Strategic HRM or managing the employment relationship

Strategic HRM or managing the employment relationship

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The past ten to 15 years in the human resource management (HRM) literature


has seen a great emphasis being placed on a “strategic” approach to the


development and implementation of HRM policies and practices (Collins, 1988;


Dyer and Holder, 1988; Legge, 1995; Miles and Snow, 1984; Storey, 1995; Wright


and McMahan, 1992). Although the details vary, the basic prescription for a


strategic approach to HRM tends to parallel the process shown in Figure 1. Both


the external and the internal environment are considered in light of the


organization’s mission and purpose (which may in turn be influenced by


corporate headquarters where the organization is a part of some larger entity).


As a result of this analysis, organizational strategies and objectives are


determined. HRM strategy should represent an integral part of achieving this


broader organizational strategy, with strategy in the various sub-fields or areas


of HRM supporting the overall HRM strategy. Thus, rather than HRM policies


and practices representing direct reactions to the various external and internal


forces, these forces are considered in light of organizational strategy and


objectives and then, if appropriate, changes are made to the overall HRM


strategy which may affect various HRM policies and practices.