strategic hrm
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STRATEGIC HRM
Mr. Asaad Ali Karam (M.B.A) & Studying PhD Business Management
Listen to This Video About HRM
Introduction
A strategy: Indicates what an organization's key executives hope to
accomplish in the long run Is concerned with competition and aligning the resources
of the firm
Good HR strategy results in a fit between organizational strategy and HRM policies and programs Recruitment, selection, outsourcing, telecommuting,
performance evaluation, compensation
Strategic human resource management formulating and executing HR systems that produce the employee
competencies and behaviors the company needs to achieve its strategic aims
Taking a strategic HRM approach means: Making human resources management a top priority Integrating HRM with the company’s strategy, mission, and goals
HRM can make significant contributions if included in the strategic planning process from the outset The strategic management process helps determine:
What must be done to achieve priority objectives How they will be achieved
Strategic HRM: A Key to Success
Three levels of strategy apply to HRM activities: Strategic (long term) Managerial (medium term) Operational (short term)
The HRM activities are: Employee selection/placement Rewards Appraisal Development
Strategic HRM planning leads to: Growth Profits Survival
Planning also: Expands awareness of possibilities Identifies strengths and weaknesses Reveals opportunities Points to the need to evaluate the impact of internal and
external forces
Strategic HRM: A Key to Success
Traditional HR vs. Strategic HR
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investmentsAccountabilityResponsibility for HR
Traditional HR
Employee Relations
Transactional change follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies, procedures
Tight division of labor; independence, specialization
Capital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and external customers Transformational change leader and initiatorFast, proactive and integratedShort, medium and long (as required)Organic-flexible, whatever is necessary to succeedBroad, flexible, cross-training teams
People, knowledgeInvestment centreLine managers
Shifts in HR Management in India
Emerging HR practice
Strategic role
Proactive
Key part of organizational
mission
Service focus
Process-based organization
Cross-functional teams,
teamwork most important
People as key investments/assets
Traditional HR practice
Administrative role
Reactive
Separate, isolated from
company mission
Production focus
Functional organization
Individuals encouraged,
singled out for praise,
rewards
People as expenses
Linking Corporate and HR Strategies
Strategic Management Process
Environmental Scanning
Strategy FormulationCorporate levelBusiness unit levelFunctional level
Strategy Implementation
Strategy Evaluation
HR Role in Strategic Management
In strategy formulation HR manager supplies competitive intelligence that is
useful
In strategy implementation Encouraging proactive behavior Explicit communication goals Stimulate critical thinking Productivity Quality and Service Proficient strategic management
A Model to Organize HRM
ARDM means: Acquiring Rewarding Developing Maintaining and protecting
The goals of the ARDM model are: Socially responsible and ethical practices
The eventual success of any HRM activity is: The organization's employees are the best qualified They perform jobs that suit their needs, skills, and abilities
Matching people and activities in order to accomplish goals is easier with a diagnostic approach
A Model to Organize HRM
Taking a Diagnostic Approach to HRM
Taking a Diagnostic Approach to HRM
The ARDM model has four specific steps: Diagnosis Prescription Implementation Evaluation
Managers typically diagnose a work situation by observing and identifying key factors A prescription is then made to translate the diagnosis into
action Most human resource problems are too complex to have a
single correct prescription
Taking a Diagnostic Approach to HRM
Implementing a solution is the next step, followed by evaluation Evaluation tells managers whether improvement in the
ARDM process is needed If an organization teaches its members to focus on ARDM
plus the environment, it is likely to achieve: Socially responsible, ethical behaviors Competitive, high-quality products and services
The ARDM model calls for thorough, timely, and systematic review of each situation
External Environmental Influences
HRM processes are influenced by both the internal and external environments External influences include:
Government laws and regulations Union procedures and requirements Economic conditions The labor force
HR planning must operate within: Guidelines Limits of available resources Competencies
Economic Conditions
Two economic factors affect HRM programs: Productivity The work sector of the organization
Productivity is: An important part of a nation's economic condition Representative of an organization’s overall efficiency The output of goods and services per unit of input
(resources) used in a production process
Economic Conditions
Managers can influence productivity through sound HRM programs Diagnosis, prescription,
implementation, and evaluation Recruitment and selection Motivational and compensation
techniques Training and development
Internal Environmental Influences
HRM programs are influenced by: Strategy Goals Organizational culture Nature of the task Work groups The leader’s style and experience
Goals
Organizational goals differ within and among departments Most departments have similar goals Differences arise from the importance placed on the goals
In organizations where profits take precedence, HRM goals receive little attention This results in effectiveness problems (absenteeism,
performance decrements, high grievance rates)
Organization Culture
Organization Culture
A firm's organizational culture is shown by: The way it does business How it treats customers and employees The autonomy or freedom that exists in the departments
or offices The degree of loyalty expressed by employees
Organization Culture
Organization culture represents the perceptions held by the employees There is no one "best" culture for the development of
human resources
Culture can: Impact behavior, productivity, expectations Provide a benchmark for standards of performance
Work Group
An employee’s experiences are largely influenced by the work groupA group is two or more people who:
Consider themselves a group Work interdependently to accomplish a purpose Communicate and interact with one another on a
continuous basis In many cases, work next to each other
Leader’s Style and Experience
The experience and leadership style of the operating manager directly affects HRM activities Orchestrating the skills, experiences, personalities, and
motives of individuals Facilitating interaction within work groups Providing direction, encouragement, and authority to
evoke desired behaviors Reinforcing desirable behavior