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8/8/2019 Annual Arab Meeting

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Strategic Human Resource Management

Dr. Abdelfattah ABUQAYYASTelecom/HR Consultant

CITC - KSATelephone: +966 1 461 8076

Fax: +966 1 461 8206Mobile: +966 556642230

15th Annual Meeting of the Arab Network for HRM/DSanaa Yemen, 1-3 December 2007


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What is Strategic Human Resource Management?

which is constantly evolving and being studied and discussedb academics and commentators.

Its definition and relationships with other aspects of businesslannin and strate is not absolute and o inion varies

between writers. CIPD definition :Strategic HRM is the key to improved business

performance

Strategic HRM can be regarded as a general approach to the

strateg c management o uman resources n accor ance w tthe intentions of the organization on the future direction it wants


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issues and macro-concerns about structure, quality,, ,to future need.

Strategic HRM has been also defined as: All those activities affecting the behaviour of individuals in

t e r e orts to ormu ate an mp ement t e strateg c nee sof business

e pa ern o p anne uman resource ep oymen s anactivities intended to enable the forms to achieve its goals

15th Annual Meeting of the Arab Network for HRM/DSanaa Yemen, 1-3 December 2007 3


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.There may be strategies to deliver fair and equitable reward, toim rove erformance or to streamline structure.etc

However, in themselves these strategies are not strategic HRM.

Strate ic HRM is the overall framework which determines the

shape and delivery of the individual strategies. Strategic HRM is concerned with explaining how HRM

influences organizational performance.

Strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger

organizations, defining how things will be done.



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not be written down and articulated. It defines the

its environment.

Strategic HRM is based on HRM principlesincorporating the concept of strategy. So if HRM is aco erent approac to t e management o peop e,

strategic HRM now implies that what is done on ap anne way t at ntegrates organ zat ona goa s w tpolicies and action sequences.



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Strategic HRM and Business Strategy

, ,people factors.

One of the driving factors behind the evaluation and reporting of humancapital data is the need for better information to feed into the businessstrategy formulation process.

In the ma orit of or anizations eo le are now the bi est asset. The

knowledge, skills and abilities have to be deployed and used to themaximum effect if the organization is to create value.

gaining recognition by accountants and investors, and it is generally now

accepted that this has implications for long term sustained performance.It is therefore too simplistic to say that strategic human resource management

stems from the business strategy.



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Strategic HRM and Business Strategy

informative. The way in which people are managed, motivatedand de lo ed and the availabilit of skills and knowled e will

all shape the business strategy.

It is now more common to find business strate ies which are

inextricably linked with and incorporated into strategic HRM,defining the management of all resources within theorgan za on.

Individual HR strategies may then be shaped by the business.customer service this may be translated into training plans or


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Strategic HRM and Human Capital Management

same thing, and indeed the concept of strategic HRM matches that of the

broader definition of HCM quite well. organizational level - because strategies involve decisions about key

goals, major policies and the allocation of resources they tend to beformulated at the top.

focus - strategies are business-driven and focus on organizationaleffectiveness; thus people are viewed primarily as resources to be

.

framework - strategies by their very nature provide unifying frameworks

which are at once broad, contingency-based and integrative. Theyincorporate a full complement of HR goals and activities designedspecifically to fit extant environments and to be mutually reinforcing orsynergistic.



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Strategic HRM and HCM rest on the assumption that: eop e are treate as assets rat er t an costs an

Both focus on the importance of adopting an integrated and

of all the stakeholders in an organization.

complements and strengthens the concept of strategic.



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Drawing attention to the significance of management,

line of sight between HR interventions and organizational

Providing guidance on what to measure, how to measureand how to re ort on the outcomes of measurement

Underlining the importance of using the measurements to

prove that superior people management is deliveringsuperior results and to indicate the direction in which HRstrategy needs to go.



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Reinforcing attention on the need to base HRM strategies

people and thus further the achievement of organizational

Defining the link between HRM and business strategy

than costs

Em hasizin role of HR s ecialists as business artners.



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components in the process of people management and bothform the basis for achievin human ca ital advanta e throu h a

resource-based strategy.

An alternative wa of lookin at the relationshi between

strategic HRM and human capital is in terms of the conversionof human capital into organizational value.

Human capital evaluation is useful in that it provides informationabout the current and potential capabilities of human capital to

.



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is successful at managing this human capital to

services which have a market value.

Strategic HRM could therefore be viewed as thedefining framework within which these evaluation,report ng an management process ta e p ace an

ensure that they are iterative and mutually reinforcing. Human capital therefore informs and in turn is shaped

by strategic HRM but it does not replace it.



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Strategic HRM and Business Performance

.create human capital or a set of individuals who are highlyskilled hi hl motivated.

This will only feed through into higher levels of businesserformance if these individuals have ositive mana ement

relationships with their superiors in a supportive environmentwith strong values.

All these factors will promote discretionary behaviour, thewillingness of the individual to perform above the minimum or

.

It is this discretionary behaviour that makes the difference to


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Strategic HRM and Business Performance

individual HR strategies which must fit in a strategic framework which

incorporates both people and business issues. It is useful for all organizations to manage their people within coherent

framework which reflect the business strategy

The can ensure that the various as ects of eo le mana ement are

mutually reinforcing in developing the performance and behaviors necessaryto achieve business success.

.

Organizations need to define a strategy which is unique to their own

situation in terms of context, goals, and the demands of organizationalstakeholders.



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SHRM: Aligning with the Mission

people it keeps.

Human resources management

alignment means to integrate

decisions about the results anorganization is trying to obtain.

HRM alignment is the ultimate levelo accoun a y, as

demonstrated in the Hierarchy ofAccountability.

While HRM accountability musteg n w as c ega comp ance,

ultimately encompasses all fourlevels of the pyramid, including

demonstrating how HRM supportsac evemen o e agency s ra eg cgoals.



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Strategic Planning

You got to be careful if you don't know where you're going,

because you might not get there. ra eg c p ann ng a ows agenc es o map ou w ere ey are,

where they want to go, and how they plan to get there.

.

The HRM is an integral part of how an agency is going to achieveits mission goals. Without people, there is no one to do the work;therefore, integrating HRM into the agency strategic plan is thefirst step in aligning it with the mission.

right people, with the right skills, in the right positions to carry outthe agency mission.



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Typical Planning Process



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Strategic Implementation

.

Strategic implementation of HRM means performing activities that

su ort a enc mission accom lishment and measurin how wellthose activities contribute to achieving agency strategic goals.

Staffing, development, and employee relations are important HRactivities that make a difference to agency goal accomplishment.

However, there are other areas in which HR contribute to and align,

Agency Reorganizations:

Workforce Planning: Linking Performance Management to Mission Accomplishment:

HR Self-Assessment:



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Strategic Implementation - HRM Measurement

, .

HR can only determine its value to the organization by

There are quite a few interesting approaches some agencies

are usin to measure their HRM erformance.

Benchmarking is a systematic process of measuring an organizations products,services, and practices against those of a like organization that is a recognizedleader in the studied area.

The Balanced Scorecard is a framework many agencies are using to translatestrategy into operational terms by measuring a full range of perspectives:

Activity Based Costing (ABC) is a method of cost management thatdetermines the true cost, including overhead, for a service or product.



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Strategic Relationship

have an impact on decisions.

The relationship between Corporate HR and Top Management can bemotivated by the following factors:

Reporting relationships - In agencies where there is a direct reportingrelationship between the head of HR and the head of the agency, HR generally

has a more visible role in agency decision-making. Management advocates - In agencies where there is a strong HR advocate in

senior mana ement, HR has more involvement in the a enc decision-makin .

Credibility - HR representatives who are formerly program managers tend toearn more credibility from the other managers.

- ,important asset has traditionally been part of the culture.

Value - In all cases, HR has to bring value to the discussion in order to be


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Strategic Relationship

HR as Consultant: HR office has become more consultative. Rather than telling a

manager he/she can or cannot do something, HR professionals are more helpful in.

HR as Contributor to Mission Accomplishment HR help managers in terms ofrecruitment and staffing, employee development, and employee relations that

.

HR as Strategic Partner: For HR to become more involved in line-level decision-making, managers would like the office to:

ave greater now e ge o t e organ zat ona m ss on, an

Get more involved and innovative in broad, organizational HR issues that impact most onthe organization, such as recruitment and workforce and succession planning.

ow managers are nvo ve n ma ng ec s ons a ou programs -HR/management council should be established to allow them get togetherperiodically to discuss human resources issues and thus get to real integration of


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Accountability

management, both at the top and line levels, accountability

should become a shared res onsibilit .

Managers are making more and more HRM decisions while theHR staff is becomin more involved in broader or anizational

issues. This means that both the HR staff and managers are ultimately

accountable for effective, legally compliant HRM.

Managers are accountable for the business results achievedt roug goo uman resources management, t e sta saccountable for HR compliance, and both are accountable for


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Where do we go from here?

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HRM measures should evaluate the impact these activities have on the

organization as a whole. Information from these measures should then be input.

Advance the collaborative working environment between HR andmanagement.

HR has to have a strong, collaborative working relationship with top agency andline management.

HR needs to build its own internal com etencies to deal with or anizationalissues.

HR needs to educate itself on agency and program missions, to be able to offer

To achieve SHRM, all must work together.



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SHRM

THANK YDr. Abdelfattah ABUQAYYAS

Telecom ConsultantCITC - KSA

Telephone: +966 1 461 8076ax: +Mobile: +966 556642230


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