Human resource management a strategic approach 6th edition 2010

Harvard Business School Press, Boston. Human Resource Management Review, 21, The Academy of Management Annals, 8, Home Journals Article. DOI: Abstract Research-based view studies indicate that companies can distinguish themselves in competition through a profound understanding of their resources and through continuous improvement of their human competencies.

Share and Cite:. Kesti, M. Technology and Investment , 6 , Conflicts of Interest The authors declare no conflicts of interest. References [ 1 ] Dessler, G. Journals Menu. Contact us. All Rights Reserved. Dessler, G. Aguinis, H. These theories are summarized below. It should come as no surprise that eliciting commitment — and providing the environment in which it can flourish — pays tangible dividends for the individual and for the company.

The traditional concept of organizational commitment is very similar to the more recent notion of organizational engagement see Chapter The following are the characteristics of organizational behaviour theory.

The two most influential motivation theories are those relating to intrinsic motivation and expectancy theory. Deci and Ryan suggested that intrinsic motivation is based on the needs to be competent and self-determining that is, to have a choice. Intrinsic motivation can by enhanced by job or role design. In their job characteristics model, Hackman and Oldham emphasized the importance of the core job dimensions as motivators, namely: skill variety, task identity, task significance, autonomy and feedback.

Expectancy theory explains that motivation will be high when people know what they have to do to get a reward which may be financial or nonfinancial , expect that they will be able to get the reward, and expect that the reward will be worthwhile. The theory recognizes that people have different types of needs, wants and goals and that this must be taken into account in devising HR policies and practices, especially those concerned with motivation and reward.

Expectancy theory was pioneered by Vroom and developed by Porter and Lawler , who proposed that high individual performance depends on high motivation plus possession of the necessary skills and abilities, and an appropriate role and understanding of that role.

HRM practices therefore impact on individual performance if they encourage discretionary effort, develop skills and provide people with the opportunity to perform. The Concept of HRM Human capital theory Human capital theory is concerned with how people in an organization contribute their knowledge, skills and abilities to enhancing organizational capability and the significance of that contribution.

Resource dependence theory Resource dependence theory groups and organizations gain power over each other by controlling valued resources. HRM activities are assumed to reflect the distribution of power in the system.

Institutional theory Organizations conform to internal and external environmental pressures in order to gain legitimacy and acceptance.

Transaction costs theory Transaction costs economics assumes that businesses develop organizational structures and systems that economize the costs of the transactions interrelated exchange activities that take place during the course of their operations. The approach used will take account of the phenomenon of bounded rationality the extent to which people behave rationally is limited by their capacity to understand the complexities of the situation they are in and their emotional reactions to it and the tendency toward opportunism satisfying self-interest.

Agency theory Agency theory, also known as principal-agent theory, explains that in most firms there is a separation between the owners the principals and the agents 11 12 The Conceptual Framework of Strategic HRM the managers. The principals may not have complete control over their agents. The latter can therefore act in ways that are not fully revealed to their principals and that may not be in accordance with the wishes of those principals.

Agency theory indicates that it is desirable to operate a system of incentives for agents, ie directors or managers, to motivate and reward acceptable behaviour. Karen Legge 97 exercised a major influence on the acceptance of the relevance of contingency theory.

She also produced the following suggestions on applying contingency theory. The Concept of HRM The goals of HRM The overall purpose of human resource management or people management is to ensure that the organization is able to achieve success through people. Flexibility: functional flexibility and the existence of an adaptable organization structure with the capacity to manage innovation.

Quality: this refers to all aspects of managerial behaviour that bear directly on the quality of goods and services provided, including the management of employees and investment in high-quality employees. Strategic integration: the ability of the organization to integrate HRM issues into its strategic plans, ensure that the various aspects of HRM cohere, and provide for line managers to incorporate a HRM perspective into their decision making.

Commitment, as defined by Guest, is similar to the more recent concept of engagement see Chapter But HRM also has an ethical dimension, which means that it expresses its concern for the rights and needs of people in organizations through the exercise of social responsibility.

Dyer and Holder have pointed out that HRM goals vary according to competitive choices, technologies, characteristics of employees eg could be different for managers and the state of the labour market. By contrast, the soft version traces its roots to the humanrelations school; it emphasizes communication, motivation and leadership.

Their conclusions are set out below. In all the organizations, we found a mixture of both hard and soft approaches. Buy this product. Download instructor resources. Alternative formats.

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For educator access, contact your Pearson representative. To find out who your Pearson representative is, visit www. This chapter informs students that there is much more to consider besides the fundamentals of compensation design that are detailed in Chapters 1 through Chapter 16 also addresses seven key issues among many that will shape the work of compensation and benefits professionals in the future:. Download Simulation Answer Key 0.

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