This chapter examines the nature of strategic HRM as a system and draws attention to different models that have been used to analyse this system, such as the abilities, motivations and opportunities (AMO) model, or models of the employee–organisation relationship. It lays out the rapid evolution of the field and its future trajectory. Attention is drawn to four shifts: giving more attention to the different patterns of strategic execution often seen across work groups within a single organisation; more attention to those factors that promote group work; understanding how team cognition, team diversity, team demographics, and team efficacy impact effectiveness; and understanding the linkages between these issues to explain how group-level factors help transfer the impact of organisation-level HR systems to outcomes across levels. The chapter draws attention to the importance of time in HR strategy with more longitudinal datasets, better controls for prior factors that might predispose an organisation to perform in one way versus another, and not assuming linear effects. It blends ideas from human capital theory with those from the field of strategy and a resource-based view of the firm, and how this has led to the current attention that is being given the different forms of human capital and the enabling processes that transform individual knowledge, skill, ability, and other characteristics (the KSAO model) into unique, unit-, operations- and firm-level resources.
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