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Human Resource Management in a Business Context, 3rd edition by Alan Price
Human Resource Management in a Business Context provides an international focus on the theory and practice
of people management. A thorough and comprehensive overview of all the key aspects of HRM, including articles from HRM Guide and other sources,
key concepts, review questions and case studies for discussion and analysis.
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The classic approach to implementing human resource strategies follows the 'matching' process
outlined in the Michigan model of HRM outlined in the first section. The goal is a realization of the organization's strategic human resource
requirements in terms of numbers and, more importantly, attitudes, behaviour and commitment. According to Miller, the key lies with 'the concept
of "fit": the fit of human resource management with the thrust of the organization'.
Michael Armstrong argues that the significant issue in HR strategy is that of integration with overall business strategy. In practice, this integration
is difficult to achieve (elaborated on pages 311-312 (pages 168-169 in the 1st edition) of Human Resource Management in a Business Context). Armstrong's solution
to these problems is to emphasize the need for human resource practitioners to achieve an understanding of how business strategies are formed. They should adopt
a wider point of view and an understanding of key business issues such as:
* Corporate intentions for growth or retrenchment (...)
* Methods of increasing competitiveness (...)
* A perceived need for a more positive, performance culture.
* Other cultural consequences of an organization's mission such as 'commitment, mutuality, communications, involvement, devolution and teamworking'.
The reality of HR strategy
(...)Whipp concludes that control of the environmental,
organizational and strategic aspects of both competition and human resources is so problematic
that the relationship between the two can only be indirect and fragile. Another critical factor
is that the human resource is but one of the resources of the firm. Strengths and weaknesses in
other areas, such as marketing and finance, may obscure the best people management.
(..)They are highlighted in recession when the business needs do not fit with 'soft' HR
values. HR strategies may focus on redundancies, and sacking employees inevitably damages or
destroys a caring corporate image. Legge outlined a strategy described as tough love
- being cruel to be kind - in which employees are expected to be both dedicated and disposable.
(...) More positively, human resource strategies can be aimed at improving an organization's
competitiveness by increasing its 'knowledge base' or competence. (...)
Extra detail - Complementarities and bundled strategies
Research by Warwick Business School has emphasised the value of 'complementarities - using
several HR practices at the same time to complement and reinforce each other (reported in PM
Online July 1998). This is common in the USA and has proven to be extremely effective in some
of the largest UK companies. The survey examined HR practices at 139 UK businesses,
particularly: incentive compensation, communication, teamworking, flexibility, job security
and skills training.
The theory of complementarities advocates that HR policies which are
consistent and mutually supportive deliver results. US firms have 'bundled' HR practices in a
formal way for some time, believing that improvements in one area enhances other HR practices
as well. Overall the survey showed productivity gains of up to 8 per cent in businesses which
bundle such practices together compared to companies which take a less comprehensive approach
to human resource management.
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