HST5504 Lecture Notes - Lecture 1: Unitarian Party, Knowledge Management, Society For Human Resource Management
WEEK 1 – INTRODUCTION TO SHRM
What is SHRM?: a mix of HRM and Strategic Management
Focuses on: not only using HRM principles but also developing a sustainable competitive performance and improving
organisational performance
Differences between HRM and SHRM:
• SHRM focuses on HR systems as opposed to HR practices
• HR systems are clusters of HR practices that have evolved to manage major occupational groups in the org.
• SHRM emphasises alignment between HR systems and business strategy
• SHRM is more macro focused as opposed to micro focused
Who is responsible for performance of HRM function?: HR professionals/specialists, company board, senior execs.
Foundations of each:
HRM (MIRCRO)
SHRM (MACRO)
• Soft (commitment orientated)
• Unitarists perspective on the employment
relationship
• Vertical alignment
• Hard (control orientated)
• Pluralist perspective on the employment
relationship
• Horizontal alignment
Basic Model of how to align HR systems with Business Strategy:
1. Formulate business strategy:
What are the strategic goals of the business?
2. Identify workforce requirements:
What employee competencies/behaviours/attitudes must HR deliver to enable the
business to reach its goals?
3. Develop HR systems:
Which HR systems will produce these employee competencies/behaviours/attitudes?
4. Develop HR scorecard measures:
How can HR measure whether its executing well for the business, in terms of producing
the required workforce competencies/behaviours/attitudes?
Vertical Alignment: aligning people with strategy and strategic priority and culture
Horizontal Alignment: coherent system of practices that support one another
Fundamental aim of SHRM: to develop strategic capability (developed through HR investments)
Capability Examples
Definition
Leadership depth
Ability of an organisation to ensure a high quality of leadership throughout the company.
Change (strategic flexibility)
Ability of an organisation to move quickly (change readiness, agility, flexibility, speed).
Customer connection
Ability of an organisation to bond with targeted customers.
Shared mindset
Ability of an organisation to create a common culture among all employees.
Knowledge management
Ability of an organisation to acquire, share, use and store valuable knowledge.
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Document Summary
: a mix of hrm and strategic management. Focuses on: not only using hrm principles but also developing a sustainable competitive performance and improving organisational performance. Shrm is more macro focused as opposed to micro focused. Hrm (mircro: soft (commitment orientated, unitarists perspective on the employment. Shrm (macro: hard (control orientated, pluralist perspective on the employment relationship, vertical alignment relationship, horizontal alignment. Basic model of how to align hr systems with business strategy: formulate business strategy: What employee competencies/behaviours/attitudes must hr deliver to enable the: develop hr systems: business to reach its goals, develop hr scorecard measures: Vertical alignment: aligning people with strategy and strategic priority and culture. Horizontal alignment: coherent system of practices that support one another. Fundamental aim of shrm: to develop strategic capability (developed through hr investments) Ability of an organisation to ensure a high quality of leadership throughout the company. Ability of an organisation to move quickly (change readiness, agility, flexibility, speed).
