Table of Contents
L1: Introduction to HRM & Strategic HRM.................................................................................................................11
CH 1 – Human resource management (HRM) .........................................................................................................11
Key learning points: HRM .......................................................................................................................................11
HR Defined ...............................................................................................................................................................11
HRM defined ............................................................................................................................................................12
Theoretical base of HRM .........................................................................................................................................12
Models of HRM ........................................................................................................................................................12
CH 2 – Human capital management (HCM) ............................................................................................................14
Key learning points ...................................................................................................................................................14
Constituents of human capital ..................................................................................................................................14
Approaches to people management raised by human capital theory ........................................................................14
CH 3 – Strategic management ....................................................................................................................................15
Conceptual basis of strategic HRM ..........................................................................................................................15
Fundamental characteristics of strategy ...................................................................................................................15
How strategy is formulated.......................................................................................................................................15
Aim of SHRM ..........................................................................................................................................................15
Implications of the RBV ...........................................................................................................................................15
Implications of the concept of strategic fit ...............................................................................................................15
Best practice .............................................................................................................................................................15
Best fit.......................................................................................................................................................................15
Significance of bundling ...........................................................................................................................................15
Linking competitive strategies with human resource management practices (Schuler & Jackson 1987) ..........16
Competitive strategy .................................................................................................................................................16
Employee role behaviour for competitive strategies: ...............................................................................................16
Typology of HRM practices .....................................................................................................................................17
Hypothesis of competitive strategy ..........................................................................................................................18
Implementation issues ..............................................................................................................................................18
Which strategy is the best? .......................................................................................................................................19
Human resources and the resource based view of the firm (Wright, Dunford & Snell 2001) .............................19
Applying RBV to SHRM .........................................................................................................................................19
SHRM models assume: ............................................................................................................................................20
HR advantage consists of 2 parts ..............................................................................................................................20
Summary of RBV conceptual literature ...................................................................................................................20
Summary of RBV based empirical research .............................................................................................................20
Convergence of RBV and SHRM: potential mutual contributions ..........................................................................20
Core competencies ....................................................................................................................................................20
Dynamic capabilities ................................................................................................................................................21
Knowledge-based theories of the firm ......................................................................................................................21
Integrating strategy and SHRM within the RBV......................................................................................................21
Conclusion ................................................................................................................................................................22
L2: HRM Delivery............................................................................................................................................................22
CH 4 – HR Architecture – The HR System ..............................................................................................................22
HR delivery...............................................................................................................................................................22
HR architecture .........................................................................................................................................................23
HR system.................................................................................................................................................................23
CH 5 – The role of the HR Function ..........................................................................................................................23
Key words .................................................................................................................................................................23
HR delivery model....................................................................................................................................................23
The three-legged stool model of the HR function ....................................................................................................24
Critical evaluation of 3-legged stool model .............................................................................................................24
Dealing with structuring issues.................................................................................................................................24
Power of HR function ...............................................................................................................................................24
Role of HR function .................................................................................................................................................25
, Contributions of HR .................................................................................................................................................25
Evaluating the HR function ......................................................................................................................................25
The role of HRM in SME’S .....................................................................................................................................25
The organization of HR function ..............................................................................................................................26
CH 6 – The role of HR professionals .........................................................................................................................26
Key words .................................................................................................................................................................26
5 roles of Ulrich model .............................................................................................................................................28
Strategic roles of HR directors .................................................................................................................................28
Strategic roles of HR functions ................................................................................................................................28
HR business partner role...........................................................................................................................................29
Partnership roles of HR professionals: innovation, change agent, service delivery .................................................29
HR role requirements................................................................................................................................................30
Carrying out the role of HR professional .................................................................................................................30
Role of line managers ...............................................................................................................................................31
CH 7 – HRM and performance ..................................................................................................................................31
Impact of HRM .........................................................................................................................................................31
How HRM makes an impact ....................................................................................................................................31
Explanation of how HRM makes an impact .............................................................................................................31
Developing high performance culture ......................................................................................................................32
High performance work systems – HPSW ...............................................................................................................32
Contribution of HR ...................................................................................................................................................32
Black box phenomenon ............................................................................................................................................32
HRM and performance: The role of effective implementation (Guest et al. 2013) ...............................................33
Framework – HR implementation ............................................................................................................................34
Role of top management ...........................................................................................................................................34
5 factors for why line managers don’t implement ....................................................................................................34
CONCLUSION ........................................................................................................................................................35
Multi-level gaps: A study of intended, actual and experienced human resource practices in a hypermarket
chain in India (Makhecha et al. 2016) .......................................................................................................................35
Inductive model of gaps in HR practice ...................................................................................................................36
7 propositions ...........................................................................................................................................................36
L3: HRM Processes & CSR.............................................................................................................................................37
CH 8 – HR Strategies ..................................................................................................................................................37
Nature of HR strategies ............................................................................................................................................38
General HR strategies ...............................................................................................................................................38
Specific HR strategies ..............................................................................................................................................38
Criteria for effective strategy ....................................................................................................................................38
CH 9 – HR Policies ......................................................................................................................................................38
Reasons for having HR policies ...............................................................................................................................38
Overall HR policy .....................................................................................................................................................38
Specific HR policies .................................................................................................................................................39
Formulating HR policies ..........................................................................................................................................39
Implementing HR policies ........................................................................................................................................39
CH 10 – HR Procedures ..............................................................................................................................................39
HR procedures ..........................................................................................................................................................39
Introduction and implementation..............................................................................................................................39
Procedures required to deal with ..............................................................................................................................40
CH 14 – The ethical dimension of HRM ...................................................................................................................40
Ethics and morality defined ......................................................................................................................................40
Ethical frameworks ...................................................................................................................................................40
Equity theory ............................................................................................................................................................41
Justice .......................................................................................................................................................................41
Ethical guidelines .....................................................................................................................................................41
Handling ethical dilemmas .......................................................................................................................................41
Role of HR in ethical issues .....................................................................................................................................42
CH 15 – Corporate social responsibility ....................................................................................................................42
CSR Definition .........................................................................................................................................................42
, Strategic CSR ...........................................................................................................................................................42
Rationale for CSR – Stakeholder theory ..................................................................................................................42
Basis for developing CSR strategy ...........................................................................................................................43
HRM’s Role in Corporate Social and Environmental Sustainability SHRM Foundation’s Effective Practice
Guidelines Series (Cohen et al. 2012) .........................................................................................................................43
How sustainability affects business model ...............................................................................................................43
Supporting business sustainability – 3 routes ...........................................................................................................43
Carroll’s pyramid of CSR .........................................................................................................................................44
Embed sustainability using HRM tools ....................................................................................................................44
Organizational preconditions for sustainability – 3 pillars of sustainability ............................................................44
How to promote corporate culture receptive to sustainability ..................................................................................45
5 steps for sustainability roadmap and scorecard .....................................................................................................45
Conceptualizing employer branding in sustainable organizations (Kryger Aggerholm, Esmann Andersen &
Thomsen 2011) .............................................................................................................................................................45
Employer branding process: characteristics and reflections .....................................................................................45
Strategic sustainable employer branding processes feature 3 characteristics ...........................................................45
Traditional perspective on employer branding .........................................................................................................45
New perspective on employer branding ...................................................................................................................46
L4: Knowledge Management ..........................................................................................................................................47
CH 12 – Knowledge Management .............................................................................................................................47
Purpose and significance of knowledge management ..............................................................................................47
2 knowledge management strategies – codification & personalization ...................................................................47
Knowledge management systems .............................................................................................................................48
Knowledge management issues ................................................................................................................................48
The contribution HR can make to knowledge management .....................................................................................48
CH 30 Managing diversity and inclusion ..................................................................................................................49
The meaning and significance of managing diversity and inclusion ........................................................................49
Rationale for managing diversity and inclusion .......................................................................................................49
How to management diversity and inclusion ...........................................................................................................49
Defining the values – headings .................................................................................................................................50
Diversity and inclusion .............................................................................................................................................50
(Nahapiet & Ghoshal 1998) – social capital, intellectual capital and the org. advantage.....................................51
Main argument/point of article .................................................................................................................................52
Social capital.............................................................................................................................................................52
3 Social capital dimensions – structural, relational, cognitive .................................................................................53
Intellectual capital.....................................................................................................................................................53
2 dimensions of intellectual capital ..........................................................................................................................53
Creation of intellectual capital – combination and exchange ...................................................................................54
Social capital in the creation of intellectual capital ..................................................................................................55
Conclusion ................................................................................................................................................................55
(Brown & Duguid 2001) – knowledge & organization: a social-practice perspective ..........................................55
Paradoxes of sticky and leaky knowledge ................................................................................................................56
Practice, community and networks ...........................................................................................................................56
stickiness, leakiness and practice ..............................................................................................................................56
The social practice perspective .................................................................................................................................56
Conclusion ................................................................................................................................................................56
(Handley et al. 2006) – Beyond and within communities of practice: make sense of learning through
participation, identity and practice * Additional .....................................................................................................56
Situation learning theory ..........................................................................................................................................57
Central concepts of situated learning: participation, identity & practice .................................................................57
Development of practice & identity through participation in communities of practice ...........................................58
Multiple communities ...............................................................................................................................................58
Participation in community of practice ....................................................................................................................58
Distinction of practice and participation ..................................................................................................................59
Discussion/conclusion ..............................................................................................................................................59
L5: Work and Job design ................................................................................................................................................59
CH 17 – work, organization and job design ..............................................................................................................59
, Work, organization and job design ...........................................................................................................................59
Work design ..............................................................................................................................................................59
Work system design..................................................................................................................................................59
Aim of organization design ......................................................................................................................................60
Organization analysis ...............................................................................................................................................60
Organization diagnosis .............................................................................................................................................60
organizational choice ................................................................................................................................................60
Criteria for success – organization design ................................................................................................................61
Job design .................................................................................................................................................................61
Factors affecting job design ......................................................................................................................................61
The job characteristic model by Hackman & Oldham – 5 core characteristics........................................................61
4 approaches to job design........................................................................................................................................62
Role development .....................................................................................................................................................62
CH 18 – Organization development ...........................................................................................................................63
Definition of organization development ...................................................................................................................63
Strategic nature of OD ..............................................................................................................................................63
Original version of OD and its assumptions .............................................................................................................63
OD interventions.......................................................................................................................................................63
Criticism of OD ........................................................................................................................................................63
Moving from old OD to today’s approach ...............................................................................................................64
OD strategy ...............................................................................................................................................................64
Practice of OD ..........................................................................................................................................................64
Diagnostic tools ........................................................................................................................................................64
OD development programs .......................................................................................................................................65
(Berg, Dutton & Wrzesniewski 2008) – What is job crafting and why does it matter? ........................................65
Core idea ...................................................................................................................................................................65
Why care? .................................................................................................................................................................65
Research findings .....................................................................................................................................................65
Practical implication for employees .........................................................................................................................67
Practical implication for managers ...........................................................................................................................67
Conclusion ................................................................................................................................................................67
(Oldham & Hackman 2010) – Not what it was and how what it will be: the future of job design research ......67
Work design for teams- when teams, when not? ......................................................................................................68
4 Type of teams ........................................................................................................................................................68
2 special types of teams ............................................................................................................................................68
Conclusion ................................................................................................................................................................68
(Herzberg 2003) – One more time: how do you motivate employees? ...................................................................69
Motivating with KIT .................................................................................................................................................69
Myths about motivation – not motivation after all ...................................................................................................69
Hygiene vs. motivators .............................................................................................................................................70
Steps for job enrichment ...........................................................................................................................................71
Motivation-hygiene theory .......................................................................................................................................72
Conclusion ................................................................................................................................................................72
L6: Employee Recruitment .............................................................................................................................................72
CH 13 – Competency-based HRM .............................................................................................................................72
Competency based HRM definition .........................................................................................................................72
Competency defined .................................................................................................................................................72
Uses of competencies ...............................................................................................................................................73
How to develop competency framework ..................................................................................................................73
Key to success in using competencies ......................................................................................................................73
Competency and emotional intelligence ...................................................................................................................73
CH 22 – Strategic resourcing/staffing........................................................................................................................74
Definition of Strategic resourcing ............................................................................................................................74
Employee resourcing ................................................................................................................................................74
SHRM approach to resourcing .................................................................................................................................74
Employer brand ........................................................................................................................................................75
Employee value proposition .....................................................................................................................................75
L1: Introduction to HRM & Strategic HRM.................................................................................................................11
CH 1 – Human resource management (HRM) .........................................................................................................11
Key learning points: HRM .......................................................................................................................................11
HR Defined ...............................................................................................................................................................11
HRM defined ............................................................................................................................................................12
Theoretical base of HRM .........................................................................................................................................12
Models of HRM ........................................................................................................................................................12
CH 2 – Human capital management (HCM) ............................................................................................................14
Key learning points ...................................................................................................................................................14
Constituents of human capital ..................................................................................................................................14
Approaches to people management raised by human capital theory ........................................................................14
CH 3 – Strategic management ....................................................................................................................................15
Conceptual basis of strategic HRM ..........................................................................................................................15
Fundamental characteristics of strategy ...................................................................................................................15
How strategy is formulated.......................................................................................................................................15
Aim of SHRM ..........................................................................................................................................................15
Implications of the RBV ...........................................................................................................................................15
Implications of the concept of strategic fit ...............................................................................................................15
Best practice .............................................................................................................................................................15
Best fit.......................................................................................................................................................................15
Significance of bundling ...........................................................................................................................................15
Linking competitive strategies with human resource management practices (Schuler & Jackson 1987) ..........16
Competitive strategy .................................................................................................................................................16
Employee role behaviour for competitive strategies: ...............................................................................................16
Typology of HRM practices .....................................................................................................................................17
Hypothesis of competitive strategy ..........................................................................................................................18
Implementation issues ..............................................................................................................................................18
Which strategy is the best? .......................................................................................................................................19
Human resources and the resource based view of the firm (Wright, Dunford & Snell 2001) .............................19
Applying RBV to SHRM .........................................................................................................................................19
SHRM models assume: ............................................................................................................................................20
HR advantage consists of 2 parts ..............................................................................................................................20
Summary of RBV conceptual literature ...................................................................................................................20
Summary of RBV based empirical research .............................................................................................................20
Convergence of RBV and SHRM: potential mutual contributions ..........................................................................20
Core competencies ....................................................................................................................................................20
Dynamic capabilities ................................................................................................................................................21
Knowledge-based theories of the firm ......................................................................................................................21
Integrating strategy and SHRM within the RBV......................................................................................................21
Conclusion ................................................................................................................................................................22
L2: HRM Delivery............................................................................................................................................................22
CH 4 – HR Architecture – The HR System ..............................................................................................................22
HR delivery...............................................................................................................................................................22
HR architecture .........................................................................................................................................................23
HR system.................................................................................................................................................................23
CH 5 – The role of the HR Function ..........................................................................................................................23
Key words .................................................................................................................................................................23
HR delivery model....................................................................................................................................................23
The three-legged stool model of the HR function ....................................................................................................24
Critical evaluation of 3-legged stool model .............................................................................................................24
Dealing with structuring issues.................................................................................................................................24
Power of HR function ...............................................................................................................................................24
Role of HR function .................................................................................................................................................25
, Contributions of HR .................................................................................................................................................25
Evaluating the HR function ......................................................................................................................................25
The role of HRM in SME’S .....................................................................................................................................25
The organization of HR function ..............................................................................................................................26
CH 6 – The role of HR professionals .........................................................................................................................26
Key words .................................................................................................................................................................26
5 roles of Ulrich model .............................................................................................................................................28
Strategic roles of HR directors .................................................................................................................................28
Strategic roles of HR functions ................................................................................................................................28
HR business partner role...........................................................................................................................................29
Partnership roles of HR professionals: innovation, change agent, service delivery .................................................29
HR role requirements................................................................................................................................................30
Carrying out the role of HR professional .................................................................................................................30
Role of line managers ...............................................................................................................................................31
CH 7 – HRM and performance ..................................................................................................................................31
Impact of HRM .........................................................................................................................................................31
How HRM makes an impact ....................................................................................................................................31
Explanation of how HRM makes an impact .............................................................................................................31
Developing high performance culture ......................................................................................................................32
High performance work systems – HPSW ...............................................................................................................32
Contribution of HR ...................................................................................................................................................32
Black box phenomenon ............................................................................................................................................32
HRM and performance: The role of effective implementation (Guest et al. 2013) ...............................................33
Framework – HR implementation ............................................................................................................................34
Role of top management ...........................................................................................................................................34
5 factors for why line managers don’t implement ....................................................................................................34
CONCLUSION ........................................................................................................................................................35
Multi-level gaps: A study of intended, actual and experienced human resource practices in a hypermarket
chain in India (Makhecha et al. 2016) .......................................................................................................................35
Inductive model of gaps in HR practice ...................................................................................................................36
7 propositions ...........................................................................................................................................................36
L3: HRM Processes & CSR.............................................................................................................................................37
CH 8 – HR Strategies ..................................................................................................................................................37
Nature of HR strategies ............................................................................................................................................38
General HR strategies ...............................................................................................................................................38
Specific HR strategies ..............................................................................................................................................38
Criteria for effective strategy ....................................................................................................................................38
CH 9 – HR Policies ......................................................................................................................................................38
Reasons for having HR policies ...............................................................................................................................38
Overall HR policy .....................................................................................................................................................38
Specific HR policies .................................................................................................................................................39
Formulating HR policies ..........................................................................................................................................39
Implementing HR policies ........................................................................................................................................39
CH 10 – HR Procedures ..............................................................................................................................................39
HR procedures ..........................................................................................................................................................39
Introduction and implementation..............................................................................................................................39
Procedures required to deal with ..............................................................................................................................40
CH 14 – The ethical dimension of HRM ...................................................................................................................40
Ethics and morality defined ......................................................................................................................................40
Ethical frameworks ...................................................................................................................................................40
Equity theory ............................................................................................................................................................41
Justice .......................................................................................................................................................................41
Ethical guidelines .....................................................................................................................................................41
Handling ethical dilemmas .......................................................................................................................................41
Role of HR in ethical issues .....................................................................................................................................42
CH 15 – Corporate social responsibility ....................................................................................................................42
CSR Definition .........................................................................................................................................................42
, Strategic CSR ...........................................................................................................................................................42
Rationale for CSR – Stakeholder theory ..................................................................................................................42
Basis for developing CSR strategy ...........................................................................................................................43
HRM’s Role in Corporate Social and Environmental Sustainability SHRM Foundation’s Effective Practice
Guidelines Series (Cohen et al. 2012) .........................................................................................................................43
How sustainability affects business model ...............................................................................................................43
Supporting business sustainability – 3 routes ...........................................................................................................43
Carroll’s pyramid of CSR .........................................................................................................................................44
Embed sustainability using HRM tools ....................................................................................................................44
Organizational preconditions for sustainability – 3 pillars of sustainability ............................................................44
How to promote corporate culture receptive to sustainability ..................................................................................45
5 steps for sustainability roadmap and scorecard .....................................................................................................45
Conceptualizing employer branding in sustainable organizations (Kryger Aggerholm, Esmann Andersen &
Thomsen 2011) .............................................................................................................................................................45
Employer branding process: characteristics and reflections .....................................................................................45
Strategic sustainable employer branding processes feature 3 characteristics ...........................................................45
Traditional perspective on employer branding .........................................................................................................45
New perspective on employer branding ...................................................................................................................46
L4: Knowledge Management ..........................................................................................................................................47
CH 12 – Knowledge Management .............................................................................................................................47
Purpose and significance of knowledge management ..............................................................................................47
2 knowledge management strategies – codification & personalization ...................................................................47
Knowledge management systems .............................................................................................................................48
Knowledge management issues ................................................................................................................................48
The contribution HR can make to knowledge management .....................................................................................48
CH 30 Managing diversity and inclusion ..................................................................................................................49
The meaning and significance of managing diversity and inclusion ........................................................................49
Rationale for managing diversity and inclusion .......................................................................................................49
How to management diversity and inclusion ...........................................................................................................49
Defining the values – headings .................................................................................................................................50
Diversity and inclusion .............................................................................................................................................50
(Nahapiet & Ghoshal 1998) – social capital, intellectual capital and the org. advantage.....................................51
Main argument/point of article .................................................................................................................................52
Social capital.............................................................................................................................................................52
3 Social capital dimensions – structural, relational, cognitive .................................................................................53
Intellectual capital.....................................................................................................................................................53
2 dimensions of intellectual capital ..........................................................................................................................53
Creation of intellectual capital – combination and exchange ...................................................................................54
Social capital in the creation of intellectual capital ..................................................................................................55
Conclusion ................................................................................................................................................................55
(Brown & Duguid 2001) – knowledge & organization: a social-practice perspective ..........................................55
Paradoxes of sticky and leaky knowledge ................................................................................................................56
Practice, community and networks ...........................................................................................................................56
stickiness, leakiness and practice ..............................................................................................................................56
The social practice perspective .................................................................................................................................56
Conclusion ................................................................................................................................................................56
(Handley et al. 2006) – Beyond and within communities of practice: make sense of learning through
participation, identity and practice * Additional .....................................................................................................56
Situation learning theory ..........................................................................................................................................57
Central concepts of situated learning: participation, identity & practice .................................................................57
Development of practice & identity through participation in communities of practice ...........................................58
Multiple communities ...............................................................................................................................................58
Participation in community of practice ....................................................................................................................58
Distinction of practice and participation ..................................................................................................................59
Discussion/conclusion ..............................................................................................................................................59
L5: Work and Job design ................................................................................................................................................59
CH 17 – work, organization and job design ..............................................................................................................59
, Work, organization and job design ...........................................................................................................................59
Work design ..............................................................................................................................................................59
Work system design..................................................................................................................................................59
Aim of organization design ......................................................................................................................................60
Organization analysis ...............................................................................................................................................60
Organization diagnosis .............................................................................................................................................60
organizational choice ................................................................................................................................................60
Criteria for success – organization design ................................................................................................................61
Job design .................................................................................................................................................................61
Factors affecting job design ......................................................................................................................................61
The job characteristic model by Hackman & Oldham – 5 core characteristics........................................................61
4 approaches to job design........................................................................................................................................62
Role development .....................................................................................................................................................62
CH 18 – Organization development ...........................................................................................................................63
Definition of organization development ...................................................................................................................63
Strategic nature of OD ..............................................................................................................................................63
Original version of OD and its assumptions .............................................................................................................63
OD interventions.......................................................................................................................................................63
Criticism of OD ........................................................................................................................................................63
Moving from old OD to today’s approach ...............................................................................................................64
OD strategy ...............................................................................................................................................................64
Practice of OD ..........................................................................................................................................................64
Diagnostic tools ........................................................................................................................................................64
OD development programs .......................................................................................................................................65
(Berg, Dutton & Wrzesniewski 2008) – What is job crafting and why does it matter? ........................................65
Core idea ...................................................................................................................................................................65
Why care? .................................................................................................................................................................65
Research findings .....................................................................................................................................................65
Practical implication for employees .........................................................................................................................67
Practical implication for managers ...........................................................................................................................67
Conclusion ................................................................................................................................................................67
(Oldham & Hackman 2010) – Not what it was and how what it will be: the future of job design research ......67
Work design for teams- when teams, when not? ......................................................................................................68
4 Type of teams ........................................................................................................................................................68
2 special types of teams ............................................................................................................................................68
Conclusion ................................................................................................................................................................68
(Herzberg 2003) – One more time: how do you motivate employees? ...................................................................69
Motivating with KIT .................................................................................................................................................69
Myths about motivation – not motivation after all ...................................................................................................69
Hygiene vs. motivators .............................................................................................................................................70
Steps for job enrichment ...........................................................................................................................................71
Motivation-hygiene theory .......................................................................................................................................72
Conclusion ................................................................................................................................................................72
L6: Employee Recruitment .............................................................................................................................................72
CH 13 – Competency-based HRM .............................................................................................................................72
Competency based HRM definition .........................................................................................................................72
Competency defined .................................................................................................................................................72
Uses of competencies ...............................................................................................................................................73
How to develop competency framework ..................................................................................................................73
Key to success in using competencies ......................................................................................................................73
Competency and emotional intelligence ...................................................................................................................73
CH 22 – Strategic resourcing/staffing........................................................................................................................74
Definition of Strategic resourcing ............................................................................................................................74
Employee resourcing ................................................................................................................................................74
SHRM approach to resourcing .................................................................................................................................74
Employer brand ........................................................................................................................................................75
Employee value proposition .....................................................................................................................................75
