STRATEGIC

HUMAN RESOURCE MANAGEMENT

SIBM

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Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Involves development of consistent, Involves development of consistent, alignedaligned collection of collection of practices, programs, and policies to facilitate achievement practices, programs, and policies to facilitate achievement of strategic objectivesof strategic objectives

• Requires abandoning mindset and practices of “personnel Requires abandoning mindset and practices of “personnel management,” and focusing on strategic issues, rather than management,” and focusing on strategic issues, rather than solely on operational issuessolely on operational issues

• Integration of all HR programs within larger framework, Integration of all HR programs within larger framework, facilitating mission and objectivesfacilitating mission and objectives

• Writing down strategy facilitates involvement and buy-in Writing down strategy facilitates involvement and buy-in of senior executives and other employeesof senior executives and other employees

• Involves development of consistent, Involves development of consistent, alignedaligned collection of collection of practices, programs, and policies to facilitate achievement practices, programs, and policies to facilitate achievement of strategic objectivesof strategic objectives

• Requires abandoning mindset and practices of “personnel Requires abandoning mindset and practices of “personnel management,” and focusing on strategic issues, rather than management,” and focusing on strategic issues, rather than solely on operational issuessolely on operational issues

• Integration of all HR programs within larger framework, Integration of all HR programs within larger framework, facilitating mission and objectivesfacilitating mission and objectives

• Writing down strategy facilitates involvement and buy-in Writing down strategy facilitates involvement and buy-in of senior executives and other employeesof senior executives and other employees

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Exhibit 4-1 (Ulrich, 1997)Exhibit 4-1 (Ulrich, 1997)

Possible Roles Assumed by HR Possible Roles Assumed by HR FunctionFunction

Exhibit 4-1 (Ulrich, 1997)Exhibit 4-1 (Ulrich, 1997)

Possible Roles Assumed by HR Possible Roles Assumed by HR FunctionFunction

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HR Roles in Knowledge-Based HR Roles in Knowledge-Based EconomyEconomy

HR Roles in Knowledge-Based HR Roles in Knowledge-Based EconomyEconomy

• Human capital stewardHuman capital steward– Creates an environment and culture in which employees Creates an environment and culture in which employees

voluntarily contribute skills, ideas, and energyvoluntarily contribute skills, ideas, and energy– Human capital is not “owned” by organizationHuman capital is not “owned” by organization

• Knowledge facilitatorKnowledge facilitator– Procures necessary employee knowledge and skill sets that Procures necessary employee knowledge and skill sets that

allow information to be acquired, developed, and allow information to be acquired, developed, and disseminateddisseminated

– Provides a competitive advantage Provides a competitive advantage – Must be part of strategically designed employee Must be part of strategically designed employee

development plandevelopment plan

• Human capital stewardHuman capital steward– Creates an environment and culture in which employees Creates an environment and culture in which employees

voluntarily contribute skills, ideas, and energyvoluntarily contribute skills, ideas, and energy– Human capital is not “owned” by organizationHuman capital is not “owned” by organization

• Knowledge facilitatorKnowledge facilitator– Procures necessary employee knowledge and skill sets that Procures necessary employee knowledge and skill sets that

allow information to be acquired, developed, and allow information to be acquired, developed, and disseminateddisseminated

– Provides a competitive advantage Provides a competitive advantage – Must be part of strategically designed employee Must be part of strategically designed employee

development plandevelopment plan

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HR Roles in Knowledge-Based HR Roles in Knowledge-Based EconomyEconomy

HR Roles in Knowledge-Based HR Roles in Knowledge-Based EconomyEconomy

• Relationship builderRelationship builder– Develops structure, work practices, and culture that Develops structure, work practices, and culture that

allow individuals to work togetherallow individuals to work together– Develops networks that focus on strategic Develops networks that focus on strategic

objectivesobjectives

• Rapid deployment specialistRapid deployment specialist– Creates fluid and adaptable structure and systemsCreates fluid and adaptable structure and systems– Global, knowledge-based economy mandates Global, knowledge-based economy mandates

flexibility and culture that embraces changeflexibility and culture that embraces change

• Relationship builderRelationship builder– Develops structure, work practices, and culture that Develops structure, work practices, and culture that

allow individuals to work togetherallow individuals to work together– Develops networks that focus on strategic Develops networks that focus on strategic

objectivesobjectives

• Rapid deployment specialistRapid deployment specialist– Creates fluid and adaptable structure and systemsCreates fluid and adaptable structure and systems– Global, knowledge-based economy mandates Global, knowledge-based economy mandates

flexibility and culture that embraces changeflexibility and culture that embraces change

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SHRM Critical CompetenciesSHRM Critical CompetenciesSHRM Critical CompetenciesSHRM Critical Competencies

• HR’s success as true strategic business partner HR’s success as true strategic business partner dependent on dependent on fivefive specific competencies: specific competencies:

– Strategic contribution - development of strategyStrategic contribution - development of strategy– Business knowledge - understanding nuts and bolts of Business knowledge - understanding nuts and bolts of

organizationorganization– Personal credibility - measurable value demonstrated in Personal credibility - measurable value demonstrated in

programs and policiesprograms and policies– HR delivery - serving internal customers through effective HR delivery - serving internal customers through effective

and efficient programsand efficient programs– HR technology - using technology to improve organization’s HR technology - using technology to improve organization’s

management of peoplemanagement of people

• HR’s success as true strategic business partner HR’s success as true strategic business partner dependent on dependent on fivefive specific competencies: specific competencies:

– Strategic contribution - development of strategyStrategic contribution - development of strategy– Business knowledge - understanding nuts and bolts of Business knowledge - understanding nuts and bolts of

organizationorganization– Personal credibility - measurable value demonstrated in Personal credibility - measurable value demonstrated in

programs and policiesprograms and policies– HR delivery - serving internal customers through effective HR delivery - serving internal customers through effective

and efficient programsand efficient programs– HR technology - using technology to improve organization’s HR technology - using technology to improve organization’s

management of peoplemanagement of people

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Exhibit 4-5Exhibit 4-5

Traditional HR Versus Strategic HRTraditional HR Versus Strategic HRExhibit 4-5Exhibit 4-5

Traditional HR Versus Strategic HRTraditional HR Versus Strategic HR

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Barriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HRBarriers to Strategic HR

• Short-term mentality/focus on current performanceShort-term mentality/focus on current performance• Inability of HR to think strategicallyInability of HR to think strategically• Lack of appreciation for what HR can contributeLack of appreciation for what HR can contribute• Failure to understand line managers’ role as an HR Failure to understand line managers’ role as an HR

managermanager• Difficulty in quantifying many HR outcomesDifficulty in quantifying many HR outcomes• Perception of human assets as higher-risk Perception of human assets as higher-risk

investmentsinvestments• ““Incentives” for changes that might ariseIncentives” for changes that might arise

• Short-term mentality/focus on current performanceShort-term mentality/focus on current performance• Inability of HR to think strategicallyInability of HR to think strategically• Lack of appreciation for what HR can contributeLack of appreciation for what HR can contribute• Failure to understand line managers’ role as an HR Failure to understand line managers’ role as an HR

managermanager• Difficulty in quantifying many HR outcomesDifficulty in quantifying many HR outcomes• Perception of human assets as higher-risk Perception of human assets as higher-risk

investmentsinvestments• ““Incentives” for changes that might ariseIncentives” for changes that might arise

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Exhibit 4-8Exhibit 4-8

Model of Strategic HR ManagementModel of Strategic HR ManagementExhibit 4-8Exhibit 4-8

Model of Strategic HR ManagementModel of Strategic HR Management