hrm obj & challenges. shrm
TRANSCRIPT
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Def. ContDef. Cont
HRM functional definition Is a set of interrelated functions and processes whose
goal is to attract, socialize, motivate, maintain, andretain an organizations employees (Belcourt et al.,2002)
HRM goal-based definition aims to improve the productive contribution of
individuals while simultaneously attempting to attainother societal and individual employee objectives(Schwind et al., 2002)
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HRM serves 3 primary constituencies:
The organization
Society
Individual employees
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HRM OrganizationalHRM Organizational
ObjectivesObjectives Primary objective of HRM is to contribute to
organizational effectiveness
HRM is not an end in itself
Its role is to help the organization achieve its primaryobjectives
E.g., through selection, training, managing H&S
Influenced by many factors
Industry characteristics, organizations product orservice, organizations competitive strategy, etc.
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HRM Societal Obj
ectiv
esHRM So
cietal Obj
ectiv
es
HRM must be socially responsible
Meet the needs and challenges of society
Narrowly - legal compliance
Broadly - concern with human rights, socialresponsibility, etc.
Can be challenging when social concernsconflict with organizational goals
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HRM Employee
Objec
tive
sHRM Employee
Objec
tive
s Assist employees in achieving personal goals
Short-term performance goals and long-term career
goals
Can be challenging to balance individual and
organizational goals
E.g., when training results in employees developing
skills that are attractive to other organizations
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TheT
he
HRMHRM Profe
ssionalProfe
ssional Major competencies:
Business mastery
Strategy, financial realities, customer orientation
Mastery of HRM tools
Staffing, training, compensation, etc.
Change masteryPersonal credibility
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Strategic
HRMStrate
gic
HRM
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Common Misconceptions aboutCommon Misconceptions about
HRHR HR is primarily an administrative function
HR has little strategic importance and doesnot represent a potential source of anorganizations competitive advantage
HR is a cost centre its activities add toan organizations expenses/costs but not torevenue generation
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Overcoming theseOvercoming these
MisconceptionsMisconceptions HR can and indeed should play a key role in
an organizations strategy
There is increasing evidence that HR activities areassociated with various indicators oforganizational performance (e.g., ROI,profitability, stock prices)
$ put toward HR systems and activities should beviewed as investment rather than simply cost
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What is Strate
gic
HRM?What is Strate
gic
HRM?Strategic HRM
Integration of HRM systems to theoverall mission, strategy, and success ofthe firm, while meeting the needs ofemployees and other stakeholders
The intentional use of HR systems to helpan organization gain competitiveadvantage
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Guiding Logi
cofSHRM
Guiding Logi
cofSHRM
HRM practices must develop employees skills,
knowledge, and motivation such that employees
behave in ways that are instrumental to theimplementation of a particular strategy (Bowen &Ostroff, 2004)
Contingency Perspective Effectiveness of HRM system depends on contextual
factors such as industry type, firm size, etc.
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Steps in Strat
egic
HRMSteps in Strat
egic
HRM1. Environmental Analysis
2. Organizational Mission and Goals Analysis
3. Analysis of Organizational Strengths and Culture
4. Analysis of Organizational Strategies
5. Choice and Implementation of HR Strategies
6. Review and Evaluation of HR Strategies
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Aligning HR and OrganizationalAligning HR and Organizational
StrategyStrategy Use Porters strategies for illustration
Cost Leadership
Tight cost control, production efficiency, products
designed for ease of manufacture, intense supervisionof labour
Differentiation
Emphasis on marketing, product engineering, R&D,quality, technological innovation
Focus
Combination of cost leadership and differentiation
directed a market segment
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Example ofAligning HRExample ofAligning HR
and Organizational Strategyand Organizational Strategy Cost Leadership
Tight cost control
Production efficiency
Products designed for
ease of manufacture
Intense supervision of
labour
HRStrategies
Clear job descriptions
Detailed work planning
Emphasis on technical
skills
Job-specific training
Job-based pay
Performance
evaluations for control
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Example ofAligning HRExample ofAligning HR
and Organizational Strategyand Organizational Strategy Differentiation
Emphasis on marketing
Product engineering
R&D
Focus on quality
Technological
innovation
Highly skilled labour
HRStrategies
Emphasis on innovation and
flexibility
Broad job classes
Loose work planning
Focus on recruitment,
careful selection
Team-based training Individual (skill)-based pay
Performance evaluations for
development
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Outcom
es o
fStrat
egic
HRMOutcom
es o
fStrat
egic
HRM When you align HR with organizational
strategy, youll see growth in commitment,
improved financial results, and find yourself
better able to attract and retain the right
people.