Theory and Concept of Strategic Human Resources Management

Theory and Concept of Strategic Human Resources Management

Sakshi Arora, D. P. Warne, Monika Dahiya
Copyright: © 2023 |Pages: 24
DOI: 10.4018/978-1-6684-7494-5.ch011
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Abstract

This chapter's major goal is to help the reader understand how strategic human resource management works in businesses. Human resources are seen as important factors within organisations. Organizations will be able to improve their reputation thanks to the knowledge, skills, and aptitude of their people resources. It is imperative that human resources periodically update their knowledge and abilities due to the onset of modernity, globalization, and developments. Since it calls for connecting human resources practices and policies with organisational strategy, the notion of strategic human resource management is seen as essential. In order to achieve the desired goals and objectives, companies must make sure that the policies and procedures they develop are in line with those goals and objectives. The key topics covered in this chapter include the definition, objectives, and importance of strategic human resource management, models of strategic management, and theories of strategic human resource management.
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Introduction

1. Strategy

A high-level plan for achieving one or more goals in the face of uncertainty is called a strategy. Managers use strategy to accomplish one or more of the organisation's goals(Johnson, Whittington, Scholes, & Angwin, 2011). Another way to define strategy is as “A general direction specified for the company and its numerous components to achieve a desired condition in the future.” The process of meticulous strategic planning yields strategy. Jauch and Glueck define “Strategy is a unified, comprehensive and integrated plan that relates the strategic advantages of the firm to the challenges of the environment. It is designed to ensure that the basic objectives of the enterprise are achieved through proper execution by the organisation.”

1.1 Definition of Strategy

According to Porter (1996) “The creation of a unique and valuable position, involving a different set of activities.”

According to Pearce & Robinson (2011) “Strategy can be defined as a long-term plan of action designed to achieve a particular goal or set of goals.”

2. Strategic Management

Strategic management is the process of determining and describing the strategies that managers may use to improve performance and provide their company a competitive advantage. If a company's profitability is better than the industry average for all businesses, that company is considered to have a competitive edge. In order to maximize the use of organisational strengths, reduce organisational weaknesses; take advantage of opportunities that arise from the business environment, and not disregard risks, managers should perform a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Strategic management merely refers to the preparation for both foreseeable and improbable contingencies (Pearce & Robinson, 2011).

It is suitable to both small and large firms because even the smallest organisations confront competition and can develop a lasting competitive advantage by developing and putting into practice the right strategies. Employees can then assess how these changes will affect their own jobs and adapt to the changes successfully. Both managers and employees must act in a professional manner. They must be both efficient and effective. One of the main responsibilities of strategic management is to fully integrate the organisation's many functional areas and to make sure that they work well together.

2.2 Definition of Strategic Management

According to Chandler (1962), “Strategic management is concerned with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources to enhance the performance of firms in their external environments.”

According to Hill & Jones (2018), “Strategic management is the process of defining an organization's direction and making decisions on allocating its resources to pursue this direction.”

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