Strategic Human Resource Management: A Guide to Action

As modelled in Figure 3.1 strategic HRM is about both HR strategies and
the strategic management activities of HR professionals. There is always
choice about those strategies and the strategic role of HR, and this choice is
based on strategic analysis as conducted in strategic reviews.

PRACTICAL IMPLICATIONS OF STRATEGIC HRM

THEORY

It was famously remarked by Douglas McGregor (1960) that there is nothing
so practical as a good theory, ie one that is the product of rigorous field
research and, probably, tested by further research. This is certainly the case
with strategic HR theory, which is based on thorough research and testing
and, once the jargon has been discarded, has a strong common-sense appeal.
The theory addresses major people issues that affect or are affected by the
strategic plans of the organization, provides a rationale for having an agreed
and understood basis for developing and implementing approaches to
people management that take into account the changing context in which the
firm operates and its longer-term requirements, and ensures that business
and HR strategy and functional HR strategies are aligned with one another.
It demonstrates that:

The concept of strategic human resource management l 49

Strategic HRM

Strategic choice

Strategic analysis

Strategic management –

strategic role of HR

HR strategies –

overall/specific

Figure 3.1 Strategic HRM model