4TH EDITION Michael Armstrong STRATEGIC HUMAN RESOURCE MANAGEMENT A GUIDE TO ACTION
Contents Introduction PART 1 THE CONCEPTUAL FRAMEWORK OF STRATEGIC HRM 1 The concept of human resource management HRM defined 5;Human resource systems 8;Aims of HRM 9; Characteristics of HRM 12;Reservations about HRM 17 2 The concept of strategy 21 Strategy defined 22;The concept of strategy 23;The formulation of strategy 28 3 The concept of strategic human resource management 33 Strategic HRM defined 33;Basis of strategic HRM 34; Principles of strategic HRM35;Aims of strategic HRM35; Concepts of strategic HRM 37;Perspectives on strategic HRM39 The best-practice approach 40;The best-fit approach 42; Bundling 46;The reality of strategic HRM 48;Practical implications of strategic HRM theory 49
Contents Introduction PART 1 THE CONCEPTUAL FRAMEWORK OF STRATEGIC HRM 1 The concept of human resource management 5 HRM defined 5; Human resource systems 8; Aims of HRM 9; Characteristics of HRM 12; Reservations about HRM 17 2 The concept of strategy 21 Strategy defined 22; The concept of strategy 23; The formulation of strategy 28 3 The concept of strategic human resource management 33 Strategic HRM defined 33; Basis of strategic HRM 34; Principles of strategic HRM 35; Aims of strategic HRM 35; Concepts of strategic HRM 37; Perspectives on strategic HRM 39; The best-practice approach 40; The best-fit approach 42; Bundling 46; The reality of strategic HRM 48; Practical implications of strategic HRM theory 49 v
vi Contents PART 2 THE PRACTICE OF STRATEGIC HRM 4 HR strategies 53 What are HR strategies?53;What is the purpose of HR strategies?54;Overall HR strategies54 Specific HR strategies 59 Criteria for an effective HR strategy 61;How should HR strategies be developed?62;Developing HR strategies 66; Implementing HR strategies 70 5 The strategic role of HR 72 The strategic nature of HR72;The strategic partner model73 What being strategic means 75;The strategic role of HR directors 76;The strategic role of heads of HR functions 77; The strategic role of HR business partners 78;The strategic contribution of HR advisers or assistants 78 6 The impact of strategic HRM 79 How HR impacts on organizational performance 79; How strategic HRM concepts impact on practice 85 7 Strategic HRM in action 86 Formulating HR strategy 86;The content of HR strategies96; Corporate issues 98;Achieving integration 101;What are the most characteristic features of strategic HRM in action?104 PART 3 HR STRATEGIES 8 Human capital management strategy 10> Aims of human capital management 10 The link between HCM and business strategy 108;Developing a human capital management strategy 109;Conclusions:the role of human capital management strategy 114 9 High-performance strategy 115 High-performance work system defined 116;Characteristics of a high-performance work system 116;Components of an HPWS 117;Impact of high-performance work systems 117; Developing a high-performance strategy 121 10 Corporate social responsibility strategy 126 Strategic CSR defined 127;CSR activities 127;The rationale for CSR 128;Developing a CSR strategy 130
PART 2 THE PRACTICE OF STRATEGIC HRM 4 HR strategies 53 What are HR strategies? 53; What is the purpose of HR strategies? 54; Overall HR strategies 54; Specific HR strategies 59; Criteria for an effective HR strategy 61; How should HR strategies be developed? 62; Developing HR strategies 66; Implementing HR strategies 70 5 The strategic role of HR 72 The strategic nature of HR 72; The strategic partner model 73; What being strategic means 75; The strategic role of HR directors 76; The strategic role of heads of HR functions 77; The strategic role of HR business partners 78; The strategic contribution of HR advisers or assistants 78 6 The impact of strategic HRM 79 How HR impacts on organizational performance 79; How strategic HRM concepts impact on practice 85 7 Strategic HRM in action 86 Formulating HR strategy 86; The content of HR strategies 96; Corporate issues 98; Achieving integration 101; What are the most characteristic features of strategic HRM in action? 104 PART 3 HR STRATEGIES 8 Human capital management strategy 107 Aims of human capital management 108; The link between HCM and business strategy 108; Developing a human capital management strategy 109; Conclusions: the role of human capital management strategy 114 9 High-performance strategy 115 High-performance work system defined 116; Characteristics of a high-performance work system 116; Components of an HPWS 117; Impact of high-performance work systems 117; Developing a high-performance strategy 121 10 Corporate social responsibility strategy 126 Strategic CSR defined 127; CSR activities 127; The rationale for CSR 128; Developing a CSR strategy 130 vi l Contents
Contents vii 11 Organization development strategy 132 Organization development defined 132;OD strategies 133; Assumptions and values of OD 133;Activities incorporated in the OD strategy 134;Strategies for organizational transformation 136 12 Employee engagement strat egy 140 Engagement and organizational commitment 140;The significance of engagement 141;Engagement and discretionary behaviour 142:What is an engaged employee?142What are the factors that influence engagement?143;Strategies for enhancing engagement 145;Measuring engagement 148 13 Knowledge management strategy 149 The process of knowledge management 149;Sources and types of knowledge 150;Approaches to the development of knowiedge management strategies 151;Strategic knowledge management issues 151;Components of a knowledge management strategy 153 14 Employee resourcing strategy 154 e objective of employee reso rcing strategy 154;The strategic HRM approach to resourcing 155;Integrating business and resourcing strategies 155;Bundling resourcing strategies and activities156 The components of employee esourcing strategy 156;Human resource planning 157;Employee value proposition 160;Resourcing plans 161;Retention strategy 163; Flexibility strategy 167 15 Talent management s6Tess of talent 168 Talent manager nt define management 170;Developing a talent management strategy 173 16 Learning and development strategy 175 Strategic human resource development(SHRD)175;Strategies for creating a learning culture 178;Organizational learning strategies 178;Learning organization strategy 180;Individual learning strategies 181 17 Reward strategy 183 Reward strategy defined 183;Why have a reward strategy?183; Characteristics of reward strategies 184;The structure of reward strategy 184;The content of reward strategy 185;Guiding principles 188;Developing reward strategy 189;Effective reward strategies 191;Reward strategy and line management capability 192
11 Organization development strategy 132 Organization development defined 132; OD strategies 133; Assumptions and values of OD 133; Activities incorporated in the OD strategy 134; Strategies for organizational transformation 136 12 Employee engagement strategy 140 Engagement and organizational commitment 140; The significance of engagement 141; Engagement and discretionary behaviour 142; What is an engaged employee? 142; What are the factors that influence engagement? 143; Strategies for enhancing engagement 145; Measuring engagement 148 13 Knowledge management strategy 149 The process of knowledge management 149; Sources and types of knowledge 150; Approaches to the development of knowledge management strategies 151; Strategic knowledge management issues 151; Components of a knowledge management strategy 153 14 Employee resourcing strategy 154 The objective of employee resourcing strategy 154; The strategic HRM approach to resourcing 155; Integrating business and resourcing strategies 155; Bundling resourcing strategies and activities 156; The components of employee resourcing strategy 156; Human resource planning 157; Employee value proposition 160; Resourcing plans 161; Retention strategy 163; Flexibility strategy 167 15 Talent management strategy 168 Talent management defined 168; The process of talent management 170; Developing a talent management strategy 173 16 Learning and development strategy 175 Strategic human resource development (SHRD) 175; Strategies for creating a learning culture 178; Organizational learning strategies 178; Learning organization strategy 180; Individual learning strategies 181 17 Reward strategy 183 Reward strategy defined 183; Why have a reward strategy? 183; Characteristics of reward strategies 184; The structure of reward strategy 184; The content of reward strategy 185; Guiding principles 188; Developing reward strategy 189; Effective reward strategies 191; Reward strategy and line management capability 192 Contents l vii
viii Contents 18 Employee relations strategy 193 Employee relations strategy defined 193;Concerns of employee relations strategy 194;Strategic directions 194;The background to employee relations strategies 195;The HRM approach to employee relations 195;Policy options 197:Formulating employee relations strategies 197;Partnership agreements 198; Employee voice strategies 200 PART 4 THE STRATEGIC HR TOOLKIT 1 Strategic human resource management toolkit 205 References 226 Subject index Author index
18 Employee relations strategy 193 Employee relations strategy defined 193; Concerns of employee relations strategy 194; Strategic directions 194; The background to employee relations strategies 195; The HRM approach to employee relations 195; Policy options 197; Formulating employee relations strategies 197; Partnership agreements 198; Employee voice strategies 200 PART 4 THE STRATEGIC HR TOOLKIT 1 Strategic human resource management toolkit 205 References 226 Subject index 241 Author index 246 viii l Contents