2. Although the concept of strategic HR may make
sense logically & intuitively, many organizations
have a difficult time taking a strategic approach
to HR
• Short-term mentality/focus on current performance.
• Inability of HR to think strategically.
• Lack of appreciation of what HR can contribute.
3. Cont..
• Difficulty in quantifying many HR outcomes.
• Perception of human assets as high-risk
investments.
• Incentives for change that might arise.
• Failure to understand general manager’s role
as an HR manager.
4. Customer &
Employee
satisfaction
Enhanced
Increased
Shareholder
performance value
through
5. Effective management of staffing,
retention & turnover through selection of
employees that fit with both strategy &
culture.
Cost-effective utilization of employees
through investment in identified human
capital with potential for high retention.
Integrated HR programs & policies that
clearly follow from corporate strategy.
6. Facilitation of change &
adaptation through a flexible,
more dynamic organization.
Tighter focus on customer
needs, key & emerging
markets, quality.
7. Traditional HR v/s Strategic HR
Areas Traditional HR Strategic HR
Responsibility for HR Staff Specialists Line managers
Focus Employee Relations Partnership with
internal and external
factors
Role of HR Transactional, Change Transformational,
follower & respondent change leader&
initiator.
Initiatives Slow,reactive,fragmente Fast,proacative,integrat
d ed
Time Horizon Short Term Short, medium, long
(as necessary)
Control Bureaucratic-roles, Organic-flexible,
policies, procedures whatever is necessary
to succeed.
Job Design Tight division of labor, Broad, flexible,
independent, cross-trainings, teams
specializations
8. Shift in HR manager in India
Traditional HR practice Emerging HR practice
Administrative role Strategic role
Reactive
Proactive
Separate, isolated from
Key part of
company mission organizational mission
Production focus
Service focus
Functional organization
Process-based
Individuals encouraged, organization
singled out for praise,
Cross-functional teams,
rewards teamwork most
People as expenses important
People as key
investments/assets
