The field of Human Recourse Strategy (HRS) is a relatively new area of
research and therefore a lot of different approaches and opinions exist. With the
emergence of different schools, approaches and frameworks the gap between the
academic world and the one of managers and their businesses widened up.
Therefore, Wright and McMahan (2001, p.50) suggest the need for a good theory,
which goes in line with the business strategy field where Elfring and Volberda (2001)
see the need for synchronizing the diverse ideas which have developed (2001).
To get the whole picture I will first illustrate the historical background and the value of
Human Recourse Strategy (HRS), then go on to the different approaches of HRS and
also examine if these approaches are rather a plan, an outcome or a process. Finally,
I will conclude with an own perspective on the HRS field.
Table of Contents
1. Introduction
2. The Development of HRS
3. Different Connections between HRS and Business Strategy
4. Conclusion
5. Bibliography
Objectives and Topics
This paper aims to investigate whether Human Resource Strategy (HRS) should be conceptualized as a static plan, a predictable outcome, or a dynamic process. By examining the historical development of the field and contrasting various theoretical frameworks, the research explores how HRS integrates with business strategy and the challenges associated with its practical implementation.
- Evolution of Human Resource Strategy within corporate management.
- Comparison of Universalistic, Contingency, and Configurational approaches.
- The role of Resource-Based View (RBV) in shaping modern HR strategies.
- Financial valuation and the management of HR as a strategic asset.
- Critical analysis of strategy as either a formal plan or an emergent process.
Excerpt from the Book
3. Different Connections between HRS and Business Strategy
Basically, all HRS approaches try to find a way how to influence the employee’s behaviour according to the business strategy so that the company could perform better than its competitors. According to Delery and Doty (1996) the differences within HRS and how it can be linked with the business strategy can be identified within the broad categories of the Contingency Approach, the Universalistic Approach and the Configurational approach. The next paragraph will briefly look at these approaches.
The Universalistic or Best Practices view argues that high performance work practices will increase organisational performance irrespective of organisational, industrial, or national context. Pfeffer (1998) presents empirical evidence that strongly supports a direct relationship between a company’s financial success and its commitment to HRM practices that treat employees as assets’. Pfeffer (1998) asserts that a greater use of seven HR practises: employment security, selective hiring, self managed teams/team working, incentive pay, training, information sharing and reduction of status differences results in higher productivity and profit across all types of organisations. This seems easy enough but not every company went through the same history and therefore not every practise which worked good in the one company will work in another one. That is maybe why Guest (1997) noted that there is empirical support for each of the three perspectives but consistently stronger support for the universalistic model.
Chapter Summaries
1. Introduction: This chapter provides an overview of the research field, identifying the gap between academic theory and management practice, and outlines the methodology for examining HRS.
2. The Development of HRS: This chapter traces the historical rise of HRM importance and the shift from economic-focused strategies to valuing soft factors like culture and talent.
3. Different Connections between HRS and Business Strategy: This chapter analyzes the primary theoretical frameworks—Universalistic, Contingency, and Configurational—used to link human resources with corporate objectives.
4. Conclusion: This chapter summarizes the findings, arguing that HRS is a dynamic process shaped by human behavior rather than a static, perfectly implementable plan.
5. Bibliography: This section lists all academic sources and literature referenced throughout the study.
Keywords
Human Resource Strategy, HRM, Business Strategy, Contingency Approach, Universalistic Approach, Configurational Approach, Corporate Planning, Competitive Advantage, Resource Based View, Organizational Performance, Strategic Management, Talent Management.
Frequently Asked Questions
What is the core focus of this work?
The work explores the nature of Human Resource Strategy (HRS), specifically debating whether it functions best as a predefined plan, a measurable outcome, or an ongoing organizational process.
What are the primary themes discussed?
The central themes include the historical evolution of HR, the integration of HR into broader business strategy, and the comparison of competing academic frameworks for managing employees.
What is the main objective or research question?
The primary objective is to evaluate how different HRS approaches relate to business strategy and to determine if these strategies can be effectively managed as static plans or if they require a more dynamic approach.
Which scientific method is utilized?
The paper utilizes a qualitative literature-based research method, synthesizing historical backgrounds and existing academic frameworks to compare and critique current HRS theories.
What topics are covered in the main section?
The main section covers the development of HRS from the 1970s to the present, details the three major theoretical categories (Universalistic, Contingency, and Configurational), and analyzes the link between strategy and competitive advantage.
Which keywords best characterize this research?
Key terms include Human Resource Strategy, Business Strategy, Resource Based View, Strategic Management, and Organizational Performance.
How does the author define the 'Universalistic Approach'?
The author defines it as the 'Best Practices' view, which suggests that specific HR practices—such as selective hiring and incentive pay—lead to higher performance regardless of the organization's context.
Why does the author favor viewing HRS as a 'change process'?
The author argues that because human behavior and political decisions are unpredictable, HRS cannot be perfectly planned and must therefore be viewed as a dynamic, evolving process of changing policies and philosophies.
- Quote paper
- Elisabeth Luger (Author), 2004, What is Human Recourse Strategy?, Munich, GRIN Verlag, https://www.grin.com/document/21770
