Strategic Human Resource Management: A balanced approach
Hoofdstuk 1 – Introduction: Strategic Human Resource Management in the Twenty-first Century
Nowadays the majority of chief executive officers (CEO) of leading companies underline the strategic
importance of their human resources. However, as soon as an organizational crisis emerges the
employee emphasis is often downgraded through downsizing and mass layoffs. It is in times of major
change that the management of employees is essential not only to achieve organizational goals but
also to pay attention to the individual employee’s well-being as well.
Definition HRM: HRM involves management decisions related to policies and practices that
together shape the employment relationship and are aimed at achieving
individual, organizational and societal goals.
Major subfields of HRM (PP)
1. MHRM
Is the sub-field of HRM aimed at studying the shaping of employment relationship at the
individual employee level.
2. IHRM
Is the sub-field of HRM aimed at studying the shaping of the employment relationship in an
international context, with special attention to HRM for expatriates, HRM in large MNCs and
HRM in international governmental organizations (IGOs)
3. SHRM
Is the sub-field of HRM aimed at studying the shaping of the employment relationship taking
into account the internal and external organization context.
Internal stakeholders: employees, line managers, top management and employee representatives
External stakeholders: shareholders, financiers, trade unions, national government, local
government and other interest groups
Multidimensional strategic HR model:
1. A multi actor perspective
2. A broad societal view
3. A multi-level perspective
The employment relationship is the focus of HRM and can be characterize by the following four
contract elements:
- Legal contract
- Economic or transactional contract
- Psychological contract
- Sociological contract
There is a difference in the why HRM is approached:
Anglo-American model: Mainly focus on creating shareholder value in terms of profits and
market value with little or no attention to other stakeholders
including trade unions and works councils.
Rhineland model: labelled ‘Rhine’ because of the Rhine river in wstern Europe and the
countries through which it flows, acknowledge multiple stakeholders
and their interests explicitly taking into account employee interests in
terms of well-being and societal interests.
Hoofdstuk 1 – Introduction: Strategic Human Resource Management in the Twenty-first Century
Nowadays the majority of chief executive officers (CEO) of leading companies underline the strategic
importance of their human resources. However, as soon as an organizational crisis emerges the
employee emphasis is often downgraded through downsizing and mass layoffs. It is in times of major
change that the management of employees is essential not only to achieve organizational goals but
also to pay attention to the individual employee’s well-being as well.
Definition HRM: HRM involves management decisions related to policies and practices that
together shape the employment relationship and are aimed at achieving
individual, organizational and societal goals.
Major subfields of HRM (PP)
1. MHRM
Is the sub-field of HRM aimed at studying the shaping of employment relationship at the
individual employee level.
2. IHRM
Is the sub-field of HRM aimed at studying the shaping of the employment relationship in an
international context, with special attention to HRM for expatriates, HRM in large MNCs and
HRM in international governmental organizations (IGOs)
3. SHRM
Is the sub-field of HRM aimed at studying the shaping of the employment relationship taking
into account the internal and external organization context.
Internal stakeholders: employees, line managers, top management and employee representatives
External stakeholders: shareholders, financiers, trade unions, national government, local
government and other interest groups
Multidimensional strategic HR model:
1. A multi actor perspective
2. A broad societal view
3. A multi-level perspective
The employment relationship is the focus of HRM and can be characterize by the following four
contract elements:
- Legal contract
- Economic or transactional contract
- Psychological contract
- Sociological contract
There is a difference in the why HRM is approached:
Anglo-American model: Mainly focus on creating shareholder value in terms of profits and
market value with little or no attention to other stakeholders
including trade unions and works councils.
Rhineland model: labelled ‘Rhine’ because of the Rhine river in wstern Europe and the
countries through which it flows, acknowledge multiple stakeholders
and their interests explicitly taking into account employee interests in
terms of well-being and societal interests.
