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Managing People Strategically

Class notes Dec 26, 2025 ★★★★★ (5.0/5)
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Managing People Strategically Lecture & Articles Summary

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Week 1, Lecture 1: Introduction to SHRM

Strategic Human Resource Management - What is it?

SHRM: Pattern of planned HR deployments and activities designed to help an organization achieve its goals.Focus: aligning the workforce’s skills and behaviors with the strategic needs of the business.

Ultimate aim: use human capital to achieve sustained competitive advantage.

Difference Between HRM and SHRM?

HRM 1.​All activities associated with the management of employment relationships in the firm 2.​Management of work and people in organizations 3.​An inevitable process that accompanies the growth of organizations → HRM is a function and process that is fundamental to every organization

SHRM 1.​The pattern of planned human resource deployments and activities intended to an organization to achieve its goals 2.​SHRM aims to align the workforce’s skills and behaviors with the strategic needs of the business 3.​Using human capital to achieve a sustained competitive advantages → connects HR directly to the organizational success and long term performance

Delivery of HRM

Shows how HR moves from basic administration to being strategically connected to business

goals. It can be delivered in 2 primary ways:

1.​Traditional form of HRM a.​Separate HR activities (hiring, training, pay) with no clear link b.​Focus on daily operations, not long-term goals.

2.​Strategic form of HRM a.​HR activities are planned, connected, and support each other b.​All HR work is aligned with the company’s strategy

c.​Goal: make HR a source of competitive advantage.

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5 Levels (how HR strategy becomes action):

1.​HR Strategy → sets direction.

2.​HR Policies → give broad rules (how values, principles, strategies are applied) 3.​HR Processes → formal procedures to put strategies into effect 4.​HR Practices → approaches to manage people (e.g., pay, hiring).

5.​HR Programs → enable the implementation of strategies, policies, practices

SHRM = HRM + Strategy → Competitive Advantage

Vertical fit: HR aligns with

business strategy.

Horizontal fit: HR practices

align with each other.

Goal: integrated,

consistent HR system that supports company goals.

Result: better performance

& sustained competitive advantage.

Different Approaches of HRM

SHRM represents the intersection of HRM and strategy. By integrating the two, SHRM seeks to position human resources as a source of competitive advantage.

1.​Contingency Approach: emphasizes the alignment of HR policies with the firm's strategy, often referred to as achieving a "best fit" or vertical alignment 2.​Configurational Theory: highlights the internal consistency of HR practices, known as horizontal alignment or “bundling,” where practices are related and mutually supportive.

How and When Can People Provide a Form of SCA?

(1) How do human resources contribute to Sustainable Competitive Advantage?Human resources can drive sustained competitive advantage through two key mechanisms: 1.​Human Capital Advantage a.​When your human resource pool has high quality

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b.​Your workforce is skilled, motivated, and adaptable 2.​Human Process Advantage a.​When you have evolved firm processes i.​Your people work effectively together

Both are influenced by HRM practices/Systems

(2) When do human resources contribute to Sustainable Competitive Advantage?According to the Resource-Based View of the Firm (RBV), competitive advantage arises from a firm’s unique configuration of internal resources. For human resources to contribute to this

advantage, two conditions must be met:

1.​Resources/capabilities can vary considerably across firms (firm heterogeneity) 2.​These differences can be stable (resource immobility)

The VRIO Framework provides criteria for assessing whether resources can sustain competitive advantage. Resources must be: 1.​Valuable: Contribute to organizational goals.

2.​Rare: Not widely possessed by

competitors.

3.​Difficult to Imitate: Not easily

replicated or substituted.

4.​Organized: Supported by systems

and structures that enable their effective utilization.a.​Resources alone insufficient without effective organization b.​Importance of systems of management practices

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Added: Dec 26, 2025
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Managing People Strategically Lecture & Articles Summary Week 1, Lecture 1: Introduction to SHRM Strategic Human Resource Management - What is it? SHRM: Pattern of planned HR deployments and activi...

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