Strategic Hrm Essays

2992 Words Feb 21st, 2014 12 Pages

Over the last twenty years, numerous studies and researches on the companies’ HR system have moved ever more towards the strategic aspect of this function, rather than the operational one.
This shift of interest in the direction of the strategic HR has been substantially determined by the major changes occurred in the external environment in which organizations operate and in their internal environment as well.
As Ulrich et al (2001) have argued the HR function was traditionally seen as a primarily executive and professional, with the HR staff focused on administering remunerations, payroll and operational functions. However, from the 1990s, a new emphasis on strategy and the importance of HR system emerged and
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Finally, a critical discussion of these results and finding will be given.

Strategy and HR strategy

Many theorists have developed numerous definitions of strategy over the years. As well as, numerous definitions of HR strategy have been given, particularly with the purpose to investigate how HR strategy and its alignment with the company’s strategy can be significant for the achievement of the company’s goals.
The strategy, according to one of the most important authors in this field, concerns the long-term direction and goals of a firm and the actions through which that firm attempts to secure and sustain competitive advantage (Mintzberg, 1978).
Armstrong and Long (1994) identified a more detailed definition of strategy, finding different levels of it within a company. The first level is the corporate strategy, relating to the relationships between the firm and its stakeholder and the businesses the company should be in; the second level is the business-unit strategy, addressing how to compete in product-market terms; and, finally, the third level is the functional and operational strategy, in such areas as marketing, product development, manufacturing, customer service and HRM (Armstrong and Long, 1994).
A more dynamic view of strategy consists of new unplanned actions and activities that a company is forced to undertake as a result of unexpected events that may occur over time, and that enable the organisation to

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