Abstract
The chapter explored the evolution of human resources management to position strategic human resources management (SHRM), human capital development (HCD), and employee behavior, such as creative work behavior, as important variables required by organizations to survive in challenging environments. It argued that the alignment of the fits between SHRM and business strategy and between SHRM and HCD positions employees as sources of organizations' competitive advantage and drives positive and innovative employee behavior required in the business challenging environments faced by organizations. The chapter discussed a study done with samples from knowledge workers to establish the relationship between SHRM, HCD, and creative work behavior. Results showed that SHRM had a direct relationship with HCD and an indirect relationship with CWB through HCD. There was no direct relationship between SHRM and CWB. Implications of the study and future research were recommended.
TopIntroduction
Globalization and, lately, COVID-19 have created various challenges to organizations because of the frequency of changes involved (Wijenayaka, 2021). To handle these challenges, organizations must develop interesting business strategies and align them with their human resources strategies to build a sustainable competitive advantage that positions them above their peers (April & Chum, 2005). Business strategy is how an organization plans to be relevant in its environment. Thus, the link between business strategy and human resources strategy is developing a competitive advantage (Gunnigle & Moore, 1994).
Sustainable competitive advantage is long-term and enables the organization to stay above its peers. To achieve this, competitive advantage must satisfy four criteria: valuable, rare, inimitable, and non-substitutable (Ford, 2021). Resources and competencies are a broad category of organizational assets confer competitive advantage (Barney, 1991). However, for sustained competitive advantage, the resource-based value theory stipulates that the human capital available to the business confers this (Boudreau & Ramstad, 2005; Boxall & Purcell, 2003; Gratton et al., 2000). Since People handle the success of all aspects of the business strategy, they are essential in guaranteeing sustainable competitive advantage (Inyang, 2010; Khan, 2010). For example, Duke II and Udono (2012) posited that people set the directions for the organization and manage various resources to get to the direction set.
Terms that have appeared in the modern approach to managing human resources include human resources management (HRM), human capital development HCD), and strategic human resources management (SHRM). How these terms interact and affect the behavior and effectiveness of employees in driving business strategy and goals have taken the attention of researchers (Rotich, 2015). Hence, past studies have called for the review of the interaction among SHRM, HCD, and employee behavior, such as employee creative work behavior (CWB) (Emeagwal & Ogbonmwan, 2018; Hsu & Wang, 2012). Thus, the book chapter discussed an empirical study that used samples from knowledge workers to establish the link between SHRM and employee creative work behavior and the role that human capital development played in the link. The study used resource-based value, social exchange, and norm of reciprocity theories to justify the relationships stipulated. Before discussing the study, the book chapter reviewed the evolution of human resources management, terms SHRM, CWB, and HCD, to identify research gaps.
Key Terms in this Chapter
Competitive advantage: A state of affairs or set of circumstances that places an organization in a more advantageous or dominant position in the marketplace.
Evolution of Human Resources Management: The concept of human resource management has evolved during the course of the Industrial Revolution, trade unions, scientific management, behavioral science, and human relations. As a result, the term Personnel Management has gradually been superseded by the notion HRM.
Globalization: The term “globalization” is used to refer to the increased interconnectedness and mutual dependence of people all over the world as a result of increased trade and technological development. The economic and social shifts brought on by globalization are encompassed by the term as well.
Competencies: Competence is a collection of skills that improve job performance. Competencies aren't skills, despite similarities.
Business Strategy: Business strategy is a clear set of plans, activities, and goals that outline how a business will compete in a market with a product or services.
Resources-Based Value: According to resource-based theory, an organization is in the best position for sustained success when its resources are high-quality, scarce, difficult to replicate, and non-substitutable. These strategic assets can serve as a springboard for building the kinds of in-house competencies that might pay dividends in sustained competitive advantage.