CHANGE MAKES ALL THECHANGE MAKES ALL THE
DIFFERENCE- --DIFFERENCE- --
STRATEGICC HUMANSTRATEGICC HUMAN
RESOURCE MANAGEMENTRESOURCE MANAGEMENT
Presentation by Mr. Sem Shaikh
• Humans are an organization's greatest assets; without them, everyday
business functions such as managing cash flow, making business
transactions, communicating through all forms of media, and dealing
with customers could not be completed.
• Humans and the potential they possess drive an organization.
• Today's organizations are continuously changing.
• Organizational change impacts not only the business but also its
• In order to maximize organizational effectiveness, human potential—
individuals' capabilities, time, and talents—must be managed.
• Human resource management works to ensure that employees are able
to meet the organization's goals.”
Strategic HRM: AnStrategic HRM: An
Changing Environment of
Strategic responses of Organisations
Strategic Human Resource
• Some people feel Strategic HRM (SHRM) is just personnel
management (PM) with a fancy.
• The fact is other wise.
• With the environment faced by business firms increasingly
becoming turbulent and uncertain, and consequently HRM
being considered as an important factor in strategic
management, the term SHRM entered the discipline of
• SHRM is based on the principle that human resources are
uniquely important to sustained business success
• Strategic HRM practices
• Strategic HRM Practices (SHRMP) is a holistic frame work
encompassing developmental fundamental and initiatives
• .For any activity to be successful certain fundamental
co0nditions have to exist before they yield desired results.
• SHRM fundamentals are those components of HRM, which
have to be strong enough to ensure a congenial atmosphere in
an organisation for implementation of SHRD initiatives
Changing Environment of Organisations
Strategic Responses of Organisations
Strategic HRM Practices
Strategic HRM Facilitators
• Some of the recent trends that are being
observed are as follows:
• The recent quality management standards ISO 9001 and
ISO 9004 of 2000 focus more on people centric
• Organizations now need to prepare themselves in order to
address people centered issues with commitment from the
top management, with renewed thrust on HR issues, more
particularly on training.
• Charles Handy also advocated future organizational models
like Shamrock, Federal and Triple I.
• Such organizational models also refocus on people centric
issues and call for redefining the future role of HR
• To leapfrog ahead of competition in this world of uncertainty,
organizations have introduced six- sigma practices.
• Six- sigma uses rigorous analytical tools with leadership from the top
and develops a method for sustainable improvement.
• These practices improve organizational values and helps in creating
defect free product or services at minimum cost.
• HR Managers should do the following things to
• Use workforce skills and abilities in order to exploit
environmental opportunities and neutralize threats.
• Employ innovative reward plans that recognize
employee contributions and grant enhancements.
• Indulge in continuous quality improvement through
TQM and HR contributions like training,
development, counseling, etc
• Utilize people with distinctive capabilities to create
unsurpassed competence in an area, e.g. Xerox in
photocopiers, 3M in adhesives, Telco in trucks etc.
• Decentralize operations and rely on self-managed teams to
deliver goods in difficult times e.g. Motorola is famous for
short product development cycles.
• It has quickly commercialized ideas from its research labs.
• Lay off workers in a smooth way explaining facts to unions,
workers and other affected groups e.g. IBM, Kodak, Xerox,
• HR Managers today are focusing attention on the
• a) Policies- HR policies based on trust, openness,
equity and consensus.
• b) Motivation- Create conditions in which people are
willing to work with zeal, initiative and enthusiasm;
make people feel like winners.
• c) Relations- Fair treatment of people and prompt
redress of grievances would pave the way for healthy
• d) Change agent- Prepare workers to accept technological
changes by clarifying doubts.
• e) Quality Consciousness- Commitment to quality in all
aspects of personnel administration will ensure success.
• Due to the new trends in HR, in a nutshell the HR manager
should treat people as resources, reward them equitably, and
integrate their aspirations with corporate goals through
suitable HR policies.
• Strategies for Improving Organisational Performance
• Clearly defined goals and strategies to accomplish them
• Strong visionary leadership from top
• A powerful management team
• A well-motivated , committed , skilled and flexible workforce
• Continuous pressure to innovate and grow
• The ability to respond fast to opportunities and threats
• The capacity to manage , indeed thrive ,on change
• A sound financial base and good system for management
accounting and cost control
• There are no universal prescriptions for the development of
• Some of the areas that might be considered are listed above,
but these are generalities and would have to be turned into
specifics in accordance with an assessment of the particular
business environment and needs.
• There is a overwhelming evidence that progressive HR practices
improve business performance by helping to ensure that an
organisation has skilled ,flexible ,motivated and committed people it
needs , and by improving job satisfaction , motivation and
commitment to encourage productivity and hence profitability