strategic hrm {hr}

Strategic HRMStrategic HRM


The role of SHRM is to see that human resource issues are taken into account when an organization develops its business strategy – and that that strategy then derives the development of human resources practices within the firm

The Traditional HRMThe Traditional HRM

The traditional role of HR is essentially functional and revolves around-

Human Resource planning Recruiting of staff Job analysis Performance review Wages, salary and benefits administration Employee training Personnel administration Legislative compliance Labor relations

Traditional HRMTraditional HRM

H R M

StaffingPayTraining Etc

RESEARCH &DEVELOPMENT

PRODUCTION

FINANCE

MARKETING


Strategic Goals

Marketing Production

H R M

R & D

Finance

The Roles of SHRMThe Roles of SHRM

Strategic RoleInformational and Problem Solving RoleStrategic Functional RoleAdministrative RoleChange Management Role

Strategic RoleStrategic Role

HR Participates in business decisionsHR translates corporate strategy into

human resource strategyHR helps managers create valueHR helps employees satisfy customers’

needs

Informational and PS roleInformational and PS role

HR provides information and expertise on best practices in other companies

HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions

HR diagnoses and recommends solutions to problems arising in employment relations

Strategic Functional roleStrategic Functional role

HR helps select employees to fit both strategy and culture

HR assists in designing and implementing performance planning and appraisal systems

HR assists in designing and implementing motivation and reward systems

HR assists in designing benefits to complement strategy

HR assists in designing and implementing development and career management systems

HR helps enable all executives to perform critical, strategic HR functions

Administrative roleAdministrative role

HR assists in designing and improving personnel administrative systems

HR does much of the necessary administrative work involved in employment, legal compliance and record keeping

Change Management roleChange Management role

HR calls attention to the management process and its impact on organizational success or failure

HR helps design / redesign the organizationHR facilitates change that is consistent with

the underlying values of the companyHR facilitates wide ranging organizational

changeHR implements employee involvement and

relations systemsHR maximizes the value of work force

diversity

Differences between Traditional Differences between Traditional and SHRMand SHRM

Strategic roles Traditional HRM Strategic HRMImportant relations Labor-management Int

and ext customersNature of HR initiatives Reactive and piecemeal Proactive/

integratedImp of corp plan Marginal Central Speed of DM Slow FastPlanning time horizon Short Term S/ M/ L as

neededInformational rolesNature of communicationprocess Indirect DirectLevel of communicationRestricted HighSources of communication Mainly internal and Wide-

ranging as hierarchical needed


Administrative roles Traditional HRM Strategic HRM

Importance and nature carefully written contracts unnecessary

of contracts contracts needed usually going beyond

formal contractsImportance of rules Clear rules essential Getting job

done

paramountKey guide to management Policies and procedures

Whatever is needed actions for

business success


Functional roles Traditional HRMStrategic HRM

Selection Separated from business Integrated with

strategy and of marginal business strategy

importance a key task of HRPay Job based relatively fixed

Performance basedand flexible

Working conditions Separately negotiated In harmony with

strategy and orgculture

Labor-Mgmt relationsCollective bargaining Individual contracts

adversarial in nature cooperative natureJob categories Many Few


Functional roles Traditional HRMStrategic HRM

Job design Tightly defined Broadly defined

division of labor focused on team

work

T & D Specialized, with More generalized

tightly controlled with development

access to training of a learning orgn

Change Management rolesHR management’s role Transactional, change

Transformationalfollower change

leaderDealing with conflict Temp control,minimize Manage

climate andspecific conflicts culture

broadly


Change Management roles Traditional HRMStrategic HRM

Nature of HR interventions Focused on procedures Wide-ranging and

culturalImportant frames of ref Norms and traditional

Strategic valuesto guide action customs and

mission

Key HR skillsKey HR skills

Traditional HRM Strategic HRMSpecialist GeneralistA good policy and procedure writer A good

communicatorCurrent focus Current and future focusMonolingual( speaks “HR – ese”) Speaks language of

businessManagement-hierarchy focused Customer focused , good

customer relations skillsFew financial/ marketing skills Understanding these aspects

of the businessFocused on the internal organization Focused on the

internal orgnand the broader society

Factual communicator PersuaderA nationalist An internationalist

Reasons for slower / lesser Reasons for slower / lesser transformation to SHRMtransformation to SHRM

Non existence of a competent and persistent SHRM champion

Political forces with competing coalitions with different self interests may preclude adoption of SHRM

Firms experiencing stressful business conditionsThe Vicious cycle

Vicious cycleVicious cycle

HR dept managers not involved in theStrategic planning process due tosr mgmt preference and tradition

Mgmt has poor perception ofRole and competencies of HRAnd its ability to contribute toStrategic biz initiatives

Although HR not involved in Strategy formulation, it isExpected to implement keyAspects of biz strategy

No perceived alignment betHR activities and biz strategy

Significant problems in Implementing strategy Related to HR issues

Successful transformation to Successful transformation to SHRMSHRM

Integration of HR within the strategic planning process

Development of a partnership between HR and other members of the organization

Linkage of HR activities to business strategy and core cultural values of the organization

Restructuring the HR department to ensure success of all the above

IntegrationIntegration

A strategic planning process occurs in an orgnHR managers play an important role in that

processThe strategic planning process, with significant

HR input, should establish an identifiable strategic direction for the organization along with appropriate goals and objectives

This planning process should also identify a set of organizational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives

For full integration, HR managers must have both process control( ability to influence the development and selection of information used in making a decision) and decision control( ability to make or influence the decision itself)

PartnershipPartnership

To become a business partner, HR must1. Learn the firm’s business2. Be more responsive to and aware of the

organization’s needs and direction3. Shift away from traditional HR functions4. Become more involved in supportive,

collaborative relationship with managers throughout the organization

5. Demonstrate the criticality of HR to the success of the business

LinkageLinkage

Linkage of HR practices to overall business strategy

Interrelationship among HR activities

Restructuring HRRestructuring HR

Decentralized service teams to focus on defining and managing needed activities in specific business units

Executive HR services to address the unique needs of developing managerial talent within the organization

Centralized HR services used to gain cost efficiencies in the provision of basic company wide activities e.g compensation, professional recruiting and HRIS data bases

HR Strategy

• Strategies for HR flow out of the overall business plans / strategy and mainly focus on individual activities of staffing, C&B, performance management, career panning, T& D etc

• The focus in the HR strategy is to do the individual activities better and more efficiently to contribute towards the organisation’s goals.

Strategic HR Vs HR Strategy

Strategic HR HR Strategy• Organisation Building Organisation survival

and renewal and growth• Core competencies Individual activities• Holistic approach Piecemeal approach• Focus on processes Focus on results• Core Value of the Orgn Derivative

Strategic HR Vs HR Strategy

Strategic HR HR Strategy• Emphasis on Creation Emphasis on change/

of culture,values,systems adaptation of culture,

values, systems

• Proactive / Learning Reactive / Training• Result is the development Results are more

of organisation’s core efficient HR

competencies processes

Strategic HR Vs HR StrategyStrategic HR HR Strategy

• Purpose Translate business Build a HR strategy

strategies to orgn orgn and action plan

capabilities and then focussed on making HR fn into HR practices or dept more effective

• Owner Line managers HR executives

• Measures Business results thro Effectiveness and effy

use of HR practices of HR practices

• Audience Mgrs who use HR for HR prof who design and

business results deliver HR practices

Emp affected by HR Line mgrs who use HR

practices practices

Strategic HR Vs HR StrategyStrategic HR HR Strategy

• Audience customers who receive

benefits of effective

organisations

Investors who reap

rewards of orgn cap

• Roles Line mgr as owner Line mgr as investor

HR professional as HR professional as

facilitator creator

strategic hrm {hr}

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