Strategic human resources management in Australia: the human cost

Abstract

Strategic human resource management (HRM) is increasingly being used to indicate a system‐wide intervention that links HRM to strategic planning and cultural change. However, what may be inadvertently occurring is a reinforcing of the use of the “hard” model of HRM, one that prioritises “management” aspects above “human” aspects of the discipline. Competitive business strategies may be improving the bottom line of a company, but they are hurting many individuals, especially when workers are being viewed as a commodity in a labour market. The Australian experience suggests that strategic HRM is not particularly people focused and has led to greater job insecurity and lower job satisfaction. If the current intent of strategic HRM is to strategise in conjunction with an organization’s business direction, then it needs to be re‐conceptualised to acknowledge the human endeavour of organizations. This will require a broadening of the perspective of strategic HRM.