mm bagali..... hrm..... hrd..... ihrm...... hr..... hrd.......ihrm.....management..... mba

Strategic HRM
Strategic Angle of HR
The People Management
The HR Functions
The Role of HR in VUCA
VUCA is an acronym used to describe or reflect on the volatility,
uncertainty, complexity and ambiguity of general conditions
and situations.
How do you prepare – Skills, Knowledge, Competency

The changing workplace
• Information Economy
• Technology
• Emergence of Global Economy
• Small Business concept
• Informal network/ Network globally
• More choices
• Knowledge Economy
• Changing Customer demand
• Diversity
• Diversification
• Gen Y
• Women Empowerment
• Cloud Computing
• Virtual World
• Entrepreneurship rising

mission
objectives and goals
strategy
structure
people
STRATEGIC DIRECTION HR LINKAGE
determining organization’s business
setting goals and objectives
determining how to attain goals
and objectives
determining what jobs need to be done
and by whom
matching skills, knowledge, and
abilities to required jobs
Linking Organizational / Business Strategy to HR Planning

STRATEGY
“The determination of the basic long-term goals and objectives of an enterprise
and the adoption of courses of action and the allocation of resources necessary
for carrying out these goals.”
A critical factor that affects Firm Performance

STRATEGY
Create 3 HR strategies for our organisation in managing
the Human Resources to get the Right Talent
3 strategies

STRATEGY
As an HR Professional, What do you do when you are caught during
Terrorist Attach
3 strategies

STRATEGY
• At the core, its is the debate between best fit and best practice
• Used for gaining a competitive advantage
– Innovation
• Offer something new; different from competitors
– Quality Enhancement
• Products and services
– Cost Reduction
• Attempt to be the lowest cost provider
• Optimal strategy depends on the wants and nature of competitors

TYPES OF STRATEGY
• Business
– Examines correspondence between each firm’s competitive strategy
and its system of high performance work practices
• Operations
– An internal approach; connected to the work organization inside a firm
• Resource View
– Views human resources as sources of sustained competitive advantage
– HR intervention
– HR systems….. HPWS/ HPWF/ HPWP

STRATEGY
The direction and scope of an organization over the long term
It should match the resources of the organization to its changing
environment (markets, customers and other stakeholders)
Strategy determines the direction where the organization is going

What gives the firm competitive advantage?
• Unique (differentiation, focus)
• Hard to copy
• Sustainable
• Competitive Advantage
• Competency
• Core Competency
• Framework / Models / Structure / ……. BSc

Translating Vision and Strategy: Four Perspectives
Vision and
Strategy
Objectives Measures Targets Initiatives
FINANCIAL
“To succeed
financially,
how should
we appear to
our
shareholders?
”
LEARNING AND GROWTH
“To achieve
our vision,
how will we
sustain our
ability to
change and
improve?”
CUSTOMER
“To achieve
our vision,
how should
we appear to
our
customers?”
INTERNAL BUSINESS PROCESS
“To satisfy our
shareholders
and
customers,
what business
processes
must we excel
at?”

What are HR strategies?
• HR strategies set out what the organization intends to do about its
human resource management policies and practices and how they
should be integrated with the business strategy and with each other.
Key elements:
– Strategic objectives
– Plan of action

Overall HR strategies
…describe the general intentions of the organization about how people
should be managed and developed and what steps should be taken
to ensure that the organization can attract and retain the people it
needs; and ensure that employees are committed, motivated, engaged.

HR PRACTICES LINKED WITH COMPETITIVE STRATEGY
• HR planning
• Recruitment
• Training
• Career Path
• Promotions
• HR accounting
• Openness

Specific HR strategies
• High-performance management
• Corporate social responsibility
• Organization development
• Engagement
• Knowledge management
• Talent management
• Learning and development
• Rewarding
• Employee relations

HR Strategy: Context of HR System

HR Strategy: Context of HR System
The “Five Factors” Influencing the HR System
– External Environment
– Social: social values, roles, trends, etc.
– Political: political forces, changes. Ex. PM and its agenda for
Social Security
– Legal: laws, court decisions, regulatory rules
– Economic: product, labor, capital, factor markets

Five Work Generations Today
Source: Bureau of Labor Statistics Employment Projections

Competency: The superior performance indicators and characteristics
Job Analysis: The complete MIS of job, cut into job evaluation; Job
study; Job Description
What I have X What is needed X What is to be Addressed X How to
address…… leads to SHRM intervention

Competency:
– General
– Technical
– Subject/ Domain
– Leadership
– Competency Architect
• Core Competency
• Functional Competency
• Job Related

22
HR Competency domains
Core Competency…. Which are rare
Level Competency …. Which are essential
Role Competency …. Non-substitutable

As an HR
Professional/
Manager/
Executive, what
……
• Knowledge
• Skills
• Abilities
• Work Style
• is needed !!!!!

Example of HR Manager
Competency and Job Analysis
Role
Responsibility
Task
Work Activity

HR Roles / JD and Work context with respect to SHRM

Knowledge
• Personnel and Human Resources — Knowledge of principles and procedures for
personnel recruitment, selection, training, compensation and benefits, labor relations and
negotiation, and personnel information systems.
• Administration and Management — Knowledge of business and management principles
involved in strategic planning, resource allocation, human resources modeling, leadership
technique, production methods, and coordination of people and resources.
• English Language — Knowledge of the structure and content of the English language
including the meaning and spelling of words, rules of composition, and grammar.
• Customer and Personal Service — Knowledge of principles and processes for providing
customer and personal services. This includes customer needs assessment, meeting
quality standards for services, and evaluation of customer satisfaction.
• Law and Government — Knowledge of laws, legal codes, court procedures, precedents,
government regulations, executive orders, agency rules, and the democratic political
process.

Knowledge
• Political System
• Political Policies
• Public Administration
• Public Governance
• The Office of Government

HR Competencies, HR Effectiveness
and Business Performance and
Strategic HRM perceptive ……..1

Skills
• Active Listening — Giving full attention to what other people are saying, taking time to
understand the points being made, asking questions as appropriate, and not interrupting at
inappropriate times.
• Management of Personnel Resources — Motivating, developing, and directing people as
they work, identifying the best people for the job.
• Social Perceptiveness — Being aware of others' reactions and understanding why they
react as they do.
• Speaking — Talking to others to convey information effectively.
• Coordination — Adjusting actions in relation to others' actions.

Abilities
• Oral Comprehension — The ability to listen to and understand information and ideas
presented through spoken words and sentences.
• Written Comprehension — The ability to read and understand information and ideas
presented in writing.
• Oral Expression — The ability to communicate information and ideas in speaking so
others will understand.
• Speech Recognition — The ability to identify and understand the speech of another
person.
• Written Expression — The ability to communicate information and ideas in writing so
others will understand.

Work Style
• Integrity — Job requires being honest and ethical.
• Stress Tolerance — Job requires accepting criticism and dealing calmly and effectively
with high stress situations.
• Leadership — Job requires a willingness to lead, take charge, and offer opinions and
direction.
• Dependability — Job requires being reliable, responsible, and dependable, and fulfilling
obligations.
• Initiative — Job requires a willingness to take on responsibilities and challenges

HR Competencies, HR Effectiveness
and Business Performance and
Strategic HRM perceptive ……..2

Most Critical HRM Areas that contribute to
Organisational Business Strategy
Module 4

Most Critical HRM Areas that contribute to
Organisational Business Strategy
• PMS
• T and D
• Staffing and recruitment
• Compensation
• Workforce planning
• Employee benefits and
services
• OD exercise
• Legal compliance
• Change management
• HRIS
• Diversity management
• HR Research
• Ref: In. Jl of IR, , 2 Oct, 2015, p: 247…….
• Human Capital Management
• HR Accounting
• HR Audit
• HPWS

1…..HR Competencies and Strategic HRM perceptive
2…..recent SHRM Practices
3….. Future of HR
…….. Module 6 and last module

A competency refers to a cluster of knowledge, skills, abilities and other
characteristics (KSAOs) needed for effective job performance.
A set of competencies that define the requirements for effective
performance in a specific job, profession or organization are collectively
referred to as a competency model

SHRM Competency Model
• HR EXPERTISE (HR KNOWLEDGE)
• RELATIONSHIP MANAGEMENT
• COMMUNICATION
• ETHICAL PRACTICE
• BUSINESS ACUMEN
• CRITICAL EVALUATION
• GLOBAL & CULTURAL EFFECTIVENESS
• LEADERSHIP & NAVIGATION
• CONSULTATION

Human Resource Expertise (HR Knowledge)
Key Behaviors of HRE
• Remains current on relevant laws, legal rulings and regulations.
• Maintains up-to-date knowledge of general HR practices, strategy and
technology.
• Demonstrates a working knowledge of critical human resource functions,
including strategy; workforce management; learning and development; total
rewards; risk management; employment law; HR technology; and global
and international HR.
• Prioritizes work duties for maximum efficiency.
• Develops and utilizes best practices.
• Delivers customized human resource solutions for organizational
challenges.
• Seeks professional HR development.

Relationship Management
Key Behaviors of RM
• Establishes credibility in all interactions.
• Treats all stakeholders with respect and dignity.
• Builds engaging relationships with all organizational stakeholders through trust, teamwork and
direct communication.
• Demonstrates approachability and openness.
• Ensures alignment within HR when delivering services and information to the organization.
• Provides customer service to organizational stakeholders.
• Promotes successful relationships with stakeholders.
• Manages internal and external relationships in ways that promote the best interests of all parties
• Champions the view that organizational effectiveness benefits all stakeholders.
• Serves as an advocate when appropriate.
• Fosters effective teambuilding among stakeholders.
• Demonstrates ability to effectively build a network of contacts at all levels within the HR function
and in the community, both internally and externally.

Consultation
Key Behaviors of Cl
• Applies creative problem-solving to address business needs and
issues.
• Serves as an in-house workforce and people management expert.
• Analyzes specific business challenges involving the workforce and
offers solutions based on best practices or research.
• Generates specific organizational interventions (e.g., culture
change, change management, restructuring, training) to support
organizational objectives.
• Develops consultative and coaching skills.
• Guides employees regarding specific career situations.

Leadership and Navigation
Key Behaviors of L and N
• Exhibits behaviors consistent with and conforming to organizational culture.
• Fosters collaboration.
• Understands the most effective and efficient way to accomplish tasks within the
parameters of organizational hierarchy, processes, systems and policies.
• Develops solutions to overcome potential obstacles to successful implementation of
initiatives.
• Demonstrates agility and expertise when leading organizational initiatives or when
supporting the initiatives of others.
• Sets the vision for HR initiatives and builds buy-in from internal and external
stakeholders.
• Leads the organization through adversity with resilience and tenacity.
• Promotes consensus among organizational stakeholders (e.g., employees, business
unit leaders, informal leaders) when proposing new initiatives.
• Serves as a transformational leader for the organization by leading change.

Communication
Key Behaviors of Cm
• Provides clear, concise information to others in verbal, written, electronic and other
communication formats for public and organizational consumption.
• Listens actively and empathetically to the views of others.
• Delivers critical information to all stakeholders.
• Seeks further information to clarify ambiguity.
• Provides constructive feedback effectively.
• Ensures effective communication throughout the organization.

Communication
Key Behaviors of Cm
• Provides proactive communications.
• Demonstrates an understanding of the audience’s perspective.
• Treats constructive feedback as a developmental opportunity.
• Welcomes the opportunity to discuss competing points of view.
• Helps others consider new perspectives.
• Leads effective and efficient meetings.
• Helps managers communicate not just on HR issues.

Global and Cultural Effectiveness
Key Behaviors of G and CF
• Has a strong set of core values while operating with adaptability to particular conditions, situations
and people.
• Maintains openness to others’ ideas and makes decisions based on experience, data, facts and
reasoned judgment.
• Demonstrates nonjudgmental respect for other perspectives.
• Works effectively with diverse cultures and populations.
• Conducts business with an understanding and respect for the differences in rules, customs, laws,
regulations and business operations between own culture and all cultures.
• Appreciates the commonalities, values and individual uniqueness of all human beings.
• Possesses self-awareness and humility to learn from others.
• Embraces inclusion.

Ethical Practice
Key Behaviors of EP
• Maintains confidentiality.
• Acts with personal, professional and behavioral integrity.
• Responds immediately to all reports of unethical behavior or conflicts of
interest
• Empowers all employees to report unethical behavior or conflicts of interest
without fear of reprisal.
• Shows consistency between espoused and enacted values.
• Acknowledges mistakes.
• Drives the corporate ethical environment.

• Applies power or authority appropriately.
• Recognizes personal bias and others’ tendency toward bias, and takes
measures to mitigate the influence of bias in business decisions.
• Maintains appropriate levels of transparency in organizational practices.
• Ensures that all stakeholder voices are heard.
• Manages political and social pressures when making decisions.

Critical Evaluation
Key Behaviors of CE
• Makes sound decisions based on evaluation of available information.
• Assesses the impact of changes to law on organizational human resource
management functions.
• Transfers knowledge and best practices from one situation to the next.
• Applies critical thinking to information received from organizational
stakeholders and evaluates what can be used for organizational success.
• Gathers critical information.

• Analyzes data with a keen sense for what is useful.
• Delineates a clear set of best practices based on experience, evidence from
industry literature,
• published peer-reviewed research, publicly available web-based sources of
information and other sources.
• Analyzes information to identify evidence-based best practices.
• Identifies leading indicators of outcomes.
• Analyzes large quantities of information from research and practice.

Business Acumen
Key Behaviors of BA
• Demonstrates an understanding of the strategic relationship between
effective human resource management and core business function.
• Demonstrates a capacity for understanding the business operations and
functions within the organization.
• Understands the industry and business/competitive environment within
which the organization operates.
• Makes the business case for HR management (e.g., ROI) as it relates to
efficient and effective organizational functioning.

• Uses organizational resources to learn the business and operational
functions.
• Understands organizational metrics and their correlation to business
success.
• Uses organizational metrics to make decisions.
• Markets HR both internally (e.g., return on investment/ROI of HR initiatives)
and externally (e.g., employment branding).
• Leverages technology to solve business problems.

Latest as per Competency Study 2015
• Strategic Positioner
• Credible Activist
• Capability Builder
• Change Champion
• Human Resource Innovator and Integrator
• Technology Proponent

Strategic Positioner
• Interpreting global business context
• Decoding customer expectations
• Co-crafting a strategic agenda

Credible Activist
• Earning trust through results
• Influencing and relating to others
• Improving through self-awareness
• Shaping the HR profession

Capability Builder
• Capitalizing organizational capability
• Aligning strategy, culture, practices, and behavior
• Creating a meaningful work environment

Change Champion
• Initiating change
• Sustaining change
• Leadership
• Big Picture analysis

Human Resource Innovator and Integrator
• Optimizing human capital through workforce planning and analytics
• Developing talent
• Shaping organization and communication practices
• Driving performance
• Building leadership brand

Technology Proponent
• Improving utility of HR operations
• Connecting people through technology
• Leveraging social media tools

Paradigm shift in Business Scenario
• Competition is global
• Speed
• Growing customer expectations
• People issues to be addressed on top priority

• HR Quality Index
• Impact of Employee Practices on Business Performance

Question ….
To what extent does your HR department use the following HR
practices to manage employees?

• Select best all around candidates when recruiting
• Provide employees comprehensive training throughout their career
• Use performance appraisals to provide employees feedback for
personal development
• Offer pay level (including incentives) that is higher than that of
competitors
• Ensure that employee salaries and rewards are determined by
performance
• Empower employees to recommend necessary changes in the way
they perform their work
• Ask employees for their opinions in advance on decisions that affect

SHIFTS THAT ARE RE-SHAPING HR ROLES
FROM
Local markets, operations
Manufacturing, clerical work
Hierarchy
Intermediaries; face-to-face
Obedience to formal authority
Stability, efficiency, control
Full time job
Customer service
Work done by employees
Fixed work location
Management prerogative
Loyal service
White, male workforce
Financial performance
“Get a job”
TO
Global markets, operations
Service, knowledge work
Networks
Direct access, virtual relationship
Questioning of formal authority
Change, creativity, flexibility, order
Part-time and project work
Shareholder, stakeholder value
Work done by many contributors
Diverse work locations
Social licence
Marketable knowledge, skills
Diverse workforce
Triple bottom line
“Get a life”

HR EXECUTIVES’ VIEW OF THE FUTURE
TOP 5 BUSINESS CHALLENGES
• Developing new markets
• Improving profitability
• Market share growth
• Becoming the recognised global
market leader
• Building shareholder value
TOP 3 HR CHALLENGES
• Attracting and retaining talented
people
• Improving organisational
capabilities
• Developing leadership skills

“The bad and the ugly in HR”
“Many HR people still lack business acumen”
“We have not adequately managed high expectations of HR”
“There’s too much modeling of mediocrity… and way too little real
research going on”
“We have overhyped e-learning and some other fads”
“We do much order-taking… and mistaking talk for action”

Body of Knowledge
Strategic Business Management
Talent Management
Change Management
Workforce Planning and Employment
Compensation and Benefits
Human Resource Development
Employee and Labor Relations
HR Technology
Risk Management
Global and International Human Resources
Bodies of knowledge for HR professionals 10 years from
now

HR environment: Overview
The Impact of Characteristics of an HR Department and Business
Success

To what extent are the following true of your HR department?
• Interacts effectively with the Board of Directors
• Has clear roles and responsibilities for each of the groups within HR (e.g.,
service centers, centers of expertise, embedded HR)
• Matches the structure of the HR department with how the business is
organized
• Ensures that HR initiatives enable the business to achieve strategic
priorities
• Develops an HR strategy that clearly links HR practices to business strategy
• Ensures that the different groups within HR work effectively with each other
to provide integrated HR solutions
• Effectively manages external vendors of outsourced HR activities
• Invests in training and development of HR professionals
• Ensures that HR is a cultural role model for the rest of the organization
• Holds line managers accountable for HR
• Connects HR activities to external stakeholder expectations (e.g.,
customers, investors)

TYPES OF ENVIRONMENTS
• External
• Internal
• Static
• Changing

EXTERNAL ENVIRONMENTS: 1
• Labor Market
• Unions
• Legal Mandates and Prohibitions

• Stakeholders
• Societal Norms
• Professional Ethics
• Competing Organizations

• Collaborating Organizations
• Demands for Service (Customers)
• Technology
• Economic and Social Change

INTERNAL ENVIRONMENTS: 1
• Structure of Organization
• Allocation of Tasks
• Availability of Resources
• Organization of Workforce Rules

INTERNAL ENVIRONMENTS: 2
• Development and Training Process
• Rewards and Benefits Structure
• Strategic Uses of Compensation and Benefits
• Adaptations to Organizational Change

LEGAL ENVIRONMENT: 1
• Safety
• Compensation
• Disability
• Discrimination

• Licensing
• Auditing
• Use of Resources
• Conflicts of Interest

• Immigration
• Taxes
• Job Termination
• Privacy

• Confidentiality
• Mandatory Reporting
• Background Checks
• Drug Free Workplace

NORMS, ETHICS, STANDARDS
• Professional Associations
• Licensing Boards
• Statutory Law
• Traditions and Habits
• Interest Groups

External Organizations
• Governmental Organizations
• Similar Non-Profits Organization
• Profit Oriented Organizations
• Advocacy Organizations

The flexible enterprise
• Multiple centres
• Steeple of expertise
• Interdependent units
• Multiple alliances
• Diverse structures
• Cosmopolitan mindset Emphasis on flexibility

Predictions for the 2020 Workplace (1)
1. Career advancement based on reputational capital
2. Mobile device become office, classroom, concierge
3. Global talent shortage will be acute ♠
4. Recruiting through social networking sites ♠
5. Web commuters force companies to reinvent
6. CEOs must know blogging ♠
7. Corporate curriculum uses video game & simulation♠
8. Move from outsourcing to crowdsourcing ♠

Predictions for the 2020 Workplace (2)
9. Leaders are elected
10. Lifelong learning will be a business requirement
11. Work-life flexibility replace work-life balance ♠
12. Use CSR to attract and retain talents ♠
13. Cultural diversity is a business issue not HR issue
14. The lines among marketing, communication, and learning will blur
15. Social media literacy is required for everyone♠
16. Permanent full-time employment fades out ♠

Forces Shaping the Future HR
 A worldwide shift in demographics ♠
 The knowledge economy
 Globalization and cultural diversity
 The digital workplace
 The ubiquity of mobile technology ♠
 A culture of connectivity ♠
 Corporate social responsibility ♠

• Look at all the HR systems
• What Newness can be done
• How can it be worked

Problems with HR
Profession
Art
vs.
Science
Influence
Boardroom
vs.
Department
Skills
Transactional
vs.
Transformational
Perception
Enforcers
vs.
Advocate
HR Challenges

What do CEOs Think of HR?
• Do not possess a sufficient working knowledge of what business is all about or
of the strategic goals of the organization they serve.
• Lack leadership ability.
• Are reactive ♠.
• Unable to take the lead to establish a vision for change and gain the support
necessary to lead the charge ♠.
• Are fad chasers who want to find solutions to problem in other organizations
and then “drop them in place” ♠.

What do CEOs Want From HR?
• Committed to the success of the organization
• Understand overall corporate mission
• Capable to instill & nurture trust ♠
• Recruits/selects high-quality professionals ♠
• Up-to-dated legislative/ regulatory issues
• Contribution of education and development programmes to future
requirements of business
• Develops HR plans linked to business mission & strategy ♠
• Works effectively with other line managers ♠

Self-centered ♠
Emotional
Lack of ownership
Impatient ♠
Low self-esteem
Low self-efficacy ♠
Psychological Characteristics of Today Generation

HR Scorecard for
Hotel Paris
International
Corporation*

HR Solutions
1. Restructure the time and place of work
2. Make work physically easier
3. Develop approaches to tap expertise
4. Broaden your definition of “workforce”
5. Leverage Boomers’ specialized skills, unique capabilities, and lifestyle
6. Help them plan
7. Train them
8. Help them experiment
9. Help them leverage their skills outside your organization
10. Develop realistic succession plans and well-grounded workforce strategies

• Strategic Positioner
• Credible Activist
• Capability Builder
• Change Champion
• Human Resource Innovator and Integrator
• Technology Proponent

Change Champion
• Initiating change
• Sustaining change

Question ….
To what extent does your HR department
use the following HR practices to manage
employees?

• Select best all around candidates when recruiting
• Provide employees comprehensive training throughout their
career
• Use performance appraisals to provide employees feedback
for personal development
• Offer pay level (including incentives) that is higher than that of
competitors
• Ensure that employee salaries and rewards are determined
by performance
• Empower employees to recommend necessary changes in
the way they perform their work
• Ask employees for their opinions in advance on decisions that
affect employees

mm bagali..... hrm..... hrd..... ihrm...... hr..... hrd.......ihrm.....management..... mba

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