Strategic Human Resource Management
- 1. Ms. Anubha Rastogi Astt. Prof, Vidya School Of Business 2015-16
- 2. ‘Strategy is problem solving in unstructured situations.’ Lester Dignam ‘There is a gap between the rhetoric and the reality of SHRM.’ Lynda Grattan ‘Strategy consists of illusions in the board room.’ John Purcell ‘Strategy is emergent and flexible.’ Sean Tyson ‘Strategy is a pattern in a stream of activities.’ Henry Mintzberg ‘Strategy is often fragmentary, evolutionary and largely intuitive.’ James Quinn THE CLOUDY NATURE OF STRATEGY
- 3. 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: to be the lowest cost provider Optimal strategy depends on the wants of customers and nature of competitors What is a strategy • Text book definition: The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunity and threats to maintain a competitive advantage • Simply speaking: A plan that is expected to make an organization adaptive and competitive • Simplest speaking: A plan to make money
- 4. What is Strategic Management? The Meaning of “Strategy” A critical factor that affects Firm Performance A factor that contributes to Competitive Advantage in markets Having a long-term focus Plans that involve the top executives and/or board of directors of the firm A general framework that provides a perspective for selecting specific policies and procedures • Strategic Management is a process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will help a company achieve its goals. • Strategic human resource management is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.
- 5. Aware of business context Understand the business Appreciate how HR can add value See the big picture Act as change agent Make convincing business case for innovation Practice evidence- based management SEVEN STEPS TO BEING STRATEGIC
- 6. 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 Example Of Strategic Choices • Defender vs. Prospector • Exploitation vs. Exploration • Quality vs. Quantity • Focused vs. Diversified
- 7. Strategic HRM is the process of defining how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. STRATEGIC HRM DEFINED The Linking Of The Human Resource Function With The Company’s Strategies To Accomplish That Strategy.
- 8. HR Strategy: Strategic Fit Training Rewards Corporate Strategy Business Strategy HR Strategy HR System (Performance Mgmt.)
- 9. A good HR strategy: Satisfy business needs Is founded on detailed analysis Can be turned into actionable programmes Is coherent and integrated Takes account of the needs of line managers, employees and other stakeholders
- 10. MODEL OF STRATEGIC HRM
- 11. SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT? Is it about long-range strategic planning? Is it about day-to-day strategic management? Or is it about both?
- 12. •Aligned to corporate goals •Set out clear aims •Supported by business case •Take account of individual as well as business needs •Contain realistic and achievable plans for implementation CRITERIA FOR HR STRATEGIES
- 13. STRATEGIC HRM GUIDELINES • Be clear on what has to be achieved and why • Ensure that what you do fits the business strategy, culture and circumstances of the organization • Aim for continuous improvement – evolution not revolution • Don’t follow fashion – do your own thing • Keep it simple – over-complexity is a common reason for failure • Don’t rush – it takes longer than you think • Assess resource requirements and costs • Manage change – involve,communicate and train
- 14. Advantages And Disadvantages Of Strategic HRM Advantages: Help gain a competitive edge Help solve HRM problems Make the efficient use of employees and reduce costs Help anticipate and plan for changes Benefit long term Disadvantages: Difficulty in predicating the people behavior Problems with predicating external events affecting HR planning Needing constantly monitoring Leading to industrial relation problems
- 15. The Flexible Workforce Definition: A workforce that can respond quickly in quantity and type to changes in demand a business may face. Traditional HR versus Strategic HR
- 17. The Role of HRM in Strategy Formulation Administrative Linkage — Lowest level of integration; HRM function's attention is focused on day-to-day activities. No input from the HRM function to the company's strategic plan is given. One-Way Linkage — The strategic business planning function develops the plan and then informs the HRM function of the plan. HRM then helps in the implementation. Two-Way Linkage — Allows for consideration of human resource issues during the strategy formulation process. The HRM function is expected to provide input to potential strategic choices and then help implement the chosen option. Integrative Linkage — Is based on continuing, rather than sequential, interaction. The HR executive is an integral member of the strategic planning team.
- 18. Strategy Formulation Five components of the strategic management process: A mission is a statement of the organization's reasons for being. Goals are what the organization hopes to achieve in the medium-to long-term future External analysis consists of examining the organization's operating environment to identify strategic opportunities and threats. Internal analysis attempts to identify the organization's strengths and weaknesses. Strategic choice is the organization's strategy, which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals.
- 19. Strategy Implementation Organizational structure Types of Information Task design Selection, training, and development of people Reward systems Product market strategy Performance
- 20. Directional Strategies External Growth Strategy Concentration Strategy Internal Growth Strategy Downsizing Acquisitions Mergers
- 21. 1-21 1 Human Resource Management Safety and Health Human Resource Management Functions
- 22. Staffing Job Analysis Human Resource Planning Recruitment Selection 1-22 Human Resource Development Training Development Career Planning Career Development Organizational Development Performance Management Performance Appraisal
- 23. Compensation Compensation - All rewards that individuals receive as a result of their employment 1-23 Safety and Health Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. Employee and Labor Relations Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005. Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them Human resource activity is often referred to as industrial relations Most firms today would rather have a union-free environment
- 24. Environment of Human Resource Management
- 25. The Five P’s Model of SHRM Philosophy: Statements of how organization values & treats employees; essentially culture of the organization Policies: Expressions of shared values & guidelines for action on employee-related business issues Programs: Coordinated & strategized approaches to initiate, disseminate, & sustain strategic organizational change efforts necessitated by strategic business needs Practices: HR practices motivate behaviors that allow individuals to assume roles consistent with organization’s strategic objectives.Three categories of roles: Leadership Managerial Operational Processes: Continuum of participation by all employees in specific activities to facilitate formulation & implementation of other activities