DefiningStrategicHRM：AnOverviewoftheField

DefiningStrategicHRM:AnOverviewoftheFieldPatrickM.WrightProfessorofHRStudiesCornellUniversityMyBiases…•Ideologically,IwantHRtomatter–Peoplearevaluable(Judeo-Christianethic)•Professionally,myroleisgatekeeper/scientisttoexplorerigorouslyifitdoes–Positivist,EmpiricistPerspective•ResultisaverycriticalapproachtostudyingStrategicHRMMyBiases…•Emphasiswillbeonmywork–Notbecauseit’struth–Notbecauseit’sthebest–Notbecauseit’sperfect–Notbecauseothers’workdoesn’tmatter…but•Becauseit’swhatIknowandwhatI’mpassionateaboutWhatisHRM?•IsitPractices?•IsitPolicies?•IsitProcesses?•IsitPhilosophy?WhatisHRM?•HRMisalloftheactivitiesaimedatbuildingthehumanpotentialandperformancewithinanorganization•Includes:–HRPhilosophy(Values,Culture,etc.)–HRPolicies(Whatshouldbedone)–HRPractices(Whatactuallygetsdonebymanagersimplementingpolicies)–CommunicationsWhatisStrategicHRM?•…ThepatternofplannedhumanresourceactionsanddeploymentsintendedtoenablethefirmtoachieveitsgoalsWright&McMahan,1992DefiningtheLandscapeofHRMMultipleSingleOrganizationIndividualNumberofPracticesLevelofAnalysisDefiningtheLandscapeofHRMStrategicHRMIndustrialRelationsHPWSIsolatedFunctionsTraditional/FunctionalHRMI/OPsychologyPsychologicalContractEmploymentRelationshipMultipleSingleOrganizationIndividualNumberofPracticesLevelofAnalysisFocusingonStrategicHRM•ProblemswithSinglePracticeResearch–Motivation–ProveitMatters–Ignoressimultaneitywithotherpractices–Ignoresthat“systems”impactpeople•NeedtodoMoreandBetterSystems-OrientedStrategicHRMResearchOverviewofSHRMResearch•HRPracticesandPerformance•Fit(VerticalandHorizontal)•ClassifyingHRPractices(Bundles)•FlexibilityHRPracticesandPerformance:SeminalStudies•Arthur(1992;1994)•Huselid(1995)•MacDuffie(1995)•DeleryandDoty(1996)HRPracticesandPerformance:SomeAdditionalStudies•Welbourne(1996)+•Youndtetal.(1996)+•Delaney&Huselid(1996)+•Lee&Chee(1996)?•Huselid,Jackson,&Schuler(1997)+•Shaw,Delery,Jenkins,&Gupta(1998)+•Lee&Miller(1999)?+•Guthrie(2000)+•Ostroff,(2000)+•Bae&Lawler(2000)+HRandFirmPerformance:Summary•NumerousStudiesDemonstrateRelationshipbetweenHRPracticesandFirmPerformance•1SDincreaseinHRpracticesresultsin20%increaseinprofitsperemployee•Whilepromising,thereareanumberofproblemswiththisstreamofresearchthatwewillcoveroverthenextfewdaysFitinStrategicHumanResourceManagementTheConceptofFit“Thedegreetowhichtheneeds,demands,goals,objectivesand/orstructureofonecomponentareconsistentwiththeneeds,demands,goals,objectives,and/orstructureofanothercomponent.”Nadler&Tushman(1980:40)VERTICALFIT:Aligntheorganization’speople,processes,systems,andrelationshipswithitsstrategicpriorities/initiatives.HORIZONTALFIT:EnsurecohesionandcoherenceamongelementsoftheHRMsystem(synergy).StrategyHORIZONTALFITStaffingTrainingRewardsEvaluationCoreCompetenceCompetitiveChallengesValuePropositionVERTICALFITAchievingFitApproachestoConceptualizingSHRM•Universalistic•Contingency•Configurational•Contingency/ConfigurationalUniversalistic•BasedontheassumptionthatthereareHRpracticesthatwillalways,ifused,resultinhigherperformance•E.g.,HighPerformanceWorkSystems•ExpectationofconsistentpositiverelationshipsbetweenthesesystemsandfirmperformanceStrategyStaffingCoreCompetenceCompetitiveChallengesValuePropositionAchievingFit-UniversalisticTrainingRewardsEvaluationOrganizationPerformanceContingency•BasedontheassumptionthattheeffectivenessofanygivenHRpracticeiscontingentuponsomeothervariable(usuallystrategy)•Mostpopularwayofviewing“fit”•TestedthroughmoderatedregressionVERTICALFIT:Aligntheorganization’speople,processes,systems,andrelationshipswithitsstrategicpriorities/initiatives.StrategyStaffingCoreCompetenceCompetitiveChallengesValuePropositionAchievingFit-ContingencyTrainingRewardsEvaluationOrganizationPerformanceConfigurational•BasedontheassumptionthattherearecertainidentifiabletypesofHRsystems,eachofwhichisequallyeffective•E.g.,analyzers,defenders,prospectors,reactorsinstrategyliterature•TestedbyidentifyingprofilesandlookingatdeviationsfromprofilesHORIZONTALFIT:EnsurecohesionandcoherenceamongelementsoftheHRMsystem(synergy).StrategyConfigurationHPWSStaffingTrainingRewardsEvaluationCoreCompetenceCompetitiveChallengesValuePropositionAchievingFit-ConfgurationalOrganizationPerformanceContingency/Configurational•Basedontheassumptionthattheeffectivenessofanyparticularconfigurationdependsonsomeothervariable(e.g.,strategy,orenvironment)•E.g.,bureaucraticvs.agileorganizations•TestedwithmoderatedregressionVERTICALFIT:Aligntheorganization’speople,processes,systems,andrelationshipswithitsstrategicpriorities/initiatives.HORIZONTALFIT:EnsurecohesionandcoherenceamongelementsoftheHRMsystem(synergy).StrategyHORIZONTALFITStaffingTrainingRewardsEvaluationCoreCompetenceCompetitiveChallengesValuePropositionAchievingFit–Contingency/ConfigurationOrganizationPerformanceVERTICALFITGoalofSHRMModels•Toachieveafitbetweenthestrategicneedsofthebusinessandthepeopleresourcesneededtoexecuteagainstthoseneeds,usingHRpolicies,practices,andprogramstogainthatalignment•Objectiveistoexecutetoday’sstrategytobesuccessfultoday