jay mataji

1. Human Resource Management
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STRATEGIC HRM

2. 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
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3.  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
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4. 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
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5. Strategic HRM: A Key to Success
 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
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6. Traditional HR vs. Strategic HR
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investments
Accountability
Responsibility 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 initiator
Fast, proactive and integrated
Short, medium and long (as
required)
Organic-flexible, whatever is
necessary to succeed
Broad, flexible, cross-training
teams
People, knowledge
Investment centre
Line managers
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7. 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
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8. Linking Corporate and HR Strategies
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9. Strategic Management Process
 Environmental Scanning
 Strategy Formulation
 Corporate level
 Business unit level
 Functional level
 Strategy Implementation
 Strategy Evaluation
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10. 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
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11. 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
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12. A Model to Organize HRM
 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
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13. 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
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14. 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
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15. 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
 CompetenciesHuman Resource Management 15

16. 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
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17. 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
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18. Internal Environmental Influences
 HRM programs are influenced by:
 Strategy
 Goals
 Organizational culture
 Nature of the task
 Work groups
 The leader’s style and experience
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19. 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)
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20. 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
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21. 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
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22. Work Group
 An employee’s experiences are
largely influenced by the work group
 A 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
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23. 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
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