Samsung Strategic HRM Case
“In the recent time human resource management (HRM) has assumed new prominence because of continuing concerns about global competition, the internationalisation of technology and the productivity of labour. It is argued that these market imperatives require manager to change the way in which they manage the employment relationship in order to allow for the most effective utilization of human resources (HR). Managers and academics argue that the traditional approaches to managing workers are inappropriate and ‘can no longer deliver the goods’ (Betcherman et al., 1994, p. 2). Harnessing workers’ full potential and producing the attitudes and behaviour considered necessary for a competitive advantage require three aspects of managerial control to change: organisational design, culture, and HR policies and practice. Current managerial orthodoxy therefore argues the need for a restructuring towards ‘flat’ hierarchical structures, an enlargement of job tasks with greater employee autonomy and managerial leadership to shape the more intangible aspects of the workplace, for examples beliefs, norms and values.” (Bratton and Gold, 2003, p. 4)
In the first part of this paper, I will discusses strategic human resource management (SHRM) and its practice in the one of the world’s biggest company Samsung group. And evaluate how Samsung is practicing human resource management.
In the second part of the paper discuses HR functions and various models and how Samsung adopt vertical and horizontal integration in their human resource department and then give some recommendations for Samsung according to the discussion.
Strategic Nature of HRM
Perhaps the most significant feature of HRM is the importance attached to strategic integration, which flows from top management’s vision and leadership, and which requires the full commitment of people to it. Guest (1987, 1989a, 1989b, 1991) believes that this is a key policy goal for HRM, which is concerned with the ability of the organisation to integrate HRM issue into the strategic plane, to ensure that the various aspect of HRM cohere, and to encourage line managers to incorporate an HRM perspective into their decision-making.
Legge (1989) considered that one of the common themes of the typical definitions of HRM is the human resource policies should be integrated with strategic planning. Sisson (1990) suggested that a future increasingly associated with HRM is a stress on the integration of HR policies both with one another and with business planning more generally. Storey (1989) suggested that: ‘the concepts locates HRM policy formulation firmly at the strategic level and insists that a characteristic of HRM is its internally coherent approach.’(Armstrong, 2006, p-13)
Strategic Human Resource Management
“Strategic HRM is an approach to making decisions on the intentions and plans of the organization in the shape of the policies, programmes and practices concerning the employment relationship, resourcing, learning and development, performance management, reward, and employee relations. The concept of strategic HRM is derived from the concepts of HRM and strategy. It takes the HRM model with its focus on strategy, integration and coherence and adds to that the key notions of strategic capability and strategic fit.”
According to Hendry and Pettigrew (1986), strategic HRM has four meanings: 1.
The use of planning;
A coherent approach to the design and management of personal systems based on an employment policy and manpower strategy and often underpinned by a ‘philosophy’; 3.
Matching HRM activities and policies to some explicit business strategy; 4.
Seeing the people of the organisation as a ‘strategic resource’ for the achievement of ‘competitive advantage’. (Armstrong, 2006, pp 115-116)
The Form of SHRM
The form of SHRM used is represented by the management’s commitment to the: •
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