Strategic Human Resource Management ASB Summer University 2015, Aarhus, Denmark

Course Title: Strategic Human Resource Management*

Masters Level

Term 2: 10 ECTS course: Duration: 16 July - 05 Aug, 2015

Faculty: Professor Debi S. Saini, Management Development Institute, Gurgaon, India

E-mail: debisaini@mdi.ac.in debissaini@gmail.com Mobile: +91-9810341064

Aim of the course:

Research from different parts of the globe shows that that lack of people management skills is one of

the top compatencies that employers look for while recruting managers as those who lack these are not

likely to succees in the present chaotic business world. A large number of general management books

published after the best-selling one, In Search of Excellence by Tom Peters and Bob Waterman (1982)

testifies this fact. Most companies do claim that their people are their greatest asset. In actuality,

however, some only (e.g., Google, IBM, Southwest Airlines, Lego, and Carlsberg), genuinely practice

this mantra through creation of people-centric ambiance. Companies that truly value their human

resource (HR) are able to build employer brand, hire & retain competent employees, and promote

employee engagement. Eventually, this approach helps produce the requisite people behaviors,

attitudes, and mental models that are necessitated by high performance work systems and company’s

business strategy.

In this context, this course has been designed with the aim of analyzing strategic HR models; new HR

themes and interventions; as also related measures, targets and plans of action. The course also helps

explain why some companies almost always adopt just hard, cost-reduction, and instrumentalist people

policies; and in the process remain only short-termist in their approach. It underscores that even

several low-cost strategy companies have been following soft HR interventions for competitive

advantage.

Main issues:

Concretely speaking, three broad sets of issues are focused on in the course: articulating the strategic

HRM context that helps identify issues in building people-first culture, discussing emerging HR focus

areas that help promote sustainable competitive advantage, and aligning the selected HR interventions

with business strategy; all these help shape the desired HR architecture.

Specifically, the course will focus on discussing and analyzing the following areas of strategic HRM:

Building a framework of high performance work system (HPWS) in view of SHRM literature

& chaotic competition;

HR strategy models and using soft & hard strategic HR interventions;

Building employee recruitment, selection & talent acquisition strategies;

Leading change & flexibility through appropriate HR & IR strategies, including trade union

substitution policies;

* © Debi Saini. Please do not copy or forward without permission

Building engagement through employee involvement, diversity & nurturing organizational

culture that puts primacy on employee-first values;

Dynamics of building a learning organization & managing knowledge;

Strategic HR issues in managing local and global businesses;

Human capital investment and aligning HR interventions with business strategy.

Prerequisites

This course will suit those who believe that appropriate handling of people management issues is a key

success factor for viability of business and its exponential growth; be they functional managers

involved in operations, information technology, marketing, finance or HRM. It will also suit those

who wish to join own organization or a consulting company, and are searching a proper approach in

managing people. There is no prerequisite for joining the course in terms of specific degrees.

Teaching methodology

Learning of the course contents will involve focusing on analyzing the relevant concepts; as also

organizational problems and the need for taking decisions to resolve them. It will be facilitated through

lectures, video presentations, case discussions, exercises, problem-solving discussions, role plays and

one home assignment (Project described below). The Class Representative should help the process

of forming 10 groups of about equal number of students each, and mail the names and the group

numbers to the faculty. The usual class session will begin by discussing the relevant theoretical

concepts by the faculty, followed by case analysis presentation by the group concerned, and then

discussion on the case as also reviewing the learning of the day. Case discussions will aim at solving

people-management problems and deriving the relevant HR concepts through that process. The above

devices are aimed to promote learning by involving the class. The participants will undertake some

exercises in the class to help them develop specific people-management competencies. Also, the

participants will be encouraged to contribute to class learning by raising queries and replying to those

raised by others.

Learning outcome

On completion of the course, the participants are expected to have attained the following knowledge

and abilities:

Knowledge of the linkages between HR issues & contextual business realities through the eye

of HR strategy models;

Knowledge of the factors that facilitate employee engagement, and hiring & retaining talent;

Ability to understand how to confront adversarialism and promote employee cooperation

through strategic industrial relations and psychological contract;

Ability to understand the dynamics of labour flexibility & effecting strategic change;

Knowledge of strategic HR themes, including building of a learning organization;

Knowledge of the use of strategic HR interventions in domestic & global business realities; &

Ability to develop strategic HR interventions, HR measures and score cards & align them with

business strategy.

Examination Assessment procedure:

Performance Evaluation:

Component Weightage

1. Case presentation & discussion by groups 20 %

2. HRM strategy essay work: 20 %

3. End-Term Exams 60%

Each individual student will write an essay mainly focusing on any company of her or his choice

that has adopted some of the themes of strategic HRM being discussed in this course and the

results the practice of these themes have led to. In doing so, the student should bring out clearly

references to the literature that has been developed on these SHRM themes and how the company

concerned is applying these themes (practices) in its peculiar context. S/he should support her/his

formulations with the help of the working of those practices in few other companies as well if

possible, though the main concern shall be on the company that is the main focus of the essay. The

information about the practice of the relevant themes may be obtained from the internet, company

websites, management journals, business books, magazines and newspapers. The essay should identify

the HR interventions chosen by the main organization being focused on, and how these interventions

have been linked to, or integrated with, the company’s business strategy. The student may choose a

company from private sector or public sector. While the essay contents are being developed, the

student must also link her/his formulations with the conceptual learning gained from the course.

The project essay will be due to be submitted by each student in soft as well a hard copy on or before a

specified date, and shall have a length of between 2500 to 3000 words, double spaced (References and

appendices can be separate). The essay should reflect the student’s diagnostic, analytical and

application skills.

The project essay summary will be presented by each student on the last day of course teaching.

SESSIONS PLAN

Date Subject Topic & Issues References Assignements/ Case Qs/

Exercices, etc.

Course begins

16 July

Day 1

9.0-

12.50

Context and nature of strategic

HRM:

Linking Globalization and the

changed work paradigm

Readings:

Reese and

Smith (2014),

Ch. 1

New business challenges, as

also new people manage -ment

issues

HR’s response to new

challenges—Concept of

strategic HRM including

New industrial relations (IR)

as its part

Challenges of Strategic

HRM/HRD

Shifts in today’s HRM

Evolution of SHRM

Critique of strategic HRM

Storey, Wright

&

Ulrich(2009),

Ch. 9

Saini & Khan

(2000) pp. 13-

34

Longenecker

(2007)

17 July

Day 2

9.0-

12.50

Strategic management, HRM

strategy, and HRM strategy models:

Organization Strategy development and

implementation: Vision/

mission/ objectives /goals/

values

Rational vs. emergent strategy

Business Strategy and HRM

Strategy Interface

HRM strategy models of

Tichy, Devanna et al., Beer et

al., and Others

Broad theoretical approaches

to HR strategy: best practice;

best fit; & resource-based view

approaches

Overview of Strategic themes

in SHRM

Readings:

Reese and

Smith (2014),

Chs 2 & 3.

Beardwell, et

al. (2004) Ch.

2

Presentation of analysis

of:

Case: JetBlue Airways—

Starting from Scratch

(HBP)

Group 1

Questions:

1. 1. Analyze how the values,

vision and beliefs of the top

management led to

formation of the

organizational culture of

JetBlue.

2. 2. Which HR strategy model

is reflected in the HR

systems and approach of

JetBlue?

3. 3. Why is JetBlue

management so particular

about being a non-union

company?

4. 4. Analyze the leadership of

Ann Rhoades as a

charismatic HR

professional?

5. 5. Which factors led to the

success of this airline; and

what lessons you can learn

from this case?

20 July

Day 3

9.0-

12.50

Recruitment and selection

strategies:

Contemporary issues in

recruitment & selection

The hiring process

Values in the hiring process

Strategic recruitment—

Linking hiring to desired

culture & talent retention, &

employer of choice

Gen X & Gen Y profiles

Issues in retention &

turnover

Retention strategies

Readings:

Reese and

Smith (2014),

Ch. 5.

Stein, S.

(2007), Ch. 5

Group 2 to do

Presentation of analysis

of:

Two Caselets:

A. McDonald’s

Questions:

1. 1. Describe how

McDonald’s has aligned its

business, human resource,

and staffing strategies?

2. 2. What are some possible

talent-related threats that

could eat away its

competitive advantage?

Would higher turnover or a

tight labour market in which

it is difficult to find talent be

a problem?

3. 3. What would you

recommend the company to

do so as to maintain its

competitive advantage over

the next five years?

B. Starbuck’s Staffing

strategy

Questions:

1) 1. How can Starbucks use

staffing to pursue its growth

strategy and maintain its

competitive advantage?

2) 2. What kind of staffing

strategy would you

recommend Starbuck’s to

pursue to help it continue to

hire the right people?

Exercise: Check Your

Values—The death of a

salesman

21 July

Day 4

9.0-

12.50

Changing paradigm in employee

relations:

Traditional issues in

management of industrial

relations (IR)

Frames of reference in, or

Perspectives of, IR: Pluralist,

Unitarist & Radical

frameworks

Generic changes in IR at

global level and their causal

roots

From pluralist IR to neo-

pluralism and neo-unitarist IR strategies

Readings:

Reese and

Smith (2014),

Ch. 8

Saini & Khan

(2000), Chs. 1,

pp.13-34, 2, 3

Hollinshead,

Nicolls, &

Tailby, (2003),

Ch.10 (pp.

372-392 only).

Presentation of analysis

of:

Case: People Management

Fiasco at Honda Motor

Cycles and Scooters India

Ltd. (HMSI

(Harvard Business

publishing)

General discussion with

all groups

Key Questions:

1. Who all are the

IR actors in this

case?

2. What do you

think were the

gains of the

workers in this

case? What are

the sources of

their strength

that led to these

gains?

3. If “IR is a game

of power,” how

much power was

enjoyed by each

of the 3 main IR

actors?

4. What do you

think were the

principal causes

of the trouble

that HSMI

faced?

22 July

Day 5

9.0-

12.50

Strategies for developing

cooperative employee relations:

New IR dynamics

Union-substitution strategies

Re-orienting managers &

Readings:

Guest (1987)

Cross et al.

(2003)

Case: People Management

Fiasco at HMSI

(Harvard Business

publishing) contd…

Group 3 to present

analysis of the following

union leaders for cooperation

as opposed to adversarialism

Managing Employee Relations

through New Psychological

contract

Building Psychological

contract:

five Qs.

Key Questions:

5. What HR

strategy &

business strategy

was followed by

HMSI before the

fiasco?

6. If you were

HMSI’s CEO,

what HR strategy

would you have

followed before

the pre-fiasco?

7. What are the key

challenges

before HMSI in

the post-July 25

scenario?

8. What people-

mgt. strategies

should HMSI

adopt in the short

run as well as

long run?

9. What lessons in

people mgt. and

IR do you learn

from this case?

23 July

Day 6

9.0-

12.50

Strategic approach to building an

engaging/ exciting organization

Balancing employee &

business needs

Concept of engagement &

Gallop’s model

Factors that contribute to

employee engagement.

Key practices used by some

companies in promoting

engagement & excitement?

Readings:

Walton (1985)

Storey, Wright

& Ulrich

(2009), Ch.18

Presentation of analysis

of:

Case : Renn Zaphiropoulos

(Harvard Business

publishing)

Group 4

1. List the

interventions used by

Versatec Inc. for

employee engagement.

2. What importance was

attributed to

communication in

Renn’s mgt.

philosophy?

3. Is Renn a

transformational leader?

Which of his

competencies are most

critical?

4. Aanalyze the following

statement of Renn:

“Very few orders are given here and

virtually no punishment. We don’t

like phonies; we throw them out after

they have been here a very short

period of time. We like the brutal

truth….You will find very little ‘Fix

it, Renn is coming.’… Effort does

not count. Results count.”

5. What lessons in people

management do you

learn from this case?

24 July

Day 7

9.0-

12.50

Managing diversity (DM):

Proactive diversity management (DM) as a HRM

strategy

Concept and approaches to

DM

Building & implementing a

diversity strategy agenda

Readings:

Reese and

Smith (2014),

Ch. 9

Saini (2007)

Thomas

(2004)

Exercise: Diversity

Learning Sheet

Exercise: Pre- and

Post-DM sessions

Exercise on Identifying the

needs for Diversity

Training

27 July

Day 8

9.0-

12.50

Developing a learning organization

(LO) and benchmarking of HR

practices:

Learning and knowledge-

creation culture

Nature of learning

organization

Peter Senge’s model of

Learning Organization &

Garvin’s building blocks

Issues in creating a learning

organization

Readings:

Holbeche

(2009), Ch. 17

Garvin (1993)

Senge (1990)

Presentation of analysis

of:

Case: Children’s Hospitals

and Clinics--A. (HB

Publishing)

Group 5

Questions:

6. 1. What should Morath say

in meeting with Mathews

Managing knowledge workers

and HR’s role

parents (Answeri this

question through a role

play)

7. 2. How do you assess Julie

Morath’s Patient Safety

Initiative & blameless

reporting as part of learning

organization?

8. 3. What barriers did Julie

Morath face towards openly

discussing medical errors,

and did she overcome them?

9. 4. What challenges does

Julie Morath face now in

opertionalizing her vision of

Children’s as a learning

organization?

10. 5. What lessons in learning

organization do you learn

from this case?

28 July

Day 9

9.0-

12.50

Employee involvement (EI)

strategies as opposed to collectivist

“employees’ participation in

management”:

The Concept of EI &

Employee participation (EP)

The logic of the changing

paradigm and its relevance in

the new business environment

Company newsletter; team

briefing; team working

Attitude surveys; suggestion

schemes; quality circles; and

TQM

EI: Rhetoric & realities

Readings:

Torrington et

al. (2008), Ch.

21 (pp. 510-

519 only)

Hollinshead,

Nicolls, &

Tailby, (2003),

Ch.10 (pp.

372-392 only).

Presentation of analysis

of:

Case: Labour-Mgt.

Partnership: How to make

it Work & Its analysis by 3

Analysts

(Complimentary: Debi

Saini)

Group 6

Questions:

1. What was the CEO’s

strategy in initiating

the change agenda?

2. What are the strong

points & limitations

of the analyses of

the three analysts?

3. If you come to know

that analyst 3 is an

HR Chief of a large

company, what

comment would you

make on his

analysis?

4. With which analyst

you agree the most

and why?

5. What are the merits

of studying a case

through this new

methodology of

evaluating the

analysts?

29 July

Day 10

9.0-

12.50

People issues in managing

organizational flexibility & leading

culture change:

Flexible organization––The

flexible firm model of

Atkinson

Flexibility as per hard and

soft HRM strategy models

Soft flexibility through Work-

–Life balance

HR issues in promoting and

managing culture change

Leadership development issues for building capacity to

adapt to change needs.

Readings:

Reese and

Smith (2014),

Ch. 8

Torrington et

al. (2008), Ch.

5

Presentation of analysis

of:

Case: Dynamics of Change

at NDPL

(Complimentary by Debi

Saini)

Group 7

Questions:

1. What factors

contributed to the

Co.’s turnaround?

2. What role was

played by HR

strategy in

promoting change?

3. What should the

CEO now do to

march towards the

company vision?

4. What lessons in

Strategic HRM do

you learn from this

case?

Project Finalization The date of submission is 31st July before 18.00 hours.

3 Aug.

Day 11

Understanding & developing

9.0-

12.50

Transformational Leadership—The

essence of strategic HRM:

Readings:

Kanter (2010)

Saini & Khan

(2000), Ch. 18

Film Analysis

& an Exercise

4 Aug.

Day 12

9.0-

12.50

Strategic HRM issues in global

business management:

Internationalization

strategies of companies

Approach of staffing in global

organizations

Management of cross-cultural

issues

Building global mindset and

developing global leaders

Readings:

Reese and

Smith (2014),

Ch. 12

Holbeche

(2009), Chs.

14

Dalton (2005)

Storey, Wright

&

Ulrich(2009),

Ch. 24

Presentation of analysis

of:

Case: HCM Beverage Co.

(Harvard Business

publishing)

Group 8

Key Qs.:

1. What challenges

does Johnson face

presently?

2. Is he fit for the Job

of a global manager

or should he go

back to US—why?

3. If he stays, what

should be his

transformational

change agenda?

4. How should the

raise in wages issue

be decided?

5. What lessons do

you learn from this

case?

4 Aug.

contd...

Day 12

14.15-

15.45

p.m.

Aligning HRM strategy with

business strategy:

Developing HR strategy; &

aligning it to business

Identifying critical success

factors for comptt. advantage

Identifying desired culture &

Readings:

Ulrich &

Brockbank

(2005), Ch. 7

Miller et al.

(2002)

Fragos (2002)

Group 9

Presentation of the

exercise solution:

Exercise: Building and

aligning HR Strategy:

HCM Beverage Co.

(Read Ch. 7 of Ulrich &

behaviours

Identifying HR interventions

& aligning them to culture

Phillips, J.

(2005)

Brockbank [2005], and do

this alignment exercise in a

similar manner as done in

this chapter)

Other Groups should also

compe prepared with this

case: They would be asked

to comment on the issues

involved in alignment.

5 Aug.

Day 13

9.00

a.m. to

1.00

pm

Group 10: Presentation by the group on what they leraned from the Course.

This would be followed by discussion by all other groups. Students would b eunder

observation for the pupose of course work assessment especially in this session for their

insightful contribution to the learning of the class.

(All groups must sit down and discuss before preparing their point of view as to what they have learned, and how these learning could be applied in solving business problems)

Examination Preparation; examination date 13 August 2015

LIST OF LITERATURE (COMPULSORY)

Essential Text:

Reese, G, and Smith, P. (2014) Strategic Human Resource Management: An International

Perspective, London: Sage, Chapters 1, 2, 3, 5, 6, 8, 9, 12. Desired Readings from Journals & Book Chapters:

Beardwell, I., Holden, L. and Claydon, T. (2004), Human Resource Management (4th edition),

London: Prentice Hall, Chapter 2.

Cross, R., Baker, W., and parker, A. (2003), “What Creates Energy in Organizations,” MIT Sloan Management Review, 44 (4), pp. 51-56.

Dalton, Catherine (2005), “Human Resource Management in Global Environment: Key for Personal and Organizational Success: An Interview with Eliza Hermann,” Business Horizon, Vol. 48, pp. 193-198.

Frangos, C. (2002), “Aligning Human Capital with Business strategy: Perspectives from Thought Leaders,” http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&sqi=2&ved=0CEUQFjAD&url=http%3A%2F%2Fwww.exinfm.com%2Fworkshop_files%2FAligning%2520Human%2520Capital.pdf&ei=LcOQUdnYDILqrQfz9oHgBQ&usg=AFQjCNFVn26JvPN1G38VxegfjU5YQMhsTQ&bvm=bv.46340616,d.bmk downloaded on 13 May, 2013.

Garvin, David (1993), “Building a Learning Organization,” Harvard Business Review, Vol. 71, No. 4 (July–August): 78–91.

Guest, D. (1987), “Human Resource Management and Industrial Relations,” Journal of Management Studies, 24 (50), pp. 503-21.

Holbeche, L. (2009), Aligning Human Resources and Business Strategy, Butterworth

Heinemann, Chapters 14 & 17.

Hollinshead, G., Nicolls, P. and Tailby, S. (2003), Employee Relations, 2nd ed., London:

Prentice Hall, Chapter 10 (pp. 372-392).

Kanter, R. (2010) ”Leadership in a globalizing world,” In Nohria, N. And Khuran, R.,

Handbook of Leadership Theory and Practice: A Harvard Business School Centennial

Colloquium on Advancing Leadership. Boston, Mass: Harvard Business Press, pp. 1-41.

Longenecker, C., Neubert, M., Fink, L. (2007), “Causes and Consequences of Managerial

Failure in Rapidly Changing Organizations,” Business Horizons, Vo. 50, pp.145-155.

Miller, D., Eisenstat, Foote, N. (2002), “Strategy from the Inside Out: Building Capability-creating Organizations,” California Management Review, 44 (3), pp. 37-54.

Phillips, J. (2005), Investing in Company’s Human Capital—Strategies to Avoid Spending too Little—or Too Much, New York: American Management Association. Chapter 9.

Saini, D. (2007), “Manpower Diversity for Business Success: Some Emerging Perspectives,”

Manpower Journal, Vol. XLII, , No. 2, pp. 1-22.

Saini, D. & Khan, S. (eds.) (2000) Human Resource Management: Perspectives for the New

Era, New Delhi: Response Books, a Division of Sage Publishers, New Delhi. Chs. 1 (pp. 13-34), 2, 3.

Senge, Peter (1990), “The Leader’s New Work: Building Learning Organizations,” MIT Sloan Management Review, 32 (1) pp. 7-22.

Stein, S. (2007), Make Your Workplace Great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, Chapter 5.

Storey, J., Wright, P. and Ulrich, D. (eds.) (2009), The Routledge Companion to Strategic Human Resource Management, London: Routledge, Chapters 9, 18, and 24.

Thomas, D. (2004), “Diversity as Strategy,” Harvard Business Review, Vol. 82 (Sep. 2004), pp. 98-108.

Torrington, D., Hall, L. and Taylor, S. (2008) Human Resource Management, 7th

edition,

Prentice Hall, London. Chapters 5 and 21 (pp. 510-518 only).

Ulrich, D. and Brockbank, W. (2005), The HR Value Proposition, Boston: Harvard Business

School Press, Chapter 7.

Walton, Richard (1985), From Control to commitment in the Workplace, Harvard Business Review, March-April, 63 (2) pp. 76-84.

Cases: The following 5 full cases are to be procured for each student from Harvard Business

Publishing (HBP) online:

JetBlue Airways—Starting from Scratch

People Management Fiasco at Honda Motor Cycles and Scooters India Ltd.

Renn Zaphiropoulos

Children’s Hospitals and Clinics—A

HCM Beverage Co Other cases/caselets to be discussed in the class will be provided by Dr Debi Saini as complementary: