Human Resource Management

Human Resource Management

Effective human resource management is undoubtedly critical to the success of virtually all firms. Thus its importance is huge in the study of business strategy; which is the system of the firm’s important choices that are critical to the firm’s survival and relative success (Boxall and Purcell 2003). Getting more specific, strategic human resource management as a field of study is concerned with the strategic choices associated with the use of labour in firms and with explaining why some firms manage them more effectively than others (Boxall and Purcell 2003). Traditionally there has been much debate in the field of strategic HRM over two main schools of thought; “best fit” (contingency theory), and “best practice” (universalism).

The “best fit” school of thought argues that HR strategy will be more effective when it is appropriately integrated with its specific organizational and broader environmental context (Boxall and Purcell 2003). This proposes questions about which are the most critical contingencies in this context and how they are best connected. The ‘best practice’ school of thought argues that all firms will see performance improvements if only they identify and implement best practice. This perspective requires top management to commit themselves to key HR practices. Basically, the idea is that a particular bundle of HR practices has the potential to contribute improved employee attitudes and behaviours, lower levels of absenteeism and labour turnover, and higher levels of productivity, quality and customer service. This has the ultimate effect of generating higher levels of profitability (Boxall and Purcell 2003).

Both of the aforementioned “best theory” approaches to strategic HRM place emphasis on critical choices associated with competitive strategy; such as which industry to enter and what competitive position to seek in it (Boxall and Purcell 2003). However, these models make some serious assumptions of the firms HRM. They assume that the firm already has a clever leadership team that makes the competitive strategy choices effectively. They also assume that human resource issues such as hiring and training a capable workforce are straightforward and basic. The resource-based view (RBV) of strategy, a modern school of thought in the field of strategic HRM, sees these issues as strategic rather than stra...

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... over time, and their importance to sustained competitive advantage (Boxall and Purcell, 2003).

Works Cited

Boxall, Peter and Purcell, John. Strategy and Human Resource Management. Palgrave Macmillan. 2003.

Deephouse D. ‘To be different, or to be the same? It’s a question (and theory) of strategic balance’ , Strategic Management Journal, Vol. 20, 1999. pp147-166

Mabey, Christopher and Salaman, Graeme and Storey, John. Human Resource Management: A Strategic Introduction. Blackwell Business. 1998.

Marchington, Mick and Wilkinson, Adrian. People Management and Development: Human Resource Management at Work. CIPD Enterprises Ltd. 2002.

Purcell, John. “Business Strategies and Human Resource Management: Uneasy Bedfellows or Strategic Partners?” University of Bath. April 27, 2005

[http://www.bath.ac.uk/werc/pdf/business_strategies_and_HRM.pdf]

Sisson, Kieth and Storey, John. The Realities of Human Resource Management: Managing the Employment Relatoinship. Open University Press: Buckingham. 2000.

Schuler, Randall S. and Jackson, Susan E. Strategic Human Resource Management. Blackwell Publishers Ltd. 1999.