The Human Dimension of Strategic Management: Past Developments, Future Prospects

This paper examines how Strategic Management is applied to Human Resource Management (HRM). Considering the first steps of strategy, how strategic management came along and how it has been applied in SHRM. Comparing the business strategies used in the past to strategies in use nowadays, with the aim to understand and gain knowledge of what to expect in the future of HRM. Furthermore, analyzing a company’s development as an example, the thesis also focused on Volvo Group`s performance within the years from a strategic management point of view. The research is based only on a secondary source to provide insight of the shifts strategy as a practice has had, the study reflects the growing importance of flexibility and adaptability concerning technology and workforce as they are important elements to business due to the influence over results. The aim of this qualitative research is to have a better understanding about the practices in the past that led to the current strategy implementation processes in businesses, as that knowledge enables us to find out how HRM and SHRM have evolved throughout the years and consequently how the changes are affecting and shaping the future of HRM