Strategic HRM {HR}
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Transcript of Strategic HRM {HR}
Strategic HRMStrategic HRM
Strategic HRMStrategic HRM
The role of SHRM is to see that human resource issues are taken into account when an organization develops its business strategy – and that that strategy then derives the development of human resources practices within the firm
The Traditional HRMThe Traditional HRM
The traditional role of HR is essentially functional and revolves around-
Human Resource planning Recruiting of staff Job analysis Performance review Wages, salary and benefits administration Employee training Personnel administration Legislative compliance Labor relations
Traditional HRMTraditional HRM
H R M
StaffingPayTraining Etc
RESEARCH &DEVELOPMENT
PRODUCTION
FINANCE
MARKETING
Strategic HRMStrategic HRM
Strategic Goals
Marketing Production
H R M
R & D
Finance
The Roles of SHRMThe Roles of SHRM
Strategic RoleInformational and Problem Solving RoleStrategic Functional RoleAdministrative RoleChange Management Role
Strategic RoleStrategic Role
HR Participates in business decisionsHR translates corporate strategy into
human resource strategyHR helps managers create valueHR helps employees satisfy customers’
needs
Informational and PS roleInformational and PS role
HR provides information and expertise on best practices in other companies
HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions
HR diagnoses and recommends solutions to problems arising in employment relations
Strategic Functional roleStrategic Functional role
HR helps select employees to fit both strategy and culture
HR assists in designing and implementing performance planning and appraisal systems
HR assists in designing and implementing motivation and reward systems
HR assists in designing benefits to complement strategy
HR assists in designing and implementing development and career management systems
HR helps enable all executives to perform critical, strategic HR functions
Administrative roleAdministrative role
HR assists in designing and improving personnel administrative systems
HR does much of the necessary administrative work involved in employment, legal compliance and record keeping
Change Management roleChange Management role
HR calls attention to the management process and its impact on organizational success or failure
HR helps design / redesign the organizationHR facilitates change that is consistent with
the underlying values of the companyHR facilitates wide ranging organizational
changeHR implements employee involvement and
relations systemsHR maximizes the value of work force
diversity
Differences between Traditional Differences between Traditional and SHRMand SHRM
Strategic roles Traditional HRM Strategic HRMImportant relations Labor-management Int
and ext customersNature of HR initiatives Reactive and piecemeal Proactive/
integratedImp of corp plan Marginal Central Speed of DM Slow FastPlanning time horizon Short Term S/ M/ L as
neededInformational rolesNature of communicationprocess Indirect DirectLevel of communicationRestricted HighSources of communication Mainly internal and Wide-
ranging as hierarchical needed
Differences between Traditional Differences between Traditional and SHRMand SHRM
Administrative roles Traditional HRM Strategic HRM
Importance and nature carefully written contracts unnecessary
of contracts contracts needed usually going beyond
formal contractsImportance of rules Clear rules essential Getting job
done
paramountKey guide to management Policies and procedures
Whatever is needed actions for
business success
Differences between Traditional Differences between Traditional and SHRMand SHRM
Functional roles Traditional HRMStrategic HRM
Selection Separated from business Integrated with
strategy and of marginal business strategy
importance a key task of HRPay Job based relatively fixed
Performance basedand flexible
Working conditions Separately negotiated In harmony with
strategy and orgculture
Labor-Mgmt relationsCollective bargaining Individual contracts
adversarial in nature cooperative natureJob categories Many Few
Differences between Traditional Differences between Traditional and SHRMand SHRM
Functional roles Traditional HRMStrategic HRM
Job design Tightly defined Broadly defined
division of labor focused on team
work
T & D Specialized, with More generalized
tightly controlled with development
access to training of a learning orgn
Change Management rolesHR management’s role Transactional, change
Transformationalfollower change
leaderDealing with conflict Temp control,minimize Manage
climate andspecific conflicts culture
broadly
Differences between Traditional Differences between Traditional and SHRMand SHRM
Change Management roles Traditional HRMStrategic HRM
Nature of HR interventions Focused on procedures Wide-ranging and
culturalImportant frames of ref Norms and traditional
Strategic valuesto guide action customs and
mission
Key HR skillsKey HR skills
Traditional HRM Strategic HRMSpecialist GeneralistA good policy and procedure writer A good
communicatorCurrent focus Current and future focusMonolingual( speaks “HR – ese”) Speaks language of
businessManagement-hierarchy focused Customer focused , good
customer relations skillsFew financial/ marketing skills Understanding these aspects
of the businessFocused on the internal organization Focused on the
internal orgnand the broader society
Factual communicator PersuaderA nationalist An internationalist
Reasons for slower / lesser Reasons for slower / lesser transformation to SHRMtransformation to SHRM
Non existence of a competent and persistent SHRM champion
Political forces with competing coalitions with different self interests may preclude adoption of SHRM
Firms experiencing stressful business conditionsThe Vicious cycle
Vicious cycleVicious cycle
HR dept managers not involved in theStrategic planning process due tosr mgmt preference and tradition
Mgmt has poor perception ofRole and competencies of HRAnd its ability to contribute toStrategic biz initiatives
Although HR not involved in Strategy formulation, it isExpected to implement keyAspects of biz strategy
No perceived alignment betHR activities and biz strategy
Significant problems in Implementing strategy Related to HR issues
Successful transformation to Successful transformation to SHRMSHRM
Integration of HR within the strategic planning process
Development of a partnership between HR and other members of the organization
Linkage of HR activities to business strategy and core cultural values of the organization
Restructuring the HR department to ensure success of all the above
IntegrationIntegration
A strategic planning process occurs in an orgnHR managers play an important role in that
processThe strategic planning process, with significant
HR input, should establish an identifiable strategic direction for the organization along with appropriate goals and objectives
This planning process should also identify a set of organizational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives
For full integration, HR managers must have both process control( ability to influence the development and selection of information used in making a decision) and decision control( ability to make or influence the decision itself)
PartnershipPartnership
To become a business partner, HR must1. Learn the firm’s business2. Be more responsive to and aware of the
organization’s needs and direction3. Shift away from traditional HR functions4. Become more involved in supportive,
collaborative relationship with managers throughout the organization
5. Demonstrate the criticality of HR to the success of the business
LinkageLinkage
Linkage of HR practices to overall business strategy
Interrelationship among HR activities
Restructuring HRRestructuring HR
Decentralized service teams to focus on defining and managing needed activities in specific business units
Executive HR services to address the unique needs of developing managerial talent within the organization
Centralized HR services used to gain cost efficiencies in the provision of basic company wide activities e.g compensation, professional recruiting and HRIS data bases
HR Strategy
• Strategies for HR flow out of the overall business plans / strategy and mainly focus on individual activities of staffing, C&B, performance management, career panning, T& D etc
• The focus in the HR strategy is to do the individual activities better and more efficiently to contribute towards the organisation’s goals.
Strategic HR Vs HR Strategy
Strategic HR HR Strategy• Organisation Building Organisation survival
and renewal and growth• Core competencies Individual activities• Holistic approach Piecemeal approach• Focus on processes Focus on results• Core Value of the Orgn Derivative
Strategic HR Vs HR Strategy
Strategic HR HR Strategy• Emphasis on Creation Emphasis on change/
of culture,values,systems adaptation of culture,
values, systems
• Proactive / Learning Reactive / Training• Result is the development Results are more
of organisation’s core efficient HR
competencies processes
Strategic HR Vs HR StrategyStrategic HR HR Strategy
• Purpose Translate business Build a HR strategy
strategies to orgn orgn and action plan
capabilities and then focussed on making HR fn into HR practices or dept more effective
• Owner Line managers HR executives
• Measures Business results thro Effectiveness and effy
use of HR practices of HR practices
• Audience Mgrs who use HR for HR prof who design and
business results deliver HR practices
Emp affected by HR Line mgrs who use HR
practices practices
Strategic HR Vs HR StrategyStrategic HR HR Strategy
• Audience customers who receive
benefits of effective
organisations
Investors who reap
rewards of orgn cap
• Roles Line mgr as owner Line mgr as investor
HR professional as HR professional as
facilitator creator