STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic human resource management defining SHRM and examining the degree to which

SHRM may be said to be contributing to organisational performance. According to Sisson, there are four main principles of SHRM, which are: A stress on the integration of personnel policies to form a coherent package, and with business planning more generally The locus of responsibility for personnel management no longer resides with specialist managers but is now assumed by senior line management. The focus shifts from management-trade union relations to management-employee relations, from collectivism to individualism. There is stress on commitment and the exercise of initiative, with managers now assuming the role of enabler, empowerer and facilitator.

On the first principles, Sisson says that the management of people becomes a critical element some would say the critical element in the strategic management of the business. SHRM derives its strategic facet from the link to wider business strategy and integration between the various HR policies, procedures and practices. The second component is explaining why so many HR practitioners in the larger organisations that now called HR consultants. The roles are to support line managers with advice on the HR aspects of their roles. Meanwhile the third component relates a change in the focus of the employment relationship. This has changed from a concentration upon the relationship between management and trade unions to that between management and individual employees. Similiar to Sisson, Guest argues that there are four main principles of SHRM: Integration of: relevant employment activities into general organisational strategies and policies; between HR pratices themselves; of line managers in the process of people management; of all employees into the business. High employee commitment to the goals and practices of the organisation. High-quality staff and internal practices to achieve high-quality products. Flexibility in terms of organisational structure, employee functions and job content to enable the organisation to respond quickly to change.

There are appears to be two similarities with Sissons four principles. They agree about the integration of relevant employment activities into general organisational strategies and policies and the existence of employee commitment to organisational goals. Hendry and Pettigrew also define SHRM in terms of four principles: The use of planning A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy, and often underpinned by a philosophy Matching HRM activities and policies to some explicit strategy. Seeing the people of organisation as a strategic resource for achieving competitive advantage.

The first of Hendry and Pettigrews principles is implied in the emphasis upon strategy. They argue that HR planning is an importat part of meeting business needs. The second and third are consistent with the principles of vertical integration included in the lists of Sisson and Guest, albeit that they include the notion of personnel systems being based on a philosophy. Hendry and Pettigrew argue that having an HRM philosophy is a way of ensuring that HR practices are governed not lost by technological social and economic circumstancesbut by a degree of idealism as well. The principles theoritical approaches to SHRM are termed: universalist, matching models (closed) and matching models (open). The universalist approach assumes that there are best HR practices that promise success irrespective of organisational circumstances. The matching models (closed) approach specifies HR policies and practices that are relevant to specific organisational situations, whereas the matching models (open) approach defines the employee behaviours necessitated by the organisations overall strategy. These behaviours are to be delivered through HR strategy. Universal model suggests that there is one best way of achieving HR effectiveness. The link between organisational strategy and HR strategy is still emphasized but advocates of the universalistic school argue that this involves top management giving HR practices the profile they deserve in the senior management process. Boxall and Porcell define the universalists stress the importance of: Top management commitment to key HR practices. Researching the leading edge of best practice. Publicising commitment to specific best practices. Measuring progress towards the best practices. Rewarding line managers for the consistent implementation of the best practices.