2. What is strategy?
Ref: SHRM – Charles Greer
What is strategy?
Is it a plan?
Does it refer to how we will obtain the ends we seek?
Is it a position taken?
Just as military forces might take the high ground
prior to engaging the enemy..
Does strategy refer to a pattern in our decisions and
actions?
3. Strategy is
Ref: SHRM – Charles Greer
Strategy is all these— 4 P
It is perspective, position, plan, and pattern.
Strategy is the bridge between policy or high-order goals on
the one hand and tactics or concrete actions on the other.
Strategy and tactics together straddle the gap between ends
and means.
Strategy is a term that refers to thoughts, ideas, insights,
experiences, goals, expertise, memories, perceptions, and
expectations that provides actions.
4. Meaning
Ref: SHRM – Charles Greer
Strategy is a term that comes from the Greek
Strategia, meaning "general ship." In the military,
strategy often refers to manoeuvring troops into
position before the enemy is actually engaged
5. Definitions in use
Ref: SHRM – Charles Greer
Some of the definitions in use include the
following:
Strategy is that which top management does that is of
great importance to the organization.
Strategy refers to basic directional decisions, that is, to
purposes and missions.
Strategy consists of the important actions necessary to
realize these directions.
Strategy answers the question: What should the
organization be doing?
Strategy answers the question: What are the ends we
seek and how should we achieve them?
6. What is strategic management?
Ref: SHRM – Charles Greer
A continuous, iterative process aimed at
keeping an organization as a whole
appropriately matched to its environment
(Samuel C. Certo and J. Paul Peter, Strategic
Management)
Keeping the business in tune with
management and marketing forces both
outside and inside the firm.
7. Competitive strategy
Ref: SHRM – Charles Greer
Competitive strategy leads to competitive
advantage
Generates supernormal ROI
Offers services of value
Uses cost effective technology
Avoids erosion of competitive advantage by
exploiting and developing a technological base
8. Stages in Strategic management
Ref: SHRM – Charles Greer
Strategic analysis
Environmental analysis
Establish organizational direction
Strategy formulation
Strategy implementation
Strategic control
9. Strategy & HRM ?– NEED FOR STRATEGIC
HRM
Ref: SHRM – Charles Greer
Physical assets are viewed as investments
Can
superior technology
Superior facility
Superior product
Bring about and more importantly sustain competitive
advantage?
Physical facilities can be duplicated, cloned or
reverse engineered and they no longer
provide competitive advantage
10. Strategy & HRM ?– NEED FOR STRATEGIC HRM
Ref: SHRM – Charles Greer
Cost of employees as variable cost of
production.
No formal recognition of human resource as a key
resource
No recognition of firms contribution to training
Cost of recruitment, training and replacement
ROI for investments in human resources
“maintainable advantage usually from
outstanding depth in selected human skills,
11. HRM – Changing times?
Ref: SHRM – Charles Greer
Views of employees as cost centre is
changing
Selection process
Induction and training process
Education
Retention - negative impact of employee turn
over
Compensation
Innovation and learning – cost of un recorded
knowledge
12. Strategic HRM
Ref: SHRM – Charles Greer
HRM is a strategic tool only if it contributes to the
bottom line. The question is; Does it?
Forecasts of shifts in skill needs from manual to
cerebral
Human Resources needs to looked at from an
Investment perspective.
13. Strategic analysis HRM
Ref: SHRM – Charles Greer
“To be competitive, organizations in many
industries must have highly skilled.
Knowledgeable workers. They must also have
a relatively stable labour force since employee
turnover works directly against obtaining the
kind of coordination and organizational
learning that leads to fast response and high-
quality products and services”
- Edward Lawler
14. Human resources Investment Consideration
Ref: SHRM – Charles Greer
Management values
Risk return on investments
Economic rationale for investment in training
Utility theory
Outsourcing as an alternative to investment in
Human resources
15. Investment practices for improved retention
Ref: SHRM – Charles Greer
Organizational cultures emphasizing
interpersonal relationship values
Effective selection procedures
Compensation and benefits
Job enrichment and job satisfaction
Practices providing work life balance
Organizational direction creating confidence
in the future
Retention of technical employee
Other practices in facilitating retention
Opportunities for training, growth, new learning,
liberal transfer policies
16. Investments in job-secure work forces
Ref: SHRM – Charles Greer
Recognition of the costs of downsizing and lay offs
Bumping less senior employees
Reduced productivity
Cost of training the incumbent, wage supplement
Costs relating to termination of employees
Separation payments, higher rates for unemployment
compensation, Depletion of the firms investment in
training employees.
Administrative costs
Human resource processing activities, Clerical
expenses, cost of conducting medical examination of
laid off employees, increased supervisory obligations for
managers of reassigned employees.
Intangible costs
Morale, disruption of efficiencies in work processes,
Accidents, Depletion of goodwill, irregular age
distribution
17. Investments in job-secure work forces
Ref: SHRM – Charles Greer
Alternatives to layoffs
When down turn is of short duration
Block / shut off inflow of personnel into the
organization –attrition brings down the cost
Redeployment of current employees
Curtailment of sub contractors and reallocate the
work to permanent employees
Sharing of economic loss –
Fewer work days
Employment guarantees
The work effort and job security relationship
The less secure the greater is the flexibility and
productivity
18. Non-traditional investment
approaches
Ref: SHRM – Charles Greer
Investment in (disabled) Differently-abled
employees
Investments in employee health
Countercyclical hiring – technical personnel .
19. Stages in Strategic management
Ref: SHRM – Charles Greer
1. Strategic analysis
1. Environmental analysis
1. human resource environment
2. human resource legal environment
2. Establish organizational direction
2. Strategy formulation
1. Human resource planning
3. Strategy implementation
1. Work force utilisation and employment practices
2. Reward and development system
4. Strategic control
1. Performance impact of human resource practices
2. Human resource evaluation
20. The human resource
environment
Ref: SHRM – Charles Greer
Global changes
WTO, EU, G8 , G10 etc.
Boarders and barriers
E-commerce, M-commerce
Emerging markets, new markets.
Technology
Demography
Culture
Etc….
The imperative >>‘HR focus’
21. The human resource environment
-General environment
Ref: SHRM – Charles Greer
Technology and organisational structure
Worker values and attitudinal trends
Management trends
Demographic trends
Trends in utilisation of human resources
International developments
22. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. Influence of technology
2. HRIS
3. Redeployment of HR staff
to operating units
4. New organisational
structures (Short /
accountability)
1. Unbounded corporations
2. Virtual corporations /
networked organisations
3. Cellular
organisations/guilds
4. Respondent
organisations/ supply
niche components
5. Stimulus for entrepreneurial
1. Technology and
organisational structure
2. Worker values and
attitudinal trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of
human resources
6. International developments
23. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. Ethical/moral issues
1. (older generation blaming
younger generation)
2. Time spent on work/ leisure
3. Work enjoyment / satisfaction
/appeals
4. Loyalty of employees
5. Age
1. Younger no loyalty and
expect none
2. New employee Perception
before joining and after
joining the job
6. Emphasis on core values,
cultures, family, social service)
1. Technology and
organisational structure
2. Worker values and
attitudinal trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of
human resources
6. International
developments
24. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. Management of diversity
2. Work teams
3. Virtual teams
4. Human resource
outsourcing
5. Open book management
6. TQM
7. Integrated manufacturing
8. Reengineering
9. Management of
professionals
10. Managing of aftermath of M
1. Technology and
organisational structure
2. Worker values and
attitudinal trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of
human resources
6. International
developments
25. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. Aging work force
(HMT)
2. Baby boom-US, China
3. Labour Shortages
4. Racial diversity
5. Occupational
distribution for women
6. Dual career couples
1. Technology and
organisational structure
2. Worker values and attitudinal
trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of human
resources
6. International developments
26. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. Telecommuting / working
from home
2. Relocation from work
3. Growing use of temporary
and contingent workers
4. Employee leasing
1. Technology and
organisational structure
2. Worker values and attitudinal
trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of
human resources
6. International developments
27. The human resource environment
-General environment
Ref: SHRM – Charles Greer
1. NAFTA
2. EU
3. GATT
4. WTO
5. G7
1. Technology and
organisational structure
2. Worker values and attitudinal
trends
3. Management trends
4. Demographic trends
5. Trends in utilisation of human
resources
6. International developments
28. The human resource environment
-Legal environment
Ref: SHRM – Charles Greer
An overview of Industrial Relations Climate
Emerging trends and paradigm shifts towards
Employee Relations
Employee Relations Policy
Implications of:
Employment Related Legislations
Payment Related Legislations
Social Security Related Legislations
Welfare Related Legislations
29. The human resource environment
-Legal environment
Ref: SHRM – Charles Greer
Equal employment opportunity for women.
Age, gender discrimination, promiscuous gender based
harassment. Promiscuity, Dealing with incidences, pregnancy
discrimination, Disability discrimination, Religious
discrimination, Reservations and protection, health care
benefits, family and medical leave.
Employee relations
Negligent hiring, immigration, Employment at will, Drug
testing, Safety
Labour relations and collective bargaining.
Emerging issues
Strategic impact of the legal environment
30. Principles of labour legislation
Ref: SHRM – Charles Greer
Social Justice:
Social Equity
Standards in terms of living, position in
society etc. of the working population.
National Economy
International Uniformity
31. Strategy formulation
Ref: SHRM – Charles Greer
What are the purpose(s) and objective(s)
of the organization?
Where is the organization presently
going?
What critical environmental factors does
the organization currently face?
What can be done to achieve
organizational objectives more effectively
in the future?
32. Strategy formulation process
Ref: SHRM – Charles Greer
Development of organizational philosophy and
mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning
Managed/logical incremental planning
A strategy is the pattern or plan that integrates an organisation’s major goals, policies,
and action sequences into a cohesive whole
33. Competitive strategy in Business
Units
Ref: SHRM – Charles Greer
Periodic forward scanning
Analysis based on longer time frame
Communication about goals and resource
allocation
Framework for short-term plan evaluation and
integration
Decisional criteria framework for short term
decision making
PLANNING IN SBU’S
Base strategy will be integrated with functional specializations
to exploit the opportunity seen by the strategy and achieve the
goals.
Low cost leadership, differentiation, niche
34. Value Chain Analysis
Ref: SHRM – Charles Greer
Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Secondary Activity
Procurement
Human Resource
Management
Technology
Development
Infrastructure
35. Steps in Value Chain Analysis
Ref: SHRM – Charles Greer
Value chain analysis can be broken down into a
three sequential steps:
1. Break down a market/organisation into its key
activities under each of the major headings in the
model (primary activities / secondary activities)
2. Assess the potential for adding value via cost
advantage or differentiation, or identify current
activities where a business appears to be at a
competitive disadvantage;
3. Determine strategies built around focusing on
activities where competitive advantage can be
sustained
36. HR strategy ?
Ref: SHRM – Charles Greer
'a human resource system that is tailored
to the demands of the business strategy'
-Miles and Snow 1984
'the pattern of planned human resource
activities intended to enable an organization
to achieve its goals'
- Wright and McMahan 1992
“the pattern planned human resource
deployments and activities intended to enable
an organisation to achieve its goals”
37. SHRM concern
Ref: SHRM – Charles Greer
SHRM concern is to ensure
HR management is fully integrated with the strategy
and strategic needs of the firm
HR policies cohere across policy areas and areas of
hierarchy
HR practices are adjusted and used by line
manages and employees as part of their everyday
work
38. Strategic HRM(IMPORTANCE)
Ref: SHRM – Charles Greer
Needs investment –ROI
Cost of investment
Reduction in total Labour cost
Efficiency in operation
Optimal use of human resources
A source of competitive advantage
Technical skills (pace of technological change)
Knowledge and capabilities
Management of critical and Difficult HR areas
Management of change (Resistance to change)
Lack of trust
Antagonistic labour
Motivational problems
Management relations
Economic turbulence
Within the country (turbulence)
Globalisation
Dramatically changing demographics
Differences in workforce values
Strategic human resource management and ∟ HRP are considered
important to manage uncertainties; HR is integrated with strategy;
Integrating and aligning HR function with strategy
39. Benefits of SHRM
Ref: SHRM – Charles Greer
1. Identifying and analysing external opportunities and
threats that may be crucial to the company's success.
2. Provides a clear business strategy and vision for the
future.
3. To supply competitive intelligence that may be useful
in the strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are
addressed systematically.
7. To supply information regarding the company's
internal strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough competency
40. HRM Practices
Firm strategy Institutional /
Political forces
HR Capital pool
(Skills, abilities)
HR behaviors
Firm level outcomes
(performance,
satisfaction,
absenteeism etc)
Resource
based view
of the firm
Cybernetics
Agency/transaction costs
Resource dependence
institutional
Behavioral
approach
Ref: SHRM – Charles Greer
Theoretical frame work of SHRM
41. Theoretical frame work of SHRM
Ref: SHRM – Charles Greer
1. Strategy driven
1. Resource based view - Competitive advantage based on unique
allocation of resources {selection /Compensation package} (TCS)
2. Behavioral view - Control and influence the behaviors of individuals
(Infosys)
3. Agency/transactions cost view
1. Use of control systems, performance evaluation and reward
systems etc - (In the absence of performance evaluation strategy
may not be pursued)
1. Non-Strategy driven
1. Resource dependence and power theories
1. Power and politics= legislation, unionization, control
of resources, expectations of social responsibility.
2. Institutional theory
1. In appropriate performance evaluation dimensions
42. HUMAN RESOURCE ACTIVITY TYPOLOGY
Staffing planning
Benefits of planning
Retirement planning
Compliance
Performance enhancement
Consulting
Employee relations
Labour negotiations
Executive compensation
Employee development
Management development
Recruitment interviewing
< IMPORTANT TO EXECUTIVES >
Payroll
Benefits administration
Retirement administration
Employee records
Relocation administration
Recruitment information processing
< IMPORTANT TO EMPLOYEES >
Recruitment information processing
Employee assistance programs
Strategic value of
activity
Low
High
Relationship
Transactional Type of HR activity
Back Ref: SHRM – Charles Greer
43. Benefits of integrating HRP with Strategic
planning
Ref: SHRM – Charles Greer
Generates more solutions to complex
organizational problems
Ensures consideration of human resources in
organizational goal setting process
Ensures consideration of human resources in
assessment of organizational abilities to
accomplish goals and implement strategies
Reciprocal integration prevents strategy
formulation based on personal
rigidities/preferences
Facilitates concurrent consideration of
strategic plans and managerial succession.
44. Strategic components of HRM
relevant to internal fit
Ref: SHRM – Charles Greer
Management awareness
Management of the function
Portfolio of programs
Personnel skills
Information technology
Awareness of the environment
45. HR Practitioners Role
Ref: SHRM – Charles Greer
The HR managers have keen role in the effective planning and
implementation of the policies and decisions that in tune with the
business changes.
They should act as strategic partners and be proactive in their role than
mere reactive, passive spectators.
The HR managers should understand how far their decisions
contribute to business surplus incorporating human competency and
performance to the organisation.
Strategic HR managers need a change in their outlook from seeing
themselves as relationship managers to strategic resource managers.
Kossek (1987, 1989) argues that major HRM innovations occur when senior
management takes the lead and adoption of innovative SHRM practices is dependent
on the nature of relationship of the HR Department with the CEO and the line
managers.
Legge (1978) commenting on the actions of the personnel practitioner in the
innovation process suggests that adoption of an innovation by an organization
depends largely on HR practitioners' credibility with information and resource
providers.
HR Department and HR managers in these innovative organizations play a
strategic role (Ulrich, 1997) linking the HR strategy with the business
strategy of the organization.
A crucial aspect concerning SHRM is the concepts of fit and flexibility. The
degree of fit determines the human resource system's integration with
organization strategy. It is the role of HR Managers to ensure this fit in
between Human Resource System with the Organization Strategy.
46. Requirements for SHR-Managers
Ref: SHRM – Charles Greer
Information management skills
Planning skills
Management skills
Integration skills
Change management skills
47. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in planning
Selecting forecasting technique
Forecasting the supply of human resources
Forecasting the demand for human resources
48. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Developmental planning
for strategic leadership
Assessment of strategic
alternatives
Adding value
Contribution to strategic
human resource
management
Strategic salary
planning.
49. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Steps in HRP
Interfacing strategic planning and
scanning the environment
Taking an inventory of the companies
current human resources.
Forecasting the demand for human
resources
Forecasting the supply of human
resources both from within the
organization and from the external
labor market
Comparing the forecast of demand and
supply
Planning the actions needed to deal
with anticipated shortages or overages
Feeding back such information into the
strategic management process
50. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Planning in a context
of change
Responsibility for
human resource
planning
Failure to plan for
human resources
51. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Personal implications
Changing receptivity
towards planning
Stricter legislations for
lay off etc
Other issues
Mind set of work force
and related actions.
52. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Purpose of planning
Organisational
characteristics
Industry characteristics
Environmental
turbulence
Other consideration
Technique of forecasting
Cost
Accuracy
53. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Replacement charts Mgr posi
Human resurce
inventories
Succession planning
Markov analysis ….
Renewal models age cohorts, internal
mobilization
Computer simulation
Regression analysis
Trend extrapolation
Utilisation of supply
forecasting techniques
54. Human resource planning
Ref: SHRM – Charles Greer
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply
of human resources
Forecasting the demand
for human resources
Heuristics, Rule of
thumb and the Delphi
technique
Operations research
and management
science technique
Regression analysis
Utilisation of demand
forecasting technique
Trend extrapolation
55. Strategy formulation process
Ref: SHRM – Charles Greer
Development of organizational philosophy and
mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning
Managed/logical incremental planning
A strategy is the pattern or plan that integrates an organisation’s major goals, policies,
and action sequences into a cohesive whole
56. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of human resources
Dealing with employee shortages
Selection of employees
Dealing with employee surpluses
57. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Cross training and flexibility
in assigning work
Using work teams
Requirements for effective
teams
Forming
Storming
Norming
performing
Operating on a non union
basis
58. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Strategic recruiting
Special recruiting for
minorities and women
workers
Flexible retirement as
a source of labour
Managing vendors of
outsourced functions
59. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Managing vendors of
outsourced functions
Making the outsourcing
decision
Selecting and negotiating
with outsourcing vendors
Managing the outsourcing
transactions
Managing vendor
relationships
Monitoring and evaluating
vendor performance
60. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Reliability and validity
Predictive validity
Concurrent validity
Content validity
Job analysis
KSA
Interviews
Behavioural interviews
Testing
Assessment centres
61. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Redeployment and
retraining
Early retirement
Retreat from
employment security
policy
Downsizing and
layoffs
Termination strategies
62. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Downsizing and layoffs
Findings
Co are not well prepared
6 months to 1 year co indicators do
not improve –profits, ROI, Stock
prices, expense ratios
Survivors syndrome
Myth of job security exploded (Who
moved my cheese)
Sustained improvement can be
brought about only with
improvements in productivity,
quality and effectiveness and
integrate reductions in head count
with planned changes in the way
the work is designed.
Downsizing in not a one time quick
fix solution to enhance
competitiveness. –is a part of
continuous improvement.
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
63. Strategy implementation
work force utilization and employment practices
Ref: SHRM – Charles Greer
Downsizing and layoffs
Guide lines for conduct of layoffs
Give early warnings /
announcements of layoffs
Soften the impact with
compensation and benefits
Utilise the services of outplacement
firms
Supply retraining services
Provide equitable and decent
treatment to laid off employees
Ensure supportive treatment of
survivors
Maintain a cooperative approach
with unions
Uphold obligation to the community
Efficient utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
64. Special implementation
challenges
Ref: SHRM – Charles Greer
Career path for technical professionals
Dual career couples
Strategy implementation system – Reward and
development systems
Strategically oriented performance management system
Strategically oriented compensation systems
Employee development
65. Strategy implementation system
– Reward and development systems
Ref: SHRM – Charles Greer
Strategically oriented
performance
management system
Strategically oriented
compensation
systems
Employee
development
Performance measurement
approaches
MBO
Graphic scale rating
Narratives
BARS
Behavioral observation
scales
360 –degree feedback
Performance evaluation of
executives
Effectiveness of performance
measurement.
YOU GET WHAT YOU MEASURE, YOU MEASURE WHAT YOU VALUE, YOU
CAN NOT CONTROL WHAT YOU CANNOT MEASURE.
66. Strategy implementation system
– Reward and development systems
Ref: SHRM – Charles Greer
Strategically oriented
performance
management system
Strategically oriented
compensation
systems
Employee
development
Traditional
compensation
systems
Job analysis > job evaluation
> salary/wage hierarchy
Point system
Factor comparison system
Hybrid system
Internal equity
> Wage surveys to establish
external equity.
67. Strategy implementation system
– Reward and development systems
Ref: SHRM – Charles Greer
Strategically oriented
performance
management system
Strategically oriented
compensation
systems
Employee
development
Traditional
compensation systems
Inadequacies
Wage for know-how not
given
Compensated for specific
job only
Impact of collective
bargaining on wage
structures.
Does not work well with
managers and
professionals
68. Strategy implementation system
– Reward and development systems
Ref: SHRM – Charles Greer
Strategically oriented
performance
management system
Strategically oriented
compensation
systems
Employee
development
Skill based pay
Broad banding
Team based pay
Variable
compensation
Executive
compensation
69. Strategy implementation system
– Reward and development systems
Ref: SHRM – Charles Greer
Strategically oriented
performance
management system
Strategically oriented
compensation
systems
Employee
development
Training programs
Training methods
Apprenticeships
Management
development
Management
development for
international
assignments
Product life cycle and
managerial fit
PLC, Evolutionary stage >
Steady state
Development Vs selection
70. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Individual high performance practices
Limitations of individual practices
Evolution of practices
Systems of high performance human resource
practices
Individual best practices Vs systems of
practices
Universal practices Vs contingency
perspectives
71. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Seven management
practices that enhance
performance –Jefrey
Pfeffer
1. Employment security
2. Selective hiring of new
personnel
3. Self managed teams and
decentralization of decision
making as basic principle of
org design
4. Comparatively high
compensation on
organizational performance
5. Extensive training
6. Reduced status distinctions
and barriers
7. Extensive sharing of financial
and performance information.
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
72. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Compensation
High compensation linked to
organisational performance
Incentive based compensation
Profit sharing
Team based compensation
Diversity
Employment
Countercyclical hiring,
downsizing, early retirement
programs, employment
security, human resource
outsourcing.
Industrial relations
Decertification of union
bargaining agent
Positive labour relations
Strikes, lockouts
Internal labour market
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
73. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
motivation
Decentralized decision
making
Self managed teams
Open book management
Reduced status
differentials or symbolic
egalitarianism
Performance management
Staffing
Cognitive tests, staffing
selectivity, CEO
succession insider
outsider, yield analysis of
recruiting sources
Training
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
74. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high
performance human
resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Each practice has a
different kind of impact
on individual workers –
if possible to address at
individual levels the
same may be done.
Results of studies that
give positive or negative
indication can not be
taken as absolute
75. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high
performance human
resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
HR practices are path
dependant. They
consist of policies that
are developed over time
and cannot be simply
purchased in the market
by competitors.
76. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Has positive impact
Commitment oriented systems
Decentralized decision making,
general training, Highly skilled
employees, High wages - bonuses
Human capital enhancement
Comprehensive training, BARS,
Technical and problem solving skills,
selective staffing
Human resource administrative
system
Hourly pay, individual equity, individual
incentive, result based performance
appraisal
Motivation and commitment system
Receptiveness to new training,
compensation contingent on firms
performance, extent of status
differentials
Skills and organizational structures
Attitude survey, access to grievance
procedures, formal job anasysis, info
sharing
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
77. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high
performance human
resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Mxed evidence and
response
Some individual practices
have had positive impact
Systems of practices have
both
Adoption
Implementation
fit
78. The performance impact of
human resource practices
Ref: SHRM – Charles Greer
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high
performance human
resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Have their own
applicability
Evidence for success of
both
Greater evidence for
contingency
79. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to evaluation
Prevalence of evaluation
Evaluating strategic contributions of traditional
areas
Evaluating strategic contributions in emerging
areas
80. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to
evaluation
Prevalence of
evaluation
Evaluating strategic
contributions of
traditional areas
Evaluating strategic
contributions in
emerging areas
Scope of evaluation
Strategic impact
Level of analysis
Criteria
Level of constituents
Ethical dimensiona
81. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to
evaluation
Prevalence of
evaluation
Evaluating strategic
contributions of
traditional areas
Evaluating strategic
contributions in
emerging areas
Audit approaches
Analytical approaches
Quantitative and
qualitative measures
Balance scorecard
perspective
Benchmarking
Industry influences
82. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to
evaluation
Prevalence of
evaluation
Evaluating strategic
contributions of
traditional areas
Evaluating strategic
contributions in
emerging areas
Little
Results not revealed
83. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to
evaluation
Prevalence of
evaluation
Evaluating strategic
contributions of
traditional areas
Evaluating strategic
contributions in
emerging areas
HRP
Staffing
Training
Performance evaluation
systems
Compensation systems
Utility analysis
labour and employee
relations
84. Human Resource Evaluation
Ref: SHRM – Charles Greer
Overview of evaluation
Approaches to
evaluation
Prevalence of
evaluation
Evaluating strategic
contributions of
traditional areas
Evaluating strategic
contributions in
emerging areas
Equal employment
opportunity and
management of
diversity
Quality readiness