Week 7: Strategic Value Practices within Human Resource Management and Leadership

Context

Table of Contents
7.1 Introduction ...........................................................................................................................................................2
7.2. Learning Outcomes ..............................................................................................................................................2
7.3 Strategic Value Practices within Human Resource Management .....................................................................3
References ..................................................................................................................................................................11

LJMU-7508-BEGP Leadership for Strategic Execution 1|Page

7.1 Introduction
Strategic human resource management is an innovative approach that emphasises the
development and implementation of HR programmes. Its main goal is to effectively tackle
business challenges and actively contribute to achieving long-term business objectives.
Additionally, it involves the management and leadership of employees. In the past, HR
management mainly focused on administrative tasks such as employee recruitment, selection,
and benefits management. Given the changing labour market and the rise of new business
models, it is crucial for HR business strategies to include important elements like successful
recruitment and retention of qualified individuals, as well as the promotion of ethical and cultural
leadership. Effective HR leadership plays a vital role in driving organisational growth. A human
resource leader is dedicated to achieving strategic goals and objectives by employing
sophisticated and innovative leadership techniques. A human resource leader serves as a
mediator between upper management and employees, advocating for employee rights and
concerns. The HR leader provides valuable insights into the vision, which the HR managers then
follow and efficiently implement. The HR managers assign responsibilities to the employees and
work together to address challenges.

7.2. Learning Outcomes

Upon the completion of this week of study, you will be able to:
LO.3 Explain and critically evaluate the processes required to ensure various elements of
strategic value-enhancing practices are implemented within HR practices.
LO.4 Critically evaluate professional and inclusive skill sets in relation to collaborative
working.

LJMU-7508-BEGP Leadership for Strategic Execution 2|Page

7.3 Strategic Value Practices within Human Resource Management
Strategic human resource management is a forward-thinking approach that focuses on
developing and implementing HR programmes to effectively address business challenges and
actively contribute to achieving significant long-term business goals while managing and leading
employees. In the past, HR management primarily revolved around administrative tasks that
involved activities like employee recruitment, selection, and benefits management. In light of
evolving labour market conditions and the emergence of new business paradigms, it is
imperative for HR business strategies to encompass key elements such as effective recruitment
and retention of suitable individuals, alongside the provision of ethical and cultural leadership
(Jackson, Schuler, & Jiang, 2014).

Leadership and management practises encompass more than simply understanding how to assign
tasks to others. Supervisors and managers need to effectively utilise their people-management
skills to ensure employee engagement, in addition to possessing functional expertise in running
their respective departments. Once a small-business owner begins recruiting and hiring company
leaders, it becomes her responsibility to train these leaders and set an example of behaviour that
they would want to emulate. This is done in order to cultivate a productive, satisfied, and fully
engaged workforce (Jackson, Schuler, & Jiang, 2014). To enhance leadership and management
practises, it is crucial to begin by making wise hiring decisions. For small businesses, this is
crucial because they may not have the financial resources to invest in replacing new employees
who do not meet expectations. To ensure the selection of candidates with the appropriate
expertise, it is crucial to create job postings that effectively communicate the job expectations, as
well as the necessary qualifications and experience (Regis, 2009).

LJMU-7508-BEGP Leadership for Strategic Execution 3|Page

The human resources department in an organisation serves both external
and internal customers. External customers of the HR department encompass a range of
individuals and entities, such as applicants, vendors, suppliers, and agents. These are individuals
or organisations that HR may choose to outsource certain responsibilities to. The internal
customers of HR encompass employees at all levels of the organisation, ranging from
supervisors to executives (Jackson, Schuler, & Jiang, 2014). Hence, it is crucial for the
company's supervisors and managers to receive assistance from the HR staff in effectively
engaging with employees, addressing any concerns they may have, and conducting performance
evaluations. Empowering the leaders within a company is a fundamental role of HR departments.
By empowering supervisors and managers, HR provides them with the necessary tools to
enhance their leadership skills and effectively manage their workforce. In small businesses
without a dedicated HR department, the individual responsible for HR functions or the highest-
ranking executive is accountable for ensuring that supervisors and managers fully embrace
company practises (Regis, 2009). The development of key individuals is perhaps the most
significant factor in an organization's capacity to navigate uncertainty and achieve success. A
leader's ability to engage people and align the needs of individuals with those of the organisation
is crucial for its development, as it ensures a united and cohesive result. Effective
communication is essential in all directions, including from managers to their staff, from staff to
managers, and among team members. A good leader is someone who actively listens and creates
a supportive atmosphere where individuals can build relationships, recognise each other's
abilities and limitations, and comprehend different ways of communicating. Good managers are
receptive to input from their staff and actively seek to learn from their feedback. Effective
managers possess a flexible approach and are capable of adapting to the unique needs of each
employee, enabling them to work, and plan their tasks in accordance with their individual styles
(Regis, 2009).

Strategic planning poses significant challenges and opportunities for HR professionals. The
majority of HR leaders in the largest global companies actively participate in strategic decision-
making and are integral members of the organization's strategy team (Mello, 2014). Additionally,
a significant number of HR professionals state that strategic planning is a key aspect of their role.

LJMU-7508-BEGP Leadership for Strategic Execution 4|Page

In contrast, HR professionals in many medium and small organisations are
rarely involved in organisational or functional strategic planning. In order to successfully achieve
long-term strategic HR objectives and play a crucial role in the organization's strategic planning,
it is essential to be an integral part of the strategic plan's success (Jackson, Schuler, & Jiang,
2014). Therefore, it is crucial for HR professionals to ensure that the HR function is closely
integrated with all elements of the strategic plan, even if the plan itself does not specifically
mention HR-related matters. The process of HR alignment is frequently influenced by workforce
composition concerns (Regis, 2009). The demographics and other characteristics of the available
workforce have a significant impact on how businesses staff their organisations, even though
each organization's strategic plan is unique. The staffing of organisations has a significant impact
on the execution of their strategy.

HR professionals should actively monitor and appropriately respond to various factors that have
the potential to impact the composition of the workforce. These factors may include, but are not
limited to (Jackson, Schuler, & Jiang, 2014):
1.Age: Workforce availability can be significantly influenced by several factors, including the
age of current employees, the age of the available workforce, and the retirement patterns of older
and younger workers.
2. The current economic conditions: Unemployment rates, natural disasters, and political changes
can also affect the availability of workers.
3. Globalisation: is a phenomenon that refers to the increasing interconnectedness and
interdependence of countries and their economies on a global scale. The growing diversity of the
workforce is an aspect of globalisation that will impact nearly all organisations. Another aspect
of globalisation involves the economic motivation to outsource labour and production activities
to locations where costs are lower. Another aspect that is closely related is immigration, which
includes both legal and illegal immigration, in many countries.

In general, the principal strategic Human Resource Management approaches can be divided into
three categories: universalistic, contingent, and configurational. Universalistic or 'best practise'

LJMU-7508-BEGP Leadership for Strategic Execution 5|Page

approach to HRM refers to the belief that there is a set of best HRM
practises and that their adoption will generate positive results regardless of the organisation's
circumstances.

The universalist approach asserts that 'best practises' regarding a broad range of HR issues, such
as employee recruitment and selection, training and development, and employee motivation, are
equally applicable to all organisations, regardless of the nature of the unique aspects that each
organisation may possess (Hager & Brudney, 2015).

The contingency or 'best fit' approach, on the other hand, disagrees with the presence of universal
prescriptions for HR issues and emphasises the need for integration between HR policies and a
wide variety of other organisational policies (Hager & Brudney, 2015).

The configurational approach to Strategic Human Resource Management (SHRM) "emphasises

the need for practises that are contingent on organisational circumstances, but also emphasises
the need for horizontal or internal fit" (Sparrow et al., 2004, p.158). Simply stated, the
configurational approach acknowledges the validity of 'best practises' while also acknowledging
the importance of aligning HR policies with the overall organisational strategy (Hager &
Brudney, 2015).

Alternatively, SHRM approaches can be divided into four categories: strategy-centered,

decision-centered, content-centered, and implementation-centered.

Strategic human resources management emerges as a means to encourage the reconsideration of

HRM strategies, policies, practises, and activities, while considering contextual factors and the
various stakeholders involved. According to these scholars, this perspective allows for internal
cohesion within the HRM function and strategic integration with the organization's objectives.
According to Buren et al. (2011), this approach helps in the development of organisational plans,
improves outcomes, and enhances resilience capacity. From a strategic HRM perspective,
organisations can enhance their practises to effectively achieve their goals. By providing tools

LJMU-7508-BEGP Leadership for Strategic Execution 6|Page

that effectively communicate organisational objectives, employees can
better understand and execute them. Given the importance of HRM practises in organisations, it
is reasonable to assert that when a set of HRM practises is aligned with the organisational
strategy, it enhances the ability to achieve a higher level of development. In the private sphere,
the focus is primarily on profitability and competitiveness. In the public context, where society
and citizens are the customers, the main focus is on optimising resources, ensuring transparency,
enhancing efficiency, and delivering services promptly.

According to Davies et al. (2006), an organisation managed by a manager-leader differs from an

organisation managed by an administrative manager. To emphasise the distinction, Visagie and
Linde (2010), stated that many organisations are overly managed but lack sufficient leadership.
A social agreement between a leader and the people he oversees must be recognised for
leadership to be effective. The leader must be both willing and able to exert control over the
outcomes of events by using their intellect and abilities to influence the behaviour of others.
Effective leadership is contingent upon widespread agreement, aspirations, and commitment.
According to Kirkpatrick and Locke (1991), a leader should: - be concerned with the active
participation of team members; - review the team's objectives and organise its members; - be
aware of the advantages and disadvantages of team members; - define the areas of responsibility
and the channels of communication.

Effective management differs from effective leadership in that it is determined by three primary
types of management skills: - Technical skills, the ability to use special measures, procedures,
and techniques; - Skills of working with people, the ability to work with people, understand
them, and motivate them individually and in groups; and - Conceptual skills, the ability to
coordinate and integrate all of the organization's activity, particular goals, and objectives. In
order to choose actions that are in the best interest of the organisation, it is also necessary to have
conceptual abilities (Davies et al., 2006) in order to conceive of the organisation as a whole and
comprehend the relationships between the numerous components that are present in specific
circumstances. In the context of organisations, management refers to the function of integrating
structures and resources to ensure optimal delivery, whereas leadership refers to the process of

LJMU-7508-BEGP Leadership for Strategic Execution 7|Page

gaining the commitment of personnel. Typically, the concept of a "leader"
implies that the leader has subordinates or adherents over whom he or she is responsible for
exercising authority or control. Kellerman (2004, p. 44) explains that the Harvard Business
School leadership theorist group, led by Visagie and Linde (2010), began to distinguish between
leaders and managers. According to Visagie and Linde (2010), a leader is a figure of inspiration,
while a manager is responsible for administrative duties and maintaining organisational
discipline.

Reliability and effectiveness must be assessed against the necessity of creative adaptation to new
challenges and opportunities. For a leader to be successful, he or she must strike the appropriate
balance between these competing priorities. Sometimes contending ideals and compromises
result in behaviours that are diametrically opposed (e.g., controlling versus empowering). The
extent to which a leader is able to maintain a healthy equilibrium between conflicting moral
standards and contrasting patterns of conduct in an appropriate manner (Kaiser et al., 2007) is
another indicator of flexible leadership. During the course of a management profession, it is
common to advance from one position to another within the same organisation or to a higher
position with a different organisation. The pattern of behaviour required for effective leadership
frequently varies among the numerous types of management roles, as well as between positions
in one organisation and positions in another organisation with a different mission or culture. The
ability to effectively transition from one position to another is another indicator of a leader's
adaptability and flexibility.

Investing in leadership development as a means of human resources development can enhance

human capacity and provide a competitive edge over other competitors (Abbass & Yaqoob,
2009). Leadership development programmes aim to enhance managers' performance in various
areas, including communication skills, listening skills, motivation skills, supporting others, and
information sharing. It is also intended to enhance leadership skills at all levels, including
operational, technical, strategic, and personal (Armstrong, 2009). An effective leadership
programme can greatly help in identifying and developing leadership qualities among individuals
within the organisation (Abbass & Yaqoob, 2009). Researchers have studied the role of HRM

LJMU-7508-BEGP Leadership for Strategic Execution 8|Page

practises and have found them to be effective in driving performance
indicators within organisations. Effective leadership plays a crucial role in various HR practises,
including Training and Development, Compensation, Performance Management and Appraisals,
Coaching and Mentoring, Leadership, and Career Development. By implementing effective
leadership, organisations can significantly enhance their intellectual capital and add value to their
overall operations. There are measurable pieces of evidence that demonstrate the strategic role
HRM can play and the value they bring to an organisation.

It is important to recognise that leadership is no longer solely focused on controlling information

and knowledge, but also on fostering knowledge creation and sharing among all employees. A
leader must therefore create the appropriate climate for this to happen (Nguyen & Mohammed,
2011). This statement highlights the fact that leadership involves advancing ideas and thoughts,
as well as taking responsibility for fostering confidence in others (Ali, 2009). Ali listed several
important leadership skills, such as managerial abilities, trustworthiness, awareness, influence,
vision, and inspiration. He further stated that leaders should be involved in activities such as
staffing, retention, development, adjustment, managing change, defining the direction, and
influencing others to follow.

Based on the reviews mentioned above, it is evident that the strategic positioning of the leaders
plays a crucial role in achieving organisational objectives and enhancing the competitive
advantage of the organisation. However, leaders have specific roles to fulfil, particularly in
managing the performance of the organization's Human Resources, among other responsibilities.

Additionally, leadership and HRM have the potential to interact with one another in shaping
different outcomes, either by complementing or substituting each other's influence. In recent
years, there have been several studies that have begun to explore these interactions (Steffensen et
al., 2019). Jiang, Chuang, and Chiao (2015) discovered that there is an interactive effect between
service-oriented high performance work systems (HPWSs) and service leadership on service
climate. Furthermore, the influence of HRM practises and leadership behaviour on outcomes
may be mediated by each other (Han et al., 2018). The interaction between different elements of

LJMU-7508-BEGP Leadership for Strategic Execution 9|Page

HRM, such as high performance, high commitment, high control, high
involvement, and international HRM, and the attributes of leadership, such as authentic, ethical,
transformative leadership, leader-member exchange, and global leadership, can have complex
effects on organisational, team, and individual outcomes. These effects may involve various
relationships. In summary, both HRM practises and leadership can be understood at multiple
levels. The formulation and analysis of HRM practises can be done at various levels, such as the
firm, department/unit, team, and individual levels, whether within a single context or across
borders (Steffensen et al., 2019). Leadership theory can be applied to various roles, such as
single leaders or multiple leaders, including boards of directors, CEOs, top management teams,
and HR managers.

LJMU-7508-BEGP Leadership for Strategic Execution 10 | P a g e

References
Abbass, Q. &Yaqoob, S. (2009); Effects of Leadership Development on Empowerment on
Employee Performance in Pakistan, Pakistan Economic and Social Review; 47(2) pp 269-292.
Ali, A. (2009); The Role of Leadership in HRM: A comparative study of specific Public and
Private Sectors in Pakistan; Journal of management and Social Sciences, 5(2) p180-194
Armstrong, M. (2009), Armstrong‘s Handbook of Management and Leadership, Kogan Page,
London and Philadelphia, 2nd edition 2009.
Davies, B., Ellison, L., Bowring-Carr, Ch. (2006). School leadership in the 21st Century. Second
edition.
Hager, M. A., & Brudney, J. L. (2015). In search of strategy: Universalistic, contingent, and
configurational adoption of volunteer management practices. Nonprofit Management and
Leadership, 25(3), 235-254.
Han, J. H., Liao, H., Taylor, M. S., & Kim, S. (2018). Effects of high‐performance work systems
on transformational leadership and team performance: Investigating the moderating roles of
organizational orientations. Human Resource Management, 57(5), 1065-1082.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. Academy of Management Annals, 8(1), 1-56.
Jiang, K., Chuang, C. H., & Chiao, Y. C. (2015). Developing collective customer knowledge and
service climate: The interaction between service-oriented high-performance work systems and
service leadership. Journal of Applied Psychology, 100(4), 1089.
Kaiser, R. B., Lindberg, J. T., & Craig, S. B. (2007). Assessing the flexibility of managers: A
comparison of methods. International Journal of Selection and Assessment, 15, 40–55.
Kellerman, B. (2004). Leadership: Warts and all. Harvard Business Review 82 (1): 40–5.
Kirkpatrick, S. A., Locke, E. A. (1991). Leadership: Do Traits Matter. Academy of Management
Executive, May, 48-60.
Mello, J. A. (2014). Strategic human resource management. Cengage Learning.
Nguyen, H.N., & Mohamed, S. (2011) Leadership behaviors, organizational culture and
knowledge management practices: An empirical investigation. Journal of Management
Development 30(2):206-221
Regis, R. (2009). “Strategic Human Resource Management & Development. Excel Books.

LJMU-7508-BEGP Leadership for Strategic Execution 11 | P a g e

Sparrow, P.R, Brewster, C. & Harris, H. (2004) “Globalising Human Resource Management”.
Routledge.
Steffensen Jr, D. S., Ellen III, B. P., Wang, G., & Ferris, G. R. (2019). Putting the “management”
back in human resource management: A review and agenda for future research. Journal of
Management, 45(6), 2387-2418.
Van Buren III, H. J., Greenwood, M., & Sheehan, C. (2011). Strategic human resource
management and the decline of employee focus. Human Resource Management Review, 21(3),
209-219.
Visagie, J. C., & Linde, H. (2010). Evolving role and nature of workplace leaders and diversity:
A theoretical and empirical approach. Managing Global Transitions, 8(4), 381.

LJMU-7508-BEGP Leadership for Strategic Execution 12 | P a g e