Successfully reported this slideshow.
<ul><li>HRD- A Strategic Perspective </li></ul>
HRD- A Strategic Perspective In the absence of HR Strategy clearly linked with business strategy, HRM programs may easily ...
Brief Introduction of Roots and Models of HRM/HRD Significance of HRD Human Resource for Competitive Advantage Business St...
Roots of HRM <ul><li>Go as far back as 1950s when Drucker and McGregor stressed the need for visionary goal directed leade...
Models of HRM/HRD <ul><li>Three models </li></ul><ul><ul><li>Hard Variant of HRM </li></ul></ul><ul><ul><li>Has a harder, ...
Models of HRM/HRD <ul><li>Soft Variant of HRM (Beer et al. (1984) </li></ul><ul><ul><li>The Harvard interpretation sees em...
Models of HRM/HRD <ul><li>5p model of strategic HRM </li></ul><ul><ul><li>(HR  P hilosophy,  P olicies,  P rogrammes,  P r...
Significance of HRD <ul><li>Changes in Business Environment have created a sudden shift in focus of HR function. These cha...
HR for Competitive Advantage <ul><li>Resource Based View </li></ul><ul><li>Suggests that the HR system can contribute to s...
HR for Competitive Advantage <ul><li>Dunlop (1989) economic growth and improvement in productivity depend on the investmen...
HR for Competitive Advantage <ul><li>Greer and Ireland (1992) A firm which is able to accumulate HR during periods of econ...
Business Strategy and HRD <ul><li>Three models to link Business Strategy and HRM. </li></ul><ul><li>Reactive Model of HRM ...
Table 3.1
 
 
HR and Business Policy Linkages <ul><li>Golden and Ramaujam(1985) proposed  four level model in the context of linkages be...
Linking HRD with Strategic Business Planning Macro-environmental analysis Macro-resource analysis Key business assumptions...
HRD and Life Cycle of Organization <ul><li>Schien (1985) argues that successful orgnisations are those that are able to ma...
HRD and Life Cycle of Organization <ul><li>Baird and Mesholaum (1992) argues that organizations undergo five stages of dev...
Strategic HR Planning and Development Competitive Strategy Future Organizational Plans Current Organizational Policies Env...
 
Table 3.2
 
HRD and Organizational Performance <ul><li>The organizational HR policies if properly configured, provide a direct and eco...
Table 3.4
 
<ul><li>Thanks </li></ul>
 
Upcoming SlideShare
Loading in …5
×

Hrd Strategic Perspective

15,629 views

Published on

Published in: Education, Business

Hrd Strategic Perspective

  1. 1. <ul><li>HRD- A Strategic Perspective </li></ul>
  2. 2. HRD- A Strategic Perspective In the absence of HR Strategy clearly linked with business strategy, HRM programs may easily lack direction, clarity, coherence and critical marks to add value. (Tony Grundy)
  3. 3. Brief Introduction of Roots and Models of HRM/HRD Significance of HRD Human Resource for Competitive Advantage Business Strategy and HRD HRD and Business Policy Linkages HRD and Life Cycle of Organization HRD and Organizational Performance TOPICS COVERED IN THIS CHAPTER
  4. 4. Roots of HRM <ul><li>Go as far back as 1950s when Drucker and McGregor stressed the need for visionary goal directed leadership and management of integration. </li></ul><ul><li>Then in 1960 Behavioral Science Moment headed by Maslow, Argyris and Herzberg. </li></ul><ul><li>The origin of HRM as defined school of thought in back 1970 with the development of Human Resource Accounting Theory (Flamholtz, 1974) </li></ul>
  5. 5. Models of HRM/HRD <ul><li>Three models </li></ul><ul><ul><li>Hard Variant of HRM </li></ul></ul><ul><ul><li>Has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. They must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible. </li></ul></ul><ul><ul><li>Also called matching model developed by Michigan and New York schools </li></ul></ul>
  6. 6. Models of HRM/HRD <ul><li>Soft Variant of HRM (Beer et al. (1984) </li></ul><ul><ul><li>The Harvard interpretation sees employees as resources. However, they are viewed as being fundamentally different from other resources - they cannot be managed in the same way. </li></ul></ul><ul><ul><li>The stress has been given on people as Human Resource. </li></ul></ul><ul><ul><li>Employees are significant stakeholders in an organization. They have their own needs and concerns along with other groups such as shareholders and customers.‘ </li></ul></ul><ul><ul><li>Employer employees relationship </li></ul></ul><ul><ul><li>Commitment better Eco performance </li></ul></ul>
  7. 7. Models of HRM/HRD <ul><li>5p model of strategic HRM </li></ul><ul><ul><li>(HR P hilosophy, P olicies, P rogrammes, P ractices and P rocesses) </li></ul></ul><ul><ul><li>As per this model HR is the integral part of business strategy (Schuler and Jackson 1987) </li></ul></ul>
  8. 8. Significance of HRD <ul><li>Changes in Business Environment have created a sudden shift in focus of HR function. These changes include: </li></ul><ul><ul><li>Raising Cost, Increasing competition </li></ul></ul><ul><ul><li>Rapid Technological Changes, increase in demand for new skills through resourcing and re-training. </li></ul></ul><ul><ul><li>Changing demographics </li></ul></ul><ul><ul><li>Increasing multinational collaboration, multilateral relationship </li></ul></ul>
  9. 9. HR for Competitive Advantage <ul><li>Resource Based View </li></ul><ul><li>Suggests that the HR system can contribute to sustained competitive advantage through facilitating the development of competencies that are firm specific and generate implicit organizational knowledge . </li></ul><ul><ul><li>The firm is viewed as an excess of resources and capabilities which are not freely bought and sold in the spot market. </li></ul></ul><ul><ul><li>Porter (1985)-Human Resource Management can help a firm attain competitive advantage by lowering the cost, by increasing sources of product and service differentiation or by both. All these activities should be managed from strategic perspective. </li></ul></ul>
  10. 10. HR for Competitive Advantage <ul><li>Dunlop (1989) economic growth and improvement in productivity depend on the investment in human resource development. </li></ul><ul><li>Behavioral Psychology Perspective </li></ul><ul><li>Schuler and Jackson (1987) HRM practices can contribute to competitive advantage insofar as they bring and reinforce the set of role behaviors that result in lowering costs or enhancing product differentiation or both . </li></ul><ul><li>MacDuffie and Kochan (1991), Snell and Dean (1992) contended that investment in firm specific human capital can generate competitive advantage. </li></ul>
  11. 11. HR for Competitive Advantage <ul><li>Greer and Ireland (1992) A firm which is able to accumulate HR during periods of economic slump for use in future is likely to achieve competitive advantage over the competitors who indulge in hire and fire practice. </li></ul><ul><li>Wright and Snell (1991) proper staffing practices could result in firm to build and sustain competitive advantage. </li></ul><ul><li>Sparrow et al., (1994) . Five major groupings of HRM policies and practices that are connected to competitive advantage are Culture, Organization Structure, Performance Management, Resourcing, Communications and Corporate Responsibility. </li></ul><ul><li>Pfeffer, (1984) how we think about workforce and employment relationship. Seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoided. </li></ul>
  12. 12. Business Strategy and HRD <ul><li>Three models to link Business Strategy and HRM. </li></ul><ul><li>Reactive Model of HRM </li></ul><ul><ul><li>Strategy derives HRM policy . </li></ul></ul><ul><li>Proactive Model </li></ul><ul><li>In which HR planning is involved in the strategy formulation stage itself. </li></ul><ul><li>Match Model </li></ul><ul><li>Simultaneous action for design and implementation of business strategy and HR strategy. </li></ul>
  13. 13. Table 3.1
  14. 16. HR and Business Policy Linkages <ul><li>Golden and Ramaujam(1985) proposed four level model in the context of linkages between human resources and business policy </li></ul>Dynamic, frequent, formal and informal interaction HR is involved strategic decisions. Info flows both to business and HR planners. Exist but not highly integrated HR as a resource but not as a strategic business partner Little or not Integrative Linkage Two Way Linkage One Way Linkage Administrative Linkage
  15. 17. Linking HRD with Strategic Business Planning Macro-environmental analysis Macro-resource analysis Key business assumptions Business implications Critical business issue Strategy development And evaluation HR environmental analysis HR resource analysis HR assumptions HR implications Critical HR issue HR strategy And evaluation for inclusion in strategic business plan Human Resource Planning Steps Business Planning Steps Starting Point Mission statement Statement of business thrust
  16. 18. HRD and Life Cycle of Organization <ul><li>Schien (1985) argues that successful orgnisations are those that are able to match orgnizational needs with individual needs, thus achieving organizational growth along with individual development, commitment creativity etc. </li></ul>
  17. 19. HRD and Life Cycle of Organization <ul><li>Baird and Mesholaum (1992) argues that organizations undergo five stages of development with different HRM needs in each stage and one programme or approach does not work everywhere. </li></ul><ul><li>Grundy (1997) argues that SHRD and planning involves linking business strategy with organization strategy to the current and emerging pool of management skills, thus identifying key shifts and gaps and areas for intervention. </li></ul>
  18. 20. Strategic HR Planning and Development Competitive Strategy Future Organizational Plans Current Organizational Policies Environment Strategic human resource planning and development, organisation and strategy.
  19. 22. Table 3.2
  20. 24. HRD and Organizational Performance <ul><li>The organizational HR policies if properly configured, provide a direct and economically significant contribution to a firm’s performance. </li></ul><ul><li>Schuler and MacMillan (1984) argues that effectively managing HR gives many benefits, including greater profitability. </li></ul><ul><li>According to Huselid (1995) the way a firm manages its people affects the profitability and stock price of an organisation. </li></ul><ul><li>A study of more than one hundred German companies found a strong link between investing in employees and stock market performance. </li></ul>
  21. 25. Table 3.4
  22. 27. <ul><li>Thanks </li></ul>

×