strategic human resource management

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Theoretical perspectives of strategic human resource management : 

Theoretical perspectives of strategic human resource management Presented by: - Navin Kumar Singh-45

Introduction : 

Introduction Definition- strategic human resource management is the integration of human resource management and strategic management process. In other words we can say that it is the alignment of Human Resource Management with the organization’s mission.

Differences in between HRM & SHRM : 

Differences in between HRM & SHRM Structure Scope Coordination functioning





Objectives of SHRM: - : 

Objectives of SHRM: - Assess how well human resources management is linked to agency mission accomplishment. Explore the role played by the HR staff in agency strategic planning. Determine how the HR service providers work with line managers to carry out agency strategic goals. Identify best practices aligning HRM with the agency strategic plan and goals.

Slide 7: 

1.) Resource – Based View of the Firm 2.) Behavioral Perspective 3.) Cybernetic Systems 4.) Agency / Transaction Cost Theory STRATEGIC THEORIES

Resource – Based View of the Firm : 

Resource – Based View of the Firm Defines Competitive Advantage as “ When a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors ” Firm Resource Heterogeneity Firm Resource Immobility

Slide 9: 

Sustained Competitive Advantage exists only after efforts to replicate that advantage have ceased Add positive value Unique or Rare Inimitable Non - Substitutable

HR as Sustained Competitive Advantage : 

HR as Sustained Competitive Advantage Provide Value to the Firm Heterogeneous Demand for Labor Heterogeneous Supply of Labor

Slide 11: 

Rarity HR with high ability levels are rare Valid Selection Programs Attractive Reward Systems

Slide 12: 

Inimitable Unique Historical Conditions Causal Ambiguity Social Complexity

Slide 13: 

No Substitutes Substitutable Technology Non substitutable HR This theory demonstrates that Strategies are not universally implementable , but are contingent on having the human resource base necessary to implement them .

Behavioral Perspective : 

Behavioral Perspective Focus on Employee Behavior as the mediator between Strategy and Firm performance . Assumes that the purpose of various Employment practices is to elicit and control Employee Attitudes & Behaviors.


INNOVATION as STRATEGY High Degree of Innovative Behaviour Long – Term Focus High Level of Co-operative Behaviour Moderate Degree of Concern for Quality Moderate Concern for Quantity Greater Degree of Risk Taking


COST REDUCTION STRATEGY Reprtitive Behaviors Short - Term Focus Autonomous Activity High concern for Quantity Moderate Concern for Quality Low Risk Taking

Slide 17: 

This theory is tested to Demonstrate Different Strategies are associated with different levels of Firm Performance Relationship between Strategies and Firm Performance is either mediated or moderated by HRM practices and Employee role Behaviors.


CYBERNETIC SYSTEMS Open Systems Model Inputs are Competencies ( Skills , Abilities) of Employees Throughput Process is Behavior of Employees in the Organization . Outputs consist of Performance ( Productivity ) and Affective Outcomes ( Job Satisfaction )

Slide 19: 

SHRM consists of Competence Management Behavior Management

Competence Management : 

Competence Management Competence Acquisition Competence Utilization Competence Retention Competence Displacement

Behavior Management : 

Behavior Management Behavioral Control Behavioral Coordination This theory has potential to examine how SHRM Practices change or need to change over time .

Agency / Transaction Cost Theory : 

Agency / Transaction Cost Theory Transaction costs are the costs associated with negotiating , monitoring , evaluating , and enforcing exchanges between parties . Agency costs are the costs associated with establishing efficient contracts between parties

Slide 23: 

Bureaucratic costs refer to the transaction costs associated with managing human resources in a hierarchy ( when Authority Relationship exists ) This theory is popular for Diversification , Internalization , Restructuring .

Non Strategic Models of HRM : 

Non Strategic Models of HRM Non strategic means determinants of HRM practices that are not the result of rational strategic decision making process, but rather derive from institutional and political forces in the firm.

Non Strategic Theory of HRM : 

Non Strategic Theory of HRM Two theories: Resource dependence Model. Institutionalism.

Slide 26: 

Resource dependence Model :It focus predominantly on power relationship within and among organization. It assumes that all organization depend on flow of valuable resources into the organization in order to continue functioning. Its implications are numerous: It change the focus from viewing SHRM in mechanistic terms where all HRM practices are rationally determined and are perfectly supportive of organizational strategies. It demonstrates the potential for the HRM function to increase its role as a stategic partner in the firm.

Institutionalism: : 

Institutionalism: It is viewed as the social process by which individuals come to accept a shared definition of social reality – conceptions whose validity is seen as independent of the actor’s own view or actions but is taken for granted as defining the way things are to be done.

Institutional influences : 

Institutional influences It can be imposed coercively . It can be authorized through an organization voluntarily seeking approval of a superordinate entity. It can be induced through outside agents providing rewards to organization that conform with the wishes of the agent.

Slide 29: 

iv) It can be acquired through one organizational modeling its practices based on practices of other organization as a means of appearing legitimate or up to date. v) Imprinting pocess whereby the practices adopted at the beginning of the organization’s history remain embedded in the organization.



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