One of the main features that defines strategic HRM is its close relationship to the business’s main strategy and is creates the argument of is there a direct correlation between strategic HRM and economic success? HRM only becomes strategic when in private sector human resources are promoted to a position where the organisation looks and treats them as a competitive advantage (Kochan and Dyer, 1992).
This has raised a key debate in terms of how HRM can contribute to the overall success and competitiveness of the business. Until recently, however, most companies preferred a reactive management method within their human resources, leaving the personnel management to consist mainly of administrative activities.
The creation of multiple new macro economies have led to the concept and recognition of people as a valuable asset which if managed as a strategic resource can help an organisation to achieve superior performance levels and gain a greater competitive advantage. This awareness has led human resource management directly into the spotlight (Storehouse, 2000). Therefore, HRM has a definite strategic approach in arranging human resources and getting involved in a closer alignment of employment allocation systems along with business strategy.
The integration of HRM and business strategy means that the level at which the HRM issues are considered are now playing a larger role in the formulation of business strategies. Indeed, HRM intends to focus on the issue of strategy and the more organisations that become knowledgeable of this relationship, the more human behaviour becomes a competitive factor, which is closely linked to the strategic direction of the particular organisation.
According to Kirkbride (1994), an integration of business strategy and HRM as described earlier can have several advantages. Firstly, integration means that a broader range of solutions is available for solving complex organisational problems without the need for external help. Secondly, it ensures that the human, financial, and technological resources also are given equal consideration when setting targets and looking at the implementation capabilities.
Third, through this kind of integration, various organisations can explicitly concentrate on the individual employees, who the departments comprise of and their needs and only then can they implement their policies. Finally, the response to integrating human resources and strategic plans can limit the level of subordination of strategic planning in consideration of human resource preferences and, thus neglecting human resources as a crucial source of organisational operations and the creation of competitive advantage.
Whichever way you look at it, there is a growing body of evidence that supports the link of an association between high performing human resource management and organisational performance. It has been found that businesses whom linked HRM practices with their business strategy are constantly delivering higher financial performance outcomes. Beaumont (1993) argued that it is not just the relationship that is important but the quality of the HRM practices and a distinct approach is necessary in delivering high performance indicators. HRM strategies and practices must therefore be working well together within the individual business’s strategy planning.
All of the theories used in this review have been extensively researched to settle in their final point of view. This means that it should not be that difficult to find any related researches within the subject field or any other secondary data I come across to answer my research questions and meet the objectives of my research as a re-analysis of all the data that has been already collected could develop a new approach to the research.
Search of secondary-data will be aided by internet searches which should prove useful for survey results like organizational surveys, academic surveys organization’s employee attitudes, email questions etc. Also, looking at and obtaining multiple-source data that has been published such as journals from tourism business magazines, books, government publications and organization reports. On closure, an important note to remember is that the results from my research and survey, along with the results from other surveys found, including the relations with the literature review, should meet my research topic generally and settle in a clear and informative answer to my research question and its objectives.