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.
Table of Contents
1. Introduction
2. Models of Organisational Strategy
2.1 Definition of ‘Strategy’
2.2 The ‘Classical Approach’ to Organizational Strategy
2.3 The ‘Processual Approach’ to Organizational Strategy
2.4 The ‘Systemic Approach’ to Organizational Strategy
3. Definition of Theoretical Approaches to SHRM
3.1 The ‘Closed Matching Model’
3.2 The ‘Open Matching Model’
4. Critical Evaluation of the Selected Concepts
5. Conclusion
Research Objectives and Themes
This work aims to evaluate whether relying solely on the 'Classical Model' is sufficient for modern Human Resource Management, or if an integrated approach that incorporates various organisational and specialised human resource strategies is required to ensure success.
- Analysis of diverse organizational strategy models
- Examination of theoretical approaches to Strategic Human Resource Management (SHRM)
- Critical comparison of the pros and cons of established strategic concepts
- Investigation of the complex relationship between organisational environment and HR strategy
Excerpt from the Book
2.2 The ‘Classical Approach’ to Organizational Strategy
The initial point of the analysis is represents by the ‘Classical Approach’ of organisational strategy. This approach was developed in the 1960s by different Anglo-American researchers. Key features of this approach were described by Millmore, Lewis, Saunders, Thornhill and Morrow (2007) and contain the ‘cold’ analysis of the organisation’s environment and its internal resources, followed by identifying and evaluating strategic options, derived from further analysis and as third step the implementation of the chosen strategy. Important for that approach was the work of Porter (1980) in which he argued that organisational strategy only can be chosen from three types of strategy: ‘cost leadership’, ‘differentiation’ and focus. From Whittington’s (2001) view this approach is a linear top-down-process, highly rational, deliberate and planned in its nature. This approach distinguishes also clearly between strategy formulation, which should be the terrain of top managers, from those who are responsible for the strategy implementation in certain divisions, the operational managers.
Summary of Chapters
1. Introduction: Outlines the rising importance of HRM for competitive success and defines the scope of the work in analyzing strategic linkages.
2. Models of Organisational Strategy: Discusses the definition of strategy and contrasts the Classical, Processual, and Systemic approaches to organizational strategy.
3. Definition of Theoretical Approaches to SHRM: Explores the Closed and Open Matching Models as frameworks for aligning HR and organizational strategy.
4. Critical Evaluation of the Selected Concepts: Critically analyzes the limitations and complexities of the introduced models in practical business environments.
5. Conclusion: Summarizes findings and emphasizes the need for an integrated, sociologically sensitive approach to HRM that goes beyond static models.
Keywords
Human Resource Management, SHRM, Organizational Strategy, Classical Approach, Processual Approach, Systemic Approach, Closed Matching Model, Open Matching Model, Strategic Choice, Employee Behavior, Business Strategy, Management, Performance, Integration, Personnel Management
Frequently Asked Questions
What is the fundamental focus of this essay?
The essay explores the relationship between organizational strategy and human resource management, questioning whether a single, 'Classical' model is adequate for modern business needs.
Which theoretical frameworks for organizational strategy are analyzed?
The work examines the 'Classical Approach', the 'Processual Approach', and the 'Systemic Approach' to organizational strategy.
What is the primary research goal?
The goal is to determine if an integrated approach to HRM is necessary to account for the complexities of today's business environment and organizational needs.
Which scientific methodology is applied?
The author utilizes a literature-based comparative analysis to evaluate pros and cons of existing SHRM and organizational strategy models.
What does the main body of the text cover?
It covers definitions of strategy, various strategic models, the 'Closed' and 'Open' matching models for SHRM, and a critical evaluation of these concepts.
What are the characterizing keywords of the work?
Key terms include SHRM, Organizational Strategy, Matching Models, Strategic Choice, and Integration.
How does the author define the 'Closed Matching Model'?
The author describes it as a model that prescribes specific HR policies and practices as relevant to particular organizational situations, often linking them directly to generic business strategies.
What is the main criticism of the 'Systemic Approach'?
Whittington argues that it highlights the complexity of social systems, suggesting that strategies must be 'sociologically sensitive' rather than universally applicable.
Why does the author advocate for an integrated approach?
The author concludes that no single approach is perfect, and given the interdependencies within an organization, a combination of 'building blocks' is required to address real-world complexity.
What role do HR executives play in this context?
According to the cited research, HR executives should function as leaders who are capable of recognizing strategic threats and opportunities rather than mere followers in the strategic process.
- Quote paper
- Tim Wilczek (Author), 2008, The "Classical Model" for practising Human Resource Management, Munich, GRIN Verlag, https://www.grin.com/document/115412
