2. ‘Strategy is
problem solving in
unstructured
situations.’
‘There is a gap
between the
rhetoric and the
reality of
SHRM.’
‘Strategy consists
of illusions in the
board room.’
‘Strategy is
emergent and
flexible.’
‘Strategy is a
pattern in a
stream of
activities.’
‘Strategy is often
fragmentary,
evolutionary and
largely intuitive.’
THE CLOUDY NATURE OF STRATEGY
3. SO WHAT IS STRATEGIC HUMAN
RESOURCE MANAGEMENT?
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?
4. Strategic HRM is the process of
defining how the organization’s goals
will be achieved through people by
means of HR strategies and
integrated HR policies and practices.
STRATEGIC HRM DEFINED
5. MODEL OF STRATEGIC HRM
Strategic HRM
Strategic management –
strategic role of HR
HR strategies –
overall/specific
Strategic choice
Strategic analysis
6. SO WHAT IS THE STRATEGIC
ROLE OF HR SPECIALISTS?
7. ‘My credibility depends on
running an extremely
efficient and cost-effective
administrative machine…
If I don’t get that right, and
consistently, then you can
forget about any big ideas.’
‘The CIP thinks that we will
all be strategic business
partners, and we’re not, you
know. We have to deal with
day-to-day HR issues that
arise in the business.’
Student practitioner
‘Give me a break! It’s so demeaning.
How many people in marketing or
finance have to say they are a
partner in the business? Why do we
have to think that we’re not an
intimate part of the business, just
like sales, manufacturing and
engineering? I detest and loathe the
term and I won’t use it.’
‘The term worries me to death. HR has to be
an integral and fundamental part of
developing the strategy of the business. I
don’t even like the term ‘close to the
business’ because, like ‘business partner’, it
implies we are working alongside our line
management colleagues but on a separate
track, rather than people management being
an integral part of the business.’
VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT
8. Formulate integrated
HR strategies
Work with line
managers to
support the
achievement of
their business
goals
Contribute to the
development of
business strategies
HR’s STRATEGIC ROLES
11. Overall:
• performance
• engagement
• ‘the big idea’
• human capital
advantage
• HRM process
advantage
• etc
Specific:
• organization
development
• corporate social
responsibility
• resourcing
• talent management
• learning and
development
• employee reward
• employee
relations
• employee
well-being
HR STRATEGY AREAS
12. EXAMPLES OF OVERALL HR STRATEGIES
A strong focus on the
overall effectiveness
of the organization, its
direction and how it's
performing. There is
commitment to, belief
in, and respect for
individuals. New
Forest Council
The only HR strategy
you really need is the
tangible expression of
values and the
implementation of
values. West Water
Stimulate changes
on a broad front
aimed at achieving
competitive
advantage through
people. Pilkington
Optronics
Maintain
competitive
advantage by
continuing to
attract very high
calibre people.
Boots
We want GSK to be a
place where the best
people do their best
work. GlaxoSmithKline
Staff who are enjoying
themselves, are being
supported and
developed, and who
feel fulfilled and
respected at work, will
provide the best
service to customers.
Lands’ End
13. BALANCED SCORECARD IN AN INTERNATIONAL CHARITY
Organizational effectiveness
perspective:
• programme development
• programme delivery
• process development and
management
• cost-effectiveness
Stakeholder perspective:
• impact on clients
• relationships with key funding
agencies and supporters
• development of brand
• influence
Financial perspective:
• income growth
• enlistment and retention of
supporters
• cost/income ratio
People perspective:
• leadership behaviour
• talent management
• learning and development
• employee satisfaction –
a ‘great place to work’
14. • Clear line of sight between strategic aims of the Corporation and its staff
• Management sets goals for success and monitors performance
• Leadership from the top and at all levels of management
• Focus on promoting engagement and commitment
• Performance management processes aligned to Corporation objectives
• Capacities of people enhanced by comprehensive learning and
development programmes
• People valued and rewarded according to their contribution
HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON
15. • Achieve strategic integration – match HR
policies and practices to the business
strategy
• Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
• Focus on the needs to achieve flexibility,
responsiveness, quality and cost-
effectiveness in the delivery of HR
services
DECLARATION OF STRATEGIC INTENT:
CARE DELIVERY CHARITY
16. • Aligned to corporate goals
• Set out clear aims
• Supported by business case
• Take account of individual as well as
business needs
• Contain realistic and achievable
plans for implementation
CRITERIA FOR HR STRATEGIES
18. 1. Analysis
2. Diagnosis
3. Conclusions and
recommendations
4. Action planning
CONDUCTING A STRATEGIC REVIEW
Involve senior
management and
line managers
Involve employees
and their
representatives
19. Possible HR strategic objectives Importance* Effectiveness*
Support the achievement of organizational goals
Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as ‘a great place to work’
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)
* Scale: 10 = high 0 = low
HR STRATEGY GOALS: HOW DO THEY RATE?
20. STRATEGIC HRM GAP ANALYSIS
What are the current and desired SHRM characteristics in your organization?
1 2 3 4 5 6 7
Effective high-performance work
system in place
No attempt made to encourage
high performance
Integrated talent management
programmes are operating
effectively
Talent management is haphazard
or ineffective
Sophisticated techniques are
used to recruit employees
A traditional approach is adopted
with regard to sourcing recruits
and selecting applicants
Focus on using blended learning
and development processes
Reliance on the delivery of
traditional training courses
Employees given a voice on all
matters that concern them
Only lip service is paid to
employee participation and
involvement
High-quality HR practices Poor-quality HR practices
A total reward approach is used
effectively
Reward programmes limited to
financial rewards
Mark on the scale: X for current, O for desired – eg:
XO
21. HR IMPLICATIONS OF CORPORATE STRATEGIES
Corporate strategy Implications for HR strategy
1.
2.
3.
4.
5.
6.
22. Possible resourcing goals Importance* Effectiveness*
Match people resources to business requirements
Avoid unexpected deficits or surpluses of staff
Attract and recruit high-quality candidates
Minimize recruitment costs
Maximize ‘recruitment intensity’, ie high numbers of applicants
per vacancy
Increase ‘predictive validity’, ie the extent to which predictions of
suitability at the point of recruitment are achieved
Increase retention rates
Reduce cost of labour turnover
* Scale: 10 = high, 0 = low
ANALYSIS OF RESOURCING GOALS
23. Talent management goals Importance* Effectiveness*
Define what is meant by talent in terms of competencies
and potential
Ensure that talent is treated as a key corporate resource
Develop a pool of talent that will provide a guaranteed
supply of highly qualified people
Provide for management succession
Rely primarily on growth from within, while recognizing
the need to bring in fresh blood from time to time
Identify those with talent and potential
Institute programmes to develop talent
Create a compelling employee value proposition
Develop the organization as an employer of choice
* Scale: 10 = high, 0 = low
ANALYSIS OF TALENT MANAGEMENT GOALS
24. Learning and development goals Importance* Effectiveness*
Create human capital advantage by ensuring that the
organization has more skilled and competent people
than its competitors
Extend the skills base of the organization
Improve individual, team and organizational
performance
Attract and retain high-quality people by offering them
learning and development opportunities
Improve organizational flexibility by multi-skilling
Provide additional non-financial reward to people in
the form of growth and career opportunities
Reduce the length of learning curves to minimize
learning costs
Ensure that talented people are developed to achieve
their maximum potential
Provide line managers with the skills required to lead
and develop their people
* Scale: 10 = high, 0 = low
ANALYSIS OF LEARNING AND DEVELOPMENT GOALS
25. Reward management goals Importance* Effectiveness*
Reinforce the achievement of organizational goals
Improve individual, team and organizational
performance
Recruit and retain high-calibre staff
Facilitate staff mobility
Achieve strong relationship between pay and
performance
Reinforce organizational values
Motivate and engage employees
Cost effective
Well-communicated and understood by employees
Managed effectively by line managers
* Scale: 10 = high, 0 = low
ANALYSIS OF REWARD MANAGEMENT GOALS
26. Employee relations goals Importance* Effectiveness*
Build stable and cooperative relationships with employees
and, where present, their trade unions
Operate on a partnership basis with trade unions
Achieve engagement through employee involvement and
communication processes
Minimize conflict with employees and their unions
Adopt a high-commitment approach to develop mutuality
Maintain bargaining structures and negotiating procedures
that enable agreements to be reached smoothly
* Scale: 10 = high, 0 = low
ANALYSIS OF EMPLOYEE RELATIONS GOALS
28. STRATEGIC HRM GUIDELINES
• Be clear on what has to be achieved
and why
• Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
• Aim for continuous improvement –
evolution not revolution
• Don’t follow fashion – do your own
thing
• Keep it simple – over-complexity is a
common reason for failure
• Don’t rush – it takes longer than you
think
• Assess resource requirements and
costs
• Manage change – involve,
communicate and train
