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Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
Strategic HRM
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Strategic HRM

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  • 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.  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. 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.  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. 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. 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. Linking Corporate and HR Strategies
  • 8. Strategic Management Process Environmental Scanning Strategy Formulation Corporate level Business unit level Functional level Strategy Implementation Strategy Evaluation
  • 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. 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.  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. Taking a Diagnostic Approach to HRM
  • 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. 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. 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. 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. Economic Conditions Managers can influence productivity through soundHRM programs Diagnosis, prescription,implementation, and evaluation Recruitment and selection Motivational and compensationtechniques Training and development
  • 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. 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. Organization Culture
  • 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. 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. 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. 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

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