systems, and
3
