Strategic

Human
Resource
CHAPTER 5
Management PRINCIPLES OF STRATEGIC
HUMAN RESOURCE
MANAGEMENT

Abrarw Chane (PhD)

[email protected]

፳፻፲፪ ዓ.ም.
April 2020
Addis Ababa University
School of Commerce
 Principles of SHRM
What are the major Principles
of SHRM?
1. Integration of HR to Strategy
2. Consistency of HRM Practices
3. Devolvement of HRM to Line Management
4. High Employee Commitment
5. High-Quality Staff and Internal Practices
6. Management-Employee Relation
7. People as a Strategic Resource
፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፪
 Principles …
Principle 1. Integration of HR to
Business Strategy
To what extent are the HR policies integrated to
the Business/Corporate Strategy of the firm?
o SHRM is a discipline that integrates HRM with the
process of strategic management
o SHRM is a management activity which involves
integration of human factors to strategic goals of the
organization
o SHRM is a management process requiring HR
policies & practices to be linked with the strategic
objectives of the org
፳፻፲፪ ዓ.ም. o SHRM is the process of linking HR practices to
Abraraw-SHRM-05-2020
business strategy ፫
 Principles …
Strategic Integration is the fit between
1. employment activities and general org’nal
strategies & policies
2. HR practices & policies and the three generic
competitive strategies of Porter
3. HR practices & policies and the four generic
strategies of Miles and Snow
4. HR practices & policies and the firm’s life cycle
stage
5. HR systems & other systems within an org.
6. HR systems and business strategy of the org.
7. the HR system and the org’s env’t
8. all employees into the business

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፬
 Principles …
Principle 2. Consistency of HRM
Practices

To what extent are the individual pieces

of the HR system internally
complementary?

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፭
 Principles …
Types of Consistency
1. Single-employee consistency
2. Among-employees consistency
3. Temporal consistency

Benefits
1. the different HR practices support each other
2. Aids in the learning process
3. Aids social learning in the org.
4. Allows for better initial employee-work setting
match
5. Diffuses invidious social comparisons and feelings of
፳፻፲፪ ዓ.ም. distributive injustice
Abraraw-SHRM-05-2020
፮
 Principles …
Principle 3. Devolvement of HRM to
Line Management

To what extent do HRM practices involve

and give HR responsibility to line
managers?

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፯
 Principles …
1. the locus of responsibility for HRM no longer resides
with specialist managers but is now assumed by
senior line management
2. the degree to which HRM system involves and gives
responsibility to line managers rather than HR
specialists
3. Responsibility for designing the formal policies for
managing employee behaviors lies with HR
professionals, while responsibility for implementing
those policies lies with supervisors and managers.

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፰
 Principles …
Principle 4. High Employee
Commitment

High employee commitment to the

goals & practices of the
organization

The employees’ dedication towards

achieving a particular task
effectively and efficiently

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፱
 Principles …
Managers assume the role of ‘enabler’,
‘empowerer’ and ‘facilitator’

Making behavior self-regulated rather than

controlled by sanctions and pressures
external to the individual

relations within the org. are based on high

levels of trust

the strength of an individual's identification

with, and involvement in, a particular
፳፻፲፪ ዓ.ም. organization
Abraraw-SHRM-05-2020
፲
 Principles …
Principle 5. High-Quality Staff and
Internal Practices

high-quality staff and internal

practices to achieve high-quality
products

“High-quality employees” refers to issues of

workplace learning and the need for the
organization to have an able, qualified and
skillful workforce to produce high-quality
፳፻፲፪ ዓ.ም. services and products.
Abraraw-SHRM-05-2020
፲፩
 Principles …

the comprehensive set of managerial

activities and tasks related to developing
and maintaining a qualified workforce

organizations with high quality staff and

that manage them in the most efficient
and effective manner are strategic
፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፲፪
 Principles …
Principle 6. Management-Employee
Relation

Is the management-Employee
relation through the trade union or
directly to individual employee?

Is there mutual interest between

the management and the individual
employees?

፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፲፫
 Principles …
1. The focus in SHRM shifts:
o from management–trade union relations to
management–employee relations
o from collectivism to individualism

2. maintaining links
o the organization
o individual employees
 in preference to operating through group &
representative systems

3. a commonality of interest
o the organization
o the employees
፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፲፬
 Principles …
Principle 7. People as a Strategic
Resource

Seeing the people of the organization as a

‘strategic resource’ for achieving competitive
advantage

Grounded on the RBT of the firm which states

organizational resources as unique bundles
have the power to give an organization a
competitive advantage over others in the same
industry
፳፻፲፪ ዓ.ም.

Abraraw-SHRM-05-2020
፲፭
 Principles …
Are employees seen as human resources or
resourceful humans?

• seen as a ‘headcount resource’ and treated in as

rational a way as ‘any other factor of production’

• the emphasis is upon training and development,

employee involvement and all the other HR practices
which are designed to optimize the potential of
፳፻፲፪ ዓ.ም.
employees.
Abraraw-SHRM-05-2020
፲፮