ROLE OF STRATEGY IN HUMAN RESOURCE MANAGEMENT........

1. ROLE OF
STRATEGIC
MANAGEMENT
IN
HUMAN RESOURCE
MANAGEMENT
MBAO 6030 Human Resource Strategy

2. WHAT IS STRATEGY?
The Meaning of “Strategy”
 Plans that involve the top executives and/or
board of directors of the firm
 A general framework that provides a perspective
for selecting specific policies and procedures.
 A factor that contributes to Competitive
Advantage in markets
 Having a long-term focus
 A critical factor that affects Firm Performance

3. Human resource strategy involves
the planned and effective use of human resources
in order to get an edge over the competitors.
n The use of planning in human resource management.
n An integral approach to the design and implementation
of HR systems.
n Matching HRM policies and activities with the business
strategy of the organization.
n Viewing people as a strategic resource for the
achievement of competitive advantage.

4. HR Strategy: Strategic Fit
Corporate Strategy
Business Strategy
HR Strategy
HR System Training Rewards
(Performance Mgmt.)
MBAO 6030 Human Resource Strategy

5. HR Strategy: HR System Internal Fit
HR Strategy
Goal Setting
Appeal Performance
Measurement
Coaching
Rewards Performance Evaluation
Performance Management System

6. STRATEGY IN HUMAN RESOURCE
MANAGEMENT describes the
vision,
 mission
 goals of the HRM Function in the organization.
The HRM Strategy describes the final and
desired state of the HRM Function. The HRM
Employees use the HRM Strategy as the basis for the
goal setting process within the HRM Function to
navigate their own performance the right direction.

7. External environment Pans regulating
Competition employee
Gov policy
Technology
Market trends
HR strategies
HR Procurement OUTCOMES
planning Development Increased
CORPORATE BUSINESS
Design of Performance
STRATEGY STRATEGY performance
jobs management Customer
What Compensation Satisfaction
workers do Labor Employee
Internal environment
What workers relations
Culture satisfaction
need
Structure
Policies
Past strategy
HRIS

8. Strategic management plays an important
role in different aspects of Human Resource
management.
1.HR PLANNING
2.STAFFING-RECRUITMENT & SELECTION
3.TRAINING & DEVELOPMENT
4.PERFORMANCE APPRAISAL
5.COMPENSATION & REWARDS

9. 1. HR PLANNING-Prevents overstaffing and understaffing.
 Ensures the organization has the right number of employees
with the right skills in the right places and at the right time.
 Ensures the organization is responsive to changes in its
environment.
 Provides direction and coherence to all HR activities and
systems.
 Facilitates leadership continuity through succession planning.
HR planning follows from the strategic
plan, the information collected in the HR planning
process contributes to the assessment of internal
organization’s environment done in strategic planning.

10. 2.STAFFING- The process of recruiting applicants and
selecting prospective employees, remains a key
strategic area for human resource strategy.
An organisation’s performance is a direct
result of the individuals it employs, the specific
strategies used and decisions made in the staffing
process will directly impact the success of the
strategic plan.
i. Recruitment & Selection
ii. Placement

11. An effective staffing strategy requires in depth planning for the
recruiting process to ensure efficiency and generation of a qualified
applicant pool. The strategic decisions organizations need to make
relative to staffing are summarized below:

12. 3. Training and Development- Training and development
of employees is a key strategic issue for organizations.
Training involves employees acquiring knowledge and skills
that they will be able to use on the job.
 There are two key factors to develop successful
training programmes in organizations. The first is
planning and strategizing the training. This
involves four distinct steps:
• Needs assessment
• The establishment of objectives and measures
• Delivery of the training
• Evaluation
The second key factor is to ensure that desired results are
achieved or accomplished. Training needs are to be
integrated with performance management systems and
compensation.

13. FOR EX.
INFOSYS WHICH IS A
KNOWLEDGE BASED IT BUSINESS ALWAYS
REQUIRES ITS HUMAN RESOURCE TO BE
TO BE HIGHLY SKILLED
TO BE COMPETENT
EASILY ADAPTING TO CAHANGING WORK
SITUATIONS
TO BE WELL INFORMED

14. INFOSYS HAS GAINED ITS MOTIVE OF
SMART WORKFORCE THROUGH ITS WELL
ORGANISED TRAINING ACTIVITY.
THE MOTTO OF INFOSYS TRAINING PROGRAM IS
“LEARN ONCE, USE ANYWHERE”
OBJECTIVE IS TO NURTURE A LARGE
NUMBER OF HIGH QUALITY LEADERS WITH A
GLOBAL PERSPECTIVE.

15. THE TRAINING SPECTRUM INCLUDE
SOFTWARE DEVELOPMENT
MANAGERIAL SKILLS
SOTWARE SKILLS
LEADERSHIP & DOMAIN SPECIFIC TRAINING
TRAINING IS PROVIDED AT THREE LEVELS
ENTRY LEVEL
LATERAL LEVEL
LEADERSHIP TRAINING(Infosys Leadership Institute)

16. ENTRY LEVEL→ An employee who joins at the
entry level undergoes a 14-week comprehensive training
programme covering both technical and managerial
aspects.
LATERAL LEVEL→ A separate training
programs for lateral entrants. Using a blend of
presentations and interactive sessions, they are
introduced with the Infosys brand/culture. Task based
training takes place afterward.
LEADERSHIP TRAINING →Training in
leadership qualities is the third level programme.
Infosys Leadership Institute(ILI) in Mysore trains about
400 infoscions anually.

17. ILI RUNS SPECIAL PROGRAMMES ALSO
First time traveler training 3 day event with 6
modules i.e.→ Personal trait understanding
→ Culture & project elements appreciation
→ Customer interfacing
→ Communication skills
→ Corporate etiquette
→ Social Interfacing skills
Language training
Bon Voyage→ Training given to all its travelers at the
time of collecting tickets/passport, covers immigration
processes & tips on making ones way in a new country.

18. ILI CURENTLY HAS
78 Full time Faculty
More than 200 consultants
Top level management including Chairman &.
directors also conducts workshop.
Infosys spends around 4% of total wage bill on
training & delivers about 10% of the total training
through E-Learning Programs.

19. FIRM LEVEL COMPETITIVE STRATEGY
COST LEADERSHIP CUSTOMER INNOVATION
SATISFACTION
HR PEOPLE WORKING PEOPLE WORKING PEOPLE
COMPETITIVE HARDER SMARTER WORKINH WITH
OBJECTIVES VISION
HR STREAMLINE EDUCATE LINE DEFINE VISION
DECISIONS STANDARDIZE MANAGERS & ATTRACT
AND DECREASE OTHER CLIENTS CREATIVE
ACTIONS PRODUCTION DELEGATE TALENT
TIME DECISIONS REWARD RISK
REDUCE COSTS INCREASE PROVIDE
FLEXIBILITY OPPORTUNITIES
& TOOLS FOR
EXPLORATION

20. 4.PERFORMANCE APPRAISAL- An organization’s
long-term success in meeting its strategic objectives relies on
managing employee performance and ensuring that performance
measures are consistent with the strategic needs.
One purpose of performance appraisal systems is to facilitate
employee development.
 A second purpose is to determine appropriate rewards
and compensation, which must be clearly linked to achievement
of strategic goals.

21. FOR Ex.:- PHILIPS TAKE A FIVE-POINT SCALE
TO MEASURE THE POTENTIAL OF AN EMPLOYEE AND
PUT THEM IN ONE OF THE QUADRANTS.
P HIGH PROBLEM STARS
O CHILDREN
T C D
E
N
A B
T
I PLANNED SOLID
A SEPERATION CITIZENS
L LOW HIGH
PERFORMANCE

22.  Low potential-Low performance- Employees under
this criteria are asked to improve their performance
initially. If that effort fails, Philips works towards a
planned separation.
 Low potential-High performance-Defined as solid
citizens-high skills but limited capability to grow
beyond their current job profile.
 Low performance-High potential-Problem children
do well in their jobs if a location, boss or job profile
is changed. If they continue to perform less, the
separation process is initiated.
 High performance-High potential-Are like star
performers. And are given challenging tasks
constantly.

23. The appraisal criteria considers the following
features:-
 Conceptual Effectiveness-
Vision
Business orientation
Sense of Reality
 Interpersonal Effectiveness-
Negotiating power
Personal influence
Verbal Behavior

24.  Operational Effectiveness
Result orientation
Individual effectiveness
Risk taking control
 Achievement Motivation-
Professional ambition
Innovativeness
Stability
Philips lays down a fast track, career growth plan for the
star performers. Separates the star performers from the
employees ranks & exploit their potential fully using rewards
& incentive schemes.

26. 5.COMPENSATION & REWARDS
Organizations face a number of key strategic issues in
setting their compensation and reward policies and
programmes. These include:
 Compensation relative to the market
 Balance between fixed and variable compensation
 Appropriate mix of financial and non financial compensation
 Developing an overall cost-effective compensation
programme that results in high performance.

27. HR Strategy: Context of HR System
1. The “Five Factors” Influencing the HR System
 External Environment
 Social: social values, roles, trends, etc.
 Political: political forces, changes. Ex. Bush
presidency and its agenda for Social Security.
 Legal: laws, court decisions, regulatory rules.
 Economic: product, labor, capital, factor markets.

28. 2. The Workforce
3. Organization Culture
 Weak vs. Strong culture
 “Type” of culture
4. Organization Strategy
 What are a firm’s distinctive competencies?
 What is the basis that competitive strategy be
sustained?
 What are a firm’s strategic objectives?
 Compare corporate and Business strategies.

29. 1. Technology of Production & Organization of
Work
 Required employee skills
 Ease of monitoring employees’ input

30. MBAO 6030 Human Resource Strategy