Human Resource Management 1

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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 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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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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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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Traditional HR vs. Strategic HR

Point of distinction Traditional HR Strategic HR

Focus Employee Relations Partnerships with internal and
external customers
Role of HR Transactional change Transformational change leader
follower and respondent and initiator
Initiatives Slow, reactive, fragmented Fast, proactive and integrated
Time horizon Short-term Short, medium and long (as
required)
Control Bureaucratic-roles, policies, Organic-flexible, whatever is
procedures necessary to succeed
Job design Tight division of labor; Broad, flexible, cross-training
independence, teams
specialization
Key investments Capital, products People, knowledge
Accountability Cost centre Investment centre
Responsibility for HR Staff specialists Line managers

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Shifts in HR management in India

Traditional HR practice Emerging HR practice

 Administrative role  Strategic role

 Reactive  Proactive

 Separate, isolated from  Key part of organizational

company mission mission

 Production focus  Service focus

 Functional organization  Process-based organization

 Individuals encouraged,  Cross-functional teams,

singled out for praise, teamwork most important

rewards
 People as expenses  People as key
investments/assets

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Linking Corporate and HR Strategies

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Strategic Management Process

 Environmental Scanning
 Strategy Formulation
 Corporate level
 Business unit level
 Functional level
 Strategy Implementation
 Strategy Evaluation

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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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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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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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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
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Economic Conditions
 Two economic factors affect HRM
programs:
 Productivity
 The work sector of the organization
 Productivity is:
 organization’s overall efficiency

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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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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

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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
 Culture can:
 Impact behavior, productivity, expectations
 Provide a benchmark for standards of
performance

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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 .

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