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Strategic Human Resources Management

What is meant by a strategic approach to HRM? How can a strategic approach to HRM be a source of competitive advantage to an enterprise? Illustrate your view by reference to relevant literature and case studies drawn from GSN406 course materials.

“The most powerful of the strategic configurations of power remains people... you must work on developing an organizational espirit de corp that aligns the hearts and minds of your staff with the aims of the business”.

(Boar 1997, p. 196)

Acronyms used in this paper:

HR Human resources HRM Human Resources Management SCA Sustainable Competitive Advantage SHRM Strategic Human Resources Management

Student: Jason D Bingham Student no.: Unit: GSN406 HR Management Issues Assessment: 1 (15% weighting) Word limit (( 1000) 1047 (excl. list of references etc.) Lecturer: Due date: Friday 25 May 2001

Table of contents

1.0 Introduction 1

2.0 Definitions 1

2.1 Human Resource Management 1

2.2 Strategic management 1

2.3 Competitive advantage 1

3.0 Strategic approaches to HRM 1

4.0 How SHRM can provide competitive advantage 2

5.0 Validation of SHRM: Case studies of successful firms 3

5.1 SAP (Australia) 3

5.2 Delta Airlines (USA) 3

5.3 Pepsi-Cola International 3

5.4 Apple Computer (USA, Europe, Pacific) 3

6.0 Conclusion 3

7.0 List of references 5

8.0 Bibliography 6

Appendix I - Equal status organisational chart 7

Introduction

Human resources management in contemporary business is significantly different to traditional personnel management. Furthermore, many organisations now adopt a strategic approach to HRM in recognition of the competitive advantages that it can provide to the organisation as a whole. This essay



Bibliography: Anthony, W., Perrewe, P. and Kacmar, K. (1996) Strategic Human Resource Management, (2nd Ed.), Dryden, Fort Worth: TX, pp. 74-108. Schuler, R. and Huselid, M. (1997) ‘HR strategy in the United States: examples of key issues identification and execution’, in Tyson, S. (ed.) The Practice of Human Resource Strategy, Pitman, London, pp. 174-202. Swiercz, P. and Spencer, B. (1992) ‘HRM and sustainable competitive advantage: lessons from Delta Air Lines’. Human Resource Planning, 15(2), pp. 35-46. Appendix I - Equal status organisational chart This is an example of an organisational chart where the company accords equal status to the function of HRM. -----------------------

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