Strategic HRM

Question 1

What does people management entail?

Answer 1

1. Workforce planning
2. Resourcing
3. Employee development
4. Performance management
5. Rewarding and recognising
6. Turnover and retention

Question 2

When does HRM become strategic?

Answer 2

• People management is designed with business strategy in mind.
• The way people are managed helps organization achieve its goals..
  .. and HR is therefore aligned with organization’s strategy (= connecting the 2 keypoints strategy & goals to align HR)

Question 3

Key lessons from NUMMI for Strategic HRM

Answer 3

The importance of alignment

Question 4

HR Philosophy

Answer 4

Organization’s views on:

1. How important are people to our organization’s success?
2. How do we want to treat people?

Question 5

HR Strategy

Answer 5

Strategy towards how people are managed in the organization, to achieve organizational goals

Question 6

HR systems/practices

Answer 6

Specific people management practices (or bundles or practices)

Question 7

Vertical alignment

Answer 7

Organization strategy fitting with HR practices (Recruitment & selection, Job design, Org structure, training & development, reward practices, performance management)

Question 8

Horizontal alignment

Answer 8

1. Positive synergy (powerful combinations) between different HR practices –> culture & fit; teamwork & collaboration
2. Deadly combination (negative synergy)
   - -> culture & fit; teamwork & collaboration not synergetic with individual performance and quantity over quality.

Question 9

Evidence for importance of alignment (Han, Kang, Kehoe & Lepak, 2019)

Answer 9

Both alignments are equally important. Depending upon the market entry position:
1. First mover → needs more flexibility; it is not written & there are no formal policies
2. Fast follower → are best for high performance work practices, and they focus on developing ability.
But they do not need most forward-looking practices
3. Fence sitter → do not find high performance work systems necessary (do HR practices all have effect?) and wait & see how things turn out → waiting until market is settled what is the best way to take decisions
HR practices depend on its strategy.

Question 10

Evidence for importance of alignment (Han, Kang, Kehoe & Lepak, 2019)

Answer 10

1. High performance work-practices are even more effective for ‘fast followers’ when there is a high level of internal consistency.
2. So this study supports both vertical alignment (HPWPs are better for some types of market entry) and high horizontal alignment (even more so when horizontally aligned).

Question 11

HUMAN CAPITAL theories?

Answer 11

1. Resource-based theory → people are the source of competitive advantage
2. Human Capital Theory (configurations) → need to think about the value and uniqueness of individuals
3. Human capital model: