Unit 21 Strategic Human Resource Management

Introduction

The aim of this unit is to explore the contribution strategic Human Resource Management (HRM) makes towards the development and support of sustainable organisational strategies. Students will develop an understanding and appreciation of seminal and contemporary models, theories and concepts which enable HR managers to make positive contributions to sustainable organisational change and growth from an HR perspective.On successful completion of this unit students will have the confidence to contribute to strategic decision-making in an HR context. This will be based on strong theoretical and applied foundations which will add value to an organisation’s HR function and role.

Learning outcomes

LO1 Analyse key external and contextual developments which influence HR strategy

Strategic HRM and external influences:

• What is strategic HRM and what are the benefits?
• What are the main external influences on HR strategy?
• What are the generic HR strategies that these external factors influence?

External and contextual developments:

• Contemporary trends and developments in HR such as the impact of globalisation, workforce diversity, changing skills requirements, continuous improvement and processes for improving productivity.
• Changes in HR policy and practice related to current trends and developments.
• The use of cloud technology for aligning people and processes.
• The impact of technology on the recruitment and selection process, monitoring employees and supporting performance management.
• HR issues in the private, public and third sectors.

LO2 Apply contemporary theoretical and practical knowledge of HR development

The theory of HR:

• The history of HR development from personnel to HRM and the growth of strategic HRM.

Links between organisational strategy and HR strategy:

•  the universalist and contingency approaches to HRM.

The impact of theory on HR practices:

• The relevance of theory to developing organisational HR practice.
• Contemporary HR theories and practices such as flexible work arrangements, performance management, e-recruitment and the 540 performance appraisal.
• The concept of applied HR strategy.

LO3 Evaluate how appropriate change management models support HR strategy

Change management strategies, models and concepts:

• The concept of organisational behaviour and the impact of change on organisational behaviour.

The use of different approaches towards change management, including:

• Kotter’ 8-Step Change model, Lewin’s Three Step Change model.
• The relevance of the psychological contract in relation to managing change.
• The use of Nudge theory to support organisational change and behaviour.

HR Strategy:

• How does change management support and influence HR strategy?
• HR workforce planning, recruitment processes, managing employee motivation and performance management.

LO4 Evaluate the contribution of HR management and development to sustainable business performance and growth

Sustainable performance and business growth:

• What is sustainable growth?
• How does HRM support sustainable business performance and growth?
• The ‘best fit’ perspective and resource-based view emphasis on achieving competitive advantage.
• Evaluating the contribution of HR management through benchmarking and Key Performance Indicators (KPIs), 10-C checklist of HRM, the model of capability for skills evaluation and the use of performance management systems.

Resources

• ARMSTRONG, A. (2011) Armstrong's Handbook of Strategic Human Resource Management. 5th Ed. London: Kogan Page.
• CAMPBELL, D., EDGAR, D. and STONEHOUSE, G. (2011) Business Strategy: An Introduction. 3rd Ed. Basingstoke: Palgrave Macmillan.
• KEW, J. and STREDWICK, J. (2013) Human Resource Management in a Business Context. 2nd Ed. London: CIPD.
• VARIOUS,Human Resource Management. Hoboken, USA: John Wiley & Sons, Inc., Hoboken, http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1748-8583