Strategic hrm final notes

1. Strategic HRM

2. Our Goal for SHRM:
 To understand the strategic issues in using
Human Resources for sustainable
competitive advantage and how to
implement the changes necessary to
achieve this. This requires that we be able
to:
 Think systematically and strategically about
managing human assets
 Understand what really needs to be done to
implement these policies.

3. Fundamentals
SHRM: Linking of Human resources with
strategic goals and objectives in order to
improve business performance and develop
org.culture that foresters innovation flexibility
and Competitive advantage

4. Fundamentals
 Does not work in independently within Silo.
 Seen as partner in org. Success.
 SHRM utilizes the talent opportunity within
the department to make other departments
stronger and more effective.

5. HR Creating Value
Adapted from: David Ulrich, Human Resource Champions, p.247

6. Case Studies
 Southwest Airlines
 MacTemps
 Morgan Stanley
 The Men’s Wearhouse
 NUMMI
 PSS World Medical
 Visionary Design Systems
 Harrah’s Entertainment

7. Looking Back on the course….
 Exposure to some intriguing HR practices
 Vision, values, and key success factors
 Contingency workforce
 Selection for “fit” as well as skills
 Investing in people (intellectual capital)
 Long-term employment vs. free agency
 Psychological vs. financial ownership
 Performance management

8. Two Mysteries about the
Strategy
 How have these companies achieved
extraordinary performance with people
who are no different from those
employed by the competition?
 If what they are doing is so
understandable, why haven’t their
competitors simply replicated them and
achieved similar competitive advantages?

9. HR and Competitive
Advantage
 The bad news: It’s not easy to do.
 The good news: It’s hard to imitate.
 The HR levers for competitive advantage
are identifiable. The only issue is whether
we consciously manage them.
 To do this effectively requires us to think
about motivation in a non-intuitive way.

10. Challenges for SHRM
 Conducting a rigorous analysis
 Formulate Strategy
 Gain support
 Asses barriers
 Manage Change
 Project Management Implementation
 Follow-up and Evaluate

11. Conventional Model of
Motivation

12. The Fundamental Attribution
Error
 When we watch people behave, we
tend to “see” their behavior as being
“caused” by something about their
personality or dispositions.
 When we explain our own behavior, we
are far more conscious of the pressure
of the situation (e.g., deadlines,
rewards, the opinions of others.)

13. An Alternative Model of
Motivation

14. Two Bases of “Ownership”
YES NO
YES Southwest MacTemps
NUMMI
NO Many high
tech
companies
Traditional
Companies
Psychological
Ownership
Financial Ownership

15. HR’s Role
 The job of Human Resources is NOT primarily to:
 Keep the company out of court
 Enforce rules and maintain consistency.
 Manage administrative processes.
 Tell people “No”.
 HR’s job is to:
 Help build and reinforce the company’s values and
culture
 Play a leadership role in building capabilities that
ensure the successful execution of business strategy.