Lecture 4

Strategic HRM

• Concept of Strategic HRM

• Aims of strategic HRM

• Soft and Hard HRM

• 5 approaches to Strategic HRM

Group 1 Presentation

Stages of the evolution of strategy and HRM integration

• Administrative Linkage

• One way linkage

• Two way linkage

• Integrative linkage

Limitations to the concept!!

Traditional and Strategic HR

Challenges in implementing SHRM System

Ongoing Challenges in SHRM

Types of HR Strategies

2. Specific HR Strategies

• talent management

• Continuous improvement

• Capturing, sharing and using knowledge to enhance learning and performance;

• Resourcing

HRM Strategy • The biggest challenge will be to maintain [our] competitive

advantage and to do that we need to maintain and continue to attract very high caliber people. The key differentiator on anything any company does is fundamentally the people, and I think that people tend to forget that they are the most important asset. Money is easy to get hold of; good people are not. All we do in terms of training and manpower planning is directly linked to business improvement.

HRM Strategy

1. Reward and recognition: use recognition and reward programmes to stimulate outstanding team and individual performance contributions.

2. Talent management: drive the attraction, retention and professional growth of a deep pool of diverse, talented employees.

3. Organizational effectiveness: ensure that the business adapts its organization to maximize employee contribution and deliver performance goals.

Formulating and Implementing Strategies

• Intentions and Implementation plan

• Evolution process of HR Strategies

• Role of managers in strategy formulation.

• Role of top management and staff

Schools of strategy development

1. The Design School2. The Process School3. The Configuration School

Levels of strategic decision making

1. Upstream first-order decisions

2. Downstream second-order decisions

3. Downstream third-order decisions

Developing HR Strategies

Build Support

Image the future

Understand capabilities and gap

Create a map of system

Model the dynamics of system

Bridge into action

Specific approaches to strategy development

Best Practice

Best Fit

Bundling Approach

Criticism