Principles and Theories of Strategic People Management

Principles and theories underlying
strategic people management
Assessment 3 Brief – Part B: Peer Review
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Subject Name: Management, People and Teams
Subject ID: MGT600
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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Analysis.....................................................................................................................................3
3.0 Conclusion.................................................................................................................................6
4.0 References..................................................................................................................................6
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1.0 Introduction
Strategic people management is an important domain of study within the scope of human
resource management (Wang & Zhang, 2012). It is aimed at enhancing performance for the
purpose of achieving high results. Organizations have realized that financial performance is not
an efficient indicator of its performance rather they should also be focusing on people, who
constitutes the organization. Contemporary organizations heavily weigh their investment through
identification and development of their intellectual capital. Strategic management within an
organization reflects the bottom line of business' effectiveness and driving force behind
competitive advantage (Hotho & Champion, 2011). The current scope of analysis evaluates key
principles and theories of strategic people management in order to increase organizations and
individual performance, as has been described in the video.
2.0 Analysis
The video starts of discussing the classical management on people management and then
goes on to strategic people management. The key principles and theories underlying strategic
people management and their application enhance organizational and individual performance.
The classical theory of management had its focus on worker's having economic and physical
needs (Hamel, 2008). The human component of people management was not taken into
consideration. Ideas of workplaces were concentrated on the hierarchical structure of the
organization, specialization of labor and on incentives. This theory had various strengths as it
highlighted a clear structure for the management hierarchy with functions. Division of task and
labor was easy as employees had a definition of specific task roles. The major drawback of this
theory was that it attempted at gaining control over human behavior. This approach viewed the
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