Post on 24-May-2015
Strategic HRM
INTRODUCTION
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Strategic HRM
Good HRM = Good Financial Results
Financial Results
HR
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The Topics
What is Strategic HRM?What are the forces creating a need for
Strategic HRM?How can Strategic HRM use data and
metrics to design and evaluate its processes?
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Strategic HRM is Vital
Because an organization must have people who are involved in the development of the business strategy, understand it, are committed to it, and can make a contribution to its success
What is Strategic HRM?
It is how an organization uses its people to help form and execute its
business strategy
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Steps in the Strategic HRM Process
New Business Strategy
SWOT AnalysisAssess HR CapacityDevelop Core
CompetenciesTest and Evaluate Initiate HR Practices
HR Must be a Key Player in this Process.
Design New Organization
Assess new core competencies
Recruit
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Standardization Processes
ISO – Int’l Standards Organization
HACCP - Hazard Analysis and Critical Control Points
CE Mark – conformance certification for EEZone marketing
GMP – Good Manufacturing Practice
HR Implications:Organizational
StructureRecruitment/SelectionTraining and
DevelopmentPerformance
EvaluationReward
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What is ISO? (International Organization for
Standards)
Assure Product Consistency
Develop Quality System
Do Gap AnalysisQuality Manual Process ControlDocumentation
Changes:Management
ResponsibilityAttention to DetailGet it Right the First
TimeDecrease Inspection
and Testing
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What are the HRM Changes?
CulturalOrganizationalRecruitment and SelectionTraining and DevelopmentPerformance ManagementReward System
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What is a CE Mark (“Conformite Europene”)
EU Requirements for Product Safety
Steps: Disclosure Minimize VariationsCompatibilityQuality Performance
Required ChangesTight Internal Control
of ProductionProduction Quality
AssuranceProduct Quality
AssuranceLoss Prevention
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What are the HRM Implications?
OrganizationalRecruitment and
SelectionTraining and
DevelopmentPerformance
ManagementReward System
New Commitment to Invest in People
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What is HACCP? (Hazard Analysis And Critical
Control Points)
Produce Safe Food
Steps: Describe ProductCritical Points/FlowCritical Limits and
RisksMonitoringCorrect/Verify
Resulting Changes:Prevention vs. TestingDocumentationGet Right First TimeLess Recalls/Customer
SatisfactionHigher Productivity
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What are the HRM Implications?
How would jobs change?New commitment to people issuesHow would you measure?
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Case Example - Export/WTO
Enhance Productivity - Machines, Production Management, Lower Costs.
What are HRM Implications?
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Case Example - New Strategies
Production Management
Flexibility - Quick to change/Quick to market
E-Commerce? Industrial Integration
What are the HRM Challenges?
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Global Competitiveness
HRM Challenges:Convert to TeamsDelegationEmpowermentNew SelectionNew TrainingNew Rewards
HRM ChallengesNew Job DesignNew Accounting/MISNew Performance
Evaluation and Accountabilities
New “Authorities”All Must Be Linked
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New Strategies - Strategic Partner
Contract PackingNo more “A to Z” Joint Ventures for
New ProductsMergersVenture CapitalPublic OwnershipLicensing
Information Technology
E-commerceNew Niche Marketing Industrial Integration
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What are the HRM issues?
New OrganizationNew CultureCompetenciesDispute ResolutionSelectionTraining/DevelopmentCareer PathsRewards
How would you manage this change?
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What About Measurement?
We have designed and pursued a new business strategy.
We have instituted new HRM changes and interventions
How and why do we use data and metrics to both design and evaluate such HR practices?
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Protocols for Measurement - The Balanced Score Card
Financial Customers
Employees Business Development
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Points for Measurement
Convert “soft” to hard
Establish BaselinesMake causal
connection
Apply Balanced Scorecard
Connect to business strategy
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Factors Affecting HRM?
Legal EnvironmentDemand, Supply, Education of Human
ResourcesEconomic Conditions of Area