Strategic HRM


Published on

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Strategic HRM

  1. 1. Introduction A strategy: Indicates what an organizations key executives hope toaccomplish in the long run Is concerned with competition and aligning the resourcesof the firm Good HR strategy results in a fit betweenorganizational strategy and HRM policies andprograms Recruitment, selection, outsourcing, telecommuting,performance evaluation, compensation
  2. 2.  Strategic human resource management formulating and executing HR systems that produce the employeecompetencies and behaviors the company needs to achieve itsstrategic aims Taking a strategic HRM approach means: Making human resources management a top priority Integrating HRM with the company’s strategy, mission, and goals HRM can make significant contributions if included in thestrategic planning process from the outset The strategic management process helps determine: What must be done to achieve priority objectives How they will be achieved
  3. 3. Strategic HRM: A Key to Success Three levels of strategy apply to HRM activities: Strategic (long term) Managerial (medium term) Operational (short term) The HRM activities are: Employee selection/placement Rewards Appraisal Development
  4. 4.  Strategic HRM planning leads to: Growth Profits Survival Planning also: Expands awareness of possibilities Identifies strengths and weaknesses Reveals opportunities Points to the need to evaluate the impact of internal andexternal forcesStrategic HRM: A Key to Success
  5. 5. Traditional HR vs. Strategic HRPoint of distinctionFocusRole of HRInitiativesTime horizonControlJob designKey investmentsAccountabilityResponsibility for HRTraditional HREmployee RelationsTransactional changefollower and respondentSlow, reactive, fragmentedShort-termBureaucratic-roles, policies,proceduresTight division of labor;independence,specializationCapital, productsCost centreStaff specialistsStrategic HRPartnerships with internal andexternal customersTransformational change leaderand initiatorFast, proactive and integratedShort, medium and long (asrequired)Organic-flexible, whatever isnecessary to succeedBroad, flexible, cross-trainingteamsPeople, knowledgeInvestment centreLine managers
  6. 6. Shifts in HR Management in IndiaEmerging HR practice Strategic role Proactive Key part of organizationalmission Service focus Process-based organization Cross-functional teams,teamwork most important People as keyinvestments/assetsTraditional HR practice Administrative role Reactive Separate, isolated fromcompany mission Production focus Functional organization Individuals encouraged,singled out for praise,rewards People as expenses
  7. 7. Linking Corporate and HR Strategies
  8. 8. Strategic Management Process Environmental Scanning Strategy Formulation Corporate level Business unit level Functional level Strategy Implementation Strategy Evaluation
  9. 9. HR Role in Strategic Management In strategy formulation HR manager supplies competitive intelligence that isuseful In strategy implementation Encouraging proactive behavior Explicit communication goals Stimulate critical thinking Productivity Quality and Service Proficient strategic management
  10. 10. A Model to Organize HRM ARDM means: Acquiring Rewarding Developing Maintaining and protecting The goals of the ARDM model are: Socially responsible and ethical practices
  11. 11.  The eventual success of any HRM activity is: The organizations employees are the best qualified They perform jobs that suit their needs, skills, and abilities Matching people and activities in order to accomplish goals iseasier with a diagnostic approachA Model to Organize HRM
  12. 12. Taking a Diagnostic Approach to HRM
  13. 13. Taking a Diagnostic Approach to HRM The ARDM model has four specific steps: Diagnosis Prescription Implementation Evaluation Managers typically diagnose a work situation by observingand identifying key factors A prescription is then made to translate the diagnosis intoaction Most human resource problems are too complex to have asingle correct prescription
  14. 14. Taking a Diagnostic Approach to HRM Implementing a solution is the next step, followed byevaluation Evaluation tells managers whether improvement in theARDM process is needed If an organization teaches its members to focus on ARDMplus the environment, it is likely to achieve: Socially responsible, ethical behaviors Competitive, high-quality products and services The ARDM model calls for thorough, timely, and systematicreview of each situation
  15. 15. External Environmental Influences HRM processes are influenced by both the internaland external environments External influences include: Government laws and regulations Union procedures and requirements Economic conditions The labor force HR planning must operate within: Guidelines Limits of available resources Competencies
  16. 16. Economic Conditions Two economic factors affect HRM programs: Productivity The work sector of the organization Productivity is: An important part of a nations economic condition Representative of an organization’s overall efficiency The output of goods and services per unit of input(resources) used in a production process
  17. 17. Economic Conditions Managers can influence productivity through soundHRM programs Diagnosis, prescription,implementation, and evaluation Recruitment and selection Motivational and compensationtechniques Training and development
  18. 18. Internal Environmental Influences HRM programs are influenced by: Strategy Goals Organizational culture Nature of the task Work groups The leader’s style and experience
  19. 19. Goals Organizational goals differ within and amongdepartments Most departments have similar goals Differences arise from the importance placed on the goals In organizations where profits take precedence,HRM goals receive little attention This results in effectiveness problems (absenteeism,performance decrements, high grievance rates)
  20. 20. Organization Culture
  21. 21. Organization Culture A firms organizational culture is shown by: The way it does business How it treats customers and employees The autonomy or freedom that exists in the departmentsor offices The degree of loyalty expressed by employees
  22. 22. Organization Culture Organization culture represents the perceptionsheld by the employees There is no one "best" culture for the development ofhuman resources Culture can: Impact behavior, productivity, expectations Provide a benchmark for standards of performance
  23. 23. Work Group An employee’s experiences are largely influencedby the work group A group is two or more people who:Consider themselves a groupWork interdependently to accomplish a purposeCommunicate and interact with one another on acontinuous basisIn many cases, work next to each other
  24. 24. Leader’s Style and Experience The experience and leadership style of theoperating manager directly affects HRM activities Orchestrating the skills, experiences, personalities, andmotives of individuals Facilitating interaction within work groups Providing direction, encouragement, and authority toevoke desired behaviors Reinforcing desirable behavior