Armstrong’s Handbook of Strategic Human Resource Management: Improve Business Performance through Strategic People Management

307 Pages·2021·5.455 MB·English

by  Michael Armstrong

Armstrong’s
Handbook of
Strategic Human
Resource
Management
ALSO AVAILABLE BY
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Reilly)
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www.koganpage.com
Seventh edition
Armstrong’s
Handbook of
Strategic Human
Resource
Management
Improve business performance through
strategic people management
Michael Armstrong
Publisher’s note
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accurate at the time of going to press, and the publishers and authors cannot accept respon-
sibility for any errors or omissions, however caused. No responsibility for loss or damage
occasioned to any person acting, or refraining from action, as a result of the material in this
publication can be accepted by the editor, the publisher or the author.
Seventh edition published in Great Britain and the United States in 2021 by Kogan Page Limited
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© Michael Armstrong, 2021
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in accordance with the Copyright, Designs and Patents Act 1988.
ISBNs
Hardback 978 1 78966 174 3
Paperback 978 1 78966 172 9
Ebook 978 1 78966 173 6
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Names: Armstrong, Michael, 1928- author. | Armstrong, Michael, 1928-
Strategic human resource management.
Title: Armstrong’s handbook of strategic human resource management:
improve business performance through strategic people management /
Michael Armstrong.
Description: Seventh Edition. | New York: Kogan Page, 2020. | Revised
edition of the author’s Armstrong’s handbook of strategic human resource
management, 2016. | Includes bibliographical references and index.
Identifiers: LCCN 2020039566 (print) | LCCN 2020039567 (ebook) | ISBN
9781789661729 (paperback) | ISBN 9781789661743 (hardback) | ISBN
9781789661736 (ebook)
Subjects: LCSH: Personnel management.
Classification: LCC HF5549 .A89784 2020 (print) | LCC HF5549 (ebook) |
DDC 658.3/01–dc23
LC record available at https://lccn.loc.gov/2020039566
LC ebook record available at https://lccn.loc.gov/2020039567
Typeset by Integra Software Services, Pondicherry
Print production managed by Jellyfish
Printed and bound by CPI Group (UK) Ltd, Croydon CR0 4YY
CONTENTS
Introduction 1
PART ONE Strategic human resource
management (SHRM)
5
01 Human resource management 7
Introduction 7
The nature of HRM 8
The HR system 11
The impact of HRM on organizational performance 14
The ethical dimension 16
The state of HRM 17
References 20
02 Strategic management 24
Introduction 24
Strategic management defined 24
The meaning of strategy 25
Strategy in action 27
Developing strategy 28
References 32
03 The concept of strategic human resource
management 34
Introduction 34
Strategic human resource management defined 34
Characteristics of SHRM 35
Aims of SHRM 38
The process of SHRM 39
References 41
vi Contents
04 The evolution of SHRM 43
Introduction 43
Beginnings – focus on vertical integration or fit 44
Recognizing the importance of horizontal as well as
vertical fit 45
Views on the development of HR strategy – ‘best fit’
or ‘best practice’ 45
Development of a conceptual framework for SHRM 50
Preoccupation with performance 54
Focus on implementation 54
A multi-stakeholder approach 54
What is happening to SHRM 55
References 57
05 The reality of SHRM 62
Introduction 62
The reality of SHRM 62
The limitations of SHRM 63
The case for people management 64
References 66
PART TWO People strategy in general 69
06 The concept of people management 71
Introduction 71
People management defined 71
Strategic people management 72
Conclusion 75
References 77
07 The nature and practice of people strategy 79
Introduction 79
The nature of people strategy 80
The features of people strategy 81
Broad statements of intent 82
Overall people management approaches 83
Contents vii
Evaluating people strategy 86
People strategy in action 87
References 97
08 Developing people strategy 99
Introduction 99
Development principles 99
The evidence-based approach to developing
people strategy 99
Limits to an entirely rationalistic approach 102
Formulating people strategy 103
Recommendations from practitioners 112
References 115
09 Implementing people strategy 117
Introduction 117
Implementation problems: the say–do gap 117
The implementation process 120
The role of line managers in implementing HR strategy 125
References 128
10 The strategic role of people professionals 130
Introduction 130
People professionals: their basic strategic role 130
The partnership role of people professionals 132
The strategic business partner model 133
People management strategic roles 135
References 139
PART THREE Specific people strategies 141
11 Organization development strategy 143
Introduction 143
Organization development defined 143
Organization development activities 144
Organization development strategy 146
Formulating and implementing organization
development strategy 147
viii Contents
Culture change 147
References 150
12 Human capital management strategy 151
Introduction 151
Aims of human capital management 152
The role of human capital management strategy 152
The link between HCM and business strategy 153
Developing a human capital management strategy 154
References 162
13 Knowledge management strategy 163
Introduction 163
The process of knowledge management 163
Sources and types of knowledge 164
Approaches to the development of knowledge management
strategies 165
Strategic knowledge management issues 165
Components of a knowledge management strategy 167
References 169
14 Corporate social responsibility strategy 170
Introduction 170
Corporate social responsibility defined 170
The rationale for CSR 171
Strategic CSR defined 172
CSR activities 173
Developing a CSR strategy 175
Role of the people management function 176
References 178
15 Organizational performance strategy 179
Introduction 179
The process of managing organizational performance 180
The strategic approach to managing organizational
performance 181
Contents ix
Organizational capability 184
Developing a high-performance culture 185
How people strategies enhance organizational performance 192
References 193
16 Individual performance strategy 195
Introduction 195
Performance and the factors that affect it 195
Performance management systems 197
Limitations of the model 199
The reality of performance management systems 201
Dealing with the issues – reinventing performance
management 203
References 205
17 Digital strategy for people management 207
Introduction 207
Purpose of a digital strategy 207
Components of a digital strategy 207
References 209
18 Employee engagement strategy 210
Introduction 210
What is employee engagement? 210
Why is engagement important? 211
What are the factors that influence employee engagement? 212
The nature and content of employee engagement strategy 213
References 217
19 Resourcing strategy 219
Introduction 219
The rationale for strategic resourcing 219
The strategic approach to resourcing 220
Integrating business and resourcing strategies 220
The components of employee resourcing strategy 221
References 224