Strategic Human Resource Management

Strategic Human Resource Management

Essay Questions (Students are to choose one of the following questions):

1. Strategic human resource management (SHRM) emphasises the need for human resource (HR) plans and strategies to be formulated within the context of overall organisational strategies and objectives, and to be responsive to the changing nature of an organisation’s external environment. What is the relationship between Strategic human resource management (SHRM) business strategies and HRM functions? Identify a company or organisation that does this well or poorly and use it to illustrate your arguments.

2. The selection process needs to reflect an organisation’s current vision, values and critical success factors. What factors need to be considered and strategies used in reaching effective selection decisions? Identify a company or organisation that does this well or poorly and use it to illustrate your arguments.

3. The purpose of human resource planning is to ensure that organisational objectives are met through the effective utilisation of an organisation’s human resources. It is essentially an ongoing process, focused on the long term, but cognisant of changes in both the internal and external environments in which these organisations operate. Define human resource planning (HRP) and explain its crucial relationship with strategic organisational planning. Identify a company or organisation that does this well or poorly and use it to illustrate your arguments.

 

A. Strategic Human Resource Management
Search Terms: Human Resource Management, Asia or Australia, Personnel management, UK, International, Global
Search parameters: Full Text, from 2009, Scholarly articles
1. The role of human resource in new globalized world
Malik, Nadeem; Aminu, Muhammad. Interdisciplinary Journal of Contemporary Research In Business 2, 11 (Mar 2011): 318-330.

The economic environment, in good as well as tough times, always presents opportunities and avenues for innovation. While businesses at present are navigating through the challenges posed by the global economic downturn, it is all the more critical to capitalize on opportunities through a compelling vision, innovation and a rethinking of your unique value proposition. This paper is an attempt to address two factors. Since the human factor is the key in the new era of globalization (Hassan, 1992; Sims & Sims, 1995), the primary objective of this paper is to present a conceptual framework for effective management of human resources as a response to the growing interaction of globalization and business performance. Guided by theoretical perspectives such as the firm’s resource-based theory of competitive advantage, this paper develop propositions draws implications for the strategic management of human resources to prepare organizations for the challenges of globalization.
2. An Exploration Of The Impact Of Strategic International Human Resource Management – On Firm Performance: The Case Of Foreign MNCs In China
Bao, Chanzi; Analoui, Farhad, International Journal of Management and Information Systems. 15, 4 (Fourth Quarter 2011): 31-40.

The intense competition arising from globalization not only demands MNCs to seek low cost, innovation, speed and adaptability, but also brings the need to manage their human resources globally and strategically so that it becomes a source of sustained competitive advantage. It has thus led to the evolution of strategic international human resource management (SIHRM) in the literature, which not only acknowledges the need of balancing global integration and local responsiveness, but also emphasises the importance of seeking strategic fit between HR policies and business strategy, in turn leading to a superior business performance. Hence this paper focus upon the case of China with reference to foreign MNCs’ operations and the challenges faced from the dual pressure of balancing globalisation and localisation. The finding of this research strengthened the mainstream literature where there is a direct and positive relationship between HR polices and firm performance.
3. Strategic integration of human resource management practices: Perspectives of two major Japanese electrical and electronics companies in Malaysia
Abang Ekhsan Abang Othman. Cross Cultural Management, 16. 2 (2009): 197-214.

The purpose of this paper is to examine the strategic integration of HRM practices with business/corporate strategy in the context of its applications and processes in two Japanese multinational companies in Malaysia. The research used mixed-methodology via case studies and questionnaire surveys. Overall 29 questionnaires, 15 from Company A and 14 from Company B were returned and analyzed for a response rate of 58 per cent. In addition, 15 respondents were interviewed, including Executive Director, Head of HR and line managers. Analysis of questionnaire responses and interview findings shows strategic integration of HRM practices has been adopted by both organizations, though their approaches vary slightly. Importantly, the involvement of HR at board level, direct reporting of HR to the CEOs and the organization’s supportive culture symbolize the integrative approach to HRM. Additionally, the findings indicate that although company strategies are in place, other factors such as business credibility of the HR manager and the level of commitment and support from CEOs and line management commitment are important determinants of strategic integration of HRM practices. The influence of Japanese management practices which has similar characteristics of high performance work system (HPWS) and resource-based view (RBV) approach that emphasizes participatory decision making and construe employees and HR function not as cost burdens but as sources of competitive advantage are important predictors of higher and effective strategic integration. The paper provides some insights into approaches to strategic integration of HRM practices in two Japanese multinational companies in Malaysia.
4. The impact of strategic human resource management on the performance of firms in India
Nigam, Ajit Kumar; Nongmaithem, Sonia; Sharma, Sudeep; Tripathi, Nachiketa. Journal of Indian Business Research, 3, 3 (2011): 148-167.

The purpose of this paper is to investigate the relationship between strategic human resource management (SHRM) and performance in service sectors firms in India. Also, it has tried to explore whether the three main approaches in the area of SHRM – universalistic, contingency and configurational approaches hold true in an Indian setting. Design/methodology/approach – Data were collected from 25 organizations, using two sets of questionnaires. Set 1 comprised measures of business strategy (n=98) and key informant approach was used to collect the data. Set 2 had measures of SHRM which consisted of two sections – human resource management (HRM) system orientation and HRM capabilities and organizational effectiveness (n=750). Performance was measured in terms of organizational effectiveness. Regression analysis was carried out at two levels: industry level and overall level. Findings – Results indicated that there is positive relationship between SHRM and effectiveness, business strategy has an impact on the relationship between SHRM and effectiveness and universalistic theory of SHRM does not work in the Indian service sector. Practical implications – The results of this study revealed that transport and IT-enabled industries require more strategic HR capability while finance requires more technical HR capability. The SHRM policies need to be dynamic and contingent on the business strategy to attain maximum impact on effectiveness. Originality/value – This study contributes to the sparse literature on the role of SHRM in the service sector industry where dependence on human resources is more critical as compared to other sectors.
5. High performance work systems and employee well-being: A two stage study of a rural Australian hospital
Young, Suzanne; Bartram, Timothy; Stanton, Pauline; Leggat, Sandra G. Journal of Health Organization and Management, 24, 2 (2010): 182-199.

This paper aims to explore the attitudes of managers and employees to high performance work practices (HPWS) in a medium sized rural Australian hospital. The study consists of two stages. Stage one involved a qualitative investigation consisting of interviews and focus group sessions with senior, middle and line management at the hospital. Bowen and Ostroff’s framework was used to examine how strategic HRM was understood, interpreted and operationalised across the management hierarchy. Stage one investigates the views of managers concerning the implementation of strategic HRM/ HPWS. Stage two consisted of a questionnaire administered to all hospital employees. The mediation effects of social identification on the relationship between high performance work systems and affective commitment and job satisfaction are examined. The purpose of stage two was to investigate the views and effects of SHRM/HPWS on employees. It should be noted that HPWS and strategic HRM are used inter-changeably in this paper. At the management level the importance of distinctiveness, consistency and consensus in the interpretation of strategic HRM/HPWS practices across the organization was discovered. Findings indicate that social identification mediates the relationship between HPWS and affective commitment and also mediates the relationship between HPWS and job satisfaction. High performance work systems may play a crucial role facilitating social identification at the unit level. Such practices and management support is likely to provide benefits in terms of high performing committed employees. The paper argues that team leaders and managers play a key role in building social identification within the team and that organizations need to understand this role and provide recognition, reward, education and support to their middle and lower managers.
6. Strategic human resource management and knowledge workers: A case study of professional service firms MRN
Stephen T.T. Teo; Lakhani, Bhavini; Brown, David; Malmi, Teemu. Management Research News, 31, 9 (2008): 683-696.

The purpose of this paper is to examine the impact of adopting a strategic approach to human resource management (HRM) in professional service firms (PSFs). It provides the empirical evidence by comparing and contrasting the adoption of a strategic approach to HRM in two Australian PSFs. A qualitative case study approach is adopted. Data were collected from multiple sources. The findings suggest that differences in the performance of PSFs could be explained by organizational control systems such as personnel and cultural controls. The qualitative data generated by the two PSF cases provided evidence to support the notion that strategic human resource management is an important factor in explaining firm performance. Our findings provide empirical support for the importance of strategic approaches to HRM. One limitation of this study is the adoption of case study method, the findings of which cannot be generalized to a wider population.
7. The uses and usefulness of reflexive accounts in strategic performance management research: The case of UK regulated public utilities
Chau, Vinh Sum; Witcher, Barry J. International Journal of Productivity and Performance Management 58, 4 (2009): 346-366.

The purpose of this paper is to discuss the role of reflexivity in ensuring quality in the conduct of qualitative organizational and management (especially case study based) strategic performance management research. It argues the importance of research reports to include a reflexive account of the comings and goings about the circumstances that may have impacted upon the research to justify its validity. A project on UK-regulated public utilities is used to illustrate the benefit of such an account and how it may be presented. The paper draws on a two-year longitudinal research project, which used longitudinal case studies to examine the impact of regulatory policy incentives on the strategic management of UK monopoly network utilities, to present a developed approach for presenting reflexive accounts in qualitative research. It focuses on the longitudinal tracer methodology that allows a close examination of detailed yet holistic operational activities, which is particularly good for strategic performance management research. The paper suggests that the more explicit the reflexive appreciation during the conduct of the research, the better it satisfies the conditions of reliability and validity which are themselves well-known prerequisites for ensuring quality in qualitative research. Strategic performance management research is characterised by a need to examine closely detailed internal decision-making processes. Such an approach is supported by the emerging activity-based view of management, known as strategy-as-practice, that concerns understanding micro-activities of the organization. The provision of a reflexive account in research reports alerts the reader to these equivocal conditions under which the findings were derived. The paper concludes that an appreciation of the epistemological and ontological positions of the tracer methodology has an impact upon the way in which a reflexive account of organizational research should appropriately be presented. It suggests some potential issues to include in the presentation of reflexive accounts.
B. Employee participation and involvement, the psychological contract (psychological contract – as opposed to legal contract)
Search Terms: Employee participation, involvement, psychological contract, Asia or Australia, UK, International, Global
Search parameters: Full Text, from 2009, Scholarly articles
1. Innovative Work and Citizenship Behaviors from Information Technology Professionals: Effects of Their Psychological Contract
Newton, Sandra K; Blanton, J Ellis; Will, Richard. Information Resources Management Journal21. 4 (Oct-Dec 2008): 27-48.

Little is known about the effects of the level of fulfillment of the IT professional’s psychological contract on their innovative work and organizational citizenship behaviors. Using psychological contract and social information processing theories, this article proposes to answer the research question: How does the level of fulfillment of the IT professionals’ psychological contract affect their organizational citizenship and innovative work behaviors? Survey data were collected from 209 IT professionals using group-administered paper and online surveys. Results show positive relationships with the level of fulfillment of the IT professional’s psychological contract and their innovative work behavior, as well as four of their organizational citizenship behaviors, specifically loyalty, advocacy participation, obedience, and functional participation. Extending the body of knowledge, the dimensional approach of the psychological contract was used resulting in the scope, focus, and tangibility dimensions being the most significant predictors of the organizational behaviors.
2. The Implications of the Cultural Values of Individualism and Collectivism in the Formation of the Psychological Contract and Employee Commitment
Street, Jeffrey N. Journal of Behavioral and Applied Management10. 3 (May 2009): 433-448.

We examine here employee commitment to the organization as an outcome variable of the psychological contract, generally defined as the employee’s perception of what will be received from the employer in exchange for work. As a context for the formation of the psychological contract, cultural values of individualism and collectivism are considered as antecedents in a proposed research model. The study is conceptual in nature, however, propositions related to the effect of individualism and collectivism on the type of psychological contract formed, transactional or relational, and the subsequent component of commitment realized, affective, continuance, or normative, are offered.
3. Job Involvement as Predictor of Employee Commitment: Evidence from Pakistan
Khan, Tariq Iqbal; Jam, Farooq Ahmed; Akbar, Aisha; Khan, Muhammad Bashir; Hijazi, Syed Tahir. International Journal of Business and Management, 6. 4 (Apr 2011): 252-262.

Job involvement has been one of the most effective tools used for increasing employee productivity by enhancing employee participation and commitment. This study highlights the effect of job involvement on three types of commitments i.e. affective commitment, Continuance commitment and normative commitment. Data was collected from 211 employees of 11 different organizations and analysis revealed that job involvement has positive impact on three types of commitments.

 

 
4. Promoting work motivation in organizations: Should employee involvement in organizational leadership become a new tool in the organizational psychologist’s kit?
Wegge, Jürgen; Jeppesen, Hans Jeppe; Weber, Wolfgang G.; Pearce, Craig L.; Silva, Silvia A.; et al. Journal of Personnel Psychology, 9, 4 (2010): 154-171.

What are the best interventions that Work and Organizational Psychology offers today for promoting high work motivation in organizations? This paper seeks to answer this question in two steps. First, we briefly summarize the main findings from 26 meta-analyses concerned with traditional practices such as goal setting, feedback, work design, financial incentives, or training. These practices can improve both organizational performance and the well-being of organizational members. Second, we examine in more depth a new, increasingly important high performance work practice: Employee involvement in organizational leadership (EIOL). This approach is built on theories focusing on organizational participation, shared leadership, and organizational democracy. We also illustrate recently constructed measurement instruments for assessing these constructs. This synopsis leads us to the development of a new integrative, multilevel model of EIOL. The model includes several mediator (e.g., knowledge exchange) and moderator variables (e.g., self-leadership competencies of actors) that explain why and when this approach is effective. We conclude that future research should focus on cross-level interactions of different forms of organizational participation, shared leadership, and organizational democracy, and seek to identify the processes mediating their interplay.
5. Trust: an antecedent to employee extra-role behaviour
Reychav, Iris; Sharkie, Rob. Journal of Intellectual Capital, 11. 2 (2010): 227-247.

This study seeks to examine antecedents of perception of trust as a foundation for extra-role behaviour in the public sector non-profit organisations. A total of 1,600 questionnaires were distributed and 329 questionnaires were returned from five different non-profit local government authorities in Australia. It was found that perceptions of trust in management, psychological support, management values and rewards were strong antecedents of employee perceptions, which in turn were positively correlated with employee extra-role behaviour. Employee participation in decision making and contributions from autonomous employees were strong indicators of extra-role behaviour, whereas intrinsic job motivation and the sharing of knowledge were found to be weaker indicators of discretionary extra-role behaviour. The study was based on the voluntary response of employees of five independent local government authorities in Australia. Thus findings in other geographical or cultural locations may be significantly different. Beyond the questionnaire findings, the relevance to private non-profit organisations needs to be studied empirically. The research makes a significant contribution to management of governmental public sector non-profit organisations which face continuous pressure to develop strategies and embrace management practices that ensure organisational effectiveness. The findings highlight the important factors that lead to employee perceptions about trust which can lead to discretionary employee efforts in public sector organisations that have great similarity to non-profit organisations.
6. Employee Participation in CSR and Corporate Identity: Insights from a Disaster-Response Program in the Asia-Pacific
Chong, Mark. Corporate Reputation Review, 12. 2 (Summer 2009): 106-119.

Employees’ deep identification with an organization’s identity has been shown to enhance commitment to the organization, job-related motivation and satisfaction, and organization-relevant citizenship behavior. Nonetheless, few studies have looked at how corporate identity influences – or is influenced by – employee participation in corporate social responsibility (CSR) programs. This qualitative, exploratory study examines this relationship by looking at DHL Asia-Pacific employees’ participation in the company’s disaster response to the 2004 Asian tsunami. It shows that employee’s participation in the disaster-response program – one of the pillars of DHL’s CSR strategy – simultaneously feeds off and reinforces their experience of corporate identity. Over time, the interactions between participation in CSR and corporate identity form a self-reinforcing loop. The paper notes that close alignment between CSR strategy and corporate identity and internal communication are critical to the success of CSR programs. It concludes by noting the study’s limitations and offering suggestions for future research.
7. Exploring psychological contract contents in India: the employee and employer perspective
Aggarwal, Upasana; Bhargava, Shivganesh. Journal of Indian Business Research, 1. 4 (2009): 238-251.

This paper aims to examine psychological contract contents, as perceived by two parties of the employment relationship, the employee and the employer. The study is conducted in two phases. Study 1 employs critical incidence technique (CIT) to elicit from individuals their perceptions regarding organization obligations. Study 2 is designed to corroborate the findings of the first study through a survey of 401 employees and 66 employer representatives (functional heads). The results of the two studies are consonant with existing literature; nevertheless the role of culture on psychological contract contents is visible. The study reveals variation in employee and employer perspective regarding organizational obligations. In India, recruiters need to go far beyond the discussions on compensation and focus on building relational aspects of job such as the job content avenues for career growth as well as creating a supportive work culture. The study contributes to existing literature by examining content of psychological contract, a relatively neglected area of research in a fast growing Asian economy, India.
C. Roles of line managers in HR / leadership – Also: organisation of HR practices (autonomy or central control); discrimination, concepts and definitions.
Search Terms: line managers, leadership, HR practices, human resource management, organisation of practices, discrimination, ethics
Search parameters: Full Text, from 2009, Scholarly articles
1. Senior managers’ perceptions of the practice of human resource management
Maxwell, Gillian; Farquharson, Lois, Employee Relations. 30. 3 (2008): 304-322.

The purpose of the paper is to investigate the perceptions of senior managers in companies in the Sunday Times list of UK best employers on the practice of HRM in their organisations. The approach taken was to conduct semi-structured interviews with senior line and HR directors/ managers. In the organisations investigated, HRM is afforded high-level organisational support at chief executive, if not always senior operational manager, level. It is generally recognised by senior managers as contributing to business effectiveness when it centres on business needs. It is integrated with business strategy processes at both strategic and operational levels. Indeed HRM is elemental to business strategic planning processes, which has the effect of reducing the potential gap between strategic rhetoric on HRM and practical implementation of HRM. Leadership and performance management are current HR policy priorities. The generative primary data represent senior managers’ perceptions of how HRM operates in their organisation therefore cannot be generalised. Senior manager support of HRM means focusing HRM efforts in organisations on business needs and integration between HRM and business strategy processes. The corollary is that HRM policy priorities are derived from the strategic business direction and that they are perceived to support business operations and, consequently, business performance. Senior line managers and HR specialists inform the research which contributes to understanding of current, best practice HRM from an evidence base; a model of contemporary best practice is proposed.

2. Unlocking the black box: line managers and HRM-Performance in a call centre context
Harney, Brian; Jordan, Claire. International Journal of Productivity and Performance Management. 57. 4 (2008): 275-296.

The purpose of this paper is to show the way to unlock the black box of HRM and performance linkages by exploring one of the key variables that mediates the link, namely whether line managers can stimulate improvements in firm performance by eliciting appropriate employee outcomes in a call centre context. The research draws on Purcell’s “People-Performance Model” as a sensitising framework to inform an in-depth case study of a call centre. This provides a mechanism to unlock the HRM-Performance black box by focusing on the ability, motivation and opportunities for line managers to perform and any subsequent impact on employee outcomes. Data were collected over multiple site visits by means of multi-level interviews and a survey of telesales representatives (TSRs). Research findings indicate that one large client exerted significant control over the HRM policies developed within the call centre. Evidence suggests, however, that line managers’ interventions ameliorated some of the negative aspects of work tasks and the HRM imposed by this dependency relationship. This research is an exploratory attempt to better understand HRM-Performance linkages in one specific context. Results are not generalisable across contexts or even within call centres, which can vary extensively. Nonetheless, the research suggests that exploring line management behaviour is a promising avenue for more extensive research. This paper considers HRM-Performance linkages in a service context. Results indicate that both external relations and line managers are critical mediating variables conditioning HRM-Performance linkages, thereby lending support to the notion that hard and soft HRM practices are not necessarily irreconcilable.
3. The role of the HR department in organisational change in a British university
Edgley-Pyshorn, Charlotte; Huisman, Jeroen. Journal of Organizational Change Management, 24. 5 (2011): 610-625.

Purpose – The purpose of this paper is to analyse the role of human resources (HR) in organisational change at higher education institutions (HEIs) and the perceptions of those within the organisation towards the HR department and their capability in leading a change initiative. Design/methodology/approach – The objectives were achieved through a case study in which an HR department at a British university was undergoing a cultural change initiative, implemented by the HR department. Primary research was collected by analysing documents underlying the change project. Also 12 semi-structured interviews of 30-40 minutes were carried out; interviewees were chosen based on the need to have a cross-section including members of the change team and the pilot departments. Findings – The HR departments at HEI may be faced with difficulties when attempting to implement change due to the relatively “new” nature of the function, meaning that they must first justify their position, worth and capability before attempting to gain the buy-in of academic departments to implement a culture change in their departments. Research limitations/implications – More research could be carried out into a cross-section of British universities with HR-led change initiatives to broaden the data collection. Limitations in this research include the relatively small number of interviewees. A greater cross-section of interviewees would have been beneficial. Originality/value – The originality of this paper is in the relatively un-discussed nature of the role of the HR department in change initiatives at HEI and how this could be improved, therefore this could be beneficial for HR departments in this sector.
4. Managing for health
Griffiths, Elizabeth. Occupational Health, 62. 5 (May 2010): 14-15.

The revised medical statement of fitness for work, or fit note, is an opportunity for occupational health professionals (OHP) to consider afresh the difficult role that line managers play in managing workplace attendance. It is now well documented that manager behavior influences employee well-being, and the latest report by the Chartered Institute of Personnel and Development stresses, as in previous years, that line managers are central to the effective implementation of absence management policies. It is also seen as essential that health and well-being has a clearly identified board-level champion and support from the senior management team. Stakeholders agreed that when presented as a joint activity, for example by HR, health and safety and OH, success was more likely. All OH practitioners need to develop leadership roles and embrace opportunities to influence service change and development to meet business needs on strategic level.
5. The influence of line managers and HR department on employees’ affective commitment
Gilbert, Caroline, De Winne, Sophie, Sels, Luc, International Journal of Human Resource Management, Apr2011, Vol. 22 Issue 8, p1618-1637, 20p.

Based on social exchange theory, we investigate the impact of HRM investments made by two important HR actors, line managers and HR department, on employees’ affective commitment. More specifically, we examine the independent and joint impact of line managers’ enactment of HR practices, their relations-oriented leadership behaviour and the HR department’s service quality. Accordingly, we consider the largely neglected HRM role of line managers. In addition, we focus on perceived HRM, which is seen as a determining factor in employees’ attitudinal and behavioural reactions. Data for this study were collected from 1363 employees, working in three service organizations. The results indicate that line managers can enhance employees’ affective commitment by both the effective enactment of HR practices and the effective relations-oriented leadership behaviour. High service quality by the HR department also has a positive effect on employees’ affective commitment. Implications for research and practice are discussed.
6. Singing the same song: translating HRM messages across management hierarchies in Australian hospitals
Stanton, P, Young, S, Bartram, T, & Leggat, S 2010, International Journal Of Human Resource Management, 21, 4, pp. 567-581.

This paper reports the findings of case study research exploring the strength of the HR system in three Australian public hospitals from the perspective of senior, middle and line managers, and HR practitioners. The study explored how HRM is understood, interpreted, and operationalized across the management hierarchy. The findings suggest that the role of the CEO is crucial in providing HR legitimacy, leadership and resources that create a distinctive HR system, and in nurturing within group agreement and consensus among the senior executive team on the role of HR. In turn, senior managers need to translate consistent HR messages throughout the management hierarchy and provide lower level managers with the formal and informal direction, support and empowerment to operationalize HR strategy.
7. HR-line management relations: characteristics and effects
Sanders, K, & Frenkel, S 2011, International Journal Of Human Resource Management, 22, 8, pp. 1611-1617.

The article discusses a study on the traits and impact of human resource-line management connections. It addresses the roles of best practice perspective or human resource habits that enhance the opportunities to workplace engagement, participation, and skills that result in improved work and organizational performance and also the process perspective, which focuses on human resource management as a key to better corporate performance. The study concludes that various types of corporate management including human resource managers, senior managers, and junior line managers must be compared differently from one another.
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