The "Classical Model" for practising Human Resource Management

Table of Contents

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Table of Contents..............................................................................................II

Table of Figures ...............................................................................................III

Table of Abbreviations ................................................................................... IV

1.  Introduction 1  

2.  Models of Organisational Strategy 2  

2.1  Definition of Strategy 2  

2.2  The Classical Approach to Organizational Strategy 2  

2.3  The Processual Approach to Organizational Strategy 3  

2.4  The Systemic Approach to Organizational Strategy 3  

3.  Definition of Theoretical Approaches to SHRM 4  

3.1  The Closed Matching Model 4  

3.2  The Open Matching Model 5  

4.  Critical Evaluation of the Selected Concepts 5  

5.  Conclusion 8  

  References.......................................................................................................10  

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Table of Figures

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  Figure 1: Main Influence Factors on HRM Decision-Making 9  

III

Table of Abbreviations

  e g for example (exempli gratia)  

  HRM Human Resource Management  

  HRS Human Resource Strategy  

  MNC Multi National Company  

  SHRM Strategic Human Resource Management  

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1. Introduction

During recent years an efficient Human Resource Management (HRM) has become more and more important for companies to achieve and sustain both competitiveness and economic success. Leopold, Harris and Watson (2005) mentioned that Human Resources became matters of considerable competitive advantage. Human Resources, respectively the skills and knowledge of an organisation’s staff, as Hamel and Prahalat (1994) called it, has transformed through massive changes in the economical, technological, sociocultural, judicial and political conditions to one of the most important strategic factor of success for companies these days. HRM, as a reaction to these changes in ‘Personnel Management’, attempts to find various methods of resolution for practice. If ‘Personnel Management’, ’HRM’ or ‘SHRM’, they all have a common goal: obtaining the achievement potential of all organisational members best as possible. But the ‘HRM’ approach goes beyond the traditional approach of ‘Personnel Management’, having a broader focus on the necessary interdependence of all components with each other as well as the connection to other compartments of companies, whose success is seen in straight connection with personnel measures.

Thereby Strategic Human Resource Management (SHRM) can be seen as extension of HRM, and following the definition of Boxall (1996) it deals with the relationship between the strategic management of an organisation and the management of its human resources within this strategic context. In that case the focus is on long-term personnel decisions as well as on the question how an interaction of corporate and personnel strategy can be achieved.

Initially this work is going to introduce and define different organizational strategies as well as key human resource strategies. This shall be followed by a critical evaluation of the concepts by opposing the pros to the cons. Therein the difficulties and between Organisational Strategy, Human Resource Strategy and the Organizational Environment shall be shown. The work results in a final conclusion.

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