Strategic Human Resource Management - Radboud University
Chapter 1:
Schnabel 5 I’s:
- Internationalization -> across the globe
- Individualization -> individual happiness (meaningful work)
- Informalization -> less hierarchy
- Informatization -> digital developments
- Intensification -> more network oriented
The new economy = shift from production economy into service economy
Competitive advantage = stronger position of an organization
Core employees -> permanent workers who are under contract
Peripheral employees -> temporarily workers
Traditional HRM -> focus on valuable employees
New HRM -> focus on entire workforce
Balanced approach -> combination of economic and institutional perspective to create a
balance. Financial and societal performance should be above average.
Chapter 2:
Best-fit school = HRM is effective when aligned with internal and external context
Best practice school = one best way of doing things
Pfeffer’s 7 best practices:
1. Selective recruitment and selection (select best person for the job)
2. Extensive training
3. Performance-related-pay
4. Teamworking ( decentralizing responsibility)
5. Information sharing and communication
6. Reduction of status differences
7. Employment security (providing insurance)
Institutional mechanisms:
- Coercive (legislation)
- Normative (professional norms)
- Mimetic (imitation)
The better the fit between HRM and its context, the better the performance of an
organization.
Enactment = scanning the environment
Environment -> strategy (purpose, mission, vision). Strategy -> HRM
Business strategy -> organizations’ important choices
Strategy -> intention to achieve certain goals through planned alignment
,Business environment -> external context of an organization that is directly linked to the
population
Strategic management process = environment scan and analysis -> SWOT -> strategy
formulation -> strategy implementation
Operational strategy -> which supplies do we want to use
Internal or horizontal fit: alignment between individual HR practices.
Organizational fit: alignment between HRM and other organizational systems
Environmental/ institutional fit: alignment between HRM and the environment
Market mechanisms: competition between organizations in the same market
Hyper determinism: no leeway in strategic choice
Hyper voluntarism: free to do what the organization wants
Leeway is bigger when:
- market growth
- little number of relevant stakeholders
- limited laws and rules
- labor/total cost ratio is close to 0
- large financial buffers
- organization is monopolist
Individual needs:
- autonomy
- competence (feeling of being skilled)
- relatedness or belongingness
- structure
- psychological safety
HR 6 component model:
1. The human resource strategy and practices (managing employees)
2. The internal organization context and organizational fit (internal factors)
3. The external general market context and strategic fit (market mechanisms that affect
all the organizations in a specific county of region)
4. The external population market context and strategic fit (market mechanisms that can
influence an organization
5. The external general institutional context and environmental or institutional fit
(mechanisms that influence the organization in a county)
6. The external population institutional context and environmental or institutional fit
(linked to your population/sector)
Synergistic effects and equifinality = different combinations can lead to the same outcome
Collective bargaining agreement = written contract with terms and conditions of employees
at work
, Consistency fit -> HR and policies are equally distributed
Temporary consistency fit -> HR is stable over time
Adaption fit-> change HR to changes in internal and external context
Sustainable SHRM = a long-term and multiple stakeholder perspective
Chapter 3:
Resources = everything you need to create your products or services
Professional organization = participants earn their living & the organization survives
Employees are the assets
Head work -> technology
Hand work -> robotization
HRM has no direct influence on performance
Influence performance:
1. Support by paying attention (VRIO) (communication, connect, provide)
2. Refuse the concept HRM (employees are not resources)
3. Look ahead (employability -> add value) (Management/employability paradox ->
afraid the employee will leave to a competitor)
4. Initiate & facilitate strategic personnel management
Agile = need to work with changes and take initiatives to make changes
Competitive advantage, Critical factors, Employee attitudes, HR practices
Outside in thinking = based on external industry-based competitive issues
Inside out thinking = based on internal resources
Resource based view = there can be a long term competitive advantage using the inside out
approach (VRIN)
Hard to imitate:
1. Path dependency (historical conditions)
2. Causal ambiguity (link between resources)
3. Social complexity
Linking Ultimate business goals to the critical and non-critical HR
Critical HR goals:
1. Labor productivity (output per unit of input) (cost effectiveness)
2. Organizational flexibility (capacity to change or adapt)
- Numerical flexibility -> use of employees
- Functional flexibility -> employees are capable of performing
- Mental flexibility -> abilities and willingness to change
Chapter 1:
Schnabel 5 I’s:
- Internationalization -> across the globe
- Individualization -> individual happiness (meaningful work)
- Informalization -> less hierarchy
- Informatization -> digital developments
- Intensification -> more network oriented
The new economy = shift from production economy into service economy
Competitive advantage = stronger position of an organization
Core employees -> permanent workers who are under contract
Peripheral employees -> temporarily workers
Traditional HRM -> focus on valuable employees
New HRM -> focus on entire workforce
Balanced approach -> combination of economic and institutional perspective to create a
balance. Financial and societal performance should be above average.
Chapter 2:
Best-fit school = HRM is effective when aligned with internal and external context
Best practice school = one best way of doing things
Pfeffer’s 7 best practices:
1. Selective recruitment and selection (select best person for the job)
2. Extensive training
3. Performance-related-pay
4. Teamworking ( decentralizing responsibility)
5. Information sharing and communication
6. Reduction of status differences
7. Employment security (providing insurance)
Institutional mechanisms:
- Coercive (legislation)
- Normative (professional norms)
- Mimetic (imitation)
The better the fit between HRM and its context, the better the performance of an
organization.
Enactment = scanning the environment
Environment -> strategy (purpose, mission, vision). Strategy -> HRM
Business strategy -> organizations’ important choices
Strategy -> intention to achieve certain goals through planned alignment
,Business environment -> external context of an organization that is directly linked to the
population
Strategic management process = environment scan and analysis -> SWOT -> strategy
formulation -> strategy implementation
Operational strategy -> which supplies do we want to use
Internal or horizontal fit: alignment between individual HR practices.
Organizational fit: alignment between HRM and other organizational systems
Environmental/ institutional fit: alignment between HRM and the environment
Market mechanisms: competition between organizations in the same market
Hyper determinism: no leeway in strategic choice
Hyper voluntarism: free to do what the organization wants
Leeway is bigger when:
- market growth
- little number of relevant stakeholders
- limited laws and rules
- labor/total cost ratio is close to 0
- large financial buffers
- organization is monopolist
Individual needs:
- autonomy
- competence (feeling of being skilled)
- relatedness or belongingness
- structure
- psychological safety
HR 6 component model:
1. The human resource strategy and practices (managing employees)
2. The internal organization context and organizational fit (internal factors)
3. The external general market context and strategic fit (market mechanisms that affect
all the organizations in a specific county of region)
4. The external population market context and strategic fit (market mechanisms that can
influence an organization
5. The external general institutional context and environmental or institutional fit
(mechanisms that influence the organization in a county)
6. The external population institutional context and environmental or institutional fit
(linked to your population/sector)
Synergistic effects and equifinality = different combinations can lead to the same outcome
Collective bargaining agreement = written contract with terms and conditions of employees
at work
, Consistency fit -> HR and policies are equally distributed
Temporary consistency fit -> HR is stable over time
Adaption fit-> change HR to changes in internal and external context
Sustainable SHRM = a long-term and multiple stakeholder perspective
Chapter 3:
Resources = everything you need to create your products or services
Professional organization = participants earn their living & the organization survives
Employees are the assets
Head work -> technology
Hand work -> robotization
HRM has no direct influence on performance
Influence performance:
1. Support by paying attention (VRIO) (communication, connect, provide)
2. Refuse the concept HRM (employees are not resources)
3. Look ahead (employability -> add value) (Management/employability paradox ->
afraid the employee will leave to a competitor)
4. Initiate & facilitate strategic personnel management
Agile = need to work with changes and take initiatives to make changes
Competitive advantage, Critical factors, Employee attitudes, HR practices
Outside in thinking = based on external industry-based competitive issues
Inside out thinking = based on internal resources
Resource based view = there can be a long term competitive advantage using the inside out
approach (VRIN)
Hard to imitate:
1. Path dependency (historical conditions)
2. Causal ambiguity (link between resources)
3. Social complexity
Linking Ultimate business goals to the critical and non-critical HR
Critical HR goals:
1. Labor productivity (output per unit of input) (cost effectiveness)
2. Organizational flexibility (capacity to change or adapt)
- Numerical flexibility -> use of employees
- Functional flexibility -> employees are capable of performing
- Mental flexibility -> abilities and willingness to change
