Post on 22-Jan-2018
STRATEGIC HUMAN RESOURCE MANAGEMENT
By
Sujoy Chowdhury
‘Strategy is problem solving in unstructured situations.’
‘There is a gap between the rhetoric and the reality of SHRM.’
‘Strategy consists of illusions in the board room.’
‘Strategy is emergent and flexible.’
‘Strategy is a pattern in a stream of activities.’
‘Strategy is often fragmentary, evolutionary and largely intuitive.’
THE CLOUDY NATURE OF STRATEGY
SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT?
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?
Strategic HRM is the process of defining how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices.
STRATEGIC HRM DEFINED
MODEL OF STRATEGIC HRM
Strategic HRM
Strategic management – strategic role of HR
HR strategies –overall/specific
Strategic choice
Strategic analysis
SO WHAT IS THE STRATEGIC ROLE OF HR SPECIALISTS?
‘My credibility depends on running an extremely
efficient and cost-effective administrative machine… If I don’t get that right, and consistently, then you can forget about any big ideas.’
‘The CIP thinks that we will all be strategic business
partners, and we’re not, you know. We have to deal with day-to-day HR issues that
arise in the business.’Student practitioner
‘Give me a break! It’s so demeaning. How many people in marketing or
finance have to say they are a partner in the business? Why do we
have to think that we’re not an intimate part of the business, just
like sales, manufacturing and engineering? I detest and loathe the
term and I won’t use it.’
‘The term worries me to death. HR has to be an integral and fundamental part of
developing the strategy of the business. I don’t even like the term ‘close to the
business’ because, like ‘business partner’, it implies we are working alongside our line
management colleagues but on a separate track, rather than people management being
an integral part of the business.’
VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT
Formulate integrated HR strategies
Work with line managers to
support the achievement of
their businessgoals
Contribute to the development of
business strategies
HR’s STRATEGIC ROLES
Aware of businesscontext
Understandthe
business
Appreciate how HRcan add
value
See the big picture
Act as changeagent
Make convincingbusiness
casefor
innovation
Practiceevidence-
basedmanagement
SEVEN STEPS TO BEING STRATEGIC
SO WHAT ABOUT HR STRATEGY?
Overall:• performance• engagement• ‘the big idea’• human capital advantage• HRM process advantage• etc
Specific:• organization development• corporate social responsibility• resourcing• talent management• learning and development• employee reward• employee relations• employee well-being
HR STRATEGY AREAS
EXAMPLES OF OVERALL HR STRATEGIES
A strong focus on the overall effectiveness of the organization, its direction and how it's performing. There is commitment to, belief in, and respect for individuals. New Forest Council
The only HR strategy you really need is the tangible expression of values and the implementation of values. West Water
Stimulate changes on a broad front aimed at achieving competitive advantage through people. Pilkington Optronics
Maintain competitive advantage by continuing to attract very high calibre people. Boots
We want GSK to be a place where the best people do their best work. GlaxoSmithKline
Staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers. Lands’ End
BALANCED SCORECARD IN AN INTERNATIONAL CHARITY
Organizational effectiveness perspective:• programme development• programme delivery• process development and management• cost-effectiveness
Stakeholder perspective:• impact on clients• relationships with key funding agencies and supporters• development of brand• influence
Financial perspective:• income growth• enlistment and retention of supporters• cost/income ratio
People perspective:• leadership behaviour• talent management• learning and development• employee satisfaction – a ‘great place to work’
• Clear line of sight between strategic aims of the Corporation and its staff
• Management sets goals for success and monitors performance
• Leadership from the top and at all levels of management
• Focus on promoting engagement and commitment
• Performance management processes aligned to Corporation objectives
• Capacities of people enhanced by comprehensive learning and
development programmes
• People valued and rewarded according to their contribution
HIGH-PERFORMANCE STRATEGY: CORPORATION OF LONDON
• Achieve strategic integration – match HR policies and practices to the business strategy
• Plan coherent approaches to the development of HR processes so that they are interrelated and mutually supporting
• Focus on the needs to achieve flexibility, responsiveness, quality and cost- effectiveness in the delivery of HR services
DECLARATION OF STRATEGIC INTENT: CARE DELIVERY CHARITY
• Aligned to corporate goals
• Set out clear aims
• Supported by business case• Take account of individual as well as business needs
• Contain realistic and achievable plans for implementation
CRITERIA FOR HR STRATEGIES
STRATEGIC HRM TOOLKIT
1. Analysis
2. Diagnosis
3. Conclusions and recommendations
4. Action planning
CONDUCTING A STRATEGIC REVIEW
Involve senior management and
line managers
Involve employees and their
representatives
Possible HR strategic objectives Importance* Effectiveness*
Support the achievement of organizational goals
Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as ‘a great place to work’
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)
* Scale: 10 = high 0 = low
HR STRATEGY GOALS: HOW DO THEY RATE?
STRATEGIC HRM GAP ANALYSIS
What are the current and desired SHRM characteristics in your organization? 1 2 3 4 5 6 7
Effective high-performance work system in place
No attempt made to encourage high performance
Integrated talent management programmes are operating
effectively
Talent management is haphazard or ineffective
Sophisticated techniques are used to recruit employees
A traditional approach is adopted with regard to sourcing recruits
and selecting applicants
Focus on using blended learning and development processes
Reliance on the delivery of traditional training courses
Employees given a voice on allmatters that concern them
Only lip service is paid to employee participation and
involvement
High-quality HR practices Poor-quality HR practices
A total reward approach is used effectively
Reward programmes limited tofinancial rewards
Mark on the scale: X for current, O for desired – eg:
XO
HR IMPLICATIONS OF CORPORATE STRATEGIES
Corporate strategy Implications for HR strategy
1.
2.
3.
4.
5.
6.
Possible resourcing goals Importance* Effectiveness*
Match people resources to business requirements
Avoid unexpected deficits or surpluses of staff
Attract and recruit high-quality candidates
Minimize recruitment costs
Maximize ‘recruitment intensity’, ie high numbers of applicants per vacancy
Increase ‘predictive validity’, ie the extent to which predictions of suitability at the point of recruitment are achieved
Increase retention rates
Reduce cost of labour turnover
* Scale: 10 = high, 0 = low
ANALYSIS OF RESOURCING GOALS
Talent management goals Importance* Effectiveness*
Define what is meant by talent in terms of competencies and potential
Ensure that talent is treated as a key corporate resource
Develop a pool of talent that will provide a guaranteed supply of highly qualified people
Provide for management succession
Rely primarily on growth from within, while recognizing the need to bring in fresh blood from time to time
Identify those with talent and potential
Institute programmes to develop talent
Create a compelling employee value proposition
Develop the organization as an employer of choice
* Scale: 10 = high, 0 = low
ANALYSIS OF TALENT MANAGEMENT GOALS
Learning and development goals Importance* Effectiveness*
Create human capital advantage by ensuring that the organization has more skilled and competent people than its competitors
Extend the skills base of the organization
Improve individual, team and organizational performance
Attract and retain high-quality people by offering them learning and development opportunities
Improve organizational flexibility by multi-skilling
Provide additional non-financial reward to people in the form of growth and career opportunities
Reduce the length of learning curves to minimize learning costs
Ensure that talented people are developed to achieve their maximum potential
Provide line managers with the skills required to lead and develop their people
* Scale: 10 = high, 0 = low
ANALYSIS OF LEARNING AND DEVELOPMENT GOALS
Reward management goals Importance* Effectiveness*
Reinforce the achievement of organizational goals
Improve individual, team and organizational performance
Recruit and retain high-calibre staff
Facilitate staff mobility
Achieve strong relationship between pay and performance
Reinforce organizational values
Motivate and engage employees
Cost effective
Well-communicated and understood by employees
Managed effectively by line managers
* Scale: 10 = high, 0 = low
ANALYSIS OF REWARD MANAGEMENT GOALS
Employee relations goals Importance* Effectiveness*
Build stable and cooperative relationships with employees and, where present, their trade unions
Operate on a partnership basis with trade unions
Achieve engagement through employee involvement and communication processes
Minimize conflict with employees and their unions
Adopt a high-commitment approach to develop mutuality
Maintain bargaining structures and negotiating procedures that enable agreements to be reached smoothly
* Scale: 10 = high, 0 = low
ANALYSIS OF EMPLOYEE RELATIONS GOALS
Summary of HR strategy
Business case Timing Responsibility for
1.
2.
3.
4.
5.
6.
PRIORITIZATION OF HR STRATEGIES
STRATEGIC HRM GUIDELINES
• Be clear on what has to be achieved and why
• Ensure that what you do fits the business strategy, culture andcircumstances of the organization
• Aim for continuous improvement – evolution not revolution• Don’t follow fashion – do your own thing• Keep it simple – over-complexity is a common reason for failure• Don’t rush – it takes longer than you think• Assess resource requirements and costs• Manage change – involve, communicate and train
Contact: 9874042424Email: sujoychowdhury1@gmail.com