Strategic relationships of human capital, strategic human resource management and human resource management

Abstract

Very little systematic research today has emphasised strategising the concepts of human capital (HC), strategic human resource management (SHRM) and human resource management (HRM) in relation to knowledge development, application, and dissemination in organisations. This paper aims to fill this gap by suggesting that strategic relationships exist between the three salient concepts. A series of in-depth qualitative interviews with 35 non-profit executives from 22 social service non-profit organisations (SSNPOs) in Australia was conducted for this study. The paper argues that there is an existence of strategic relationships among the three concepts and the relationships can create value that is larger than the total sum of all three concepts. The paper helps to build a nascent body of literature proposing the significance of strategic relationships between HC, SHRM and HRM in the social service non-profit sector. The increased awareness of the strategic linkage of the three concepts likely generates further research both from within and outside the non-profit sector. Also, it helps to clarify the three seemingly very similar and yet different concepts. The paper is considered as a starting point and serves as a milestone for understanding the strategic relationships of HC, SHRM and HRM.