INTRODUCTION TO STRATEGIC HUMAN RESOURCE MANAGEMENT

1. PROF. SYED BILAL IRFAN
STRATEGIC
HUMAN
RESOURCE
MANAGEMENT
UNIT - 1

2. PROF. SYED BILAL IRFAN
OVERVIEW
• INTRODUCTION OF STRATEGY, STRATEGIC MANAGEMENT
& STRATEGIC HRM
• STRATEGIC ROLE OF HRM
• STRATEGY FORMULATION
• IMPLEMENTATION OF HR POLICIES – HR PLANNING
• HR STRATEGIESTO INCREASE FIRM’S PERFORMANCE

3. PROF. SYED BILAL IRFAN
WHAT IS “STRATEGY”?
STRATEGYIS A UNIFIED COURSE OF ACTIONTO ACHIEVETHE
ORGANISATIONAL GOAL

4. PROF. SYED BILAL IRFAN
WHAT IS “STRATEGIC MANAGEMENT”?
The set of decisions and subsequent actions used to formulate and implement
strategies that will optimize the fit between the organization and its
environment in an effort to achieve organizational objectives.
– John & Richard

5. PROF. SYED BILAL IRFAN
WHAT IS “STRATEGIC HUMAN RESOURCE
MANAGEMENT”?
• STRATEGIC HUMAN RESOURCE MANAGEMENT can be defined as the
linkingof humanresources with strategic goals andobjectives inordertoimprove
business performance and develop organizational culture that foster innovation,
flexibility andcompetitiveadvantage.
• Strategic Human Resource Management is the practice of attracting,
developing, rewarding, and retaining employees for the benefit of both the
employeesas individuals andthe organizationas awhole.

6. PROF. SYED BILAL IRFAN
STRATEGIC HUMAN RESOURCE EXAMPLES FROM
TWOTOP COMPANIES
GOOGLE
• This company is well known for its innovation and strength
when it comes to Strategic HRM.
• They know their people are what makes them great. The
company boasts tons of employee perks and amazing
facilities. This includes a seven-acre sports complex, multiple
wellness centers, roller hockey rinks, horseshoe pits, and
subsidized massages for all.
• Google understands that if employees have the right
incentives and are given optimal positions, the company gets
and retains top talent.
• Knowing that HR can make or break a company means that
senior management ensures it is tightly integrated so it not
only protects its employees as a high-end investment but does
everything possible to make sure they have happy employees
that are productive for the company.
CADBURY
• Cadbury knows what it’s doing when it comes to HR.They
believe not only in the importance of their employees but their
families, too, putting their people above all else.
• This is reflected by their success as the second-largest
confectioner in the world.
• Cadbury was founded in 1824 and created a worker village
along with R&D factories.The village is perfect in offering staff
and their families a place to not only work but to live.Their
people are their main priority and they have built a positive
work atmosphere that allows for life and work balance.They
support their employees to the fullest and in return, they have a
loyal and dedicated workforce.
• HR has integrated its policies and plans perfectly with the
company’s strategic plans.They go hand in hand to meet the
company’s long term goals.

7. PROF. SYED BILAL IRFAN
STRATEGIC ROLE OF HRM
Strategic Role
Informational
and Problem
Solving Role
Strategic
Functional
Role
Administrative
Role

8. PROF. SYED BILAL IRFAN
STRATEGIC ROLE
• HR Participates in business decisions
• HR translates corporate strategy into human resource strategy
• HR helps managers create value
• HR helps employees satisfy customers’ needs
INFORMATIONAL AND PROBLEM SOLVING ROLE
• HR provides information and expertise on best practices in other companies
• HR collects, disseminates, and otherwise makes available important information to
aid in strategic planning and daily work activities and decisions
• HR diagnoses and recommends solutions to problems arising in employment
relations
STRATEGIC ROLE OF HRM (Contd.)

9. PROF. SYED BILAL IRFAN
STRATEGIC FUNCTIONAL ROLE
• HR helps select employees to fit both strategy and culture
• HR assists in designing and implementing performance planning and
appraisal systems
• HR assists in designing and implementing motivation and reward systems
• HR assists in designing benefits to complement strategy
• HR assists in designing and implementing development and career
management systems
• HR helps enable all executives to perform critical, strategic HR functions
STRATEGIC ROLE OF HRM (Contd.)

10. PROF. SYED BILAL IRFAN
ADMINISTRATIVE ROLE
• HR assists in designing and improving personnel administrative systems.
• HR does much of the necessary administrative work involved in
employment, legal compliance and record keeping.
STRATEGIC ROLE OF HRM (Contd.)

11. PROF. SYED BILAL IRFAN
STRATEGY FORMULATION
Strategies are formulated at three levels:
• Corporate level
• Business unit level
• Functional level

12. PROF. SYED BILAL IRFAN
CORPORATE LEVEL
• This is formulated by theTOP MANAGEMENT of an organization .
• The corporate-level strategy is to continuously innovate in all its businesses with
the right technology, relentlessly cut costs and focus on the overseas markets.
• The major questions that need to be answered at this stage are- What kinds of
business should the company be engaged in?What are the goals and expectations
for each business? How should resources be allocated to reach these goals?
• In formulating corporate-level strategies, the company should decide where it
wants to be-in 10 or 15 years hence in at least eight areas-market
standing, innovation, productivity, physical and financial resources, profitability,
managerial performance and development, worker performance and attitudes,
and social responsibility.
STRATEGY FORMULATION(Contd.)

13. PROF. SYED BILAL IRFAN
BUSINESS UNIT LEVEL
• While the major question at the corporate-level is, “In what industries or businesses
should we be operating?,” the appropriate question at the business unit level is,
“How should we compete in the chosen industry or business?”
• A business unit is an organizational subsystem that has a market, a set of
competitors, and a goal distinct from those of the other subsystems in the group.
• The concept of the strategic business unit (SBO) was pioneered by General Electric
(GE). At GE, there are over 200 strategic business units, each having its own
strategies consistent with the organization’s corporate-level strategy.
STRATEGY FORMULATION(Contd.)

14. PROF. SYED BILAL IRFAN
FUNCTIONAL LEVEL
• Each business unit will consist of several departments, such as manufacturing,
sales, finance, and HRD. Functional-level strategies identify the basic courses of
action that each of the departments must pursue in order to help the business unit
to attain its goals.
• In formulating functional level strategies, managers must be aware that the
different functions are interrelated. A change in one department will invariably
affect the way other departments operate.
• Hence, the strategy of one functional area cannot be viewed in isolation. Rather,
the extent to which all functional strategies are integrated determines the
effectiveness of the unit’s business strategy.
STRATEGY FORMULATION(Contd.)

15. PROF. SYED BILAL IRFAN
SHRM PLANNING
ASSESSINGTHE CURRENT HR CAPACITY FORECASTING HR REQUIREMENTS
GAP ANALYSIS
DEVELOPING HR STRATEGIESTO
SUPPORT ORGANIZATIONAL STRATEGIES
SHRM PLANNING

16. PROF. SYED BILAL IRFAN
DOCUMENTINGTHE STRATEGIC HR PLAN
• Once the strategies for HR in your organization have been developed they
should be documented in an HR plan.
• This is a brief document that states the key assumptions and the resulting
strategies along with who has responsibility for the strategies and the
timelines for implementation.

17. PROF. SYED BILAL IRFAN
IMPLEMENTINGTHE STRATEGIC HR PLAN
3.
LEGISLATION AND
MANDATE

18. PROF. SYED BILAL IRFAN
PLANNING & IMPLEMENTING HR POLICIES
STAFFING
• Staffing includes the development of a strategic plan to determine how
many people you might need to hire. Based on strategic plan HRM performs
the hiring process to recruit and select the right people for the right job.
BASICWORKPLACE POLICIES
• Development of Policies help to reach the strategic plans goals is the job of
SHRM. Communicating of these policies on safety, security, scheduling,
vacation times, and flextime schedules should be developed by the HR
department.HR manager work closely with supervisors in organization to
develop these policies.

19. PROF. SYED BILAL IRFAN
COMPENSATION & BENEFITS
• Plans in addition to paychecks, health benefits & other perks. Implementing
all strategies as per the plans.
RETENTION
• Assessment of employees & strategies on how to retain best employees is a
task that HR manager oversee. Other managers will also provide input.
PLANNING & IMPLEMENTING HR POLICIES

20. PROF. SYED BILAL IRFAN
TRAINING & DEVELOPING
• Helping new employees develop skills needed for their jobs and helping current
employees grow their skills are also tasks for that HRM department is responsible.
Determination of training needs and development and implementation of training
programs are important tasks in any organization.
REGULATORY ISSUES AND WORKER SAFETY
• Keeping up to date on new regulation relating to employment. Health care and
other issues is generally a responsibility that falls on the HRM.
PLANNING & IMPLEMENTING HR POLICIES

21. PROF. SYED BILAL IRFAN
HR STRATEGIESTO INCREASE FIRM’S
PERFORMANCE
• Make Clear Goals and Expectations
• Empower Employees to DoTheir BestWork
• HoldTeam Members Accountable to Goals
• Reward High Performance
• Foster a Fun, Positive Work Environment
• Increase Job Satisfaction
• Consider Remote Working Options
• Use the RightTechnologies