By Michael Armstrong
Pt. 1. The conceptual framework of strategic HRM -- pt. 2. The perform of strategic HRM -- pt. three. HR ideas -- pt. four. The strategic HRM toolkit
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Additional resources for Armstrong's handbook of strategic human resource management
The aim of this chapter is to provide a basis for understanding the concept of strategic human resource management (SHRM) by describing the fundamental nature of business strategy, bearing in mind the role of SHRM as described in the next chapter – that of enabling the organization to achieve its strategic goals. One of the purposes of this chapter is to counter the belief that business strategy is a highly rational affair that provides a firm basis for HR strategy. Strategy is in fact a far more intuitive, evolutionary and reactive process than most people believe.
Becker and Huselid, 2006: 899) The nature of strategy The nature of strategy can be described in terms of a number of related elements that define and elaborate on what it involves – its purpose, the factors to be taken into account in developing and implementing it, and the concepts that guide our understanding of its function. They can be categorized as follows: ●● ●● ●● ●● The basic concept of competitive advantage, which describes what the strategy is there to achieve and how it will do this.
It used to be regarded as a logical, step-by-step affair that was described by Whittington (1993) as the classical approach – strategy formulation as a rational process of deliberate calculation. Conceptually this involves the following: 1 Define the mission. 2 Set objectives. 3 Conduct internal and external environmental scans to assess internal strengths and weaknesses and external opportunities and threats (a SWOT analysis). 4 Analyse existing strategies and the business model to determine their relevance in the light of the internal and external appraisal.