Strategic Hrm: Case Study of Luxury Cars
“Strategic HRM is the process of linking the HR function with the strategic objectives of the organization in order to improve performance.”(Bratton & Gold 2007)
Strategic Human Resource (SHRM) management is human resource management with a strategic edge, linking both business strategy with human resource (HR) strategy of an organization. Human resource management has become an integral part of almost all the companies all over the world. Human resource management concerns not only how peoples are managed but also how managing people could maximize the competitive advantage in that market sector (Tyson, 1991 p2). Business strategies are defined as a strategy of a particular business unit (Tyson 2000, p66). Human resource(HR) strategy is a series of policies and programs designed to achieve a people management objective (Tyson, 2000 p66) .SHRM on a broader term is a overall sense of mission and direction, an appreciation in general terms of where the company is going and why. This may include articulation of core values, distinctive competencies and corporate vision. SHRM also focuses on translating the complex and dynamic set of internal and external variables, which an organization faces, into a future oriented framework which can then be implemented on a day to day basis (Watson, 1999). In the subsequent paragraphs, This study tries to explain why and how different automobile companies adopt different business and HR strategies. For this study focuses on works of two authors Porter (1980) who has classified business competitive strategy into three types: cost leadership, differentiation, and focus and of that of Schuler and Jackson (1987) who has classified business strategy into three types: cost reduction, innovation, and quality enhancement (Huang 1999). At the end it would try to reach at an particular point where by the help of the practical and secondary data it can identify the best HR and Business practices.
LUXURY SECTION
Case 1: VOLVO GROUP
Strategic Human Resource (SHRM) management is human resource management with a strategic edge, linking both business strategy with human resource (HR) strategy of an organization. Human resource management has become an integral part of almost all the companies all over the world. Human resource management concerns not only how peoples are managed but also how managing people could maximize the competitive advantage in that market sector (Tyson, 1991 p2). Business strategies are defined as a strategy of a particular business unit (Tyson 2000, p66). Human resource(HR) strategy is a series of policies and programs designed to achieve a people management objective (Tyson, 2000 p66) .SHRM on a broader term is a overall sense of mission and direction, an appreciation in general terms of where the company is going and why. This may include articulation of core values, distinctive competencies and corporate vision. SHRM also focuses on translating the complex and dynamic set of internal and external variables, which an organization faces, into a future oriented framework which can then be implemented on a day to day basis (Watson, 1999). In the subsequent paragraphs, This study tries to explain why and how different automobile companies adopt different business and HR strategies. For this study focuses on works of two authors Porter (1980) who has classified business competitive strategy into three types: cost leadership, differentiation, and focus and of that of Schuler and Jackson (1987) who has classified business strategy into three types: cost reduction, innovation, and quality enhancement (Huang 1999). At the end it would try to reach at an particular point where by the help of the practical and secondary data it can identify the best HR and Business practices.
LUXURY SECTION
Case 1: VOLVO GROUP
Bibliography: 1. Armstrong, M. (2006) Strategic Human Resource Management: A Guide to action (3rd edn), London, Kogan Page. 2. Bratton, J. & Gold, J. (2007) HRM: Theory & Practice (4th. Ed), Palgrave. 3. Huang, T. (1999) ‘The effects of linkage between business and human resource management strategies’, Taiwan, MCB University Press. 4. Porter, M.E. (1980), Competitive Strategy, Free Press, New York, NY. 5. Schuler, R.S. and Jackson, S.E. (1987), ``Linking competitive strategies with human resources 6. management practices ' ', Academy of Management Executive, Vol 7. Torrington, D. and Hall, L. (1998) Human Resource Management (4th edn), London, Prentice Hall. 8. Tyson, S. and York, A. (2000) Essentials of HRM (4th edn), Oxford, Butterworth Heinemann. 9. Walton, J. (1999) Strategic Human Resource Development, Great Britain, Pearson Education Ltd.