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Congruence in
strategic human resource management
Introduction
The central idea behind
strategic human resource management is that
corporate
should
deal
with
the
relationship
between
corporate
strategy,
organization
structure
and
human
resource
practices.
And
make
these
three essential factors be in support
for the organization’s overall strategy.
As a prerequisite for understanding how
to strategically
manage human
resources,
in
this
essay,
I
will
demonstrate
the
concept
of
corporate
strategy,
organizational
structure
and
human
resource
management
practices, as well as the relationship
among them and select one company
as
specifics example to analyze the topic
Corporate
strategy
A corporate strategy is the
set of management decisions
–
designed by
executives, the board, senior
management team or whoever are the final
decision makers in the organization
–
that are meant to get the
better of
adversaries or attain the
organizations ‘ends’.
Strategic management is a
field that deals with the major intended and
emergent
initiatives
taken
by
general
managers
on
behalf
of
owners,
involving utilization of resources, to
enhance the performance of
?
rms in
their
external
environments.
It
entails
specifying
the
organization's
mission,
vision
and
objectives,
developing
policies
and
plans,
often
in
terms
of
projects
and
programs,
which
are
designed
to
achieve
these
objectives,
and
then
allocating
resources
to
implement
the
policies
and
plans,
projects
and
programs.
A
balanced
scorecard
is
often
used
to
evaluate the overall
performance of the business and its progress
towards
objectives.
Recent
studies
and
leading
management
theorists
have
advocated that strategy needs to start
with stakeholders expectations and
use
a modified balanced scorecard which includes all
stakeholders.
Strategic management is a
level of managerial activity under setting
goals and over Tactics. Strategic
management provides overall direction
to the enterprise and is closely
related to the field of Organization Studies.
In the field of business administration
it is useful to talk about
alignment
between
the
organization
and
its
environment
or
consistency.
Strategic
management
includes
not
only
the
management
team but can also include the Board of
Directors and other stakeholders
of the
organization. It depends on the organizational
structure.
The
specific approach to strategic management can
depend upon the
size
of
an
organization,
and
the
proclivity
to
change
of
its
business
environment. These
points are highlighted below:
1.
as
A
global/transnational
organization
may
employ
a
more
structured
strategic
management
model,
due
to
its
size,
scope
of
operations,
and
need to encompass stakeholder views and
requirements.
2.
An SME (Small and Medium Enterprise)
may employ an entrepreneurial
approach.
This
is
due
to
its
comparatively
smaller
size
and
scope
of
operations,
as
well
as
possessing
fewer
resources.
An
SME's
CEO
(or
general
top
management)
may
simply
outline
a
mission,
and
pursue
all
activities under that mission.
Organizational
structure
An organizational
structure consists
of
activities
such
as
task
allocation, coordination and
supervision, which are directed towards the
achievement
of
organizational
aims. It
can
also
be
considered
as
the
viewing
glass
or
perspective
through
which
individuals
see
their
organization and its
environment.
An
organization can be structured in many different
ways, depending
on
their
objectives.
The
structure
of
an
organization
will
determine
the
modes in which it operates and
performs.
Organizational
structure
allows
the
expressed
allocation
of
responsibilities for
different functions and processes to different
entities
such as the branch,
department, workgroup and individual.
Organizational structure affects
organizational action in two big ways.
First, it provides the foundation on
which standard operating procedures
and
routines
rest.
Second,
it
determines
which
individuals
get
to
participate in which
decision-making processes, and thus to what extent
their views shape the
orga
nization’s actions.
An
organizational
structure
depends
entirely
on
the
organization's
objectives
and
the
strategy
chosen
to
achieve
them.
In
a
centralized
structure, the
decision making power is concentrated in the top
layer of
the
management
and
tight
control
is
exercised
over
departments
and
divisions.
In
a
decentralized
structure,
the
decision
making
power
is
distributed
and
the
departments
and
divisions
have
varying
degrees
of
autonomy.
Organizational
structure
depends
on
the
product
to
be
developed.
Wheelwright
and
Clark
define
a
continuum
of
organizational
structures
between two extremes, functional
organizations and project organizations.
Functional
organizations
are
organized
according
to
technological
disciplines.
Senior
functional
managers
are
responsible
for
allocating
resources.
The
responsibility
for
the
total
product
is
not
allocated
to
a
single person. Coordination occurs
through rules and procedures, detailed
specifications,
shared
traditions
among
engineers
and
meetings
(ad
hoc
and structured).
Products that need a high level of specialized
knowledge
require a functionally
organized structure.
A
light-weighted matrix organization remains
functional and the level
of
specialization
is
comparable
to
that
found
in
the
functional
mode.
What is different, is
the addition of a product manager who coordinates
the
product creation
activities through liaison
representatives from
each
function. Their main tasks are: to
collect information, to solve conflicts
and
to
facilitate
achievement
of
overall
project
objectives.
Their
status
and influence are
less as compared to functional managers, because
they
have no direct access to working-
level people.
A
heavy-
weighted
matrix
organization
exists
of
a
matrix
with
dominant the project structure and
underlying the functional departments.
The
product
manager
has
a
broader
responsibility.
Manufacturing,
marketing
and
concept
development
are
included.
The
status
and
influence of the product manager, who
is usually a senior, is the same or
higher
as
compared
to
the
functional
manager.
Compared
to
functional
managers, because
they have no direct access to working-level
people.
Another
way
to
classify
organization
structure
is
by
one
of
the
following
four categories:
1.
The
product
to
be
developed
is
comprehensible
for
one
person.
One
person
is
likely
to
have
all
the
knowledge
needed
to
develop
Manufacturing
and Assembly. The development department in
companies
that
undertake
these
kinds
of
projects
are
usually
very
small.
If
a
company consists of more than one
department, it is usually structured as
a functional organization.
2.
The product to be developed has a
fairly low complexity, but total work
is
high.
These
kinds
of
products
are
likely
to
be
developed
within
one
functional department. A research
department may also be an example of
a
department
in
which
type
II
projects
are
undertaken.
Are
more
departments
involved
then
the
light
weighted
matrix
structure
is
preferable.
Employees
are
involved
on
a
full-time
basis.
Tasks
may
be
performed
concurrently.
The
sequence
can
be
determined
using
the
Design
Structure Matrix.
3.
The product to be developed consists of
a lot of different elements, such
as
software, PCB, power supply and mechanical
structure. The product is
however in
the engineering phase, i.e. it is clear what needs
to be done to
get
the
product
into
production.
Various
disciplines
perform
their
own
tasks.
These tasks have mostly a low workload. Employees
cannot work
full-time
on
one
project.
This
creates
a
complex
situation
that
may
be
compared
to
a
job
shop
situation
in
production
logistics.
Though
the
comparison
between
manufacturing
and
product
development
is
not
accepted
by all product development managers, it may yield
good results.
Studying each step in the
Product Development Process and fluctuations
in workloads
reveals ways to reduce variation and eliminate
bottlenecks.
It is necessary to view
the Product
4.
The
product
is
complex.
Total
work
is
high.
Employees
can
thus
participate
on
a
full-time
basis.
A
project
organization
is
the
most
appropriate organizational structure
for these kind's of products.
Human resource management
practices
In
the
organizations
or
firms,
human
resource
management
(HRM)
practices
as
a
mediator
between
HRM
strategy
and
HRM
outcome.
Sheppeck
and
Militello
focus
HRM
strategy
into
four
groups:
employment
skill
and
work
policies,
supportive
environment,
performance
measurement
and
reinforcement
and
market
organization
whereby Guest divides in to three
categories: differentiated on innovation,
focus on quality and cost-reduction.
However, there are many definitions
in
previously
researches
on
HRM
strategy,
but
all
strategies
used
to
achieve
the
same
organizational
goal
through
HRM
practices.
Sivasubramanian
and
Kroeck
verify
the
various
perspective
of
human
resource management as
the concept of fit or integration. Based on Guest
suggests the various types of human
resource management can be classify
in
two dimensions as internal and external fit.
External fit explain HRM
as
strategic
integration
whereby
internal
fit
as
an
ideal
of
practices.
Several of
researches try to examine which fit is
appropriately. Youndt et
al.,
who
observe
the
external
fit,
their
result
shows
more
particular
fit
between
high
performance
HRM
practices
and
quality
strategy.
Stavrou-Costea
also
argued
that
the
effective
human
resource
management
can
be
the
main
factor
for
the
success
of
a
firm.
As
supported
by
Lee
and
Lee
HRM
practices
on
business
performance,
namely
training
and
development,
teamwork,
compensation/incentive,
HR
planning, performance appraisal, and employee
security help improve
firms’ business
performance including employee’s productivity,
product
quality and firm’s flexibility.
Ruwan
empirically
evaluated
six
human
resource
(HR)
practices
(realistic
job,
information,
job
analysis,
work
family
balance,
career
development,
compensation
and
supervisor
support)
and
their
likely
impact
on
the
Marketing
Executive
Turnover.
Results
of
regression
showed
that
the
HR
practices
on
job
analysis
are
strong
predictors
of
Marketing Executive
Turnover. A long the same line, Abang, May-Chiun
and Maw two components of human
resource practices namely, training
and
information
technology
have
direct
impact
on
organizational
performance.
In
addition,
Zaini,
Nilufar
and
Syed
four
HRM
practices
showed
that
training
and
development,
team
work,
HR
planning,
and
performance appraisal have positive and
significant influence on business
performance.
Altarawmneh
and
al-Kilani
examine
the
impact
of
human
resource
managemen
t
practices
on
employees’
turnover
intentions.
The
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