Summary of all the articles, lectures & knowledge clips of Strategic Human Resource Management.
Theme 1 - Black Box Debate
- Knowledge clip
- Lecture
- Peccei, R. & van de Voorde, K. (2014). HRM and performance. In: Encyclopaedia of Human Resource Management. Guest, D. & Needle, D. (Eds). Chichest...
,Theme 1 Black-box debate
Knowledge clip
Central to strategic human resource management is the idea that the adoption by organizations of a
more sophisticated set of HR practices covering key aspects of the management of people in the
workplace has a positive impact on organizational performance. The policies and practices involved
cover a wide range of HR functions in the areas such as recruitment & selection, training &
development, performance management, pay & benefits and participation & communication.
According to strategic human resource theory, the more these HR practices are implemented in an
organization, the better the organization’s performance. However, our understanding of the
processes by which HR practices affect organizational performance has been limited. Indeed, it is
unclear both how many steps there are in the link between HRM and performance and what the
content of each step is = the black-box debate in SHRM. In response there have been a number of
efforts to model the impact of HRM on organizational performance. Central is the idea that
employees play a key role in explaining the impact of HR practices on organizational performance.
Three theories that dominate the field of SHRM:
1. Resource based view: organizations can build a competitive advantage based on resources that
are valuable, capable of delivering superior competitive results, rare, not easily obtained by
competitors, inimitable and hard to replace. Organizations have different types of research
including organizational resources (structure & planning), physical resources (plans, equipment)
and human resources. Human resource advantage can consists of:
a. Human capital advantage: a situation where there is a stock of exceptional human talent
working within the organization whose knowledge, abilities and skills match the strategic
needs of the firm.
b. Human process advantage: the presence of difficult to imitate historical evolved processes
within the organization such as an intense form of cooperation between people.
RBV provides a rational for how HR practices positively affect organizational performance by
building a better human capital pool and by stimulating better processes within the organization.
2. AMO framework: people perform well if they have the ability, motivation and opportunity to do
so.
a. Ability: the employee can perform well on the job because he or she possesses the
necessary knowledge and skills (linked to human capital theory). These can be influenced by
HR practices, such as providing training opportunities.
b. Motivation: employees perform well on the job because they want to perform well (linked
to social exchange theory). HR practices such as internal career opportunities and extensive
rewards motivate employees to perform well.
c. Opportunity: giving employees the opportunity to perform well. HR practices such as
enabling employee participation in decision making can empower employees to show good
performance.
In sum, the AMO model provides a rational for how HR practices impact performance by
increasing employees’ ability, motivation and opportunity to produce high performance.
3. HRM process model: highlights the distinction between HR practices that senior managers
intend to implement in the organization, the practices that are actually implemented by line
managers and employee’s perceptions of these implemented practices. The model explains why
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, there is sometimes a disconnect between the three. For example line managers may fail to
implement intended HR practices because they lack the time or skills to do so. Employees for
their part may interpret the practices in different ways, because of factors like their previous
work experience. This model thus addresses the question of how HR practices impact
organizational performance by looking at how these practices are implemented in the workplace
and how employees experience and respond to them.
Based on these theories employees or human resources play a key role in explaining the impact of
HR practices on organizational performance.
Aantekeningen hoorcollege (31-10-2019)
Black box: how many boxes are there and what is the content of the boxes between SHRM and
performance outcomes?
Three theories dominate the SHRM field
1. Resource based view: a general theory about why some companies outperform other
companies
2. AMO-framework: abilities, motivation and opportunity to perform.
3. SHRM process model: perceptions of employee about the HR practices that are
implemented.
Resource based view: why does one organization outperform other organizations?
Indistrial organization view: focus on the environment of the
organization and then trying to build a competative advantage
(outside-in). Resources are homogeneous and mobile. If one
company is doing very well because of some resources. These
resources are mobile because competitors can also develop these
resources. So the advantage is very short term. Model of porter,
five forces model. Based on these forces you have to determine
your position in the field.
Resource based view: (Barney, 1991) complete oposite. You sould
always let your internal strengths be you guidance. You have to
build your competitive advantage around that. Resources are
homogeneous and not mobile. The resources are unique and cannot be copied. That is a sustained
competitive advantage because other companies can not copy or imitate these approaches. When
resources meet some criteria they will be able to create a cometitive advantage. The criteria that a
resource has to be:
1. Valuable: able to add value. Help your organization to be more effective/efficient.
2. Rare: resource should not be widely available.
3. Inimitable: other companies should not be able to imitate it. They should not be able to copy it
for several reasons:
a. Unique timing and learning: every organization has a unique path with unique opportunities.
This leads to unique timing and learning that cannot be imitated by others anymore.
b. Social complexity: how do people work together, what is the climate in your organizations,
how do teams work together. You cannot really copy this.
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, c. Causal ambiguity: very unclear why this company has this competitive advantge. Example:
football team with a starplayer. They do very well, it could be because of the star player or
because of the whole team. You don’t really know what they do so good.
4. Non-substitutable: companies cannot use an alternative to come to the same succes.
When you look at these characteristics, Human resources are very likely to fulfil these
criteria.
RBV is a good explanation for why HRM would lead to organizational performance. Resources help
the company to outperform and gain a competitive advantage.
Human resource advantage - Boxall:
1. Human capital advantage (a stock of exeptional human talent): knowledge, abilites and skills
employees have. When it is organization specific it will give you this advantage. It is specific if it is
only relevant for this particular firm, a specific system for example. It is not stable, because
people enter and leave the organization. You have to keep this stock in line with your strategic
needs.
2. Human proces advantage (a function of difficult to imitate, historically evolved processes within
the organization, such as co-operation): how do people work together, what is the climate within
your organization. Relational coordination can explain the link between HRM and performance. It
is about how to you organize cooperation within your company.
Reflection RBV:
- The RBV logic provides a theoretical rationale for how HR practices positively affect
organizational performance through building a better human capital pool and stimulating better
processes.
- However, research that tests the RBV’s core concepts remains scarce. We use the logic but
actually it has never been tested.
- Moreover, what about the individual employee? It is a theory focussed on the organizational
level. People decide for themselves how they behave. You can have ideas how they should
behave but people still decide it themselves. That’s why you have to think about the individual
employee.
AMO-Framework: Many studies were focused on the organizational link.
- They are able to do so
- They have the motivation to do so
- Their work environment provides the opportunity to do
so
This goes from organizational level HR – individual level feelings and behaviors – organizational
outcomes and performance.
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