1. Strategic Humana Resource
Management
Tola Kanta Neupane
Fourth Semester, Human Resource Management

2. Outline of the Presentation
 Employee relation strategy
 Performance management Strategy
 Process of performance management

3. Employee Relation Strategy
 Definition
“The intention of the organization
about what needs to be changed in the ways in
which the organization manages its relationship
with employees and their trade unions.”
 Employee relation strategies will flow from the
business strategy but will also aim to support it.

4. Concern of employee relation
strategy
 To build stable and cooperative relationship
with employees that minimize conflict
 To achieve commitment through employee
involvement and communication process.
 To develop mutuality- a common interest
achieving the organization‟s goals through the
development of organization cultures based on
shared values between management and
employees.

5. Approaches of the employee
relation strategy
 Adversarial strategy
 Traditional
 Partnership
 Power Sharing

6. Approaches of the employee
relation strategy
 Adversarial strategy
 the organization decides what it wants to do,
and employees are expected to fit in.
Employees only exercise power by refusing to
cooperate.
 Traditional
 Partnership
 Power Sharing

7. Approaches of the employee
relation strategy
 Adversarial strategy
 Traditional
a good day-to-day working relationship but
management proposes and the workforce reacts
through its elected representative
 Partnership
 Power Sharing

8. Approaches of the employee
relation strategy
 Adversarial strategy
 Traditional
 Partnership
 the organization involves employees in the drawing
up and execution of the organization policies, but
retains the right to manage.
 Power Sharing

9. Approaches of the employee
relation strategy
 Adversarial strategy
 Traditional
 Partnership
 Power Sharing
 employees are involved in both day-to-day and
strategic decision making.

10. The HRM approach to employee
relations
 A drive commitment :An emphasis on
mutuality
 Communication
 Shift from collective bargaining to individual
Contracts
 Total quality management
 Flexibility in working arrangements
 Emphasis on teamwork.

11. Policy options
 The new realism- a high emphasis on HRM
and industrial relations
 Traditional collectivism- priority to
industrial relations without HRM
 Individualized HRM- high priority to HRM
with no industrial relations
 The black hole- no industrial relations

12. Formulating Employee Relations
Strategy
 Partnership Agreements
 Employee voice strategy

13. Partnership Agreement
 An agreement in which both parties (management and
the trade union) agree to work together to their mutual
advantages and to achieve a climate of more
cooperative and therefore less adversarial industrial
relations.
 A partnership agreement may include undertakings
from both sides; for example management may offer
job security linked to productivity and union may agree
to new forms of work organization that might require
more flexibility on the part of employees.

14. Key values
Roscow and Casner Loto (1998):
 Mutual trust and respect
 A joint vision for the future and the means to achieve it
 Continuous exchange of information
 Recognition of the central role of collective bargaining
 Develop decision making
 Their research in United States indicates that, if these maters
were addressed successfully by the management and
unions, then companies could expect productivity gains,
quality improvement, a better motivated and committed
workforce and lower absenteeism and turnover rates.

15. Five paths of Creating employee
Relations
 Shared Goals- „understanding the business we are in‟
 Shared Culture- „agreed values binding us together
 Shared Learning- „continuously improving ourselves‟
 Shared efforts- „one business driven by flexibility‟
 Shared information- „effective communication
throughout the enterprise‟

16. Employee voice strategy
 “Employee voice is the term increasingly used to
cover a whole variety of process and structures which
enable, and sometimes empower employees, directly
and indirectly, to contribute to decision making in the
firm.” ( Boxall and Purcell (2003))
 “The ability of employees to influence the action of
the employer.” ( Millward et al, 2000)
 The concept covers the provision of opportunities for
employees to register discontent and modify the
power of management.

17. The Framework for employee voice
Shared Agenda
Direct Indirect
involvement involvement
Contested Agenda

18. High performance Strategy
 A high performance strategy sets out the intentions of the
organization on how it can achieve competitive
advantages by improving performance through people.
 High performance work system (HPWS) are composed of
practices that can facilitate employees involvement , skill
enhancement and motivation.
 Thompson and Heron(2005) defines High performance
work organization , which invest in the skills and abilities
of employees, design work in ways that enable employee
collaboration in problem solving, and provide incentives
to motivate workers to use their discretionary effort.

19. High performance work system
 Research conducted by Armitage and Keeble Allen
(2007) indicated that people management basis formed
the foundation of high –performance. They identified
three themes underpinning the HPWS concept:
 An open and creative culture that is people-centered and
inclusive, where decision taking is communicated and
shared through the organization;
 Investment in people through education and training,
loyalty inclusiveness and flexible working;
 Measurable performance outcomes such as benchmarking
and setting targets, as well as innovation through processes
and best practice.

20. Characteristics of high-performance
culture
• A clear line of sight exists between the strategic aims of the organization
and those of its departments and its staff of all level;
• People know what is expected of them – they understand their goals and
accountabilities;
• People feel that their job is worth doing , and there is a strong fit between
the job and their capabilities;
• People are empowered to examine their contribution;
• Management defines what it requires in the shape of performance
improvements, sets goals for success and monitors performance to ensure
that the goals are achieved;
• There is strong leadership from the top, which engenders a shared belief in
the importance of continuing improvement;

21. Contd.
• There is a focus on promoting positive attitudes that result in an
engaged, committed and motivated workforce;
• Performance management processes are aligned to business goals
to ensure that people are engaged in achieving agreed objectives
and standards;
• Capabilities of people are developed through learning at all levels
to support performance improvement and people are provided
with opportunities to make full use of their skills and abilities;
• A pool of talent ensures a continuous Supply of high performer s
in key roles;
• People are valued and rewarded according to their contribution;
• People are involved in developing high performance practices;
• There is a climate of trust and teamwork, aimed at delivering a
distinctive service to the customer.

22. Developing HPWS
• Analyze the business Strategy;
– Where is the business going?
– What are the strength and weaknesses of the
business?
– What threats and opportunities face the business?
– What is affect of SWOT on the type of people
required by the business, now and in future?
– To what extent does(can) the business obtain
competitive advantage through people?

23. 2. Define the desired performance culture of the business
and the objectives of the exercise.
3. Analyze the existing arrangements:
 What is happening now in the form of practices , attitudes
and behaviors (what do we want people to do differently?)
 What should be happening?
 What do people feel about it( the more investment in this
analysis from all the stakeholders the better)?
4. Identify the gaps between what is and what should
be:(Identify room for improvement)
5. Draw up a list of practices that need to be introduced or
improved .
6. Establish Complementarities;

24. 7. Assess practicability;
 It is worth doing? What‟s the business case in terms of added
value?
 What contribution will it make to supporting the achievement of
the organization‟s strategic goals?
 Can it be done?
 Who does it?
 Have we the resource to do it?
 How do we manage the change?
8. Prioritize
 The added value the practice will create;
 The availability of the resource required;
 Anticipated problems in introducing the practice, including
resistance to the Change by stakeholders;
 The extent to which practices can form bundles of mutually
supporting practices.

25. 9. Define project Objective;
 According to step 2
10. Get by-in;
 By Top level executives
 Should fully communicated and transparent
11. Plan the implementation;
 Who takes the lead : must from top level;
 Who manages the project and who else is involved;
 The time table for development and introduction;
 The resource( people and money)
 How the change program will be managed, including
communication and further consultation;
 The success criteria for the project.
12. Implement

26. Performance Management
What is Performance Management?
• Systematically managing all the people in an
organization, for innovation, goal focus,
productivity and satisfaction--it is a goal-
congruent win - win plan

27. What is Performance Management?
Armstrong and Baron define performance
management as a
“strategic and integrated approach to delivering
sustained success to organizations by improving
performance of people who work in them and by
developing the capabilities of teams and
individual contributors”

28. What is Performance Management?
• It is integrated, because it effects four types
of integration:
– Vertical
– Functional
– Human Resource
– Goals

29. What is Performance Management?
Performance Managed Organizations are likely to have
the following characteristics:
– Measurable performance targets
– Manage-learning linked with organizational goals
on the one hand and with career development on
the other
– Pre-eminence of intrinsic needs of managers
without neglecting their extrinsic needs
– Ownership of performance management by line
management rather than the personnel function

30. The Manager’s Concern and Interests
• The rationale for establishing a performance management
system does, and must emerge from the managers’
concerns and interests
• To be effective, this process must start with identification
and analysis of the managers’ performance problems and
related management skills, in the context of the specific
organization
– remedying poor performers and performance
– bridging gaps in performance expectations
– securing equitable rewards and punishment decisions from
the management
– softening performance pressures through appropriate
planning, scheduling and delegation

31. Key to Performance Management
• Building organizational capability and successful implementation
of high-commitment management practices is a key managerial
responsibility
• High-performance management practices require consistent
leadership attention, while time and attention are the scarcest of
resources in most organizations
Three basic principles, which effective leaders use to transform
their organizations into high-commitment models of
management are:
– build trust
– encourage change
– use appropriate measures

32. Performance Management and People
Management
Performance management is that part of an organization’s people-
related function, which is performed by those directly managing the
people.
Within any organization, there are at least two levels of effort, that ;
– concern the performance of its people
– and optimize individual and collective output
 effort at the organizational level, which determines the organization’s
internal environment
 effort at the managerial level, which constitutes core of the leader-
manager role--- what each manager does to supervise subordinates.

33. Performance Management System
 A set of sequential dynamic subsystems
 Like any system, it has relatively autonomous, but
interdependent and inter-related parts, which ensure
effective and smooth functioning of the total system
 Three broad sub-systems:
 performance planning and development
 monitoring performance and mentoring development
 annual stocktaking

34. Performance Management:
A four step process
Step 1: Performance Planning and Communication
Step 2: Coaching/Feedback
Step 3: Performance Review
Step 4: Staff Development