1. STRATEGIC
HUMAN
RESOURCE
MANAGEMENT
(SHRM)
Human
resource
management
(HRM)
has
gradually
begun
to
be
seen
as
an
integrated
process
of
strategic
management,
after
the
development
of
a
new
discipline
referred
to
as
Strategic
Human
Resource
Management
[8].
This
shift
in
the
perception
of
HRM
is
based
on
the
idea
that
HRM
should
be
seen
as
a
strategic
factor,
not
only
for
its
role
in
improving
the
efficiency
of
business
strategy,
but
also
as
a
potential
source
of
sustainable
competitive
advantage.
Therefore
a
belief
that
HRM
strategy
can
significantly
affect
the
performance
of
the
entire
organization
has
been
adopted
gradually.
Wright
and
McMahan
define
strategic
human
resource
management
(SHRM)
as
"the
pattern
of
planned
human
resource
deployments
and
activities
intended
to
enable
an
organization
to
achieve
its
goals"
[8].
Armstrong
sees
SHRM
as
an
integrated
process
that
aims
to
achieve
strategic
coherence
[1].
Olexová
defines
SHRM
as
an
approach
to
decision-‐making
about
the
intentions
and
plans
of
the
organization
related
to
human
resources
–
the
nature
of
their
employment,
recruitment
and
selection
practices,
staff
training
and
development,
performance
management,
compensation
and
labor
relations
[4].
Since
1980
HRM
strategy
has
become
an
increasingly
important
topic
in
the
field
of
HRM,
since
it
provides
resources
that
companies
can
use
to
increase
their
competitiveness
and
promote
management
efficiency
[6].
An
effective
HRM
strategy
systematically
coordinates
all
of
the
various
HRM
measures
and
implements
them
to
directly
influence
the
attitudes
and
behavior
of
employees
in
a
manner
that
will
help
the
company
achieve
its
specific
objectives
[3].
Organizations
should
be
aware
that
SHRM
involves
active
management
of
people.
Simply
put,
it
is
designed
to
help
organizations
which
aim
to
meet
the
needs
of
their
employees,
while
promoting
the
goals
of
the
company.
In
the
formulation
of
HRM
strategy
there
are
three
possible
cases
[5]:
1. HRM
strategy
and
business
strategy
are
two
mutually
unrelated
documents.
2. HRM
strategy
is
superior
to
business
strategy.
3. Business
strategy
is
superior
to
HRM
strategy
and
HRM
strategy
is
an
integral
part
of
business
strategy.
In
practice,
the
third
case
is
the
most
commonly
used
and
the
most
preferred.
If
the
business
strategy
is
not
supported
by
the
HRM
strategy,
it
is
not
possible
to
achieve
long-‐term
success
[2].
Dowling
and
Schuler
distinguish
three
types
of
HRM
strategies
[3]:
-‐ Utilization
strategy.
-‐ Facilitation
strategy.
-‐ Accumulation
strategy.
Companies
that
adopt
the
accumulation
strategy
usually
fill
their
vacancies
from
internal
resources
and
provide
career
opportunities
to
their
employees
abroad.
These
companies
pay
close
attention
to
the
training
and
development
of
employees,
they
emphasize
fair
internal
salary
and
provide
many
kinds
of
motivation.
Conversely,
firms
using
utilization
strategy
are
characterized
by
their
tendency
to
assess
the
performance
in
the
short
term
and
on
an
individual
basis,
while
ensuring
a
lower
basic
salary
and
worse
job
security.
In
regards
to
the
companies
applying
facilitation
strategy,
their
HRM
practices
are
usually
somewhere
between
companies
that
have
adopted
the
utilization
strategy
and
those
that
use
the
accumulation
strategy.
1. STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM) Human resource management (HRM) has gradually begun to be seen as an integrated process of strategic management, after the development of a new discipline referred to as Strategic Human Resource Management [8]. This shift in the perception of HRM is based on the idea that HRM should be seen as a strategic factor, not only for its role in improving the efficiency of business strategy, but also as a potential source of sustainable competitive advantage. Therefore a belief that HRM strategy can significantly affect the performance of the entire organization has been adopted gradually. Wright and McMahan define strategic human resource management (SHRM) as "the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals" [8]. Armstrong sees SHRM as an integrated process that aims to achieve strategic coherence [1]. Olexová defines SHRM as an approach to decision-‐making about the intentions and plans of the organization related to human resources – the nature of their employment, recruitment and selection practices, staff training and development, performance management, compensation and labor relations [4]. Since 1980 HRM strategy has become an increasingly important topic in the field of HRM, since it provides resources that companies can use to increase their competitiveness and promote management efficiency [6]. An effective HRM strategy systematically coordinates all of the various HRM measures and implements them to directly influence the attitudes and behavior of employees in a manner that will help the company achieve its specific objectives [3]. Organizations should be aware that SHRM involves active management of people. Simply put, it is designed to help organizations which aim to meet the needs of their employees, while promoting the goals of the company. In the formulation of HRM strategy there are three possible cases [5]: 1. HRM strategy and business strategy are two mutually unrelated documents. 2. HRM strategy is superior to business strategy. 3. Business strategy is superior to HRM strategy and HRM strategy is an integral part of business strategy. In practice, the third case is the most commonly used and the most preferred. If the business strategy is not supported by the HRM strategy, it is not possible to achieve long-‐term success [2]. Dowling and Schuler distinguish three types of HRM strategies [3]: -‐ Utilization strategy. -‐ Facilitation strategy. -‐ Accumulation strategy. Companies that adopt the accumulation strategy usually fill their vacancies from internal resources and provide career opportunities to their employees abroad. These companies pay close attention to the training and development of employees, they emphasize fair internal salary and provide many kinds of motivation. Conversely, firms using utilization strategy are characterized by their tendency to assess the performance in the short term and on an individual basis, while ensuring a lower basic salary and worse job security. In regards to the companies applying facilitation strategy, their HRM practices are usually somewhere between companies that have adopted
the
utilization
strategy
and
those
that
use
the
accumulation
strategy.
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