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Unit 4 Strategey - Hr Theory

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HR Theory

With this type of position in management the main purpose is for them to mange and support the leader for growth and leadership. This type of support does take on a variety from letting people know that management is concerned with the types of issues that they may have on a daily basis. This could be form all levels of wanting to make advancement or putting into place some type of reward system .Human resource managers and leaders empower their followers through participation and openness as well as by making sure that they have the autonomy and the resources they need to do their jobs well. Human resource managers and leaders emphasize honest, two-way communication as a way to identify issues and resolve differences. They are willing to confront others when it is appropriate, but they try to do so in a spirit of openness and caring. Bolman & Deal (1991, p. 359)

Cost reduction strategy demands workers to work harder, innovation strategy requires workers to work differently and quality strategy needs them to work smarter. HR practices follow entirely different patterns for different strategies. For example, in case of innovation-based strategy, impetus is to be given for free thinking and bringing in new ideas. Performance appraisal focuses on long-term results and has a long-term focus. There are no clear-cut job descriptions and employees are given opportunity to learn across functions. The compensation offers more variety in terms of benefits like stock options and bonuses. Development of a cooperative culture is the aim. Hendry and Pettigrew (1990) collate different works in the SHRM literature and point out that it is not necessary that HR strategy always precede a given strategy but it can be proactive in contributing towards the strategy formulation, understanding the linkages between structure, culture, HRM and the strategy. The labor market, skills and values, economic conditions and the culture at large influence the human resource strategy formulation. The current business strategy determines the current HR strategy and tactics whereas the long-term business strategy and current HR strategy determine the probable HR strategy for the future. A major factor that influences the current business strategy is the dominant coalition, which in turn is influenced by the organizational culture. Having the proper blend of culture with the entry into a company really gives the overall balance to the company and the employee. This enables the employee to be the team player that the company is looking for. By putting into place the proper procedures to make sure the employee is a right fit for culture and job performance.

Line managers could be in a better position to respond to issues concerning the employees enabling HR managers to find more time to perform strategic functions related to HRM (Budhwar and Sparrow, 2002). Something that is very important is the related issues



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