In Colloboration with

6518YPCBSC
STRATEGIC HRM

Introduction to Module, Summative Assessment

Activity and Principles of SHRM.
“Education Without Confidence
Equals Nothing”
John McGlone (2022)
Today’s session ….

In this session, we will address the

following:
• Module objectives.
• Summative assessment activity expectations.
• A critical review of strategic HR and its principles.
The aim of this module is to apply strategic HRM theories
and models to case study situations and make
appropriate recommendations. Therefore, you will need to
understand how HRM derives from, and contributes to
business strategy.

6018LBSBSC is a 20 credit module.

There are 2 main components:

• Lecture
• Activities and discussions

Assessment
• Case study report (100% of module mark)

Core text
 Module Objectives
After completing the module, you should be
able to:
1. Understand the connections between
organisational structure, strategy and the
Module intended business operating environment.
learning outcomes 2. Understand organisational culture and
theoretical perspectives on how people
behave at work.
3. Understand how people practice supports
the achievement of business goals and
objectives.
Today’s session ….

In this session, we will address the

following:
• Introduce the concept of strategy, strategic
management, strategic human resources and
principles of human resources
• Understand the differences between each concept and
its relations to human resources
 Summative Assessment
Activity Expectations

Your summative assessments activity for this unit

will include:
 Workshop :
 CIPD Strategic HRM Factsheet
 Seminar :
 TESCO – case study purpose and values
 What is strategic HR?

Before we explore strategic HR, we will briefly explore

strategy and aspects of strategy formulation.

Strategy Strategic Principles of

HR Strategic HR
 What is strategy?
• There are differing views of strategy because it is a concept applied in
business, marketing, entrepreneurship and HR to name a few.

• Huselid and Becker (2010) defined strategy as a business approach to

a set of competitive moves that are designed to generate a successful
outcome.

• On the other hand, Porter (1996) viewed strategy as a competitive

process. He said, it is how businesses compete to be the best and
compete to be unique.

• A contrasting perspective is anchored by Rumelt (2011), claiming that

strategy is a type of problem solving.
 What is strategy?
(In Summary….)

"Strategy is the direction and scope of an

organisation over the long-term: which achieves
advantage for the organisation through its
configuration of resources within a challenging
environment, to meet the needs of markets and
to fulfill stakeholder expectations".
Johnson and Scholes (1997)
 What are the values
In other words and expectations of
those who have
What external, environmental factors affect
strategy is the businesses' ability to compete?
Stakeholders power in and
around the
about….. (environment)?
Environmen
business?
(stakeholders)
t
What external, environmental
Resources
factors affect the businesses'
What resources (skills,
ability to compete? (environment)?
assets, finance,
How can the business perform Advantag relationships, technical
better than the competition in e competence, facilities) are
those markets? (advantage)? required in order to be able
to compete? (resources)
Markets
Which markets should a business
compete in and what kind of
activities are involved in such
markets? (market /scope)
Direction

Where is the business trying to get

to in the long-term (direction)
 What is strategic management?

1. GOALS AND OBJECTIVES

What is to be achieved and when? (major
goals that affect an organisations overall
direction are strategic goals).
Where do we want to get to?

Three Elements of
Strategic Management
(Quinn 1980)

2. POLICIES
Guidelines within which action should occur.
3. PROGRAMMES
(strategic policies). Sequence of actions necessary to achieve
What actions should we take to get objectives (achievement of objectives).
there? How can we carry out these actions?
 Formulating strategy
A PLAN – a supervised
course of action to achieve
an intended aim; similar to
the strategic planning
concept;

In 1987, Henry Mintzberg

published 5 Ps of strategy A PERSPECTIVE – A PATTERN – a consistent
that has become a popular executing strategy based pattern of past behaviour, with
on a ‘theory of the a strategy realised over time
discourse for the business’ or ideological rather than planned
formulation of strategies. perspective of the or intended. Where the realised
organisation. pattern was different from the
intent, he referred to the
He claimed that, strategy is: strategy as emergent;

A PLOY – a specific A POSITION – identifying

manoeuvre intended to products or firms within the
outfox competition; and market, based on the conceptual
framework of different
stakeholders; a strategy
determined primarily by external
factors.
 What is HRM?

Definition of Human Resource

Management (HRM)

Human resource management

is :
• organizing, coordinating, and
managing an organization's
current employees to carry
out an organization's
mission, vision, and goals.

This includes recruiting, hiring,

training, compensating,
retaining, and motivating
employees.
 What is strategic HR?

Syed and Kramar (2012) argued that, the rise of strategic HR began in
1990s when organisations emphasised the focus on the need to align people
strategy with the overall organisational strategy.

People Organisational
strategy strategy

Strategic HR focus on outcomes and the path towards optimising

organisation’s performance.
People are not only assets but value creators.
However, they have to be aligned to the architecture of the
organisation.
So, what are the principles of strategic HR?

The next few slides will present the principles of strategic HR, and aim to
discuss the importance of this concept to organisations.
 Principles of strategic HR (cont…)
1. Aligning people management system and the organisation’s
overall objectives

The notion of strategic HR is the idea that the organisation should integrate
its strategic imperatives with HR strategy in order to meet the organisation’s
overall aim. Therefore, staff development, recruitment and selection,
appraisal, rewards and other HR matters must be merged to realise the
goals (Taylor, 2001; Schuler et al., 2001).

2. Ownership of HRM

The second view of strategic HR is that line managers should take

ownership of HRM. HR must be managed by line managers and, HR
professionals are supposed to design strategically aligned HR systems
carried out by the line managers (Jarvalt and Liiv, 2009). Ownership
structure diverse sectors and organisations, which leads to the third feature
of strategic HR – employee commitment.
Principles of strategic HR (cont…)

3. Employee commitment
 Strategic HR requires committed employees for the
overall organisation’s objectives to be achieved.
 As Storey (1989) argued, a committed person performs
better and is more loyal to the organisation. (See
example of Intuit HR strategy in the next slide)

4. Fit for purpose

 Given the above principle, the HR function develops
and retain employees to meet both the medium and
long term objective of the organisation.
 This supports the notion to be ‘fit for purpose’ – that is,
to be active in advance innovations, which improves
business performance.
 References
García-Carbonell, N., Martín-Alcázar, F. and Sanchez-Gardey, G. (2018) Determinants of building consistent human
resources management systems: A focus on internal communication. International Journal of Manpower, 39(3),
pp.354-377.

Huselid, M.A. and Becker, B.E. (2010) Bridging micro and macro domains: workforce differentiation and strategic human
resource management. Journal of Management, 37(2), pp.421-428.

Khilji, S.E. and Wang, X. (2006) ‘Intended’ and ‘implemented’ HRM: the missing linchpin in strategic human resource
management research. The International Journal of Human Resource Management, 17(7), pp.1171-1189.

Syed, J. and Kramar, R. (2012) Introduction: Making critical sense of HRM in a globalised world. In Kramar, R. & Syed, J.
(Eds), Human Resource Management in a Global Context: A Critical Approach, pp.1-8. Basingstoke: Palgrave
Macmillan.

Johnson, G., Scholes, K. and Whittington, R. ( 2007 ) Exploring corporate strategy, 7th Edition. Prentice Hall, Essex.

Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) Strategy safari: A guided tour through the wilds of strategic management.
Prentice Hall, Upper Saddle River.
 References (Cont….)
Mintzberg, H. (1987) The strategy concept I: Five Ps for strategy. California Management Review, 30(1), pp.11-24.

Porter, M.E. (1996) What is strategy? Harvard Business Review, pp.1-19.

Rumelt, R.P. (2011) Good strategy / bad strategy: The difference and why it matters. London. Profile Books Limited.

Schuler, R.S., Jackson, S.E. and Storey, J. (2001), “HRM and its link with strategic management”, in Storey, J. (Ed.), Human
Resource Management: A Critical Text, Thomson Learning, London, pp. 114‐30.

Storey, J. (1989) Human resource management in the public sector. Public Money & Management, 9(3), pp.19-24.

Taylor, H. (2001) Human resource management and new public management: Two sides of a coin that as a low value in
developing countries?, In McCourt, W. and Minogue, M. (Eds), Internationalization of Public Management:
Reinventing the Third World State, Edward Elgar, Cheltenham, pp.174‐95.