Human resource management is a strategic and coherent approach to the management of an organization’s most valued assets – the people working there, who individually and collectively contribute to the achievement of its objectives. Boxall et al(2007) describe HRM as ‘the management of work and people towards desired ends’. John Storey (1989) believes that HRM can be regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning’. He suggests four aspects that constitute the meaningful version of HRM: 1) a particular constellation of beliefs and assumptions; 2) a strategic thrust informing decisions about people management; 3) the central involvement of line managers; and 4) reliance upon a set of ‘levers’ to shape the employment relationship Strategy
Strategy has two fundamental meanings. First, it is forward looking. It isabout deciding where you want to go and how you mean to get there. It is concerned with both ends and means. Strategy has two fundamental meanings. First, it is forward looking. It is about deciding where you want to go and how you mean to get there. It is concerned with both ends and means. Strategy is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. (Chandler, 1962) Strategy is concerned with the long-term direction and scope of an organization. It is also crucially concerned with how the organization positions itself with regard to the environment and in particular to its competitors… It is concerned with establishing competitive advantage, ideally sustainable over time, not by technical manoeuvring, but by taking an overall long-term perspective. (Faulkner and Johnson, 1992) Culture
Cleland (1994): "An organizational culture is the environment of beliefs, customs, knowledge, practices, and conventionalized behavior of a particular social group. Every organization, every corporation has its distinct character. People make organizations work, and the culture of the corporation ties the people together, giving them meaning and a set of principles and standards to live and work by". Harrison (1972) describes culture as: "that distinctive constellation of beliefs, values, work styles and relationships that distinguishes one organisation from another - in other words, the sum of those aspects of an organisation which give it a particular climate or feel." Relationship Between Strategy and Culture
* Strategy drives focus and direction while culture is the emotional, organic habitat in which a company’s strategy lives or dies * Strategy is just the headline on the company’s story – culture needs a clearly understood common language to embrace and tell the story that includes mission, vision, values and clear expectations * Strategy is about intent and ingenuity and culture determines and measures desire, engagement, and execution * Strategy lays down the rules for playing the game, and culture fuels the spirit for how the game will be played * Strategy is imperative for differentiation, but a vibrant culture delivers the strategic advantage * Culture is built or eroded every day. How you climb the hill and whether it’s painful, fun, positive, or negative defines the journey * When culture embraces strategy, execution is scalable, repeatable, and sustainable * Culture is a clear competitive advantage
* Culture must be monitored to understand the health and engagement of your organization
The HARVARD MODEL [ BEER ET AL (1984) ]
The Harvard model has exerted considerable influence over the theory and practice of HRM particularly in its emphasis on the fact that HRM is the concern of management in general, rather than the HR functions in particular.The Harvard model is based on the following six factors shown in fig 1 Also described as the ‘founding fathers’ of the HRM concept were Beer et al...