Role of STRATEGIC Human Resources Management (HRM) in Business strategy<br />GMB 6070 - Session 2<br />16th May ‘11<br />
Presentation Plan<br />Discussion - Strategy formulation process<br />Discussion - Role of environment in strategy develop...
Strategy formulation process<br />Involves planning and taking decisions that lead to the establishment and achievement of...
…Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />4<br />Diagnosis: <br />Analyzes intern...
…Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />5<br />Formulation stage:<br />Developm...
…Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />6<br />Review the current key objective...
GMB 6070 - Session 2 – May 16th<br />Role of Environment on strategy formulation<br />
Environmental scanning<br /><ul><li>If an organization understands the environment in which it operates, half the problems...
This requires an analysis of what is happening outside the organization and an evaluation of current resources (strength a...
Environment could be classified as external and internal.</li></ul>16th May '11<br />8<br />USIU - GMB 6070 - MAY 16<br />
…Environmental scanning<br /><ul><li>External:
The external environment consists of variables that are outside the organization and not typically within the short-run co...
They may be general forces and trends within the overall set-up which consist of political, economic, socio-cultural, tech...
…Environmental scanning<br /><ul><li>Internal:
The internal environment of a corporation consists of variables (strengths and weaknesses) that are within the organizatio...
These include the corporate culture, structure, resources and competencies.
One of the widely used methods for internal analysis of the firms is Value Chain Analysis which assesses the strengths and...
…Environmental scanning<br /><ul><li>HR Partnership
Parenting – the manner in which the management coordinates activities and deploys resources and cultivates capabilities am...
…Environmental scanning<br />16th May '11<br />12<br />USIU - GMB 6070 - MAY 16<br />
HR Challenges<br /><ul><li>Business acumen
Influencing performance
Measuring performance
Determining competencies
Creating an enabling environment
Creating passion for quality and competitiveness.
..HR BA.pptx</li></ul>16th May '11<br />13<br />USIU - GMB 6070 - MAY 16<br />
GMB 6070 - Session 2 – May 16th<br />Role of Strategic human resources in strategy implementation<br />
Role of Strategic human resources in strategy implementation<br /><ul><li>Understanding the Corporate Mission:
An organization’s mission is the purpose or the reason for the organization’s existence.
HR should articulate the fundamental, uniqueness and focus that sets a company apart from other firms of its type and iden...
HR should formulate policies to communicate the corporate mission to all employees.</li></ul>16th May '11<br />15<br />USI...
…Role of Strategic human resources in strategy implementation<br /><ul><li>Some of the key policies to drive the HR agenda...
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Gmb 6070 session 2 - may 16th (fil eminimizer)

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Gmb 6070 session 2 - may 16th (fil eminimizer)

  1. 1. Role of STRATEGIC Human Resources Management (HRM) in Business strategy<br />GMB 6070 - Session 2<br />16th May ‘11<br />
  2. 2. Presentation Plan<br />Discussion - Strategy formulation process<br />Discussion - Role of environment in strategy development<br />Role of Strategic Human Resources in the contribution to overall strategy <br />Group discussion - Situational approach to strategy<br />16th May '11<br />2<br />USIU - GMB 6070 - MAY 16<br />
  3. 3. Strategy formulation process<br />Involves planning and taking decisions that lead to the establishment and achievement of the organization’s goals of a specific plan.<br />The process comprises three phases:<br />Diagnosis<br />Formulation<br />Implementation<br />16th May '11<br />3<br />USIU - GMB 6070 - MAY 16<br />
  4. 4. …Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />4<br />Diagnosis: <br />Analyzes internal environment of the organization - this is also called performing a situation analysis. <br />It involves evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses<br />Analyzes external environment to review major opportunities and threats<br />Identifies major critical issues – usually a set of two to five major problems, threats, weaknesses, and/or opportunities that require priority attention by management<br />
  5. 5. …Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />5<br />Formulation stage:<br />Development of a clear set of recommendations with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them. <br />Looks for "sustainable" competitive advantages – (despite steady erosion by the efforts of competition).<br />In order to align "fits" between resources plus competencies with opportunities, and also fits between risks and expectations the SHRM will help to focus on the following: <br />
  6. 6. …Strategy formulation process<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />6<br />Review the current key objectives and strategies of the organization, identified and evaluated as part of the diagnosis<br />Identify a rich range of strategic alternatives to address the three levels of strategy formulation<br />Balance evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization<br />Decide on the alternatives that should be implemented or recommended.<br />
  7. 7. GMB 6070 - Session 2 – May 16th<br />Role of Environment on strategy formulation<br />
  8. 8. Environmental scanning<br /><ul><li>If an organization understands the environment in which it operates, half the problems would be sorted.
  9. 9. This requires an analysis of what is happening outside the organization and an evaluation of current resources (strength and weaknesses) and an assessment of opportunities and threats present in the environment.
  10. 10. Environment could be classified as external and internal.</li></ul>16th May '11<br />8<br />USIU - GMB 6070 - MAY 16<br />
  11. 11. …Environmental scanning<br /><ul><li>External:
  12. 12. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management.
  13. 13. They may be general forces and trends within the overall set-up which consist of political, economic, socio-cultural, technological, legal and environment, – (PESTLE).</li></ul>16th May '11<br />9<br />USIU - GMB 6070 - MAY 16<br />
  14. 14. …Environmental scanning<br /><ul><li>Internal:
  15. 15. The internal environment of a corporation consists of variables (strengths and weaknesses) that are within the organization and are not usually within the short run control of top management.
  16. 16. These include the corporate culture, structure, resources and competencies.
  17. 17. One of the widely used methods for internal analysis of the firms is Value Chain Analysis which assesses the strengths and areas of improvement that divide a business into a number of linked activities, each of which may produce value to the customers.</li></ul>16th May '11<br />10<br />USIU - GMB 6070 - MAY 16<br />
  18. 18. …Environmental scanning<br /><ul><li>HR Partnership
  19. 19. Parenting – the manner in which the management coordinates activities and deploys resources and cultivates capabilities among product lines and business units.</li></ul>16th May '11<br />11<br />USIU - GMB 6070 - MAY 16<br />
  20. 20. …Environmental scanning<br />16th May '11<br />12<br />USIU - GMB 6070 - MAY 16<br />
  21. 21. HR Challenges<br /><ul><li>Business acumen
  22. 22. Influencing performance
  23. 23. Measuring performance
  24. 24. Determining competencies
  25. 25. Creating an enabling environment
  26. 26. Creating passion for quality and competitiveness.
  27. 27. ..HR BA.pptx</li></ul>16th May '11<br />13<br />USIU - GMB 6070 - MAY 16<br />
  28. 28. GMB 6070 - Session 2 – May 16th<br />Role of Strategic human resources in strategy implementation<br />
  29. 29. Role of Strategic human resources in strategy implementation<br /><ul><li>Understanding the Corporate Mission:
  30. 30. An organization’s mission is the purpose or the reason for the organization’s existence.
  31. 31. HR should articulate the fundamental, uniqueness and focus that sets a company apart from other firms of its type and identifies the scope of the company's operation in terms of the products offered and markets.
  32. 32. HR should formulate policies to communicate the corporate mission to all employees.</li></ul>16th May '11<br />15<br />USIU - GMB 6070 - MAY 16<br />
  33. 33. …Role of Strategic human resources in strategy implementation<br /><ul><li>Some of the key policies to drive the HR agenda include:
  34. 34. On-boarding - (Orientation) policy,
  35. 35. Induction policy,
  36. 36. Remuneration Policy,
  37. 37. Motivation Policy,
  38. 38. Performance Management Policy,
  39. 39. Training and Development Policy,
  40. 40. Employee Satisfaction Index Policy
  41. 41. Employee Exit and Separation Policy
  42. 42. Such policies should help HR demonstrate value creation by monitoring implementation of corporate strategy and business competitiveness.
  43. 43. ..Climate 1 - Slide.pptx</li></ul>16th May '11<br />16<br />USIU - GMB 6070 - MAY 16<br />
  44. 44. …Role of human resources in strategy implementation<br />HR professionals are often defensive about their comparative worth, but they do not need to apologize for not being subject matter experts; all they need is to demonstrate strategy implementation competitiveness. <br />16th May '11<br />17<br />USIU - GMB 6070 - MAY 16<br />
  45. 45. …Role of Strategic human resources in strategy implementation<br />16th May '11<br />18<br />USIU - GMB 6070 - MAY 16<br />
  46. 46. How Strategic human resources contribute to overall strategy<br />In his book “Workplace Excellence” Dan Robkins wrote: <br /> “It’s (HR) not just a place to go when troubles arise; Human Resources is a vital department within companies, but too often they are misunderstood and underutilized.” <br />16th May '11<br />19<br />USIU - GMB 6070 - MAY 16<br />
  47. 47. …How Strategic human resources contribute to overall strategy<br /><ul><li>Thirty (30years ago) - 80s- the business environment talked about the “personnel department” which took care of everything relating to people in the workplace.
  48. 48. Twenty (20) years ago – 90s- we realized the need for a new department handling talent and other people issues “Human Resources,”.</li></ul>16th May '11<br />20<br />USIU - GMB 6070 - MAY 16<br />
  49. 49. …How Strategic human resources contribute to overall strategy<br /><ul><li>Human Resource Management addresses two functions – HRM and HRD.
  50. 50. According to Richard Chang, author of The Passion Plan at Work, HRM focuses mainly on
  51. 51. HR Research and Information Systems
  52. 52. Labour Relations
  53. 53. Employee Assistance
  54. 54. Employee Compensation/Benefits. </li></ul>16th May '11<br />21<br />USIU - GMB 6070 - MAY 16<br />
  55. 55. …How Strategic human resources contribute to overall strategy<br /><ul><li>Human Resource Development focuses on:
  56. 56. Career Development (helping individuals align their career planning)
  57. 57. Organizational Development (helping groups initiate and manage change)
  58. 58. Training and Development (design / execute)
  59. 59. Delivering training to ensure people are enabled to perform their jobs competently</li></ul>16th May '11<br />22<br />USIU - GMB 6070 - MAY 16<br />
  60. 60. …How Strategic human resources contribute to overall strategy<br /><ul><li>HRM and HRD tend to overlap in:
  61. 61. Selection and Staffing
  62. 62. Organizational/Job Design
  63. 63. Human Resource Planning
  64. 64. Performance Management System</li></ul>16th May '11<br />23<br />USIU - GMB 6070 - MAY 16<br />
  65. 65. …How Strategic human resources contribute to overall strategy<br /><ul><li>Despite the importance of HRM and HRD, HR is generally too often omitted from participation in key strategic decisions.
  66. 66. Reasons why HR should be part of the strategic planning process team include:</li></ul>16th May '11<br />24<br />USIU - GMB 6070 - MAY 16<br />
  67. 67. …How Strategic human resources contribute to overall strategy<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />25<br />Selection and Staffing: <br /><ul><li>HRD is more equipped to make accurate selection of talent for each position to develop a competitive workforce
  68. 68. HRD will help line managers to develop SMART performance objectives for employees
  69. 69. HR professionals are best placed to detect potential conflicts between what a company wants and what is truly realistic in HR terms; thus helping to ensure business plans are workable right from the start. </li></li></ul><li>…How Strategic human resources contribute to overall strategy<br />Organizational Development: <br /><ul><li>Strategic planning often encompasses change in workplace systems or processes.
  70. 70. Although individual departments are aware of the status of their own departments, HR folks are often aware of group initiatives and changes that has occurred company-wide.
  71. 71. Accordingly, they will be able to speak about OD issues with unique insights on how changes may impact the established systems and processes</li></ul>16th May '11<br />26<br />USIU - GMB 6070 - MAY 16<br />
  72. 72. …How Strategic human resources contribute to overall strategy<br />Training & Development: <br /><ul><li>Research shows that only 20% of the workforce has the skills that will be required ten years from now.
  73. 73. That means training and development are guaranteed to be needed at some point of the strategic growth process.
  74. 74. HRD team must speak instantly on any issues, and provide input that could help the organization to achieve its goals faster. </li></ul>16th May '11<br />27<br />USIU - GMB 6070 - MAY 16<br />
  75. 75. …How Strategic human resources contribute to overall strategy<br /><ul><li>According to Chandler and Andrews separately, key support of successful development and implementation of strategic management lies in full engagement of Human Resources in the organization’s top management.
  76. 76. HR should have a huge influence on:
  77. 77. Effectiveness and efficiencies in production
  78. 78. Effective communication
  79. 79. Marketing and sales
  80. 80. Upgrades on subject matter skills
  81. 81. Influence on developing soft skills for SME
  82. 82. Enhancement in cost reduction and overall equipment efficiency (OEE).</li></ul>16th May '11<br />28<br />USIU - GMB 6070 - MAY 16<br />
  83. 83. …How Strategic human resources contribute to overall strategy<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />29<br /><ul><li>According to Zikria of Preston University, Karachi Pakistanorganizations which include HR in their strategic planning process gain value in effectiveness and efficiencies in strategy implementation, monitoring and evaluation.
  84. 84. HR become partners in coordinating recruitment, talent development, performance management and sharpening talent through training.</li></li></ul><li>…How Strategic human resources contribute to overall strategy<br />16th May '11<br />USIU - GMB 6070 - MAY 16<br />30<br /><ul><li>Strategic Human Resources will align and integrate decisions about people with decisions about the results an organization is trying to obtain.</li></ul>U.S. Office of Merit Systems Oversight and Effectiveness<br />
  85. 85. Group Work<br />16th May '11<br />31<br />USIU - GMB 6070 - MAY 16<br />
  86. 86. Reading Assignment<br />Read Course Text – Anthony, Kacmar and Perrewe ( 2006 ) - Ch.2 <br />16th May '11<br />32<br />USIU - GMB 6070 - MAY 16<br />
  87. 87. End <br />Thank you<br />

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