Strategic HRM
STRATEGIC HUMAN RESOURCE
MANAGEMENT
INHOUD
Introduction...............................................................................................................................................................4
Part 1: The instrumental dimension..........................................................................................................................5
The basic elements of the instrumental dimension..............................................................................................5
The history of administrative control towards internal service........................................................................6
The role of social partners in setting up instrumental systems........................................................................7
The core business of the instrumental dimension............................................................................................7
The 5 ‘E’s in setting up the instrumental HRM................................................................................................11
Towards a more transparent, legitimate, forward-looking and result-driven service.......................................12
Transparency is more than objectivity............................................................................................................12
The search for justice in HRM.........................................................................................................................12
Less administration and more strategy...........................................................................................................14
The HRM department: towards more result-oriented approach...................................................................14
The organization of HRM services......................................................................................................................15
HRM and continuous improvement................................................................................................................15
HRM and reengineering..................................................................................................................................15
HRMIS: the way to an ICT-driven expert system in HRM................................................................................18
Outsourcing, insourcing and co-souring.........................................................................................................19
HRM-shared service centers...........................................................................................................................19
Part 2: The people dimension.................................................................................................................................19
Motivation and wellbeing of employees.............................................................................................................20
Human relations: the first steps in socio-technical thinking in HRM..............................................................20
The big challenge to motivate employees......................................................................................................21
The importance of social exchange between leader and employee..............................................................22
From compliance to commitment in HRM......................................................................................................22
The old theories of motivation........................................................................................................................23
Actual motivation: a complex mix of behavioral influence.............................................................................24
The role of leadership in motivating employees.................................................................................................29
The changing role of executives and managers..............................................................................................29
From transactional to innovative leadership..................................................................................................30
Leadership and management..........................................................................................................................33
Towards strategic leadership in organizations................................................................................................34
1
, Strategic HRM
The importance of the social environment.........................................................................................................34
The supportive role of HRM for line manager................................................................................................34
Social- technological service...........................................................................................................................34
Internal communication..................................................................................................................................35
Developing flexible working conditions..........................................................................................................35
Team management as a system for intensive collaboration..........................................................................36
Towards a safe, comfortable and challenging work environment.................................................................36
The people dimension as social added value for the organization.................................................................36
Part 3: The strategic dimension..............................................................................................................................36
The essence of strategic HRM.............................................................................................................................36
From ad hoc personnel management towards a proactive human resource management..........................36
The debate on strategic HRM versus personnel management......................................................................37
HRM: strategic thinking and acting in relation to the environment...............................................................38
Basic models in strategic HRM........................................................................................................................40
Towards a strategic value chain for HRM.......................................................................................................42
Strategic HRM and HRM strategy...................................................................................................................43
Four approaches in strategic HRM......................................................................................................................44
The universalistic approach: a ‘one best way’ of HRM?.................................................................................44
The contingency approach..............................................................................................................................45
The configuration approach............................................................................................................................47
The contextual approach................................................................................................................................48
HRM as a mix of approaches...........................................................................................................................49
Strategic HRM: vertical as well as horizontal integration...................................................................................50
The realization of vertical integration: HRM as a contribution to the organizational strategy......................50
Horizontal integration: from practice to policy...............................................................................................50
Requirements for strategic integration...........................................................................................................51
The need for an accurate follow-up of HRM...................................................................................................53
Strategic HRM from a multiple stakeholder approach...................................................................................53
Sustainable HRM: a new challenge.................................................................................................................54
Towards a measurement culture in HRM.......................................................................................................55
Performance management as HRM enhancement........................................................................................56
Part 4: The organizational dimension.....................................................................................................................57
Organizational structures and cultures as preconditions for an effective HRM.................................................57
The actual challenge for organizations...........................................................................................................57
The significance of organizational cultures for HRM......................................................................................59
Some views on organizational cultures...........................................................................................................60
The role of HRM in an international and cultural context..............................................................................61
2
, Strategic HRM
The necessity of organizational structures.....................................................................................................62
Facilitating organizational designs......................................................................................................................62
The instrumental organization........................................................................................................................62
The quality organization..................................................................................................................................62
The results-oriented organization...................................................................................................................63
The client-centered organization....................................................................................................................65
The people organization..................................................................................................................................65
Team organization as a results-oriented form of cooperation.......................................................................66
The learning organization................................................................................................................................67
The flexible organization.................................................................................................................................68
The innovative organization............................................................................................................................68
The search for facilitating structures and cultures.........................................................................................69
Facilitating designs and organizational development.....................................................................................69
The organization of the HRM function................................................................................................................69
Trends in the strategic positioning of HRM....................................................................................................69
Organizational solutions for developing HRM................................................................................................70
The role of HRM in the organization...............................................................................................................71
HRM roles from a four-dimensional approach...............................................................................................73
3
, Strategic HRM
INTRODUCTION
Four-dimensional model for Human Resource Management
Grasp the complexity of Human Resource Management
Why-question is very important
How do I have to look at the problem to find a solution
HR is a paradox
o Sometimes you need to do this and other times that
o Depends on the situation what solution you need to use
Central message
Moving from operational to strategic and organizational HRM
20 years ago no HR-manager on the board; not important
Now more than 80% of the HR-managers are on the board
Knowledge worker
Service industry Belgium 70-80%
How to cope with knowledge, clients … working with our brain and not with our hands
Very big challenge for HR
Expertise is not experience
o HR-managers don’t need to select on experience
o Talent and competences are very important
Find the right person on the right place on the right time
People constantly move from one job to another job
Shift from routine tasks to creativity HR creates infrastructure and facilities where people can think
out of the box and workers don’t need to follow rules
Working at home work-life balance became more important
2 big challenges of the HR-manager
How do we find talent?
How do we keep the talent in the company?
always think about the why question!
2 big challenges for companies
ICT coping with data analytics
Lifelong learning how to bring in talent and coping with lifelong learning
4 dimensions
Paradox
o Control versus development
o Systems versus people
Every time you have a problem you need to look at all the four aspects and find the best solution for
all four and not for only one
Dimensions
o Instrumental dimensions
Formal regulations
4
, Strategic HRM
When you have a start-up; this is the first thing that you do
Clear rules and regulations
Beginning of HR
Will disappear because of technology
Ex. rules, procedures, work systems, administration, paperwork …
o People dimension
Typical focus on the human side
You have rules and regulations, but you have to communicate it and work with them
Sometimes you make exceptions
Motivation is also a big problem
Ex. motivation, working conditions, leadership, internal communication …
o Strategic dimension
Taking care of the future and looking into the future
Being proactive
We do not recruit people for today but for the future
HR-manager of today need to look at the future
Ex. strategy, goals and objectives, measurement, added value …
o Organizational dimension
Most difficult one
We have to change organizations because they are not very productive
Why? innovation
Difficult because it is about of power
Ex. structure and culture, organizational design, organizational development …
PART 1: THE INSTRUMENTAL DIMENSION
THE BASIC ELEMENTS OF THE INSTRUMENTAL DIMENSION
Instrumental dimension
Most traditional and best-know approach
Efficiency, discipline and hard work at a low price
Focused on controlling people and pursuit of obedience and total respect for the managers
Questions procedures, discipline, regulations and payroll
Example Taylor
o Lot of physical work and not brainwork
o Combining workers and machines
5
, Strategic HRM
o Men should behave like machines
o Only interested in the labor and not in their private lives
THE HISTORY OF ADMINISTRATIVE CONTROL TOWARDS INTERNAL SERVICE
Instrumental dimension
Focused on efficiency questions
Person and organization as a machine
o No thinking for the worker needs to obey and apply structures
o No control over your work boss says faster than you need to go faster
o L’homme machine
Right rules and procedures
One best way
Industrialization
Synergy business people and academics
Hierarchical structure
McDonaldization
o Aims at complete controllability, the specialization of labor, uniformity, mass production and
use of routine as much as possible in the production of services
o Characterized
Efficiency optimization of production in terms of speed
Calculability tendency to calculate everything
Predictability uniformization of products, services and procedures
Control control systems through the use of technology
Toyotism
o Japanese
o Increasing efficiency, decreasing waste, creating value for customer and using scientific
methods to decide for production or service improvement
Instrumental employment
o Procedures and rules, prescriptions and regulations, obligations and rights and other formal
means to regulate the effort of labor in a predictable way
o Management managing employees based on technical insights and administrative control
Taylorism
o Scientific Management
o Natural soldiering: employee by counteracting the natural tendency to avoid working
o Need for well-defined role of labor
o Management direct control and supervision of employee by the employer with emphasis
on discipline and technical control system
Administrative service
Based upon a socio-legal system of rights and obligations for employer and employee
Administrative systems for distinctness and legal certainty
Ex. assembly line
The importance of administrative control
Importance of procedures
Introduction of disciplinary interventions tendency of natural soldiering
Measurement of labor productivity as one of the first HRM measurement systems
Registration systems
6
STRATEGIC HUMAN RESOURCE
MANAGEMENT
INHOUD
Introduction...............................................................................................................................................................4
Part 1: The instrumental dimension..........................................................................................................................5
The basic elements of the instrumental dimension..............................................................................................5
The history of administrative control towards internal service........................................................................6
The role of social partners in setting up instrumental systems........................................................................7
The core business of the instrumental dimension............................................................................................7
The 5 ‘E’s in setting up the instrumental HRM................................................................................................11
Towards a more transparent, legitimate, forward-looking and result-driven service.......................................12
Transparency is more than objectivity............................................................................................................12
The search for justice in HRM.........................................................................................................................12
Less administration and more strategy...........................................................................................................14
The HRM department: towards more result-oriented approach...................................................................14
The organization of HRM services......................................................................................................................15
HRM and continuous improvement................................................................................................................15
HRM and reengineering..................................................................................................................................15
HRMIS: the way to an ICT-driven expert system in HRM................................................................................18
Outsourcing, insourcing and co-souring.........................................................................................................19
HRM-shared service centers...........................................................................................................................19
Part 2: The people dimension.................................................................................................................................19
Motivation and wellbeing of employees.............................................................................................................20
Human relations: the first steps in socio-technical thinking in HRM..............................................................20
The big challenge to motivate employees......................................................................................................21
The importance of social exchange between leader and employee..............................................................22
From compliance to commitment in HRM......................................................................................................22
The old theories of motivation........................................................................................................................23
Actual motivation: a complex mix of behavioral influence.............................................................................24
The role of leadership in motivating employees.................................................................................................29
The changing role of executives and managers..............................................................................................29
From transactional to innovative leadership..................................................................................................30
Leadership and management..........................................................................................................................33
Towards strategic leadership in organizations................................................................................................34
1
, Strategic HRM
The importance of the social environment.........................................................................................................34
The supportive role of HRM for line manager................................................................................................34
Social- technological service...........................................................................................................................34
Internal communication..................................................................................................................................35
Developing flexible working conditions..........................................................................................................35
Team management as a system for intensive collaboration..........................................................................36
Towards a safe, comfortable and challenging work environment.................................................................36
The people dimension as social added value for the organization.................................................................36
Part 3: The strategic dimension..............................................................................................................................36
The essence of strategic HRM.............................................................................................................................36
From ad hoc personnel management towards a proactive human resource management..........................36
The debate on strategic HRM versus personnel management......................................................................37
HRM: strategic thinking and acting in relation to the environment...............................................................38
Basic models in strategic HRM........................................................................................................................40
Towards a strategic value chain for HRM.......................................................................................................42
Strategic HRM and HRM strategy...................................................................................................................43
Four approaches in strategic HRM......................................................................................................................44
The universalistic approach: a ‘one best way’ of HRM?.................................................................................44
The contingency approach..............................................................................................................................45
The configuration approach............................................................................................................................47
The contextual approach................................................................................................................................48
HRM as a mix of approaches...........................................................................................................................49
Strategic HRM: vertical as well as horizontal integration...................................................................................50
The realization of vertical integration: HRM as a contribution to the organizational strategy......................50
Horizontal integration: from practice to policy...............................................................................................50
Requirements for strategic integration...........................................................................................................51
The need for an accurate follow-up of HRM...................................................................................................53
Strategic HRM from a multiple stakeholder approach...................................................................................53
Sustainable HRM: a new challenge.................................................................................................................54
Towards a measurement culture in HRM.......................................................................................................55
Performance management as HRM enhancement........................................................................................56
Part 4: The organizational dimension.....................................................................................................................57
Organizational structures and cultures as preconditions for an effective HRM.................................................57
The actual challenge for organizations...........................................................................................................57
The significance of organizational cultures for HRM......................................................................................59
Some views on organizational cultures...........................................................................................................60
The role of HRM in an international and cultural context..............................................................................61
2
, Strategic HRM
The necessity of organizational structures.....................................................................................................62
Facilitating organizational designs......................................................................................................................62
The instrumental organization........................................................................................................................62
The quality organization..................................................................................................................................62
The results-oriented organization...................................................................................................................63
The client-centered organization....................................................................................................................65
The people organization..................................................................................................................................65
Team organization as a results-oriented form of cooperation.......................................................................66
The learning organization................................................................................................................................67
The flexible organization.................................................................................................................................68
The innovative organization............................................................................................................................68
The search for facilitating structures and cultures.........................................................................................69
Facilitating designs and organizational development.....................................................................................69
The organization of the HRM function................................................................................................................69
Trends in the strategic positioning of HRM....................................................................................................69
Organizational solutions for developing HRM................................................................................................70
The role of HRM in the organization...............................................................................................................71
HRM roles from a four-dimensional approach...............................................................................................73
3
, Strategic HRM
INTRODUCTION
Four-dimensional model for Human Resource Management
Grasp the complexity of Human Resource Management
Why-question is very important
How do I have to look at the problem to find a solution
HR is a paradox
o Sometimes you need to do this and other times that
o Depends on the situation what solution you need to use
Central message
Moving from operational to strategic and organizational HRM
20 years ago no HR-manager on the board; not important
Now more than 80% of the HR-managers are on the board
Knowledge worker
Service industry Belgium 70-80%
How to cope with knowledge, clients … working with our brain and not with our hands
Very big challenge for HR
Expertise is not experience
o HR-managers don’t need to select on experience
o Talent and competences are very important
Find the right person on the right place on the right time
People constantly move from one job to another job
Shift from routine tasks to creativity HR creates infrastructure and facilities where people can think
out of the box and workers don’t need to follow rules
Working at home work-life balance became more important
2 big challenges of the HR-manager
How do we find talent?
How do we keep the talent in the company?
always think about the why question!
2 big challenges for companies
ICT coping with data analytics
Lifelong learning how to bring in talent and coping with lifelong learning
4 dimensions
Paradox
o Control versus development
o Systems versus people
Every time you have a problem you need to look at all the four aspects and find the best solution for
all four and not for only one
Dimensions
o Instrumental dimensions
Formal regulations
4
, Strategic HRM
When you have a start-up; this is the first thing that you do
Clear rules and regulations
Beginning of HR
Will disappear because of technology
Ex. rules, procedures, work systems, administration, paperwork …
o People dimension
Typical focus on the human side
You have rules and regulations, but you have to communicate it and work with them
Sometimes you make exceptions
Motivation is also a big problem
Ex. motivation, working conditions, leadership, internal communication …
o Strategic dimension
Taking care of the future and looking into the future
Being proactive
We do not recruit people for today but for the future
HR-manager of today need to look at the future
Ex. strategy, goals and objectives, measurement, added value …
o Organizational dimension
Most difficult one
We have to change organizations because they are not very productive
Why? innovation
Difficult because it is about of power
Ex. structure and culture, organizational design, organizational development …
PART 1: THE INSTRUMENTAL DIMENSION
THE BASIC ELEMENTS OF THE INSTRUMENTAL DIMENSION
Instrumental dimension
Most traditional and best-know approach
Efficiency, discipline and hard work at a low price
Focused on controlling people and pursuit of obedience and total respect for the managers
Questions procedures, discipline, regulations and payroll
Example Taylor
o Lot of physical work and not brainwork
o Combining workers and machines
5
, Strategic HRM
o Men should behave like machines
o Only interested in the labor and not in their private lives
THE HISTORY OF ADMINISTRATIVE CONTROL TOWARDS INTERNAL SERVICE
Instrumental dimension
Focused on efficiency questions
Person and organization as a machine
o No thinking for the worker needs to obey and apply structures
o No control over your work boss says faster than you need to go faster
o L’homme machine
Right rules and procedures
One best way
Industrialization
Synergy business people and academics
Hierarchical structure
McDonaldization
o Aims at complete controllability, the specialization of labor, uniformity, mass production and
use of routine as much as possible in the production of services
o Characterized
Efficiency optimization of production in terms of speed
Calculability tendency to calculate everything
Predictability uniformization of products, services and procedures
Control control systems through the use of technology
Toyotism
o Japanese
o Increasing efficiency, decreasing waste, creating value for customer and using scientific
methods to decide for production or service improvement
Instrumental employment
o Procedures and rules, prescriptions and regulations, obligations and rights and other formal
means to regulate the effort of labor in a predictable way
o Management managing employees based on technical insights and administrative control
Taylorism
o Scientific Management
o Natural soldiering: employee by counteracting the natural tendency to avoid working
o Need for well-defined role of labor
o Management direct control and supervision of employee by the employer with emphasis
on discipline and technical control system
Administrative service
Based upon a socio-legal system of rights and obligations for employer and employee
Administrative systems for distinctness and legal certainty
Ex. assembly line
The importance of administrative control
Importance of procedures
Introduction of disciplinary interventions tendency of natural soldiering
Measurement of labor productivity as one of the first HRM measurement systems
Registration systems
6
