HRM- An Organization Perspective Strategic Human Resource Management

Sameer Pingle

Organization Performance

External environment

Organizational Performance Organizational Capacity Organizational Motivation

Strategic Plan
How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term.

Types of Strategies
Corporate-Level Strategies

Diversification Strategy

Consolidation Strategy

Geographic Expansion Strategy

Types of Strategies (contd)

Business-Level/ Competitive Strategies

Cost Leadership

Differentiation

Focus/Niche

Types of Strategies
Corporate Strategy
Diversification Expansion

Business Strategy
Differentiation Niche Cost Leadership

Functional Strategy

Strategic Human Resource Management

The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility.
Involves formulating and executing HR systems HR policies and activitiesthat produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

HRMs Strategic Role

Strategy Formulation Strategy Execution

Three Main Strategic Human Resource System Components

Characteristics of HPWS multi-skilled work teams empowered front-line workers extensive training labor-management cooperation commitment to quality customer satisfaction

Objectives and Strategic Contribution (1)

Recruitment and Selection
Objectives Recruit right person for the right job At the right time At the right cost Strategic Contribution Skill and attitude fit Help create a culture Redesign jobs Reengineer work process Reframe employment relationships

Objectives and Strategic Contribution (2)

Induction and Socialisation
Objectives Help settle in the organization Create awareness about the organization and its expectations Strategic Contribution Establish cultural fit Create ownership

Objectives and Strategic Contribution (3)

Training and Development
Objectives Help identify training needs Train people for the identified needs Develop a skilled workforce Strategic Contribution Develop skilled workforce Create capability to meet strategic objectives Build organization capability Create competitive advantage Organisation learning and development

Objectives and Strategic Contribution (4)

Compensation Management
Objectives To set up and maintain systems for employee payroll To ensure employees receive timely and correct payment To resolve employee salary grievances Strategic Contribution To design competitive employee compensation To enable the organization to attract and retain the right employees

Objectives and Strategic Contribution (4)

Performance Management
Objectives Strategic Contribution

To align individual, team and organisational performance

To set employee performance targets To design, develop and maintain a system of employee performance appraisal & feedback To enable the organisation to objectively measure employee performance so as to reward and recognise it Effectively reward and recognise individual employee and team performance

To enable the organization achieve its performance goals

To create a shared ownership of organization goals amongst the employees so as to motivate them to deliver discretionary performance To create a framework for employee participation, reward and recognition in organisations achievements To maintain a sense of justice and fairness in the way employee performances are measured and recognised and rewarded so as to maintain the credibility of the Organisation

Strategic Decisions and Implications for HRM

Add new types of equipment Growth through acquisition Training Selection, Training, Compensation, Outplacement (redundant workers) Compensation (reduced) Outplacement (forced reduction)

Take on additional indebtedness to prevent takeover

Strategic Decisions and Implications for HRM

Market products internationally Seek new location for manufacturing plant Pursue low-cost competitive strategy Selection, training, Compensation Transfer, Recruitment, Selection, Training Compensation, Labor Relations (givebacks) Training