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SkimaTalk Official Course

HRM1 – Strategic Human Resource Management Lesson 1: Introduction to Strategic HRM

Introduction to Strategic HRM

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HRM 1: Strategic Human Resource Management

Lesson 1: Introduction to Strategic HRM

Lesson 2: Becoming a Strategic Partner

Lesson 3: Becoming an Administrative Expert

Lesson 4: Becoming an Employee Champion

Lesson 5: Becoming a Change Agent

HRM 2: Staffing

HRM 3: Talent Management

HRM 4: Compensation

HRM 5: Employee Relations and Communication

Coming Soon!

Coming Soon!

Coming Soon!

Coming Soon!

Key Vocabulary / Concepts

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Become familiar with the following words before this lesson’s case study

Strategic HRM

HRM = Human Resource Management “Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices.” *

Performance appraisal System of review and evaluation of individual or team performance.

HR professionals Individuals who deal with human resource matters.

Stakeholders A person or group that has an investment, share, or interest in something.

Line managers Individuals directly involved in accomplishing the primary goals of an organization.

David Ulrich The human resource management guru who has influenced HRM thinking.

Takeaway A key fact, point, or idea to be remembered.

* Source: Michael Armstrong “Strategic Human Resource Management”

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Case Study �

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Case Study: New Human Resource Management System Project

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Do you think this project is successful? Why or why not? �Q1 �

You are the director of human resources for one of the world’s biggest chains of fast food restaurants, ABC Corporation. One of ABC Corporation’s HR issues was a lack of capable regional managers. Two years ago, you were assigned as the leader of a task force whose goal was to create a system that helps train current managers and identifies employees who can become future regional managers. After speaking with consulting firms, the task force decided to implement a new company-wide performance management and appraisal system. The task force has delivered the following results: •  Successfully convinced key management team members to support

the project. •  The project was completed one month earlier than scheduled. •  More than 95% of employees now understand the importance of the

new system.

Case Study (continued)

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What were the new system’s issues? What could have been done differently? �Q2 �

ABC Corporation is famous for operational excellency in offering low-priced foods, so the new evaluation system put emphasis on cost reduction. As a result, managers and future managers began working harder to find solutions that could reduce cost and expense. However, as the economy improved, people’s demands have shifted from low-priced goods to high-quality goods. The shift has negatively impacted the company. Sales have decreased and the company has started to lose money. The new HRM system actually worsened the situation, due to the following issues: •  The system was rigid and couldn’t adapt quickly in response to a

change in market conditions. •  The system focused managers’ attention on cost reduction, not

customers. The system was also time consuming, further reducing the amount of time spent with customers.

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Discussion�

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The Role of HR Professionals

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HR guru David Ulrich believes HR professionals should play a strategic role (as outlined in the chart below), rather than focusing on more traditional administrative work.

* Source: David Ulrich “Human Resource Champions”

Strategic Partner Aligning HR and business strategy

Change Agent Managing transformation and change

Administrative Expert Reengineering organization processes

Employee Champion Listening and responding to employees

Do you agree or disagree with David Ulrich’s beliefs about the role of HR professionals in a competitive organization? Why or why not? �Q

HR Roles in Building a Competitive Organization (By David Ulrich)*

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Takeaways�

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Takeaways From This Lesson

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ü  Strategic HRM is an approach that defines how an organization’s goals will be achieved through people.

ü  The goal of HR professionals should be to contribute to an organization’s business success.

ü  Under Strategic HRM, four important roles for HR professionals are: “Strategic Partner”, “Administrative Expert”, “Employee Champion”, and “Change Agent.”

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End of Lesson We Hope You Enjoyed It!