STRATEGIC HUMAN RESOURCE MANAGEMENT

(Elle) #1

approach looks only at the realization of surplus value within product markets
rather than at complex contingent variables that constitute the full
transformation process. As Purcell (1999, p. 37) argues, 'we need to be much
more sensitive to processes of organizational change and avoid being trapped
in the logic of rational choice'.


Another limitation of most current studies examining SHRM is the
conceptualization of managerial control. The basic premise of the typologies
of HR strategy approach is that a dominant HR strategy is strongly related to
a specific competitive strategy. Thus, the commitment HR strategy is most
likely to be adopted when management seek to compete in the marketplace
by using a generic differentiation strategy. This might be true, but the notion
that a commitment HR strategy follows from a real or perceived 'added-value'
competitive strategy is more problematic in practice. Moreover, it is
misleading to assume that managerial behaviour is not influenced by the
indeterminacy of the employment contract and by how to close the' gap'
between an employee's potential and actual performance level. Reflecting on
this problem, Colling (1995, p. 29) correctly emphasizes that "'added-value"
[differentiation] strategies do not preclude or prevent the use of managerial
control over employees few companies are able to operationalize added-value
programmes without cost-constraints and even fewer can do so for very long'.
Others have gone beyond the 'organizational democracy' rhetoric and
acknowledge that 'It is utopian to think that control can be completely
surrendered' in the 'post modern' work organization (Cloke & Goldsmith, 2002,
p. 162)^51.


Consistent with our earlier definition of strategy - as a specific pattern of
decisions and actions - managers do act strategically, and strategic patterns
do emerge over a period of time (Thompson & McHugh, 2002; Watson, 1999).
One strategic decision and action might, however, undermine another
strategic goal. In a market downturn or recession, for example, there is a
tendency for corporate management to improve profitability by downsizing
and applying more demanding performance outcomes at the unit level. This
pattern of action constitutes a strategy even though manifesting a disjunction

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