Unit 1 - Personel vs SHRM

From the 1980s, initially in the USA, there developed a further version of people management, known as ‘strategic human resource management’ (SHRM) – often just called HRM – in which the ‘s’ of strategic denotes that we are maintaining our focus on the collective rather than the individual level.

SHRM has been characterised by Storey (2007) in a set of underlying principles defined below, which are the beliefs and assumptions of leading-edge HR practitioners.

1.       Beliefs and assumptions;

a.       That it is the human resource which gives competitive edge.

b.      That the aim should be not mere compliance with rules, but employee commitment.

c.       That employees should be very carefully selected and developed. 

2.       Strategic qualities:

a.       Because of the above factors, HR decisions are of strategic importance.

b.      Top management involvement is necessary.

c.       HR policies should be integrated into the business strategy – stemming from it and even contributing to it. 

3.       Critical role of managers:

a.     Because HR practice is critical to the core activities of the business, it is too important to be left to personnel specialists alone.

b.     Line managers are (or need to be) closely involved as both deliverers and drivers of the HR policies.

c.       Much greater attention is paid to the management of the managers themselves. 

4.       Key levers:

a.       Managing culture is more important than managing procedures and systems.

b.      Integrated action on selection, communication, training, reward and development.

c.       Restructuring and job design to allow devolved responsibility and empowerment.

(Storey, 2007, p. 7)

Table 1.1 Twenty-seven points of difference between personnel management and SHRM

Dimension		Personnel and industrial relations (IR)	SHRM
Beliefs and assumptions
1	Contract	Careful delineation of written contracts	Aim to go ‘beyond contract’
2	Rules	Importance of devising clear rules/mutuality	‘Can-do’ outlook; impatience with ‘rule’
3	Guide to management action	Procedures	‘Business-need’
4	Behaviour referent	Norms/custom and practice	Values/mission
5	Managerial task vis-à-vis labour	Monitoring	Nurturing
6	Nature of relations	Pluralist	Unitarist
7	Conflict	Institutionalised	De-emphasised
Strategic aspects
8	Key relations	Labour management	Customer
9	Initiatives	Piecemeal	Integrated
10	Corporate plan	Marginal to	Central to
11	Speed of decision	Slow	Fast
Line management
12	Management role	Transactional	Transformational leadership
13	Key managers	Personnel/IR specialists	General/business/line managers
14	Communication	Indirect	Direct
15	Standardisation	High (e.g. ‘parity’ an issue)	Low (e.g. ‘parity’ not seen as relevant)
16	Prized management skills	Negotiation	Facilitation
Key levers
17	Selection	Separate, marginal task	Integrated, key task
18	Pay	Job evaluation (fixed grades)	Performance-related
19	Conditions	Separately negotiated	Harmonisation
20	Labour management	Collective bargaining contracts	Towards individual contracts
21	Thrust of relations with stewards	Regularised through facilities and training	Marginalised (with exception of some bargaining for change models)
22	Job categories and grades	Many	Few
23	Communication	Restricted flow	Increased flow
24	Job design	Division of labour	Team work
25	Conflict handling	Reach temporary truces	Manage climate and culture
26	Training and development	Controlled access to courses	Learning companies
27	Foci of attention for interventions	Personnel procedures	Wide-ranging cultural, structural and personnel strategies

Adapted from Storey, 1992, p. 35