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Chapter 2 - Lecture Slides

This document discusses the relationship between human resource management (HRM) and organizational strategy in three key areas: 1. HRM must be strategic and support the overall organizational strategy. It should help define how goals are achieved through people. 2. There are two main models - "best practice" which prescribes universal HR policies and practices, and "best fit" which argues practices must fit the specific strategy. 3. Corporate social responsibility and ethics are important for HRM, which should help build stakeholder relationships and ensure fairness and justice for employees. HRM plays a role in upholding organizational ethics.

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111 views

Chapter 2 - Lecture Slides

This document discusses the relationship between human resource management (HRM) and organizational strategy in three key areas: 1. HRM must be strategic and support the overall organizational strategy. It should help define how goals are achieved through people. 2. There are two main models - "best practice" which prescribes universal HR policies and practices, and "best fit" which argues practices must fit the specific strategy. 3. Corporate social responsibility and ethics are important for HRM, which should help build stakeholder relationships and ensure fairness and justice for employees. HRM plays a role in upholding organizational ethics.

Uploaded by

firas
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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HRM for MBA students

Lecture 2
Looking ahead: HRM and strategy
Learning outcomes

• Understanding of:
– Strategy and HRM
– ‘Best-practice’ models of HRM and
strategy
– ‘Best-fit’ models of HRM and strategy
– Strategic choice
– Corporate social responsibility and
ethics: significance for HRM
The importance of strategy for
HRM
• HRM to be strategic in itself and to support
the organisational strategy
• Ulrich: strategic partner role
• Strategy is important in underpinning the
choice of high performance work practices
(HPWPs).
Universalist versus Contingency
Argument
• Best practice school: specified HRM
policies and practices always give best
results (universalist ).
• Best fit school: certain HRM polices and
practices work best with particular
company strategies.
• Strategic choice: managers can make
choices in HRM. These may be influenced
by contingent factors but are not
determined by them (contingency).
Definition of strategic HRM

‘An approach that defines how the


organization’s goals will be
achieved through people by
means of HR strategies and
integrated HR policies and
practices.’

Armstrong (2009, p.29)


Best-practice models

• eg Pfeffer (1998) and Huselid (1995)


• are typically universalist prescriptions for high
performance work practices (HPWPs)
• they emphasise the importance of:
– employee selection
– training
– flexibility
– performance management
– incentive-based pay
• but they neglect issues of collective employee
relations.
‘Best–fit’ models

• eg Schuler and Jackson; Miles and Snow


• we should be sceptical of too mechanistic
a ‘fit’ between HR practice and strategy
• but these models have some plausibility
• we might regard ‘best fit’ prescriptions as
starting points in selecting appropriate
HPWPs for a particular organisation.
Corporate Social Responsibility

• ‘CSR comprises actions that appear to further


some social good, beyond the interests of the
firm and that which is required by law.’
McWilliams and Siegel (2001, p.117)

• ‘Successful CSR strategies depend on building


relationships with a range of stakeholders and
getting buy-in across the organisation.
Enlightened people management practices are
key in delivering this…’
CIPD (2009)
Ethics and HRM

CIPD members:
– are required to exercise integrity,
honesty, diligence and appropriate
behavior in all their business, professional
and related personal activities;
– must act within the law and must not
encourage, assist or act in collusion with
employees, employers or others who may
be engaged in unlawful conduct.
CIPD code of professional conduct
Ethics and HRM

• HRM is often expected to be a guardian of


organisational ethics, and to act as a
guarantor of organisational fairness and
justice for all employees.
• (Perhaps this is an echo of the welfare role
of traditional personnel management?)

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