Unit 1: Introduction to Strategic HRM In this unit we will explore the concept of strategy, how it’s developed and how it’s used within businesses. We will consider the idea of strategy as a tool for allocating resources to specific projects in order to achieve stated goals and gain competitive advantage. Alongside this, we will … Continue reading “explore the concept of strategy | My Assignment Tutor”
Unit 1: Introduction to Strategic HRM In this unit we will explore the concept of strategy, how it’s developed and how it’s used within businesses. We will consider the idea of strategy as a tool for allocating resources to specific projects in order to achieve stated goals and gain competitive advantage. Alongside this, we will introduce SHRM as a concept and gain an understanding of two different approaches, Universalist (best-practice) and Contingency (best-fit), and the assumptions that underpin each. In this unit we shall: • Discuss approaches to strategy and how businesses create a strategy • Review how strategy is used to allocate resources to a project • Consider definitions of SHRM and different approaches to using it On completion of this unit you will: • Define and explain the concepts of strategy, strategic management, business strategy and competitive strategy • Define and explain the role of vision and mission statements • Appreciate the importance of competitive advantage and different ways this can be achieved • Explain how SHRM has developed over the past 30 years • Explain the features and application of Universalist (best-practice) and Contingency (best-fit) approaches to SHRM Introduction Maximo is a British-based entertainment media company whose primary business is designing games for mobile phones and tablets. They began life in 2004, with just 3 people – Max, a computer science graduate, his friend Morris, a business studies graduate as the CEO and his uncle John, who provided the financial backing. Over the next 5 years the company grew slowly. This was before the days of smart phones, so Maximo had no way to interact directly with the users of their games. They sold their games directly to mobile phone manufacturers, who pre-loaded them onto handsets. Some handsets sold very well, but Maximo didn’t benefit from this in any significant way. In 2008 the business landscape changed. Apple launched their app store and for the first time mobile developers had direct access to a worldwide audience. This was Maximo’s opportunity to revise their strategy. Throughout this module you will be asked to apply your learning to the Maximo case study through your reflective journal entries. Unit 1 Reading The reading in this unit explains the concepts of strategy and strategic management, exploring the relationship between business strategy and competitive strategy. It also explores the different approaches to SHRM and the process of strategic alignment with business strategy. Required Reading Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic Human Resource Management (2nd Ed.). Oxford: Oxford University Press. • Chapter 3 – Strategic Management and Strategic Human Resource Management • Chapter 6 – The Foundations of Strategic Human Resource Management Additional Reading Beardwell, J. and Thompson, A. (2017) Human Resource Management: a contemporary approach (8th Ed). Pearson: Harlow. Online via the Essex eLibrary. • Chapter 2 Visual Resources Professor Michael Porter: You Need Strategy for your Organisation:https://www.youtube.com/watch?v=DViVtgD0xwE&feature=emb_imp_woyt Unit 2: Principles Underpinning SHRM The HR function has evolved over time and many authors agree that its role has changed from an administrative function to a strategic one. We will explore models describing different perspectives of the HR functional role, including Ulrich’s ‘HR Champion’ model and the CIPD profession map, and discuss the value added to the business. One of the main challenges in the study of SHRM is understanding and demonstrating how it affects business success. The Resource-Based View (RBV) of a firm attempts to explain why some organisations are able to achieve consistently higher levels of performance, whilst others fail. We will break this down to explore the definition of ‘resources’, the attributes they can have, and how these are applied within a business to create sustained competitive advantage.In this unit we shall: • Explore the changing nature of the Human Resources function • Understand and critique the main theories that underpin SHRM • Review professional areas included in SHRM and required practitioner behaviours On completion of this unit you will: • Critically evaluate the main frameworks and models that have been developed to analyse the role of the HR function • Outline the elements of the CIPD Profession Map • Define the resource-based view (RBV) of the firm and explain its core elements • Analyse the usefulness and limitations of the RBV as a framework for theorizing in SHRM Unit 2 Reading The reading in this unit explains how the evolution of HR roles has shaped contemporary HR, using the CIPD Profession map as a tool to explore the role of HR professionals. You will explore the Resource-Based View of the firm to understand the theoretical foundations of SHRM. Required Reading Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic Human Resource Management (2nd Ed.). Oxford: Oxford University Press. • Chapter 4 – The Strategic Role of the Human Resource Function • Chapter 7 – Resource-Based and Institutional Perspectives on Strategic Human Resource Management Additional Reading • CIPD profession map • Feffer, M (2017) 9 Tips for Using HR Metrics Strategically, SHRM.ORG [online] Visual Resources Jack Welch: The Role of HR: Discussion Question: Unit 1 and 2 Discussion Forum Context: During your reading, you have explored the different underlying theories associated with SHRM, including the Universalist approach, the Contingency approach and the Resource-Based View of SHRM. One of the biggest challenges facing research in this area is defining what SHRM actually is and how it helps organisations achieve strategic goals. Question: Discuss whether SHRM can truly add value to a business at a strategic level and how it can deliver competitive advantage. Guidelines for discussion responses: • Your initial posting must respond to the question above in full and be at least 200 words long • Please try to limit all of your posts to 200-300 words maximum, so that others may be encouraged to reflect on, and respond to your ideas • Each discussion lasts for two weeks, across 2 consecutive units • You are expected to contribute a maximum of ten postings during that period, so you should respond to the postings of the other students several times • You must complete a summary post at the end of the discussion reflecting on your learning • Any posts added after the deadline or beyond the allowance of ten posts will not be assessed • You will be assessed on your contribution to this 2 week discussion at the end of unit 2 The learning outcomes for this discussion are: • Explain the concept of strategic HRM and evaluate its potential contribution to organisational objectives • Critically evaluate the major theoretical approaches to the development of corporate and business strategy Answer: 3 separate writings: Please limit each of the writing to 300 words (referencing not included in word count)Harvard ReferencingHarvard Bibliographywith in-text Citations Open discussion question at the end of each writing – Must use Required Readings for Referencing & Bibliography in each writings– Use Extra Readings for Referencing & Bibliography in each writings– Try to use Figures (e.g. Figure 1, Figure 2 etc.) for Referencing from Readings in each writings Response Question: 1st to Response: Hi all, I would like to start by offering a brief interpretation of SHRM along with exploring some of its most important aspects. (Schuler and Walker, 1990:7) define it as an interrelated set of actions designed to be discussed amongst HR and line managers thus determining or aiming towards a certain outcome of the business. Moreover, (CIPD, 2015f: 1) refers to this model as a support base for the long-term organisational objectives and its strategic agenda. The universalist approach suggests that there are several best practices which can positively impact performance in a company. Additionally, its effects can be considered to be so general or robust that a tangible increase in company performance can be observed regardless of other organisational circumstances. On the other hand, the contingency perspective proposes that companies should adopt such systems and/or practices which fit their human resource strategies. In answer to the forum’s question, (Michael E., 1985) proposes that SHRM is key to obtaining competitive advantage. There is growing emphasis on highly skilled employees, distinctive organisational culture, management processes and systems, this approach contrasting with the more traditional interpretation of transferable resources and skills such as equipment which can be purchased by organisations. In addition, a great example of human resource based competitive advantage is being provided by (Dyer, 1983) as the company he’s been researching has been challenged with the automation of its processes. As a result of nurturing and developing great human talent, the organisation managed to form the technology division. Furthermore, competitive advantage can also be gained by conducting a more rigorous analysis of the internal environment and identifying underutilised workforce, employees resistant to change, antagonistic employee-management relations to mention but a few. All things considered, what do you think would be the criteria for selection between a universalist approach versus the contingency or configurational approaches upon implementing a company’s long-term strategy? Thanks, Liviu References: Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic Human Resource Management (2nd Ed.). Oxford: Oxford University Press. Michael E., P. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. The Free Press, pp.1–30. Dyer, Lee. “Bringing Human Resources into the Strategy Formulation Process.” Human Resource Management, vol. 22, no. 3, 1983, pp. 257–271, 10.1002/hrm.3930220306. 2nd to Response: The overarching aim of the Human Resource Management (HRM) is to help organisations achieve their goals through their workers. Ulrich and Lake (1990) stated that HRM can assist organisations capitalise new opportunities which offer competitive advantage. To be more specific, HRM attempts to help organisations to select, recruit, train and retain skilled, ambitious, and motivated workforce. It also aims to develop management practices that value workers as stakeholders and facilitate development of staff. However, it must be pointed out that these aspirations are often difficult to put into practice. Gratton et al (1999) said “generally, there is a wide gap between rhetoric and reality when talking about the aims of the HRM”. Management may often start off with good aims and intentions but translating these good intentions into practice poses challenges. The reasons include contextual and process issues, having different priorities, lack of resources. Organisations need to think about linking their HRM approach to their business strategy which often integrates their vision and mission as well as their business strategy which utilise their resources and capabilities to find a competitive advantage over their competitors. To achieve these business strategies (long term direction), organisations will have to pay attention to their workforce. This is where Strategic Human Resource Management (SHRM) comes into play. It helps firms to strategically manage the workforce and make the best out of it to achieve the strategic goals of the organisation. From here, a range of HR policies, practices and plans can be developed for the recruiting, training, retaining and motivating staff. In the literature, there is no consensus on how to define SHRM. Some explain it as being a process, while others describe it as a set of activities to be undertaken to achieve better outcomes. There are also writers who are of the view that SHRM is basically a system. In Bailey et al (2018), SHRM is defined as a concept that focuses on the long-term needs of the organisation in relation to its workforce, as opposed to the daily functions of the organisation. From this strategic perspective, firms can develop specific HR policies such as staff performance and development. References Bailey, C. et al (2018). Strategic Human Resource Management. Oxford University Press. Gratton, L et al (1999). Strategic HRM, Corporate Rhetoric and Human Reality, Oxford. OUP Ulrich, D. lake, D. (1990). Organisational Capability: Competing from inside out, New York: John willy & Sons. Bibliography Chartered Institute of Personnel and Development, CIPD, (2020) Strategic HRM. http:www.cipd.co.uk/knowledge/strategy/hrstrategic-hrm-factsheet Porter, M. (1985) Competitive Advantage; Creating and Sustaining Superior Performance. New York, Free Press. 3rd to Response: “HR strategies need to simultaneously focus on building skills, motivation and behaviour for a successful business strategy” (Wright, 2008). According to CIPD (2021) strategic HRM is the connecting of people management and development practices to long term organizational goals. Strategic HRM is about getting varying people to work together, driving behavour and business culture to create value and meet performance targets (CIPD, 2021). Another key point is that it is not a one-size fits all strategy, this must be organizational unique, developing value chains around human capital that meet stakeholder needs (CIPD, 2021). HRM teams need to consider future skills needs to support long term goals, this is incredibly important now with how rapidly the business environment is changing (CIPD, 2021). When an organisation develops HR policies and practices these become a vital component of competitive advantage, this infrastructure enables the organisation to understand how to utilise the people more effectively (Bailey, 2018). It is key that a organisation invests into the selection, training, development and performance management, these are known as invisible assets that enhance the Organisation’s capabilities (Becker and Gerhart, 1996). The correct mix is what gives competitive advantage (Wright et al, 1994), it could be argued that these invisible assets enrich skills of human capital, this influence on knowledge transfer, creation and integration all empower competitive advantage (Wright and McMahan, 2011). HR practices engage the workforce, ripen relationships between people and the processes (Bailey, 2018). For an organisation to make the HR practices hard to imitate, those practices need to be interdependent and dynamic (Bailey, 2018). CIPD (2021) explain that SHRM is constantly evolving over time, lately companies have realised that the people are the most valuable asset, as a key part of sustainable value creation. I work for an organisation where the key focus is “people first” this means we put each other first as well as ourselves. This culture is like no other I have been part of before, however it does motivate me. This change in focus moved us into number one position in our industry for volume. I would be keen to hear from others, examples how SHRM has played a role in an organisation you work/have worked for? Did this have a positive effect on performance? Holly References Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic Human Resource Management (2nd Ed.). Oxford: Oxford University Press. Becker, B., and Gerhart, B (1996) The impact of human resource management on organizational performance: progress and prospects, Academy of Management Journal, 39(4): 779–801 CIPD (2021) Online at: https://www.cipd.co.uk/knowledge/strategy/hr/strategic-hrm-factsheet#gref [accessed March 2021] Wright, C. (2008) Reinventing human resource management: business partners, internal consultants and the limits to professionalization, Human Relations, 61(8): 1063–86 Wright, P., and McMahan, G. (2011) Exploring human capital: putting human back into strategic human resource management, Human Resource Management Journal, 21(2): 93–104 Wright, P., McMahan, G., and McWilliams, A. (1994) Human resources and sustained competitive advantage: a resource-based perspective, International Journal of Human Resource Management, 5(2): 301–26. 4th to Response: Good Evening all, Strategic Human Resource Management (SHRM) can be defined as ‘a framework linking people management and development practices to long-term business goals and outcomes’ (CIPD, 2021) I believe that SHRM can add value to a business. It is important, in the first instance, to employ individuals that fit the organisational culture and possess the required skills and capabilities that can then be developed over time. The way in which the people management and development practices are linked will have an effect on the competitive advantage of the organisation. ‘The capabilities of an organisation can be difficult to imitate because they are complex and involve interlinkages’ (Johnson et al, 2015) Bailey et al, (2018) highlight three perspectives on SHRM: 1 the universalist approach, which is based on the idea that there is ‘one best way’ of managing people applicable to all organizations; 2 the contingency perspective, which argues that the best way of managing people is likely to vary according to organizational circumstances; 3 the configurational approach, which argues that HR practices can be configured in different ways and that some configurations or sets of practices are more effective under certain conditions than others. In the boating industry where I used to work our Captain used to say ‘happy crew, happy boat, happy guests’. In order for crew to be happy the universalist approach would not have worked as different crew need managing in different ways according largely to personality, with the skill assumed. When crew are happy they are willing to commit longer in their position positive reputation disperses across the industry. When do you think the universalist approach would be appropriate? Which approach would provide added value to your organisation? Thanks Lucy Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., (2018) Strategic Human Resource Management. 2nd ed. Oxford: Oxford University Press. Available online via Vital Bookshelf [Accessed 30 March 2021] CIPD, (2021). Strategic human resource management. Available online at https://www.cipd.co.uk/knowledge/strategy/hr/strategic-hrm-factsheet#gref [Accessed 30 March 2021] Johnson, G, Whittington, J, Scholes, K, Angwin, D. and Regnér, P. (2014) Exploring Strategy (10th Ed). Harlow: Pearson. Available online via Vitalsource Bookshelf [Accessed 30 March 2021] 5th to Response: Hi All, Strategy can be defined as the “the direction and scope of an organisation over the long term which achieves advantage in a changing environment through configuration of resources and competencies with the aim of fulfilling stakeholder expectations” (Johnson et al., 2007:3). The strategic management plans developed at corporate and strategic levels can provide guidance to how HR policies are written and implemented (Bratton and Gold, 2012). As the strategic human resource management will encompass activities in many of the business functions such as financial, management and HRM activities including recruitment, training & development most importantly reward and compensation. As an example, Cadbury, since its inception in 1879, placed importance on the strategic human resource management. The company has evolved their HRM strategy by combining a “best fit and best practice strategy approach” with the resource-based approach to improve confidence and capabilities of internal resources. Cadbury manages a Global HR operating model that has 3 main components, Define, Design, Deliver (Mendelez, N.D.) Putting emphasis on the collaboration of business and HR to increase business performance and be ahead of the competition within the market. In line with Cadbury’s vision to “Grow everyday: Make people development priority”, the company focuses on employee training and development and works towards reducing staff turnover from all levels of employees. In addition to this, the family of the employees are also included in the benefits. All together created an adaptable and diligent work force to give results preferrable to stakeholders. As explained by Bailey et al. (2018) Competitive advantage is the collection of organisational capabilities that the business has developed to generate as much profit as it can for stakeholders. As like Cadbury, businesses will have to learn to utilise different HRM models that will be effective to the business vision and culture as well as taking into account external factors in business environment. I would love to hear your thoughts. Kind Regards, Rio Bailey, C., Mankin, D., Kelliher, C., and Garavan, T. (2018). Strategic Human Resource Management. 2nd Ed. Oxford University Press Academic UK. Oxforf. Available from: https://online.vitalsource.com/#/books/9780192523082/cfi/6/2!/4/2@0.00:0 [Accessed on: 4 April 2021] John Bratton and Jeff Gold (2012) Human Resource Management: Theory and Practice. Basingstoke: Palgrave Macmillan. Available from: http://0-search.ebscohost.com.serlib0.essex.ac.uk/login.aspx?direct=true&db=nlebk&AN=1522811&site=eds-live [Accessed: 4 April 202]. Johnson, G., Scholes, K., & Whittington, R. (2007). Exploring Corporate Strategy. 8th Ed. Pearson Prentice Hall. Harlow. Available From: https://lib.essex.ac.uk/iii/encore/record/C__Rb1764072 [Accessed on 4 April 2021] Mendelez (N.D.) Human Resources. available From: https://careers.mondelezinternational.com/career-areas/human-resources [accessed on: 4 April 2021] 6th to Response: Hello class. Apologies for joining the discussion late. Human Resource Management includes anything and everything relating to managing the employment relations in a firm, and Strategic Human Resource Management – SHRM has been growing steadily since the 1980s, is discussed by many researchers because its importance in regard to the success of organisations today. People in organisations are considered an asset and especially large corporations are doing their best to satisfy their employees. Porter (1985) argues that ‘Competitive advantage is at the heart of a firm‘s performance in competitive markets’ and pints gaining competitive advantage through cost leadership – reducing costs to offer a lower price this increasing sales, differentiation by offering something different than the competitors and organisational focus in order to gain more market share. He also adds that a form can either be focused on cost leadership or differentiation. There is a relationship between SHRM and competitive advantage as SHRM relates to Porter’s theory. SHRM and cost leadershipMost firms are economic entities and expect adequate financial returns. By requiring higher level of commitments and motivation among staff, companies reduce their costs of recruitment and training which contributes to the turnover reductions and productivity increase. Lowering costs that way enables the organisation to decrease their prices therefore create a competitive advantage. SHRM and differentiation SHRM can be different in many ways to another organisation – policies, culture, training, employment etc. Let’s take culture into an example. Organisational culture includes many aspects such as expectations and limitations of employees believes, values, its philosophies. Simonsen (1997) states the change of the organisational culture can be managed by the choice of HMR policies and practices, reward systems and work systems. Positive and attractive culture are more likely to attract more competent and motivated employees who tent to have a higher productivity rate and can create a good reputation for a company. Gaining competitive advantage through differentiation also leads to sustainable competitive advantage as it’s difficult to duplicate (Jing, 2018). Thank you, Kamila Jing, X. (2018) What is the Relationship between SHRM & Competitive Advantage. Available online at: https://francis-press.com/uploads/papers/IXzPeImlZbnoOphVQdanIT4z73WazrVbGwLkmHgW.pdf Porter, M. E. (1985). Creating and sustaining superior performance. New York: The Free Press Simonsen, P. (1997). Promoting a development culture in your organization. CA: Consulting psychologists press. Answer: 6 separate response writings: Please limit each of the writing to 300 words (referencing not included in word count)Harvard ReferencingHarvard Bibliographywith in-text Citations – Must use Required Readings for Referencing & Bibliography in each writings– Use Extra Readings for Referencing & Bibliography in each writings– Try to use Figures (e.g. Figure 1, Figure 2 etc.) for Referencing from Readings in each writings Summary Question: Complete a summary post reflecting on the learning Answer: 1 Summary PostPlease limit each of the writing to 300 words (referencing not included in word count) Harvard ReferencingHarvard Bibliographywith in-text Citations – Must use Required Readings for Referencing & Bibliography in each writings – Use Extra Readings for Referencing & Bibliography in each writings– Try to use Figures (e.g. Figure 1, Figure 2 etc.) for Referencing from Readings in each writings Total Results in: 3 separate writings (each writing in 300 words) 6 separate response writing (each writing in 300 words) 1 summary post (writing in 300 words) in total 3,000 words