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performance ? Encourages a broad based approach to development activities ? Ensures line manager mitment to development ? Offers mon language to all participants in the development process ? Offers transparent process to all stakeholders ? Facilitates validation and evaluation of the development process Development Reward ? Promotes flexibility ? Promotes a development focused culture ? Provides opportunities for advancement via skills ? Provides opportunities for earnings enhancement on the basis of skills and flexibility rather than seniority ? Can assist in addressing the technical/managerial divide ? Offers a route for the reward of knowledge workers ? Carries high ?face? validity and ?felt fair? perception ? Via core anisational petencies can link reward directly to anisational strategy Reward Integration ? Vertical integration with corporate strategy ? Horizontal the internal integration of the ponents of an HR strategy ? Intragration – the integration of the parts of a ponent of HR strategy reward strategy – base pay, variable pay and benefits all support each other Current HRM Issues Debates ? Responding to increased petition ? Managing international operations ? Riding the waves of change ? Managing the changing relationship with the workforce ? Changing legislative and regulatory frameworks ? Best practice versus best fit HRM and Corporate Strategy Strategy ? Diversity of viewpoints ? Two dimensions of agreement ? Degree of planning: deliberate – emergent ? Outes: profit maximisation – range of outes (plural) ? Four key approaches (Whittington) Approaches to Strategy Outes Profit maximising Plural Deliberate Emergent Classical Evolutionary Systemic Processual Processes Classical: Rational Economic Man ? Application of rational analysis ? Separation of planning from implementation ? Commitment to profit maximisation ? Emphasis on the longterm ? Explicit goals cascaded down the anisation Classical and HRM ? HRM matching and downstream ? Tool of implementation ? HR policies and strategies geared to achieving profit maximisation ? Critique – product of its time。 looks na239。ve in today39。s turbulent and global environment。 still pursued in some sectors with long time horizons. Evolutionary: Natural Selection ? Emphasis on environmental fit ? Profit maximisation achieved by market petition ? Fit determined by chance rather than strategy ? Survival by short term strategies aimed at current fit ? Strategy and illusion in unpredictable environment Evolutionary – law of the jungle ? HR key role in environmental scanning ? Policies and strategies aimed at flexibility and adaptability ? Matching model ? Critique – markets more regulated than jungle。 by government, law, international agreements ? Concept of flexibility important Processual – life is messy ? Concept of bounded rationality ? Subjective interpretation of data therefore strategy flawed and inplete ? We take the first best option – sufficing ? Organisations as coalitions – consensus by negotiation ? Minimum adaptation for survival rather than proactive change – spare capacity as buffer ? Strategy a forting ritual Processual and HRM ? HR policies evolving and reactive ? Soft HRM ? OD, best practice and development of internal petencies important ? Critique – lacks vision。 may not be able to respond quickly enough to threats Systemic: socially grounded ? Man makes decisions based on social factors not economic。Social works define norms ? Internal context of firm influenced by social groups, interests, resources and micropolitics ? Different forms of anisation successful indifferent cultures ? Systemic perspective includes national culture, family, gender, social groups ? Strategy must be sensitive to these Systemic and HR ? HR policies and processes will have to reflect local culture ? Management style and strategies for motivation and mitment reflect local and national culture ? Critique – focuses on difference at the expense of similarity and crosscultural influences ResourceBased Theory of the Firm ? Places HR at heart of strategy ? Competitive advantage stems from strategic core petencies built up over time ? Recognises importance of leadership in building top team。 fostering creativity and innovation。 facilitate the learning process ? Emphasises renewal aspect and dynamic capabilities of the anisation ? Capacity of a firm to renew, adapt and augment its core petencies over time ? Successful anisations bine multiple modes of strategy making with high levels of petence and astute leadership with employee involvement in strategy making ResourceBased Theory of the Firm ResourceBased Theory HRM ? Basis for human resource as petitive edge ? HRM valued for generating strategic capability as well as supporting strategy ? Human capital advantage – gained through resourcing and retention ? Human process advantage gained by continuous learning, cooperation and innovation facilitated by bundles of HR strategies Defining Strategic Core Competencies ? INTEGRATED bundle of individual skills ? 515 core petencies the norm ? A messy accumulation of learning including tacit and explicit knowledge – an activity ? Core petence: – delivers a fundamental customer benefit ? is not easily imitated by petitors provides a gateway to new markets ? Contributes to strategy as: as a source of petitive advantage via a longer lifespan that a single product exercised across the range of anisational activities Defining Strategic Core Competencies