Critically Assess Whether Strategic Hrm Leads to ‘High Performance’’

2961 words 12 pages
Essay Question 1: ‘Critically assess whether strategic HRM leads to ‘high performance’’
There is a controversy whether the Strategic Human Resources Management (SHRM) leads to ‘high performance’. A general idea of SHRM is that “the linkage of management and deployment of the individual within the firm to the business overall and its environment whereas HRM is the activities that take place under this area.” Truss and Gratton (1994). It spotlights on long-term strategy.
Two theoretical perspectives to the Strategic Human Resources Management (SHRM) will be introduced and compared to determine whether they manage to ‘high performance’ or not. First, the Universalist approach is ‘one best way’ of dealing human resource to
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For example, employees regularly discuss with managers about their viewpoints within development teams. This helps workers feel part of the wider team, strengthens employee engagement and commitment to the company. Secondly, team-working practices create a closer supervision and a flat hierarchy. A coaching style manager develops employees to manage themselves rather than to manage each task. Employee’s suggestions are offered, and this contributes to improvements in organizational performance. An example of Tarmac targets and measures a decline in waste. In 2010, eighteen workshop-training sessions were held for all site employees on CO2 awareness and energy. All district managers were involved in the programme. Some external experts from Carbon Trust were also invited to support the rollout of the training programme. As a result, Tarmac gained benefit from 500 energy and CO2 reduction.

Overall, Tarmac adopted a high commitment strategy to meet the objectives. Therefore, it improved the company’s performance.

* A small-medium size company – i-LEVEL

i-Level is one of the most innovative digital media companies and is ranked the ‘Sunday Times 100 best companies to work for’ in 2004. It has a size of workforce of 60 employees. The i-Level company has a high level of financial performance.


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