A review of theoretical development in strategic human resource management by the application of a framework to a small firm in the credit management sector

Abstract

The past two decades have witnessed the growth of interest in gaining businesses competitive advantage by treating employees as assets and so gaining employee commitment. The concept of strategic human resource management which is at the formative stage of theory development, supports this approach. This development has heralded much academic attention, in particular since its American origin signifies a need for unitarist workplace relations. Nevertheless, British academics have welcomed this new perspective on personnel management, albeit with caution. Concern centres on whether the concept of strategic human resource management is anything new, or not just a re-labelling of personnel management. Furthermore, is it appropriate in the U.K. and perhaps more so for some groups of employees in certain industries, than for others? Traditional personnel management in the U.K. has sought compliance rather than commitment. Development of the theory is of primary interest to this research. Of equal interest is the perceived gap between theory and practice, in particular how this affects small firms. A case study approach was therefore applied to a small firm in the Credit Management sector, an industry found to be highly under researched. In order to provide useful analysis, a qualitative database was developed, based on a framework selected from current literature. This literature suggests that strategic human resource management and the achievement of commitment can only be developed in firms which are 'strategic planners'. The research sought to examine this claim, and although the findings have by no means clarified this ambiguous and complex concept, it is arguable that only 'strategic planners’ can achieve a strategic human resource management approach. The framework selected for the research has been re-configured and the umbrella term 'Human Resource Management Content' is suggested as the independent variable for further analysis and most likely to aid future research.