Description
This is a PPT explains about strategic HRM.
Strategic HRM
Strategic HRM
The role of SHRM is to see that human resource issues are taken into account when an organization develops its business strategy – and that that strategy then derives the development of human resources practices within the firm
The Traditional HRM
• The traditional role of HR is essentially functional and revolves aroundHuman Resource planning Recruiting of staff Job analysis Performance review Wages, salary and benefits administration Employee training Personnel administration Legislative compliance Labor relations
Traditional HRM
HRM Staffing Pay Training Etc
RESEARCH & DEVELOPMENT
FINANCE
PRODUCTION
MARKETING
Strategic HRM
R&D
Finance
HRM Strategic Goals
Marketing
Production
The Roles of SHRM
• • • • • Strategic Role Informational and Problem Solving Role Strategic Functional Role Administrative Role Change Management Role
Strategic Role
• HR Participates in business decisions • HR translates corporate strategy into human resource strategy • HR helps managers create value • HR helps employees satisfy customers’ needs
Informational and PS role
• HR provides information and expertise on best practices in other companies • HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions • HR diagnoses and recommends solutions to problems arising in employment relations
Strategic Functional role
• HR helps select employees to fit both strategy and culture • HR assists in designing and implementing performance planning and appraisal systems • HR assists in designing and implementing motivation and reward systems • HR assists in designing benefits to complement strategy • HR assists in designing and implementing development and career management systems • HR helps enable all executives to perform critical, strategic HR functions
Administrative role
• HR assists in designing and improving personnel administrative systems • HR does much of the necessary administrative work involved in employment, legal compliance and record keeping
Change Management role
• HR calls attention to the management process and its impact on organizational success or failure • HR helps design / redesign the organization • HR facilitates change that is consistent with the underlying values of the company • HR facilitates wide ranging organizational change • HR implements employee involvement and relations systems • HR maximizes the value of work force diversity
Differences between Traditional and SHRM
Strategic roles Important relations Nature of HR initiatives Imp of corp plan Speed of DM Planning time horizon Informational roles Nature of communication process Level of communication Sources of communication Traditional HRM Labor-management Reactive and piecemeal Marginal Slow Short Term Strategic HRM Int and ext customers Proactive/ integrated Central Fast S/ M/ L as needed
Indirect Restricted Mainly internal and hierarchical
Direct High Wide-ranging as needed
Differences between Traditional and SHRM
Administrative roles Importance and nature of contracts Strategic HRM contracts unnecessary usually going beyond formal contracts Importance of rules Clear rules essential Getting job done paramount Key guide to management Policies and procedures Whatever is needed actions for business success Traditional HRM carefully written contracts needed
Differences between Traditional and SHRM
Functional roles Selection Traditional HRM Separated from business strategy and of marginal importance Job based relatively fixed
Separately negotiated
Pay Working conditions
Labor-Mgmt relations
Job categories
Collective bargaining adversarial in nature Many
Strategic HRM Integrated with business strategy a key task of HR Performance based and flexible In harmony with strategy and org culture Individual contracts cooperative nature Few
Differences between Traditional and SHRM
Functional roles Job design Traditional HRM Tightly defined division of labor
Specialized, with tightly controlled access to training
T&D
Strategic HRM Broadly defined focused on team work More generalized with development of a learning orgn
Transformational change leader Manage climate and culture broadly
Change Management roles HR management’s role Transactional, change follower Dealing with conflict Temp control,minimize specific conflicts
Differences between Traditional and SHRM
Change Management roles Traditional HRM Strategic HRM Nature of HR interventions Focused on procedures Wide-ranging and cultural Important frames of ref Norms and traditional Strategic values to guide action customs and mission
Key HR skills
Traditional HRM Specialist A good policy and procedure writer Current focus Monolingual( speaks “HR – ese”) Management-hierarchy focused
Few financial/ marketing skills Focused on the internal organization Factual communicator A nationalist
Strategic HRM Generalist A good communicator Current and future focus Speaks language of business Customer focused , good customer relations skills Understanding these aspects of the business Focused on the internal orgn and the broader society Persuader An internationalist
Reasons for slower / lesser transformation to SHRM
• Non existence of a competent and persistent SHRM champion • Political forces with competing coalitions with different self interests may preclude adoption of SHRM • Firms experiencing stressful business conditions • The Vicious cycle
Vicious cycle
HR dept managers not involved in the Strategic planning process due to sr mgmt preference and tradition
Mgmt has poor perception of Role and competencies of HR And its ability to contribute to Strategic biz initiatives
Although HR not involved in Strategy formulation, it is Expected to implement key Aspects of biz strategy
No perceived alignment bet HR activities and biz strategy
Significant problems in Implementing strategy Related to HR issues
Successful transformation to SHRM
• Integration of HR within the strategic planning process • Development of a partnership between HR and other members of the organization • Linkage of HR activities to business strategy and core cultural values of the organization • Restructuring the HR department to ensure success of all the above
Integration
• A strategic planning process occurs in an orgn • HR managers play an important role in that process • The strategic planning process, with significant HR input, should establish an identifiable strategic direction for the organization along with appropriate goals and objectives • This planning process should also identify a set of organizational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives • For full integration, HR managers must have both process control( ability to influence the development and selection of information used in making a decision) and decision control( ability to make or influence the decision itself)
Partnership
To become a business partner, HR must 1. Learn the firm’s business 2. Be more responsive to and aware of the organization’s needs and direction 3. Shift away from traditional HR functions 4. Become more involved in supportive, collaborative relationship with managers throughout the organization 5. Demonstrate the criticality of HR to the success of the business
Linkage
• Linkage of HR practices to overall business strategy • Interrelationship among HR activities
Restructuring HR
• Decentralized service teams to focus on defining and managing needed activities in specific business units • Executive HR services to address the unique needs of developing managerial talent within the organization • Centralized HR services used to gain cost efficiencies in the provision of basic company wide activities e.g compensation, professional recruiting and HRIS data bases
HR Strategy
• Strategies for HR flow out of the overall business plans / strategy and mainly focus on individual activities of staffing, C&B, performance management, career panning, T& D etc • The focus in the HR strategy is to do the individual activities better and more efficiently to contribute towards the organisation’s goals.
Strategic HR Vs HR Strategy
Strategic HR
• • • • • Organisation Building and renewal Core competencies Holistic approach Focus on processes Core Value of the Orgn
HR Strategy
Organisation survival and growth Individual activities Piecemeal approach Focus on results Derivative
Strategic HR Vs HR Strategy
Strategic HR
• Emphasis on Creation of culture,values,systems Proactive / Learning Result is the development of organisation’s core competencies
HR Strategy
Emphasis on change/ adaptation of culture, values, systems Reactive / Training Results are more efficient HR processes
• •
Strategic HR Vs HR Strategy
Strategic HR
• Purpose Translate business strategies to orgn capabilities and then into HR practices Line managers Business results thro use of HR practices Mgrs who use HR for business results Emp affected by HR
practices
HR Strategy
Build a HR strategy orgn and action plan focussed on making HR fn or dept more effective HR executives Effectiveness and effy of HR practices HR prof who design and deliver HR practices Line mgrs who use HR
practices
• Owner • Measures
• Audience
Strategic HR Vs HR Strategy
Strategic HR
• Audience customers who receive benefits of effective organisations Investors who reap rewards of orgn cap Line mgr as owner HR professional as facilitator
HR Strategy
• Roles
Line mgr as investor HR professional as creator
doc_482756716.ppt
This is a PPT explains about strategic HRM.
Strategic HRM
Strategic HRM
The role of SHRM is to see that human resource issues are taken into account when an organization develops its business strategy – and that that strategy then derives the development of human resources practices within the firm
The Traditional HRM
• The traditional role of HR is essentially functional and revolves aroundHuman Resource planning Recruiting of staff Job analysis Performance review Wages, salary and benefits administration Employee training Personnel administration Legislative compliance Labor relations
Traditional HRM
HRM Staffing Pay Training Etc
RESEARCH & DEVELOPMENT
FINANCE
PRODUCTION
MARKETING
Strategic HRM
R&D
Finance
HRM Strategic Goals
Marketing
Production
The Roles of SHRM
• • • • • Strategic Role Informational and Problem Solving Role Strategic Functional Role Administrative Role Change Management Role
Strategic Role
• HR Participates in business decisions • HR translates corporate strategy into human resource strategy • HR helps managers create value • HR helps employees satisfy customers’ needs
Informational and PS role
• HR provides information and expertise on best practices in other companies • HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions • HR diagnoses and recommends solutions to problems arising in employment relations
Strategic Functional role
• HR helps select employees to fit both strategy and culture • HR assists in designing and implementing performance planning and appraisal systems • HR assists in designing and implementing motivation and reward systems • HR assists in designing benefits to complement strategy • HR assists in designing and implementing development and career management systems • HR helps enable all executives to perform critical, strategic HR functions
Administrative role
• HR assists in designing and improving personnel administrative systems • HR does much of the necessary administrative work involved in employment, legal compliance and record keeping
Change Management role
• HR calls attention to the management process and its impact on organizational success or failure • HR helps design / redesign the organization • HR facilitates change that is consistent with the underlying values of the company • HR facilitates wide ranging organizational change • HR implements employee involvement and relations systems • HR maximizes the value of work force diversity
Differences between Traditional and SHRM
Strategic roles Important relations Nature of HR initiatives Imp of corp plan Speed of DM Planning time horizon Informational roles Nature of communication process Level of communication Sources of communication Traditional HRM Labor-management Reactive and piecemeal Marginal Slow Short Term Strategic HRM Int and ext customers Proactive/ integrated Central Fast S/ M/ L as needed
Indirect Restricted Mainly internal and hierarchical
Direct High Wide-ranging as needed
Differences between Traditional and SHRM
Administrative roles Importance and nature of contracts Strategic HRM contracts unnecessary usually going beyond formal contracts Importance of rules Clear rules essential Getting job done paramount Key guide to management Policies and procedures Whatever is needed actions for business success Traditional HRM carefully written contracts needed
Differences between Traditional and SHRM
Functional roles Selection Traditional HRM Separated from business strategy and of marginal importance Job based relatively fixed
Separately negotiated
Pay Working conditions
Labor-Mgmt relations
Job categories
Collective bargaining adversarial in nature Many
Strategic HRM Integrated with business strategy a key task of HR Performance based and flexible In harmony with strategy and org culture Individual contracts cooperative nature Few
Differences between Traditional and SHRM
Functional roles Job design Traditional HRM Tightly defined division of labor
Specialized, with tightly controlled access to training
T&D
Strategic HRM Broadly defined focused on team work More generalized with development of a learning orgn
Transformational change leader Manage climate and culture broadly
Change Management roles HR management’s role Transactional, change follower Dealing with conflict Temp control,minimize specific conflicts
Differences between Traditional and SHRM
Change Management roles Traditional HRM Strategic HRM Nature of HR interventions Focused on procedures Wide-ranging and cultural Important frames of ref Norms and traditional Strategic values to guide action customs and mission
Key HR skills
Traditional HRM Specialist A good policy and procedure writer Current focus Monolingual( speaks “HR – ese”) Management-hierarchy focused
Few financial/ marketing skills Focused on the internal organization Factual communicator A nationalist
Strategic HRM Generalist A good communicator Current and future focus Speaks language of business Customer focused , good customer relations skills Understanding these aspects of the business Focused on the internal orgn and the broader society Persuader An internationalist
Reasons for slower / lesser transformation to SHRM
• Non existence of a competent and persistent SHRM champion • Political forces with competing coalitions with different self interests may preclude adoption of SHRM • Firms experiencing stressful business conditions • The Vicious cycle
Vicious cycle
HR dept managers not involved in the Strategic planning process due to sr mgmt preference and tradition
Mgmt has poor perception of Role and competencies of HR And its ability to contribute to Strategic biz initiatives
Although HR not involved in Strategy formulation, it is Expected to implement key Aspects of biz strategy
No perceived alignment bet HR activities and biz strategy
Significant problems in Implementing strategy Related to HR issues
Successful transformation to SHRM
• Integration of HR within the strategic planning process • Development of a partnership between HR and other members of the organization • Linkage of HR activities to business strategy and core cultural values of the organization • Restructuring the HR department to ensure success of all the above
Integration
• A strategic planning process occurs in an orgn • HR managers play an important role in that process • The strategic planning process, with significant HR input, should establish an identifiable strategic direction for the organization along with appropriate goals and objectives • This planning process should also identify a set of organizational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives • For full integration, HR managers must have both process control( ability to influence the development and selection of information used in making a decision) and decision control( ability to make or influence the decision itself)
Partnership
To become a business partner, HR must 1. Learn the firm’s business 2. Be more responsive to and aware of the organization’s needs and direction 3. Shift away from traditional HR functions 4. Become more involved in supportive, collaborative relationship with managers throughout the organization 5. Demonstrate the criticality of HR to the success of the business
Linkage
• Linkage of HR practices to overall business strategy • Interrelationship among HR activities
Restructuring HR
• Decentralized service teams to focus on defining and managing needed activities in specific business units • Executive HR services to address the unique needs of developing managerial talent within the organization • Centralized HR services used to gain cost efficiencies in the provision of basic company wide activities e.g compensation, professional recruiting and HRIS data bases
HR Strategy
• Strategies for HR flow out of the overall business plans / strategy and mainly focus on individual activities of staffing, C&B, performance management, career panning, T& D etc • The focus in the HR strategy is to do the individual activities better and more efficiently to contribute towards the organisation’s goals.
Strategic HR Vs HR Strategy
Strategic HR
• • • • • Organisation Building and renewal Core competencies Holistic approach Focus on processes Core Value of the Orgn
HR Strategy
Organisation survival and growth Individual activities Piecemeal approach Focus on results Derivative
Strategic HR Vs HR Strategy
Strategic HR
• Emphasis on Creation of culture,values,systems Proactive / Learning Result is the development of organisation’s core competencies
HR Strategy
Emphasis on change/ adaptation of culture, values, systems Reactive / Training Results are more efficient HR processes
• •
Strategic HR Vs HR Strategy
Strategic HR
• Purpose Translate business strategies to orgn capabilities and then into HR practices Line managers Business results thro use of HR practices Mgrs who use HR for business results Emp affected by HR
practices
HR Strategy
Build a HR strategy orgn and action plan focussed on making HR fn or dept more effective HR executives Effectiveness and effy of HR practices HR prof who design and deliver HR practices Line mgrs who use HR
practices
• Owner • Measures
• Audience
Strategic HR Vs HR Strategy
Strategic HR
• Audience customers who receive benefits of effective organisations Investors who reap rewards of orgn cap Line mgr as owner HR professional as facilitator
HR Strategy
• Roles
Line mgr as investor HR professional as creator
doc_482756716.ppt