STRATEGIC HUMAN RESOURCE 2.
Alignment with Business Strategy
o HR policies must support the
MANAGEMENT
organization’s overall strategy.
3. Commitment and Flexibility
HUMAN RESOURCE MANAGEMENT
o Modern organizations encourage
® It refers to the strategic and coherent
employee commitment, teamwork,
approach to managing an organization’s
and, flexibility in adapting to change.
most valuable assets: its employees.
® The term human resources refer to all the
capabilities that employees bring into
THEORIES BEHIND HRM
the organization. These include
knowledge, skills, experience, creativity, • Motivation and Commitment Theories:
networks and relationships, energy and These theories suggest that employees
effort, motivation and physical and perform better when they feel motivated,
emotional well-being feel committed to their organization, and feel
® Before HRM, the common term used was valued by the management.
• Behavioral Science Theories: These
Personnel Management.
theories focus on understanding human
o Personnel management mainly behavior in organizations. They study
focused on administrative tasks like: employee attitudes, leadership styles, group
payroll, hiring, and discipline. dynamics, and motivation.
® HRM focuses on three major aspects: • Resource-Based View (RBV): It states
o Employment that organizations gain competitive
§ Recruiting and selecting the advantage when they possess resources that
are valuable, rare, difficult to imitate, and
right people
difficult to substitute.
§ Ensuring organizations hire
employees with the right skills. MAJOR MODELS OF HRM
o Management • THE HARVARD MODEL
§ Supervising employees - Focuses on a broader perspective of HRM.
§ Designing work systems - It suggests that organization must consider
multiple stakeholders, including employees,
§ Ensuring employees perform
management, government, society, and
effectively. shareholders.
o Development - HR decisions influence employee
§ Training and developing commitment, competence, congruence
employees (alignment), and cost effectiveness.
§ Improving knowledge, skills, - HRM operates through structured HR
and abilities. system. This system includes.
o HR Strategies: Long-term plans for
HRM PHILOSOPHY managing people.
o HR Policies: Guidelines that shape
1. Employee as Competitive Advantage employee management.
o Employees are not just workers; they o HR Practices: Specific activities such
are sources of innovation, as recruitment, training, performance
productivity, and growth. evaluation, and compensation.
o These elements work together to
ensure employees are managed
effectively and contribute to
organizational success.
• THE MATCHING MODEL (MICHIGAN
MODEL)
HRM AND ORGANIZATIONAL
PERFORMANCE
• Organizational Performance: It refers to
how well an organization achieves its good
such as higher productivity, quality output,
employee satisfaction, and profitability.
• Studies suggest that effective HR practices
can improve employee productivity, service
quality, customer satisfaction, and financial
performance.
• How HRM? Influences organizational
performance.
o Recruitment and Selection
o Training and Development
• Organizational performance depends on
many factors including leadership, market
conditions, and technology.
THE AMO MODEL
• Explains how HR practices influence
employee performance.
• Performance depends on three factors:
o Ability: Employees must have the
skills and knowledge to perform their
jobs.
o Motivation Employees must be
motivated to work well.
o Opportunity: Employees must have
opportunities to contribute.
Ethical Dimension of HRM
• Ethical HRM build trust between employees
and management.