Samsung Electronics HRM Strategy

Topics: Human resource management, Stakeholder, Strategic management Pages: 21 (10214 words) Published: November 2, 2014
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Human resource management and
organizational effectiveness:
yesterday and today
Randall Schuler and Susan E. Jackson

HRM and OE


School of Management and Labor Relations, Rutgers University, New Jersey, USA and Lancaster University Management School, Lancaster, UK Abstract
Purpose – The purpose of the paper is to describe how the understanding of the relationship between human resource management (HRM) and organizational effectiveness (OE) has evolved during the past three decades and to provide examples how firms are using HRM to improve their OE today by addressing several challenges that result from a broader stakeholder model. Design/methodology/approach – This paper reviews the past and current work on the relationship between HRM and OE.

Findings – This findings indicate that the relationship between HRM and OE is very different when comparing the past with the current work on the relationship between HRM and OE. A major reason for this is the current work on OE uses the multiple stakeholder model that accounts for many more stakeholders than the past work.

Practical implications – Human resource (HR) professionals have the opportunity to demonstrate many ways by which HRM can influence OE, and not just solely on the basis of firm profitability. Thus the use of the multiple stakeholder model today offers the HR professional and the HR profession many more opportunities to demonstrate their importance and impact. Originality/value – A systematic review and comparison of the past and current relationship between HRM and OE using the multiple stakeholder model have not been using both the viewpoints of both academics and practitioners.

Keywords Human resource management, Organizational effectiveness, Multiple stakeholders Paper type General review

Starting in the late 1970s and early 1980s, human resource management (HRM) professionals and academics started to more actively consider about how their work could contribute to the effectiveness (success) of their organizations ( Jackson et al., 2014). Following up on Michael Porter’s path-breaking insights about competitive strategy and competitive advantage in the early 1980s (Porter, 1980, 1985), we proposed an approach for linking HRM with organizational effectiveness (OE) that was grounded in an understanding of the employee behaviors needed to effectively implement alternative types of competitive strategies (Schuler and Jackson, 1987). Essentially we argued that a firm’s HRM practices should be designed with and grounded in an understanding of the specific employee behaviors required to successfully implement the firm’s particular competitive strategy. The objective of a firm’s HRM practices, we argued, is encouraging and supporting employee behaviors to drive successful strategy execution. As we recognized and acknowledged then, others had already begun to discuss the potential for HRM to contribute to OE, but our article was the first to describe the systemic relationships among HRM practices and specific approaches firms could use as they strive to gain competitive advantage. That 1987 article may not have been the first article to discuss HRM using a strategic lens (i.e. looking at HRM’s role from an

Journal of Organizational
Effectiveness: People and
Vol. 1 No. 1, 2014
pp. 35-55
r Emerald Group Publishing Limited
DOI 10.1108/JOEPP-01-2014-0003



external perspective) rather than using the more familiar technical lens (i.e. looking from inside the human resource (HR) function outward), but it was one of the first ( Jackson et al., 2014; Gratton, 2000; Ulrich et al., 2013). At the core of our initial, earlier approach to strategic HRM were first, the development of a menu of HRM practice choices and second, the assertion that the choices a firm made among the different...

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