Strategic Human Resource Management - Literature review Example

PROPOSAL By [Student’s Name] Course Name Professor’s name Institution of Learning Date Abstract This document is a dissertation proposal for the topic “Strategic Human Resource Management (SHRM) and its impact in an organization.” The study will basically analyze the role that SHRM has played in changing modern businesses’ values as well as the business productivity. In carrying out this study, questionnaires will be formulated and presented to ten companies that have recently adopted SHRM in managing their human resource. The questionnaires will address the economic, social and organizational changes that have been realized as a result of implementing Strategic Human Resource Management. In addition, documented studies will be used to check the correlation with and to supplement present data as obtained by the questionnaires with information contained in academic sources. Table of Contents Table of Contents 3 1.0 Introduction 4 1.1 Background of the Study 4 1.2 Definitions of Key Concepts 5 1.3 Problem Statement 5 1.4 Aims of Study and Research Questions 5 1.5 Research Overview and Design 6 1.6 Chapter Overview 6 2.0 Literature Review 7 2.1 Institutional Theory 8 2.3 The HR strategies applied by organizations 10 2.3.1 High-Performance Work Systems (HPWS) 10 2.3.2 High-commitment management 10 2.3.3 Companies’ high-involvement management 11 2.4 Theoretical approach of SHRM application 12 2.5 Strategic choices and options 13 2.6 Achieving vertical fit (Integrating HR strategies and business). 13 2.7 How Establishments implement their Strategic Human Resource Management 14 2.8 Barriers that have been experienced during implementation of HR strategies 15 3.0 Research Methodology 16 4.0 Data Analysis 17 5.0 Ethical Considerations 17 6.0 Budget 18 7.0 Conclusions 19 8.0 Recommendations 19 9.0 References 21 Appendices 23 1.0 Introduction This section will be split into sub-sections of background of study, definition of key concepts, problem statement, aims of study, and research questions, overview of the design of the research as well as chapters outline. 1.1 Background of the Study This area will focus on the recent history of Strategic Human Resource Management, its applications in various businesses and its popularity as a present-day alternative to the normal Human Resource Management used in many companies. The section will outline all the growing trends in the business platform that are related to the SHRM. As the concept is developed, the section will seek to point to the important concern regarding the usefulness of SHRM in the modern day business practice. It will lead to the importance of evaluating the use of SHRM in business in terms of finding out whether the overall effect is positive or negative. This section will also justify the validity of the study, whose main importance is to find out whether SHRM is beneficial or not in its current usage for most businesses. As in the dissertation statement, two areas of business concern will be evaluated and divided into two aspects. 1.2 Definitions of Key Concepts Under the definition of key terms and concepts part, there will be defined Strategic HRM, business values in the modern business concept, business productivity, and economic analysis of a business. In addition, other key concepts and terms that will be used in the dissertation will be defined. 1.3 Problem Statement This part will briefly state the key focus of the study in the form of a statement of the problem. The statement will be as follows: Evaluating the economic as well as the organizational importance of adopting SHRM in improve Human resource management and increase productivity aspects of business. 1.4 Aims of Study and Research Questions This part will break down the problem statement into various independent sub-parts, which will form the basis of the study, including the questionnaire formulation and integration of the different aspects. The principal objectives of the study will be listed here, including: Economic analysis of participant companies with the relation to implementation of SHRM. Organizational analysis of the companies as influenced by implementation of Human Resource Management. The comparison of economic and organizational performance before and after SHRM implementation. The research questions will also be written, and will include the following: Has the adoption of SHRM led to economic gain in the productivity and business value aspects of the participant companies? Has the implementation of SHRM policies led to any organizational changes in the participant companies? The answers to these questions will only be found after the data is collected and analyzed, this will mark the importance of the next chapters, particularly, the methodology. 1.5 Research Overview and Design This part will lay out the tools to be employed in the study. The primary data will mainly be collected through the questionnaires strategically formulated and presented to ten or more businesses or companies that have previously used other systems and have recently switched to SHRM. The secondary data will mainly be collected from peer-reviewed journals and other scientific publications accessible via the Internet and in different academic libraries. This type of data will include past studies conducted in line with this topic, such as the dependence of present day businesses on SHRM and business cost implications of the implementation of SHRM among other similar studies. 1.6 Chapter Overview This section will briefly introduce other chapters in the document, including the literature review chapter, methodology chapter, analysis chapter, and the conclusion chapter respectively. 2.0 Literature Review This chapter will briefly look into the history of SHRM since its inception to widespread applications in business practice. It will look into the various ways in which SHRM is being used by companies and organizations, as well as, related statistical figures already researched regarding the introduction of SHRM. Far from the documented studies of the human resource, this section will also look into the history of the participating businesses or companies. It will offer a brief insight into the nature of these businesses, their age, their key products and/or services, and the way in which they apply Strategic Human Resource Management. Human Resource strategy and an action plan are critical in enabling any business to meet the rapidly changing market demands. In this regard, many organizations’ development project is established as a forum for regional and national industry stakeholders. For business with several branches spread out to different locations, such projects work in tandem to establish a shared vision and use their experience and knowledge. HR strategy therefore assists to successfully and responsively accomplish actionable integrated SHRM initiatives. Many businesses are in the contemporary times experiencing unprecedented structural changes globally. This has called for expansion of the scope of such business management, their technological capabilities, and organizational structures which require strategic human resource initiatives. The endeavor of this work is to critically analyze theories of HRM and their application in HR strategies in various organizations. Through research skills the research thereof will identify factors that influence development of HR strategies in the establishments. In keeping with Tanya and Huub (2008), HRM strategy prompts changes that aim at achieving competitive advantage through the efforts of the employees. Arguably, HRM processes take place with the context in the internal and external environment in an organization. As such, SHRM acts as a mindset which can lead to strategic action and reactions Lai and Fong (2012). Tanya and Huub (2008), indicate that, it does this in its entirety or through a specific human resource strategy. The research will attempt to explore HR strategies in ten different companies. The key areas in this study are where, how and when set HR strategies are developed, the criteria for an effective Human resource strategy, the manner in which HR strategies are developed, and implemented. The work will rely heavily on theories and principles of HRM in development of HR strategy. According to Kearns (2010), various companies have dissimilar strategies. Kearns (2010), notes that there are two types of HR strategies these are; the specific strategies, and the general strategy. According to Kearns (2010), the general strategies center on high working capacity while the specific strategy on different aspects of Strategic HRM such as learning, reward and development. 2.1 Institutional Theory In keeping with James (2009), the HR strategies determine how an organization intends to achieve its policies on human resource management and practices these policies should be integrated with business strategy. James (2009) also indicates that these are internally consistent bundles of HR practices. In reference to James (2009), a strategy, be it a HR strategy or any managerial strategy must possess two key elements i.e. a plan-action and strategic objectives. This theory depicts both isomorphic and normative pressures that come forth due to economic and social inter-relations between firms. In keeping with Calveley and Shelley (2007), Institutional theory provides a critical foundation for inclusion of SHRM. Calveley and Shelley (2007), note that the theory combined with political forces brings about necessary ingredients to compete in the automotive industry. 2.2 Resource Dependency Theory In reference to Calveley and Shelley (2007), HR strategies require generating SHRM options and implementing appropriate strategic choices. As noted by Calveley and Shelley (2007), choosing a practice to be pursued by an employer is heavily contingent on numerous factors at the organizational level; this entails production strategy, business strategies and cooperation of labor relations, and support of human resource policies. Resource dependency approach captures the evolving from power relations and pressures from the competing businesses and dominant customers. Through the nature of research exchange, evidently, HRM initiatives in many organizations reflect the distribution of power and dynamics within a company. It is invariably factual that power can be exerted by different stakeholders, employees, great customers and the top managers. According to Calveley and Shelley (2007), the adoption of new HR practices is imposed from immediate work environment. Emergence of such issues negate contradicts those criticism that have been directed at HRM frameworks that fail due to exaggerated conceptions of strategic approaches. 2.3 The HR strategies applied by organizations 2.3.1 High-Performance Work Systems (HPWS) Through new institutionalized and resource-based theory, many companies have adopted a high-performance working system, most of these companies aim at impacting on the performance in quality improvement, productivity, growth and profits, and levels of customer service. High management practices that most of these establishments engages with include rigorousness recruitment, relevant and extensive training, incentive pay systems, and management of the performance process. These processes influence employee involvement, motivation and skill enhancement. The company has employed these practices that venture on abilities and skills of employees. The HR strategies have been designed to work in ways that allow employee collaboration when solving problems. The company aim at coming up with a strategy that motivates workers to put discretionary effort through offering incentives. 2.3.2 High-commitment management In many companies mutual commitment is enhanced through HR strategies. The main aim of enhancing HRMS, Cardy (2011) notes aims at eliciting employee commitment to an extent that behavior becomes principally self-regulated instead of being controlled by external pressures to employees and sanctions. In reference to Cardy (2011) employee’s relationship in several organizations is based on high level trust. Cardy (2011) notes that most companies concentrate on job design, something that the management has consciously done to improve on the jobs that have a considerable level of intrinsic satisfaction. In keeping with Orhan and Fatih (2013) the businesses then come up with a policy of no redundancies and compulsory layoffs. Such companies according to Mark et al. (2009).have permanent employment guarantees and also use casual workers to cushion fluctuations in the labor demand. _ Mark et al. (2009) also note that such companies introduce new forms of assessment and systems of payments than are more specific on merit and profit sharing. High involvement of workers has resulted in to management of quality. 2.3.3 Companies’ high-involvement management In reference to Cardy (2011) many companies have set a high-involvement work practice that is centered on employee power, decision making and access to information, training and incentives. Itzhak and Ilan (2010) further argues that, high-involvement demands management systems based involvement and dedication, this contrasts conventional bureaucratic models that are based on control. In keeping with Itzhak and Ilan (2010) many organizations’ underlying assumption is that employees should increase their involvement with the company when they are provided with the opportunity to manage their work. According to Itzhak and Ilan (2010) high-involvement practice acts as synergy and has a multiplicative effect. Itzhak and Ilan (2010) also notes that high involvement practice involves creating a relationship between employees. As such, employees in a high involvement system have their opinion on matters that concern them. In the modern times organizations are much concerned with collaboration and communication, and it principal aim is to create an atmosphere of a continuous dialogue between the top officials and their subordinates with a purpose of defining expectations and sharing information about the organization objectives, values and mission. Such has overly aided many companies in building mutual understanding of what must be achieved and layout for management and development of employees with an objective of ensuring that this is achieved. According to Cardy (2011) Human Resource Strategies aim at organizational development. Organization development in this matter includes designing and implementation of programs that are designed to enhance the effectiveness with which the company functions and responds the change. Many companies have also engaged in development and implementation of policies that have been designed to facilitate the level of workers engagement with their duties and the company, and knowledge management. According to Itzhak and Ilan (2010) knowledge management involves creating, capturing, acquiring and using the attained knowledge to enhance performance. It has also been involved in resourcing activities with an aim of attaining high quality work force. Another key function of the companies’ HR strategies is talent management which ensures the company has talented workforce for it to achieve success. Lastly major companies also get involved in learning and development and have provided an environment where employees are encouraged to get relevant education and develop their working skills. 2.4 Theoretical approach of SHRM application According to Downs (2008) an effective HR strategy realizes what it has been set out to achieve. Downs (2008) further notes that theory of best fit explains how different HRM approaches are appreciated in light of HR strategies in pursuance. In keeping with Downs (2008) such establishment lays emphasis on the vertical linkage between human resource management and HR strategies. As affirmed by Downs (2008), it is paramount to develop more situational explicit principles and theories for competent management. This approach is imbued with a high level of determinism and has a notion that HR interventions fit in impulsion of HR Strategies. 2.5 Strategic choices and options As noted by Downs (2008) there exist two approaches i.e. the outside-in approach and inside out approach. Downs (2008) further provides the stated observations regarding the approaches; Cardy (2011) affirms that most advanced linkage is integrative. In keeping with Downs (2008) Integrative linkage is where those senior HR personnel are part of the top management team. The Senior HR is therefore part of the top management and contributes on issues concerning the development of business strategies. As demonstrated by Downs (2008), HR strategies flow from business strategies. Downs (2008) further indicates that such strategies are dominated by financial and market considerations. Nonetheless, Downs (2008) also notes that there are rooms for HR to improve at the stage where business strategies are conceived through focusing on resource issues. By working through strategic concerns and clarifying on points of tension, emergent of new ideas and finding consensus over goals is eventually obtained. Many establishments use two key issues that address the development of strategic human resource management i.e. achieving a vertical fit and integration and achievement of a horizontal fit (bundling). 2.6 Achieving vertical fit (Integrating HR strategies and business). James (2009) notes that getting fit necessitates acquaintance in business strategy, skills and behavior required in implementation of these strategies. James (2009) further states that knowledge in HRM practices requires eliciting those behaviors and skills, it also requires the ability to develop and implement the targeted system of HRM practices. It has been paramount for the company to consider how to integrate SHRM and business through this in-turn has influence the corporate strategy and the business unit strategy. 2.7 How Establishments implement their Strategic Human Resource Management In keeping with Martyn (2013) most companies direct HR Manager to implementation of strategies while just enough time is spent on strategic management. These establishments then translate these strategies into programs that have clearly stated deliverables and objectives (Martyn, 2013). According to Martyn (2013) it is had to get strategies in action, more so strategic HRM has been devalued to even mean generalized ideas about HR policies, and it has also been used to explain a short-term plan like retaining the production rate. It is hence noteworthy to emphasis that HR strategies entails more than just programs, plans and policies regarding HR concerns that the department of HRM considers pertinent. It is paramount to note that piecemeal initiatives do not count as strategies. In reference to Cardy (2011) the problem with SHRM is that it often creates a gap between what is stated in the strategy and the real strategic action. There have been several factors that have been identified to contribute to the gap between the designed strategy and the way it is implemented. These factors include; a. Tendency by the long-serving workforce to cling on the status quo. b. Employees’ tendency to accept only those adjustments that are perceived to relate to their areas of specialization. c. Initiatives that are ambiguous and complex that are hard for the employees to understand or that can be perceived differently especially in large and diverse companies. d. It is too hard to be accepted among non-routine initiatives. e. When the initiative is seen as a threat by the employees f. When it is consistent with the companies strategies and values. g. It goes beyond the extent beyond where the management can be trusted. h. The employees are likely to be hostile to initiatives that conflict with the organization's identity i.e. downsizing a culture. i. Culture that are bureaucratic and those that lead to inertia. 2.8 Barriers that have been experienced during implementation of HR strategies There have been numerous factors that have created barriers to successful implementation of this Strategic Human Resources Management. In reference to Itzhak and Ilan (2010) many of these critical barriers that catch up with business include; failure to understand the strategic requirements for business, development of irrelevant and ill-conceived initiatives, and insufficient assessment of environmental factors affecting the contents of the strategies. Arguably, such barriers result from analysis of best practices that are often not comprehensively analyzed; as such they can not fit the requirements of such establishment. According Janet and Sandra (2013), these complications are compounded when there is insufficient attention to practical implementation. The key role of many companies’ line managers, as established by Garret (2005), in implementation of the company's strategies is giving maximum attention to the realization process. 3.0 Research Methodology In this chapter on research methodology, the definite tools used for this research will be listed. The main primary data sources for this work will be emails, questionnaire, and telephone interviews. To emphasis, there will be two types of questionnaires; the first will be an online one while the other will be in hard copy. The questionnaires will be issued to respondents according to their preferences. The necessary standards applicable in the formulation of questionnaires, such as the observance of privacy and non-revelatory type questions, will be observed (Lai Chai & Hong, 2012). The data to be collected will be organized according to various parameters required for further treatment, including the number of questionnaires issued, the number of positive respondents, business categories of the respondents, the broad capital margins of respondents, age of businesses, duration of SHRM implementation, percentage of running processes dependent on SHRM, cost of implementation, change in the profitability or revenue after the SHRM implementation as a percentage of the overall gross incomes of the firms before the adoption of this mode of HRM, SHRM implementation on sub-branches and sub-sections of the firms, such as procurement department, semi-skilled labor departments, skilled labor departments, and human resource department procedures, and expected future of SHRM in their firms among other parameters. Samples of questionnaires used will be attached in the appendix. What concerns secondary data sources, various websites visited will be cited and any sources for tables, charts, and other intellectual properties cited from any sites will be properly referenced. At the end of the chapter, findings in form of returned questionnaires and any referenced materials from secondary sourcing will be stated. 4.0 Data Analysis This chapter will display the actual results of the study, both the primary sources and secondary sources in the preparation for analysis. The data obtained will be analyzed in order to come up with trends common to all respondents as well as to facilitate the categorization of the results depending on key sub-divisions in the business sector that depend on such parameters as capital range, business age, and business type among others. Also, various broad subdivisions of the dissertation as seen in the title will be analyzed separately. For instance, the economic analysis results of SHRM implementation in the productivity aspect of the firm will stand out as a distinct parameter, different from the economic aspect in the business value aspect of the firm. Similarly, the organizational impact of strategic human resource application will be separated into two outputs: the organizational view and the business value view. Methods used for data treatment and analysis will be explained, and the results of the analysis – clearly shown and explained. Results will be presented using such tools as bar graphs, pie charts, and histograms to clearly bring out the results and juxtapose various parameters for the ease of comparison. 5.0 Ethical Considerations According to Rastislav et al. (2014) ethics in media research represents the general rules guiding conduct in the process of carrying out such research. Ethical considerations are to be integrated in the entire research period since the research intends to make use of students as the primary subjects for the provision of information and experimentation. This study will ensure that several ethical principles are maintained: 1. All the respondents (University’s interne users) are respected and the confidentiality of their views is maintained. 2. The selection and grouping of samples will be free and fair. 3. Approval of the pertinent authorities for the approval for the research like The University boards. Additionally, other ethical considerations which will be maintained during the study is the scientific validity of the study, what the potential harms and benefits brought about by the study are and whether the respondents have been requested for their informed consent. The researchers will also ensure there is no disclosure of information from the respondents since the disclosure of the study findings to the research participants and the other members of the university have ethical consequences as Rastislav et al. (2014) corroborates. Confidentiality of the participants’ identity will be upheld to the degree that is provided by law. The names of the respondents will not be shown in the report from the study. Rights and freedoms of the participants will be considered e.g. they will be allowed to use an alias if they prefer. 6.0 Budget The costs of the research will be calculated using the itemization of costs. This will include the wages to the personnel involved in the research, indirect costs, supplies, travel fees and consultancy charges. The approximation f these costs will be done by considering a prior successful media research study. This will help develop a competent and capable research team and process. 7.0 Conclusions In this chapter, a brief and accurate assessment of the findings of the previous chapter will be made. An exhaustive description of the nature of the findings will be written, which will be in total agreement with the corrected data and relevant to the objective of the research. The expected statements in the conclusion chapter will show the SHRM implementation as either positively affecting the economic positions of businesses (on average) or negatively affecting them. Due to the fact that there are few articles published from this type of study, this study will be greatly beneficial in ensuring SHRM implementation in various organizations. The proposed study will define the HR strategies favored by organization and those that help effective implementation of SHRM. The proposal above will ensure researchers have a firm foundation/basis of conducting research on the research problem where there is strategic human resource management. Even though, the research may encounter several limitations and challenges, this study will help to understand the advantages of effective implementation of strategic human resource management. 8.0 Recommendations In line with the objective of the research, the findings will be used to either encourage or discourage the implementation of SHRM in organizational running basing on the research outcomes. The recommendations given at this stage will be expected to mention any anomalies expected in the research methodology used and possible adjustments in the results to cater for such anomalies. For instance, if the data available from respondents with very young businesses/firms is found to be inconsistent in it, the recommendation will outline all the possible reasons for this anomaly and suggest remedies for the same. 9.0 References Calveley M. & Shelley S. (2007). Learning with Trade Unions: a contemporary agenda in employment relations. Aldershot: Ashgate, pp. 56-98. Cardy R. (2011). Performance management: concepts, skills and exercises. New York: Sharp, pp. 123-145. Downs L. J. (2008). Negotiation Skills Training. Alexandria: ASTD Press, pp. 111-132. Garret G. A. (2005). Contract negotiations: skills, tools and best practices. Chicago: CCH, pp. 200-207. James W. (2009). Performance management putting research into practice. New York: John Wiley Pub, pp. 100-123. Kearns, P (2010). HR Strategy: Creating Business Strategy With Human Capital. London: Routledge. Tanya V. &, Huub J. (2008). HRM systems for successful information technology implementation: evidence from three case studies. Original Research Article; European Management Journal, Volume 26, Issue 3, Pages 153-165 Mark L., Cynthia A., Leticia S., & Brian D. (2009). Strategic human resource management: The evolution of the field. Original Research Article; Human Resource Management Review, Volume 19, Issue 2, Pages 64-85 Janet H. & Sandra L. (2013). An evidence-based review of e-HRM and strategic human resource management. Review Article; Human Resource Management Review, Volume 23, Issue 1, Pages 18-36 Orhan S & Fatih K. (2013). The Relationship between Strategic Management, Institutionalization and Human Resource Management: A Survey Study with Family Businesses Located in the Northeast Anatolia Sub Economic Region of Turkey. Procedia - Social and Behavioral Sciences, Volume 99, Pages 835-842 Itzhak H & Ilan M. (2010). The meaning of work, employment relations, and strategic human resources management in Israel. Human Resource Management Review, Volume 20, Issue 3, Pages 212-223 Martyn D. (2013). The role of research proposals in business and management education. Original Research Article: The International Journal of Management Education, Volume 11, Issue 3, Pages 142-149 Lai Chai Hong, Ng Siew Fong. (2012). Presenting a Research Proposal: The Examiners’ Expectations. Original Research Article: Procedia - Social and Behavioral Sciences, Volume 66, Pages 537-543 Rastislav R, Jaroslava K, Andrea S, & Gabriel K. (2014). Business Information Systems: Research Study and Methodological Proposals for ERP Implementation Process Improvement. Original Research Article: Procedia - Social and Behavioral Sciences, Volume 109, Pages 165-170 Appendices The Gantt chart on how the proposal will be implemented. Project Proposal Time Frame Task Start Date Duration End Date Developing Items for Survey 10-Jun 2 12-Jun Reviewing the Items with the Group 12-Jun 1 13-Jun Pre-test items with representative sample of target population 13-Jun 5 18-Jun Program sample for administrator survey 18-Jun 1 19-Jun Prepare survey sites for study 19-Jun 5 24-Jun Recruit and train Study representatives 15-Jun 3 18-Jun Recruit 200 subjects and administer survey at ten sites 18-Jun 10 28-Jun Statistical analysis of data 30-Jun 2 2-Jul Preparation of admission of peer reviewed sources and manuscripts 1-Jul 2 3-Jul Read More