Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Words of wisdom
‘If a global company is to function successfully, strategies at different levels need to inter-relate.’
‘An organization’s [HRM] policies and practices must fit with its strategy in its competitive environment and with
the immediate business conditions that it faces.’
‘The [HR-business strategy] alignment cannot necessarily be characterized in the logical and sequential way suggested by some writers; rather, the design of an
HR system is a complex and iterative process.’
Strategic Human Resource Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategic Human Resource Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
A strategic approach to Human Resource Management:
A managerial process requiring human resource policies and practices to be
linked with the strategic objectives of the organization.
Strategic Human Resource Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
What determines how HR strategy is formulated?
Does HR strategy really matter?
How do corporate decisions impact on HRM?
How does HRM impact on the ‘bottom line’?
Key questions
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategy:
A specific pattern of decisions and actions undertaken by the upper echelon of the
organization in order to accomplish performance goals.
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategic Management:
A continuous activity that requires a constant adjustment of three major
interdependent poles:the values of senior management,
the environment,the resources available.
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Model of Strategic Management:
Mission & goalsEnvironmental analysisStrategic formulation
Strategy implementationStrategy evaluation
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Environmental analysis:
• Internal organizational strengths and weaknesses
• External environment for opportunities and threats
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategic formulation:
Involves senior managers evaluating the interaction between strategic factors and
making strategic choices that guide managers to meet the organization’s goals.
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategy implementation:
Focuses on the techniques used by managers to implement their strategies
(e.g. leadership style, organizational structure, control systems, management of
human resources).
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Strategy evaluation:
Determines to what extent the actual change and performance match the desired change and performance.
Strategic Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Corporate Strategy:
Describes a corporation’s overall direction in terms of its general philosophy towards growth and the management of its various
business units.
WHAT BUSINESS ARE WE IN?
Hierarchy of Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
• Establishing investment priorities and steering resources into the most attractive business units
• Initiating actions to improve combined performance of business units
• Improving synergy between related business units to increase performance
• Making decisions re diversification
Corporate Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Business-Level Strategy:
Deals with decisions and actions pertaining to each business unit in order to
make each unit more competitive in its market-place.
HOW DO WE COMPETE?
Hierarchy of Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Business-Level Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Low-cost leadership:
To increase market-share by having the lowest unit-cost and price compared with competitors.
Differentiation strategy:
Distinguishing products from competitors by providing distinctive levels of service or quality - the customer is
prepared to pay a premium price.
Business-Level Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Functional-Level Strategy:
Pertains to the major functional operations within the business unit (including
research and development, marketing, manufacturing, finance and HR) to maximise resource productivity.
HOW DO WE SUPPORT THE BUSINESS-LEVEL COMPETITIVE STRATEGY?
Hierarchy of Strategy
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Definitions:
OUTCOME: organizational systems designed to achieve sustainable competitive advantage (Snell).
PROCESS: of linking HR practices to business strategy (Ulrich) with HR strategy as the outcome.
Strategic Human Resource Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Integration of business strategy and HR strategy:
• Linking of HR policies and practices with the strategic management process of the organization
• Internationalization of the importance of HR on the part of line managers
• Integration of the workforce into the organization to foster commitment
Strategic Human Resource Management
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
HR Strategies:
The patterns of decisions regarding HR policies and practices used by management to design, work and select, train and develop, appraise,
motivate and control workers.
HR Strategy models
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Control-based model:
Management structures and HR strategy are instruments and techniques to control all
aspects of work - to secure high productivity and profitability.
The HR strategy will be consistent with the organization’s competitive strategy.
Creates structural tensions between management and employees.
HR Strategy models
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Resource-based model:
The sum of people’s knowledge and expertise, and social relationships, has the potential to
create competitive advantage.
Exploits the distinctive competencies of a work organization (its resources and capabilities).
Leadership capabilities are critical to harnassing the firm’s human assets.
HR Strategy models
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Resource-based model
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Integrative model:
Integrates management control model with reward-effort exchange.
Characterizes two main dimensions of HR strategy: acquisition & development, locus of
control.
Four dominant types of HR strategy: commitment, collaborative, paternalistic,
traditional.
HR Strategy models
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Integrative model
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Commitment HR strategy focuses on the internal development of employee’s competencies and outcome
control.
Traditional HR strategy focuses on the external recruitment of competencies or process-based controls.
Collaborative HR strategy subcontracts work to external independent experts giving autonomy and evaluating
performance on end results.
Paternalistic HR strategy offers learning opportunities and internal promotion as trade for compliance with
process-based control mechanisms.
Integrative model
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Limitations:
• Focus on strategic decision-making
• Absence of internal strategies
• Conceptualization of managerial control
Evaluating SHRM &HR Strategy Models
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Important themes:
• HR practices and performance
• Re-engineering organizations and work
• Leadership
• Workplace learning
• Trade unions
Dimensions of SHRM
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
International HRM:
HRM issues, functions and policies and practices that result from the strategic activities
of MNCs and that impact the international concerns and goals of those enterprises
(Scullion).
Emphasizes the subordination of national culture and national employment practices to corporate
culture and HRM practices (Boxall).
International & Comparative HRM
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Comparative HRM:
Systematic method of investigation relating to two or more countries that has analytical rather
than descriptive implications.
Involves activities that seek to explain the patterns of HRM institutions and HR practices in
selected countries.
International & Comparative HRM
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
CASE STUDY: Air National
Web support material to accompany Human Resource Management: Theory and practice, Third edition © John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
CASE STUDY: Air National