Description
HR's Emerging role in the formulation and implementation of strategy. traditional HR Vs Strategic HR. models Integrating strategy and HRM
Importance of Aligning Human Resources with Strategy
HR’s Emerging Role
• Strategic human resource management is an approach which defines how the organization’s goals will be achieved through people, by means of HR strategies and integrated HR policies and practices.
Transition from HRM to Strategic HRM
• Changes in the business environment brought about by globalization and the development of new technology have made it mandatory for organizations to involve HRM in the strategic Decision Making Process. • Changes in Market Conditions, economic conditions, labor markets, industrial structure, and international competition have all highlighted the importance to the management of human resources for gaining a competitive advantage.
Transition from HRM to Strategic HRM
• 5p model identifies various HR activities that must be aligned with the Strategic needs of the Business to gain a competitive advantage. • HR Philosophy: refers to Org attitude • HR Policies: Refers to guidelines • HR Programs: Coordinated HR efforts to sustain Change • HR Practices: includes roles that individuals assume in an Org. • HR Processes: Involves Identification, formulation and implementation of HR activity
Traditional HR Vs Strategic HR
• Administrative in nature • Endorsing Specialization of work • Development of Policies and its Functions • Ensures Adherence to the Rules • Transactional in Nature: routine day to day work • People Not viewed as Competitive advantage • Change is Slow and Fragmented. • Empowering in Nature • Multi Tasking – Changing according the Envi • It is More Interdisciplinary in Nature • Rules and Regulations are Flexible. • Focus on Short Term Objectives of Org. • People as viewed as Intellectual Assets. • Change is Proactive and Systematic
Role of strategic HRM (SHRM)
• Strategic Role • Information and Decision Making Role • Strategic HR functional Role • Administrative Role
Barriers To SHRM
• • • • • • • Focusing on Shot Term Performance Lack of technical Knowledge Lack of Strategic perspective Difficulty in quantifying Apprehensions towards training people Resistance of employees `
Model Integrating Strategy & HR
• Two models help us understand the relationship between HR and Strategy, they are • Model of Best Practice • Model of Strategic Change
Model of Best Practice
Frame policies Strategic Level Recruitment and Retention Operational Level
Checking equal Weight age to all stakeholder Business Process Level
Models Integrating Strategic Change & HRM
The model has four basic Propositions:
1. Strategic integration 2. High commitment 3. High quality 4. Flexibility
Model of Strategic Change & HRM
Outer Context Socio economic, technical Politico-legal Inner Context Culture, Structure, Politics Leadership, task technology Business outputs
Business strategy content
Objectives Product – market Strategy and Tactics
HRM
Context
Role Definition Organization HR outputs
HR Flows Work systems Reward systems Employee Relations
HRM Content
Economic Indicators of HRM
• Investment Perspective of HR
– – – – – Management Value Organization Attitude Towards Risk Employee skills Required Cost benefit Analysis Outsourcing
• Human Capital Accounting
– Sources of employee value: productivity & added Value – Adding value through rewards & benefits – Adding value through attrition & recruitment
End of Chapter 2
doc_861861981.ppt
HR's Emerging role in the formulation and implementation of strategy. traditional HR Vs Strategic HR. models Integrating strategy and HRM
Importance of Aligning Human Resources with Strategy
HR’s Emerging Role
• Strategic human resource management is an approach which defines how the organization’s goals will be achieved through people, by means of HR strategies and integrated HR policies and practices.
Transition from HRM to Strategic HRM
• Changes in the business environment brought about by globalization and the development of new technology have made it mandatory for organizations to involve HRM in the strategic Decision Making Process. • Changes in Market Conditions, economic conditions, labor markets, industrial structure, and international competition have all highlighted the importance to the management of human resources for gaining a competitive advantage.
Transition from HRM to Strategic HRM
• 5p model identifies various HR activities that must be aligned with the Strategic needs of the Business to gain a competitive advantage. • HR Philosophy: refers to Org attitude • HR Policies: Refers to guidelines • HR Programs: Coordinated HR efforts to sustain Change • HR Practices: includes roles that individuals assume in an Org. • HR Processes: Involves Identification, formulation and implementation of HR activity
Traditional HR Vs Strategic HR
• Administrative in nature • Endorsing Specialization of work • Development of Policies and its Functions • Ensures Adherence to the Rules • Transactional in Nature: routine day to day work • People Not viewed as Competitive advantage • Change is Slow and Fragmented. • Empowering in Nature • Multi Tasking – Changing according the Envi • It is More Interdisciplinary in Nature • Rules and Regulations are Flexible. • Focus on Short Term Objectives of Org. • People as viewed as Intellectual Assets. • Change is Proactive and Systematic
Role of strategic HRM (SHRM)
• Strategic Role • Information and Decision Making Role • Strategic HR functional Role • Administrative Role
Barriers To SHRM
• • • • • • • Focusing on Shot Term Performance Lack of technical Knowledge Lack of Strategic perspective Difficulty in quantifying Apprehensions towards training people Resistance of employees `
Model Integrating Strategy & HR
• Two models help us understand the relationship between HR and Strategy, they are • Model of Best Practice • Model of Strategic Change
Model of Best Practice
Frame policies Strategic Level Recruitment and Retention Operational Level
Checking equal Weight age to all stakeholder Business Process Level
Models Integrating Strategic Change & HRM
The model has four basic Propositions:
1. Strategic integration 2. High commitment 3. High quality 4. Flexibility
Model of Strategic Change & HRM
Outer Context Socio economic, technical Politico-legal Inner Context Culture, Structure, Politics Leadership, task technology Business outputs
Business strategy content
Objectives Product – market Strategy and Tactics
HRM
Context
Role Definition Organization HR outputs
HR Flows Work systems Reward systems Employee Relations
HRM Content
Economic Indicators of HRM
• Investment Perspective of HR
– – – – – Management Value Organization Attitude Towards Risk Employee skills Required Cost benefit Analysis Outsourcing
• Human Capital Accounting
– Sources of employee value: productivity & added Value – Adding value through rewards & benefits – Adding value through attrition & recruitment
End of Chapter 2
doc_861861981.ppt