HRM THEORIES

Analyzing case study using HRM theories

Analyzing case study using HRM theories

Strategic Human Resource Management

Strategic Human Resource Management is the macro-organizational technique to view the function and role of HRM in the larger organization. Therefore, for the rationale of this study, we depict SHRM as the outline of planned human resource arrangements and activities planned to facilitate an organization to accomplish its goals and objectives. This definition emphasizes the two significant aspects that differentiate it from conventional HRM.

First, it involves in linking of HRM practices with the process of strategic management in an organization. Second, it highlights the management or correspondence amongst different practices of human resource management through an outline of planned activities. Our definition does not clearly address the similarity with other organizational possibilities like product life cycles, but these are inherent given the link to goals of organization.

Analysis of Strategic HRM

In spite of the substantial body of experimental research of SHRM that is accessible, this area of HRM has been extensively criticized for lacking a solid speculative stand. This is due to the certainty that there is much discussion as to which of the main three approaches of SHRM, universalistic, configurational, and contingency can produce the most advantageous outcomes. Though SHRM appears to have been evolved with the objective of assisting to give HRM with more reliability, it is uncertain as to the level of its efficiency due to its delicate theoretical foundations.

The primary approach to Strategic HRM is that of the universalistic viewpoint which proposed that there are specific 'best' practices of HRM that will contribute to financial and operational performance of the organization, despite of strategy (Ferris et al. 1999). Though a number of scholars agree with this statement, there has been little conformity to what practices of HRM should be incorporated in 'best practice', which appears to challenge this approach to some extent. On the contrary, there are a number of researchers and academics that contend a contingency method is more suitable to SHRM. The contingency method presumes that performance of a business will be enhanced when there is fit or consistency, among the business strategy and policies of HR (Delery & Doty, 1996). Schuler (1992) contends that practices of HRM that are not associated and reliable with organizational strategy and which disagree with other practices of HRM can restrain both organizational and individual performance.

At last, the third viewpoint, configurational SHRM is pertained with the outline of planned HR practices and procedures projected to facilitate an organization to accomplish its objectives and goals (Wright & McMahan, 1992). More exclusively, this method contends that there are particular frameworks of HRM practices that result in the high internal reliability as well as high association with organizational objectives (Ferris et al. 1999).

However, this particular area of HRM has been extremely criticized due to restrictions which stem from contradictions surrounding experimental research. Examples of these contradictions, which are general within experimental research, incorporate researchers utilizing diverse practices when exploring 'best practice' associations and investigating different ...