Strategic HRM


Published on

Published in: Education, Business
  • Be the first to comment

Strategic HRM

  2. 2. • 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.
  3. 3. • Today's organizations are continuously changing. • Organizational change impacts not only the business but also its employees. • 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.”
  4. 4. Strategic HRM: AnStrategic HRM: An OverviewOverview Changing Environment of Organisations Strategic responses of Organisations Strategic Human Resource Management
  5. 5. • 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 management. • SHRM is based on the principle that human resources are uniquely important to sustained business success
  6. 6. • 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
  7. 7. Changing Environment of Organisations Strategic Responses of Organisations Strategic HRM Practices Strategic HRM Facilitators
  8. 8. • 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. • 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 professionals.
  9. 9. • 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.
  10. 10. • HR Managers should do the following things to ensure success- • 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
  11. 11. • 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, etc.
  12. 12. • HR Managers today are focusing attention on the following- • 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 work-place relations.
  13. 13. • 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.
  14. 14. • 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
  15. 15. • 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
  16. 16. • There are no universal prescriptions for the development of strategies. • 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.
  17. 17. • Conclusion • 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