strategic human resource mangement

7/28/2019 Strategic Human Resource Mangement

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What is Strategic HRM?

Strategic human resource

management: The pattern of

planned human resourcedeployments and activities

intended to enable an

organization to achieve itsstrategic goals.


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Strategic HRM

To be strategic, the HR function should

Have direct, integral involvement in strategy

formulation andimplementation.

Know what employee skills, behaviors, and

attitudes are needed to support strategic plan.

Develop those skills, behaviors, and attitudes

among employees.


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Components of the StrategicManagement Process

1. Strategy Formulation:

Strategic planning group decides on a

strategic direction

Defining the company's mission and goals

Identify external opportunities and threats

Identify internal strengths andopportunities for growth


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Strategy Formulation

GoalsMissionStrategic

Choice

InternalanalysisStrengths

Weaknesses

External

analysis

Opportunities

Threats

2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin


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Components of the Strategic

Management Process

2. Strategy Implementation:

Follow through on the chosen strategy.

Includes structuring the organization,allocating resources,

Involves ensuring that the firm has skilled

employees in place Utilizes reward system that align employee

behavior with the strategic goals.


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Model of the Strategic ManagementProcess

HR PracticesRecruiting,

Training,Performance management,

Labor relations,Employee relations,

Job analysisJob design,Selection,

Development,Pay structure,

Incentives,Benefits

Firm

PerformanceProductivity,

Quality,Profitability

HumanResourceActions

Behaviors,Results

HumanResource

CapabilitySkills,

Abilities,Knowledge

HumanResource

NeedsSkills

BehaviorCulture

Mission GoalsStrategic

Choice

InternalAnalysisStrengths

Weaknesses

ExternalAnalysis

OpportunitiesThreats

Strategy Formulation Strategy Implementation

2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin


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Levels of HRM integration in

Strategy Formulation Administrative LinkageLowest level; HRM focused on day-to-day

activities. No input from the HRM function to the company's strategic

plan.

One-Way LinkageThe strategic business planning function

develops the plan and then informs the HRM function of the plan. HRMhelps with implementation.

Two-Way LinkageHR issues considered during the strategy

formulation process. HR function provides input on potential strategic

choices and helps implement chosen option.

Integrative LinkageContinuing, rather than sequential, interaction.

HR is an integral member of the strategic planning team.


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Strategy Implementation

Organizational

structure

Types ofInformation

Task design

Selection,

training, and

development

of people

Rewardsystems

Productmarket

strategy

Performance


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Strategic Types

Porter's Generic Strategies

competitive advantage comes

from creating value by:

reducing costs or

charging a premium price for

a differentiated product or

service (differentiation).


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HRM and Strategic Types

Different strategies call for different types ofemployees.

Role behaviors are thebehaviors required of anindividual in his or her role as a jobholder in asocial work environment.

Cost strategy calls for efficiency--carefully define the

skills employees need. Seek employees cost-savingideas.

Differentiation firms need creative risk takers.


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The Role of HR in Providing a

Competitive Advantage

Emergent Strategies - Those that evolve from the

grass roots of the organization.

What actually is done versus what is planned.

HR plays an important role in facilitating thecommunication of emergent strategies between levels in

the hierarchy.

Enhancing Firm CompetitivenessBy developing a rich pool of talent, HR can assure the

company's ability to adapt to a dynamic environment.


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Competencies of Strategic HumanResource Consultants

Four basic competencies:

Business Competencies: Understand company's

economic and financial capabilities.

Professional/Technical Knowledge: In HR practicesChange Management or Organizational Development

Techniques: Ability to diagnose need for change;

develop and implement the appropriate intervention.

Integration Competencies: Holistic perspective with

the skills of a specialist in the above three areas.


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Human Resource Competencies

HR Professional

Integration

Competence

Professional andTechnical

Knowledge

Ability to

Manage Change

Business

Competence

strategic human resource mangement

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