Strategic HR Management

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The competitive organization cannot utilize the tactical HR Management. It requires the strategic HR Management. Today, the HR Professionals can build a significant competitive advantage for the organization. They can build complex systems, which support the execution of the business strategy. They can bring simple tools to support innovations and they can build the organization, which employs loyal employees.

However, the introduction of the strategic HR Management is not simple. The HR leader is a crucial role. The HR leader has to get the buy-in of the top management and has to lead the transformation of the HR Organization.

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Strategic HR Management

  1. 1. creative HRM Strategic HR Management HR Challenges. HR Answers. What is the strategic Human Resources? Which strategic challenges HR faces? How to assess your organization’s readiness for Strategic HR? Want to know more? Visit creativeHRM. úterý, 8. října 13
  2. 2. The HR Transition from transaction to transformation requires new thinking, models, practices and competencies. The legacy of HR with a focus on administrative tasks keeps HR from delivering strategic value. The business demands the HR Organization, which has capabilities of agility, speed, innovation, collaboration, talent and resilience. The business demands the Strategic HR Management. úterý, 8. října 13
  3. 3. creative HRM Content (1) About cHR (2) HR Challenge (3) Move from Administrators to Strategic Contributors (4) Role of Senior HR Leaders úterý, 8. října 13
  4. 4. creative HRM About creative HRM is a website covering many HR related topics... HR Management, HR Management Practices, HR Strategy, HR Models, HR Business Partnering Model, HR Processes, HR Development, Organizational Design ... The website is new and fresh, a lot of new content will be added during 2013. Please, follow creative HRM as you do not miss any news... cHRM Twitter Please, feel free to visit creative HRM úterý, 8. října 13
  5. 5. Strategic HR Challenges úterý, 8. října 13
  6. 6. creative HRM Current HR Challenges “Complete” list ๏ Globalization ๏ The War for Talents ๏ Pressure on Employees ๏ Declining Employee Loyalty ๏ Declining Customer Loyalty ๏ Interventions of Shareholders ๏ Increasing Speed of Change úterý, 8. října 13
  7. 7. creative HRM HR Challenges Globalization and the War for Talents GLOBALIZATION New Markets and Global Talent Pools Competitors hiring talents globally Growing competition from low cost countries Skilled employees available globally One job board is not enough Constant pressure on production costs New competitors coming to market every day Global shopping as simple as local one WAR FOR TALENTS Quality of education constantly decreasing Western university graduates less competitive Just few companies can choose top talents Talents require the protection against competitors Top graduates do move globally Local universities are not sufficient pools anymore úterý, 8. října 13
  8. 8. creative HRM HR Challenges Pressure on Employees and Declining Loyalty PRESSURE Employees work longer hours. Again. New technologies require skilled employees No promise of “Life-long employment” Taking work home becomes a standard Productivity gains become a standard part of the job description Organizations do monitor and manage the span and layers Constant organizational changes bringing uncertainty DECLINING LOYALTY Employees feel no commitment Loyalty not reciprocated by the organization Loyalty not seen as a corporate value Engagement more difficult Employees hiding best ideas for the new employer Employees are loyal to the industry or sector Declining loyalty is a real danger for the business know-how úterý, 8. října 13
  9. 9. creative HRM HR Challenges Interventions and Speed of Change INTERVENTIONS Shareholders demanding more from the management Increased pressure to deliver increased profits even in difficult times The leadership development programs under a direct supervision of shareholders and Board of Directors SPEED OF CHANGE No time to think about a complex change of the organization in deep Each change is followed by other change Black Swans occur regularly and change the entire industry Complex and difficult decisions made in real time No time to communicate to employees fully úterý, 8. října 13
  10. 10. creative HRM HR Leader’s Challenge Most common issues and challenges ๏ They spend too much time discussing details of HR stuff that does not relate to business issues ๏ They seek management’s direction and leadership. They do not own leadership ๏ They lack the business knowledge that allows them to talk intelligently about business issues ๏ They do not tie HR initiatives to the bottom line well enough ๏ They use a unique language that doesn’t appeal to employees ๏ They do not bring enough to strategic conversation. They move too quickly to the details of execution ๏ They haven’t helped others at the business table understand either through concept or experiences why HR is at the table úterý, 8. října 13
  11. 11. Move from Administrators to Strategic Contributors úterý, 8. října 13
  12. 12. Differention is more about partnering and gaining the trust and respect of line management than it is about cost cutting and efficient administration. úterý, 8. října 13
  13. 13. creative HRM Tactical Human Resources What is is about? ๏ Baseline administration of people issues and data like: ๏ Benefits administration ๏ Compensation administration ๏ Employee records ๏ Affirmative action reporting ๏ Policy development and enforcement ๏ Traditional HR Programs ๏ Hiring ๏ Basic skills training ๏ Salary surveys ๏ Compensation program design úterý, 8. října 13
  14. 14. creative HRM Strategic Human Resources What is is about? ๏ Stimulating dialogue among the executive team to reexamine the clarity or appropriateness of the business strategy ๏ Aligning reward systems across the organization to ensure that they consistently encourage the fulfillment of customer needs ๏ Reassessing and projecting talent needs on the basis of the latest business strategies ๏ Redesigning work processes to eliminate aspects that do not add value or increase cost for the end customer ๏ Developing training solutions to build organizational capabilities required by the business strategy ๏ Redesigning aspects of the organizational culture úterý, 8. října 13
  15. 15. creative HRM Roadmap to Strategic HR Key Milestones to Pass ๏ Assess the organization’s readiness for change ๏ Develop a framework and language for Human Resources ๏ Understand the role of the senior HR leader as the organizational architect ๏ Clarify the role of the line management and engage the top management in creating and owning the HR strategy ๏ Create the HR Plan for the organization ๏ Clarify the role of generalist and specialist in HR ๏ Design the structure of the HR Organization ๏ Assess and upgrade the HR talent ๏ Recognize the political land mines in making the transition to strategic HR úterý, 8. října 13
  16. 16. Role of Senior HR Leaders in modern organization úterý, 8. října 13
  17. 17. creative HRM HR Leader’s Questions The role of the leader in the organization ๏ How do I ensure that I am successful in the role of the HR leader? ๏ Do I keep doing what has made me successful in the past? ๏ Surely that must be something that I do differently. What is it? ๏ How do I develop the influence skills that will be needed to make a real difference to the business? ๏ What should the leader of the HR Organization be doing to position the group more strategically? ๏ How do I manage a boss who is not yet thinking about HR strategically? úterý, 8. října 13
  18. 18. creative HRM Role of HR Leader Organizational Architect ๏ The organizational architect sees things other business leaders do not; brings the systemic view to the work and looks across boundaries ๏ The early phase of the a complex change require a strong leadership role from Human Resources to identify the need and to garner the support and resources needed to get the work done ๏ HR must ensure that the ultimate owners of significant organizational efforts are line managers and leaders ๏ The organizational architects predicts and identifies issues arising from the transition of ownership to the line management úterý, 8. října 13
  19. 19. Want to know more? úterý, 8. října 13
  20. 20. Follow creative HRM on Google Plus Follow creative HRM on Facebook Follow creative HRM on Twitter Please, feel free to visit creative HRM úterý, 8. října 13
  21. 21. creative HRM About creative HRM is a website covering many HR related topics... HR Management, HR Management Practices, HR Strategy, HR Models, HR Business Partnering Model, HR Processes, HR Development, Organizational Design ... The website is new and fresh, a lot of new content will be added during 2013. Please, follow creative HRM as you do not miss any news... cHRM Twitter Please, feel free to visit creative HRM úterý, 8. října 13

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