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6th ASOS Congress International Social, Human and Administrative Sciences, 2019
In this study, SHRM is related with HR systems. Further, This study relates strategic HR with finance theory, with ROI. ROI makes HRM have impact on financial performance. HRM may affect firm performance through HR investments. Return on Investment (ROI) of HR might be organizational behaviours (OBs). Many studies prove that HRM results with OBs. HRM means investing people. Thus, ROI of HR might be organizational behaviours. Application of HR develops positive organizational behaviours on employees, such as citizenship behaviours, commitment, satisfaction, organizational justice, etc. OBs affect firm performance via human capital’s attitude and behaviours. Human capital is related with job performance, and including knowledge, skills and experience of employees. Human capitals work for critical positions in organizations. SHRM is relation between HRM and firm objectives. HRM is interested with employee performance. When it is involved with firm objectives, it is defined as SHRM. HRM is related with organizational performance, while Wright and McMahan (1992) related with firm performance. Consequently, HRM may affect organizational performance via OBs. Because practicing HRM in organization results in developing various OBs, such as organizational commitment, justice, citizenship behaviours, engagement, etc. Therefore, 3rd definition of SHRM includes HR system and ROI. For example, Huselid (1995) explores impact of ROI on financial performance of firm. Thus, ROI might be considered as a factor affecting firm’s financial performance. According to Tüzüner (2018), ROI concept may be applied for financial and nonfinacial results. Employment relations, for example, are nonfinancial indicators. How does HRM contribute to firm performance? Literature studies discusses that argument. HRM may contribute to firm performance via OBs. Because OBs increase job performance. and job performance and OBs have impact on firm performance. Outcomes of HRM are organizational behaviours. OBs develop effective job performance. Therefore measurement issue of HRM is associated with OBs and job performance.
American scholars identify strategic human resource management (SHRM) with human resources (HR) system and firm performance. Major definition of SHRM is human resource management (HRM)-firm performance relation. HR system is important to set HRM-performance link, because HR system includes interrelated HRM practices. Most prominent set of SHRM is interrelated HRM practices, because it establishes the link between individual performance and firm performance. There is a debate in SHRM theory what factors set relationship between HRM and performance. This study argues that individual performance is a moderator between HR and performance. Interrelated HRM practices are important to enhance individual performance. Therefore, interrelated HRM practices are crucial to SHRM. Finally, American scholars view that HR system is important in SHRM, because it establishes high performance work system (HPWS), and HPWS is expected to increase individual performance and then firm performance. Therefore, American model of SHRM might be HPWS, individual performance, and firm performance. HR systems establish HPWS. Therefore, scholars tend to system approach in SHRM, because it includes interrelated HRM practices in SHRM. Keywords: strategic human resource management (SHRM), human resources (HR) system, high performance work system (HPWS), firm performance, American model This study argues dimensions of strategic human resource management (SHRM) in American theory. American scholars identify SHRM with human resources (HR) system and firm performance. They say that HR system increases individual performance, and it increases firm performance. In addition, HR system includes interrelated HRM practices, and it establishes high performance work system (HPWS) in organizations. Therefore, American model in SHRM contains HPWS, individual performance, and firm performance. First, scholars studied SHRM in 1981 in USA. The first paper of SHRM was published in Organizational Dynamics Journal in 1981 by American scholars, and the first doctoral thesis was written at Boston University in 1984. Then, scholars worldwide started to discuss SHRM notion in the 1990s. The first definition of SHRM identifies SHRM with competitive advantage. Scholars view that HRM should be linked with corporate strategies. This increases competitive advantage of firm. The second definition was made in 1992 by American scholars in Journal of Management. The second definition is that SHRM is human resource management (HRM)-firm performance relationship. This is major and accepted definition of SHRM in theory.
The objective of this study is to argue transition from human resource management (HRM) to strategic human resource management (SHRM). In addition, this study also discusses the theory of SHRM. The research methodology of this study is based on arguments from SHRM literature. The significant of paper is a discussion of SHRM theory. Key terms are personnel, employee, and capital in management of human resources by firms. Practitioners call human resources as personnel in personnel management (PM); and call human resources as an employee in HRM. Practitioners do not clarify the term yet for human resources in SHRM. This paper suggests " capital " term for human resources in SHRM. Secondly, return on investment (ROI) of HRM might be positive organizational attitude and behaviours. HRM makes investment to employees, and ROI of HRM is important to SHRM because positive attitude and behaviours increase individual performance of employees. Thirdly, there is a triangular relation in SHRM theory. This is named as trigonometry of SHRM. There are dependent variables, independent variables, and moderators in this triangular. Finally, SHRM can be described with employee performance and firm performance relationship. In this relation, HRM practices lead to increased individual performance, and individual performance increases performance of business departments such as logistics, supply, finance, marketing, production etc. and performance of business departments has an impact on firm performance. In this SHRM model, HRM has an impact on firm performance through individual performance and business departments. All are described is SHRM theory in this study. For HRM case, HRM has two purposes in firm management. Those purposes are performance and recruitment. HRM aims to increase individual performance of employees. If HRM aims to increase firm performance through individual performance, it is description of SHRM. HRM has an impact on individual performance via HRM practices. HRM practices are keys to increase individual performance. Because employees implement business processes in firm management. Those processes are such as production, marketing, stock, supply, logistics, finance and others. Individual performance of employees increases performance of those business processes in firm management. Therefore, it is important to increase individual performance through HRM practices. This is a HRM theory in this study. Moreover, HRM does recruitment of employees for functioning these business processes. Because all needs human resources to effectively implement processes in firms.
The aim of this study is to discuss “human resource” focus in total quality management awards (TQM Awards). TQM Awards are Malcolm Baldrige National Quality Award, European Quality Award (EFQM), Deming Prize of Japan, and ISO9000 Series. The Baldrige emphasizes performance excellence. Deming Prize aims to achieve organizational quality. ISO9000 is to set up quality management system in organizations, and EFQM targets to obtain business excellence for organizations. TQM Awards have human resource focus due to employee involvement and process management in TQM. Firstly, human resources implement in organizational processes such as production, supply, marketing, and after-sale. Secondly, employees participate to solve quality problems in organizations through TQM practices. This is employee involvement. Employee involvement is that employees join to decision-making process, and they participate to solve quality problems to obtain quality assurance, i.e., employee involvement is that human resources participate to TQM practices in organizations such as brainstorming, quality circle, quality function deployment, Poke-Yoke, managerial boards to improve quality; therefore, TQM awards contain “human resource” variation in prize nomination.
This paper aims to discuss differences between human resource management (HRM) and strategic human resource management (SHRM), and aims to discuss convergence or divergence between American and European HRM. Therefore, research question is what the similarities and differences are between European and American HRM. Research methodology is based on critical review of HRM literature. Therefore, this study aims to increase conceptual ability of human resource (HR) professionals. Major result is that HRM is related with employee performance, and SHRM is related with firm performance. Secondly, European HRM is becoming similar to American HRM. The difference between European and American HRM is social context and social partners. European HRM considers social partners in management of HR.
This study defines SHRM as employee/business performance relationship. Employee performance has an impact on performance of business departments in this model; and, performance of business departments have an impact on firm performance. In addition, American model of SHRM defines SHRM with HR system approach. Because HR system establishes HPWS in organizations, and HPWS has an impact on individual performance. Secondly, basic divergence between HRM and SHRM is that HRM practices are individual in HRM, and HRM practices are interrelated in SHRM. and HRM is interested with employee performance while SHRM is interested with firm performance. Thirdly, American SHRM is toward configurational perspective and universalistic perspective. Configurational perspective is due to HR system and HPWS approach, and HRM has an impact on firm performance without moderators in universalistic perspective. On the other hand, European HRM is toward contextual perspective, and Asian HRM is toward contingency perspective. INTRODUCTION This paper argues definition strategic HRM, and it discusses American model of strategic HRM (SHRM). I. FREDERICK W. TAYLOR and HRM Frederick W.Taylor determined organizational principles for firms. It is job analysis and HRM principles. Taylor is interested with and focused on " job ". He observed organizational turmoil in American firms, and he advised to do job analysis and human resource management (HRM) so that employees effectively do their jobs. This is definition of HRM: employees effectively do their jobs. There are two dimensions to increase employee effectiveness at job: one is organizational, and the other is employee side. Taylor developed job analysis technics in organization side; and he developed HRM principles in employee side to increase employee effectiveness at job. Taylor's focus was employee effectiveness. He aims to increase employee effectiveness to increase firm performance (this sentence is identified as definition of SHRM in this study). Taylor's HRM principles are: 1. staffing 2. training
Research topic of study is to explore system approach in strategic HRM field. Assumption of study is that, strategic HRM may be applied in organizations by HR system set. In USA literature HPWS represents HR system thinking. This study explores HR system thinking in human resource management. Second assumption of study is that, HR manager must have system approach in HRM. HRM practices are applied through individual in HRM; however, HRM practices are applied through interrelation in SHRM to have more impact on performance. HR system is bundle, according to MacDuffie's study (1995). In addition, Huselid (1997) suggests application of HPWS in HR system. Study adopts case study methodology. Methods are career management system and performance management system. Research question is how a firm sets an HR system and strategic HRM in its organizational structure. Main conclusion is that HR systems might be applied in organizations through interrelated HRM practices. To achieve this purpose, HR manager must have HR system thinking in application of HRM.
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