Human Resource Management (Available Titles Coursemate)

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Strategic Human Resource Management What is meant by strategic human resource management ? Mathis and Jackson (2003) define strategic human resource management as “organizational use of employees to gain or keep a competitive advantage against competitors” (p.30). Perhaps an even better definition is that strategic human resource management can be thought of as ‘the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.’” Randall Schuler defines human resource strategy as, “HR strategies are essentially plans and programs to address and solve fundamental strategic issues related to human resources management” (in Greer, 2000, p. 128) “Human resources strategy focuses on the alignment of the organization’s human resources practices, policies, and programs with corporate and strategic business unit plans.” (Greer, 2000, p. 128). Some authors posit that the human resources of the firm should be viewed as human assets from the investment perspective (Greer, 2000; Mello, 2002). They argue that more than ever before management in organizations has begun to see their human resources as an important area of investment decision, just as they must make decisions about physical resources. Greer (2000) cites management values, views of risk and return on investment, the economic rationale for investment in training, utility theory, and alternatives to human resource investments as critical factors. “When senior managers formulate and implement strategies, their values and philosophies are communicated to members of the organization through human resource policies and practices” (Greer, 2000, p. 3). He points to the risk involved since an employer does not own its human resources. Due to their attractiveness to other employers, they may leave, taking their expertise with them. Investments in training must be made with an eye to the expected return on investment (Greer, 2000). “ Utility theory attempts to determine the economic value of human resource programs, activities, and procedures” (Greer, 2000, p. 5). Alternatives to investments in human resources include outsourcing are being used by many organizations, especially in those situations where 1. World-class capabilities and a strategic advantage cannot be developed. 2. The resources devoted to services performed internally will be greater than those needed to outsource the service, and 3. Excessive dependency on supplies can be avoided.” (Greer, 2000, p. 6) Interestingly, Edward Lawler III. disagrees with this perspective somewhat. He notes that changes have been occurring in the relationship between employers and employees, such as: (a) the performance demands on the organization, (b) rapid technological changes in the nature of work, and (c) the shift from permanent to a more transitory relationship (Lawler, 2000). Sources of performance pressure include (a) a shift towards capitalism and global capital markets, (b) the
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Strategic_Human_Reso - Strategic Human Resource Management What is meant by strategic human resource management Mathis and Jackson(2003 define

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