C18HM - Tutorial 3: Strategic HRM: Preparation

C18HM – Tutorial 3: Strategic HRM
Preparation:
Chapter 4 of Torrington
‘Strategic Human
Resource Management’
pp.63 – 86
Reading prior to the

Task:
tutorial is essential.
Make sure you come Torrington et al posit three broad perspectives on SHRM and
prepared. whilst there are areas of commonality are also several
theoretical and practical differences. The three perspectives
are:
1. The Universalist approach (pp.69-71)

2. The fit or contingency approach (pp.71-74)
3. The resource-based approach (pp.75-77)
Task:
1. Each group will select one of the perspective above and summarise it highlighting its
key points.
The Universalist Approach
- Goes through the ‘best HR practices’ that are used in organisations then get the
most suitable or bundles of practice to see which fits into the organisation as long as
they are mutually supportive to help product high work performance.
- Everyone in the organisation shares common goals while employees does not
question or dispute managerial practices
- ‘One best way’
1
 Principle is to find one best way to manage human resource (go and see the best
practices of each company, pick and choose the one best way to manage human
resource, then gets people commited)
 High commitment to strategic goals
 Tries to create common goal and direction and leads to high performance
 Opposite is pluralist
 Challenge: difficult to practice if it’s a big multicultural operation
The Fit or Contingency Approach

- Splits into external and internal fit
 External fit
- How HR strategy fits within the demand of business strategy
- Focuses on the goals of the business
 Internal fit
- Focuses on the HR policies with respect to department and individuals so that they
are coherent and mutually reinforcing consistently

The Resource-based Approach
- Also known as the human capital concept where it focuses on the quality of human
resources in the organisations
- Emphasizes on staff competency where they must enable organisations to gain
competitive advantages
 Organisations focuses on human capital (employee’s skills), as they can promote
sustainable competitive advantages from fulfilling 4 criteria
2. Each group will present its summary to the rest of the class and differences and
similarities
3. The class will then address the general discussion points below.
a) Is it feasible to link business strategy with the management of people in
organisations?
- Make use of abcde models to answer questions
- If yes, when formulating business strategy, hr plays important role
- Business strategy is HR driven
2
- If no, then talk about model a and b. in some organisations they are not
related.
b) HR strategies can be stimulating to produce and satisfying to display, but
how can we make sure that they are implemented?
- Communication is important
- Communicating the purpose of the business, and clarify any problems
- If it is implemented they can then secure commitment
GENERAL DISCUSSION TOPICS (p.82)
1. Is it feasible to link business strategy with the management of people in organisations?
It is well known that companies that link human resource management to their business
strategic plan have a stronger competitive advantage in the marketplace. Strategic HRM
assists businesses in gaining a clearer business vision by analyzing all types of threats and
opportunities. The key component of linking the business strategy to HRM is that it creates a
culture of clear communication and trust within the organisation. Employees would be
encouraged to participate in various aspects of the business strategy in order to build a
higher level of trust among themselves, allowing them to share common goals for the
organization. As a result, this would help to retain talents and develop high competent
employees. However, maintaining the link between business strategies and HRM requires a
strong commitment and leadership skills, as barriers such as market pressures due to
economic difficulties may arise. This would make it difficult to attract talent within
organizations, resulting in lower performance.
2. HR strategies can be stimulating to produce and satisfying to display, but how can we
make sure that they are implemented?
To begin with, employee satisfaction and company performance could be measured to

ensure an effective HR strategy is implemented in organisations.
The employee satisfaction allows employees to engage with their job and become more
focused on their work with the success of the organisations in their mind to work towards a
common goal.
CHAPTER SUMMARY PROPOSITIONS (pp.81)
3
4.1. Strategic HRM encourages us to consider strategy as a process, strategic thinking and
strategic orientation, rather than limit ourselves to a ‘strategy’ which is written down and
exists as a physical entity.
4.2. The nature of the link between business strategy and HR strategy is critical and can be
played out in a variety of ways
4.3. Three theoretical perspectives on strategic HR management can be identified: uni-

versalist/best practice; contingency/fit; and the resource-based/human capital view. Each
has advantages and disadvantages.
4.4. The ‘black box’ research focuses on how HR practices impact on performance, and
seeks to explain the mechanisms mediating the impact of HR practices on performance. 4.5.
Globalisation presents more challenges for understanding and implementing HR strategy

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C18HM – Tutorial 3: Strategic HRM

Reading prior to the

1. The Universalist approach (pp.69-71)

The Fit or Contingency Approach

GENERAL DISCUSSION TOPICS (p.82)

1. Is it feasible to link business strategy with the management of people in organisations?

To begin with, employee satisfaction and company performance could be measured to

CHAPTER SUMMARY PROPOSITIONS (pp.81)

4.3. Three theoretical perspectives on strategic HR management can be identified: uni-

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