stahrm8 chapter4

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    THE EVOLVING/ STRATEGIC

    ROLE OF HUMAN RESOURCE

    MANAGEMENT

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    Strategic Human Resource Management

    Involves the development of a consistent, aligned

    collection of practices, programs, and policies to

    facilitate the achievement of the organizations

    strategic objectives. Requires abandoning the mindset and practices of

    personnel management and focusing on

    strategic issues than operational issues.

    Integration of all HR programs within a larger

    framework, facilitating the organizations mission

    and its objectives.

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    Strategic Human Resource Management

    Probably the single-most important caveat of

    strategic human resource management is that

    there is no one best way to manage people in any

    given organization. Even within a given industry,HR practices can vary extensively from one

    organization to another.

    Establishing a strong HR strategy that is clearly

    linked to the organizations strategy is notenough. HR strategy needs to be communicated,

    practiced, andperhaps most importantspelled

    out and written down.43

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    Strategic HR at Yahoo!

    Planning the type and number of employees

    Yahoo! needs

    Attracting desirable employees

    Recruiting potential employees

    Assessing qualifications of job applicants

    Developing employees to ensure that skills sets of

    employees are updated and developed Retaining top performers

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    Average of 12

    hours interviews

    for EACH new hire

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    One organization that has effectively redesigned itHR function to assume all four roles is Mercantile

    Bank. Headquartered in St. Louis, Mercantile Bank

    is a multibank holding company, with $131B inassets and more than 10,000 employees. The bank

    strategically redesigned it s HR function during the

    1990s, when it went through more than 39 mergers

    and acquisitions. As part of this process,Mercantiles HR function moved beyond traditional

    recordkeeping and compliance to become more

    strategic in nature.

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    This transformation happened through streamlining

    work processes, eliminating unnecessary activities,

    re-evaluating technology, and outsourcing

    nonstrategic functions. Furthermore, some retainedHR functions remain centralized at headquarters;

    others are deployed to operating divisions.

    Consequently, Mercantiles HR function is able toassume the roles of strategic partner, change agent,

    administrative expert, and employee champion

    simultaneously.

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    HR Roles in the Knowledge-BasedEconomy

    The human capital steward role involves the

    creation of an environment and culture in

    which employees voluntarily want to

    contribute their skills, ideas, and energy. Thisis based on the premise that unlike raw

    materials, plant, and equipment, human

    capital is NOT owned by the company; it can

    move freely from one company to another at

    the employees whim.

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    HR Roles in the Knowledge-BasedEconomy

    The knowledge facilitator role involves the

    procurement of the necessary employee

    knowledge and skill sets that allow

    information to be acquired, developed, anddisseminated, providing a competitive

    advantage.

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    HR Roles in the Knowledge-BasedEconomy

    The relationship builder role involves the

    development of structure, work practices and

    organizational culture that allow individuals

    to work together, across departments andfunctions. To ensure competitiveness,

    networks need to be developed that focus on

    the strategic objective3s of the organization

    and how synergies and teamwork that lead to

    outstanding performance are valued and

    rewarded.

    410

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    HR Roles in the Knowledge-BasedEconomy

    The rapid deployment specialist role

    involves the creation of an organization

    structure and HR systems that are fluid and

    adaptable to rapid change in response toexternal opportunities and threats. The global,

    knowledge-based economy changes quickly

    and frequently, and success in such an

    environment mandates flexibility and a

    culture that embraces change.

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    Traditional HR versus Strategic HR

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    Barriers to Strategic HR

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