Importance Of Aligning Human Resources With Strategy

Uploaded on

HR's Emerging role in the formulation and implementation of strategy. traditional HR Vs Strategic HR. models Integrating strategy and HRM

HR's Emerging role in the formulation and implementation of strategy. traditional HR Vs Strategic HR. models Integrating strategy and HRM

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Importance of Aligning Human Resources with Strategy Chapter 2 Nisha Hariyani
  • 2. HR’s Emerging Role
    • Strategic human resource management is an approach which defines how the organization’s goals will be achieved through people, by means of HR strategies and integrated HR policies and practices.
  • 3. Transition from HRM to Strategic HRM
    • Changes in the business environment brought about by globalization and the development of new technology have made it mandatory for organizations to involve HRM in the strategic Decision Making Process.
    • Changes in Market Conditions, economic conditions, labor markets, industrial structure, and international competition have all highlighted the importance to the management of human resources for gaining a competitive advantage.
  • 4. Transition from HRM to Strategic HRM
    • 5p model identifies various HR activities that must be aligned with the Strategic needs of the Business to gain a competitive advantage.
    • HR Philosophy: refers to Org attitude
    • HR Policies: Refers to guidelines
    • HR Programs: Coordinated HR efforts to sustain Change
    • HR Practices: includes roles that individuals assume in an Org.
    • HR Processes: Involves Identification, formulation and implementation of HR activity
  • 5. Traditional HR Vs Strategic HR
    • Administrative in nature
    • Endorsing Specialization of work
    • Development of Policies and its Functions
    • Ensures Adherence to the Rules
    • Transactional in Nature: routine day to day work
    • People Not viewed as Competitive advantage
    • Change is Slow and Fragmented.
    • Empowering in Nature
    • Multi Tasking – Changing according the Envi
    • It is More Interdisciplinary in Nature
    • Rules and Regulations are Flexible.
    • Focus on Short Term Objectives of Org.
    • People as viewed as Intellectual Assets.
    • Change is Proactive and Systematic
  • 6. Role of strategic HRM (SHRM)
    • Strategic Role
    • Information and Decision Making Role
    • Strategic HR functional Role
    • Administrative Role
  • 7. Barriers To SHRM
    • Focusing on Shot Term Performance
    • Lack of technical Knowledge
    • Lack of Strategic perspective
    • Difficulty in quantifying
    • Apprehensions towards training people
    • Resistance of employees
    • `
  • 8. Model Integrating Strategy & HR
    • Two models help us understand the relationship between HR and Strategy, they are
    • Model of Best Practice
    • Model of Strategic Change
  • 9. Model of Best Practice Strategic Level Operational Level Business Process Level Frame policies Recruitment and Retention Checking equal Weight age to all stakeholder
  • 10. Models Integrating Strategic Change & HRM
  • 11. The model has four basic Propositions:
    • Strategic integration
    • High commitment
    • High quality
    • Flexibility
  • 12. Model of Strategic Change & HRM Socio economic, technical Politico-legal Culture, Structure, Politics Leadership, task technology Business outputs Role Definition Organization HR outputs HR Flows Work systems Reward systems Employee Relations Objectives Product – market Strategy and Tactics Outer Context HRM Context Inner Context Business strategy content HRM Content
  • 13. Economic Indicators of HRM
    • Investment Perspective of HR
      • Management Value
      • Organization Attitude Towards Risk
      • Employee skills Required
      • Cost benefit Analysis
      • Outsourcing
    • Human Capital Accounting
      • Sources of employee value: productivity & added Value
      • Adding value through rewards & benefits
      • Adding value through attrition & recruitment
  • 14. End of Chapter 2