strategies of ihrm

Topics: Management, Strategic management, Project management Pages: 36 (12598 words) Published: April 25, 2014
Comparative and

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and IHRM
Ashly Pinnington
1 Introduction: value creation through strategic management 2 Major stakeholders
3 Strategic management
Three perspectives on strategy implementation: strategic
management, international strategy and national competitiveness 5
Strategy viewed from two perspectives based on people: project management and organizational behaviour
6 The rise of international HRM and strategic HRM
7 IHRM challenges
8 Summary and conclusions
Discussion questions
Case study: Emirates Airlines – Airline keeps cash reserves strong
Further reading
Internet resources
Self-assessment questions

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Strategic, Comparative and Organizational Perspectives on IHRM

Learning Objectives
After reading this chapter you will be able to

Understand the process of strategic management and appreciate its implementation from differing perspectives

Know and distinguish between the various modes of entry for international strategy

Identify ways that project management and organisational behaviour conceptualise the implementation of strategy

Explain why IHRM and SHRM are an integral part of all stages of the process of strategic management

Analyse the competitive position of an organisation, its resources and core competences

Formulate IHRM strategies, policies and practices based on the corporate, international and business level strategies of the organisation

Critically evaluate the success of IHRM from multiples perspectives (e.g. customers, owners, managers and employees)

Chapter Outline
The chapter reviews common approaches to strategy and strategic management and then discusses different perspectives on strategy and the central importance of IHRM and SHRM. It ends with three major IHRM challenges which will be of strategic significance for most organisations in the future.

1 Introduction: value creation
through strategic management
Whenever organisations operate in a competitive market then they will find themselves under pressure to formulate and implement value-creating strategies. The relevance of strategic management also applies to the public and not-for-profit sectors, when they find themselves competing for resources, collaborating with private sector organisations, operating in quasi-markets and evaluated according to corporate policies

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Strategic Management and IHRM

A. Pinnington


and management techniques. The success of these organisations’ strategies often has a fundamental impact on their capacity to survive, grow and prosper. Since Michael Porter’s (1980, 1985, 1990) influential works on competitive strategy published three decades ago, executives and managers have been encouraged to identify ways that their organisations can gain a competitive advantage. A sustained or sustainable, competitive advantage occurs when a firm implements a value-creating strategy of which other companies are unable to duplicate the benefits or find it too costly to imitate. (Hanson et al., 2002)

Managing value means ‘maximising the long-term cash-generating capability of an organisation’ (Johnson et al., 2010: 490). The main ways of specifically increasing shareholder value are increasing revenue through sales volume and prices; disposal of unnecessary assets; efficient management of stock, debtors and creditors; and effective financing of the business through an appropriate mix of capital (debt and equity).

Porter (1985) specified the primary value-creating activities of an organisation when creating any product or service as inbound logistics, operations, outbound...

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