Different Theories Of Human Resource Management

1741 words - 7 pages

Introduction In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management ...view middle of the document...

Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals. (Wright and McMahan, 1992)”. Human resource management understands that human capital can be considered the main source of competitive advantage. By considering a human as a human, giving him satisfaction, education, motivation, training and reward, human resource strategies intend to optimize human capital and take care of the relationship between the management of the firm and this type of capital, as this relationship can be ambiguous. To add further on this ambiguous relationship, we can emphasize that the organizational strategies are implemented by human capital in a big way, creating a powerful role in the implementation process of management strategies. Indeed, SHRM is integrated as a whole process into the management strategies implementation process and acts in the same way by pursuing the achievements of organizational aims. Following the Dyer and Holder (1988) definition, strategic HRM must have four main features, which are the: organizational level (decisions are formulated at the top), focus (business effectiveness focused), roles (the implementation directives are made by and depend on the managers) and framework (implementation of strategies involve a certain framework). All these characteristics go with the idea of vertical integration of the SHRM in management strategy. Different approaches in strategic human resource management

II.a) Vertical Integration goes hand in hand with the Best-fit school approach
In fact, vertical integration, conceptualized by Torrington and Hall (1998), can be scaled by five different levels where integration varies in accordance with the relationship between the organization strategy and the HR strategy. Thus, we have a first level called separation where there is no link between HR and organization strategy. Then we have the ‘fit’ level, where people actually recognize HR strategy as a part of the organization strategy. Another upper level of vertical integration is the ‘dialogue’ level where HR strategy is useful for communication and debate. Then we can look at the ‘holistic’ level that considers both of the strategies as a whole, where the relationship is strong and the links are plentiful. Finally, there is the last level of vertical integration, the ‘HR driven’ level, where the strategy of the organization is conducted by the HR strategy. The concept of ‘vertical integration’ goes hand in hand with the best-fit approach to strategic HRM. The contingency school (best-fit) of SHRM takes into...

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