1. Strategic Human Resource Management An Introduction Ms.
Pooja Rahul Sharma (Faculty of HRM) HLCPE, Ahmedabad
2. Strategy comes out of process of ascertaining objectives of
business unit, making necessary changes in such objectives taking
decisions in respect of utilization of required resources, for
achieving objects & taking policy decisions decisions to get
resources,its use & its disposal Strategic Management-As per
general opinion, strategic management means strategic planning
implemented by the management for solution of various problems
arose in the area of production, employees,& finance to the
business unit.
3. Scope of Strategic Management To fix mission of the unit To
make favourable internal environment Analysis & evaluation of
External environment SWOT analysis to be made Selection of new
alternatives to achieve mission To develop grand strategy To fix
short-term annual targets To raise resources & facilities
Evaluation & control on activities.
4. HR Strategy HR Strategy is concerned with two key elements
Determining the strategic objective 2. Developing a plan of action
1.
5. Strategic Human Resource Management Strategic Human Resource
Management is an approach relates to decisions about the nature of
employment relationship,recruitment,training,develop
ment,performance management, reward,& employee
relationship.
6. Four Components of SHRM
7. An organization uses combination of several resources
Tangible & Intangible resources A) Physical capital resources
B) Organizational capital resources C) Human capital resources
8. Human resources as assets HR are not owned by firm Value of
HR may decline HR Assets Cannot be duplicated Can walk over to
other organizations
9. The VRIO Framework VRIO framework a resource based view of
an organization determines the value of human resources for the
organization on the basis of four
criteria-value,rareness,imitability & organization. Rarene ss
Value VRIO Organiz ation Imitabili ty
10. The Investment perspective of Human Resource Factors
Determining the investment orientation of an organization 1.
Management values 2. Attitude towards risk 3. nature of skills
needed by employees 4. utilitarian or bottom-line perspective 5.
availability of outsourcing
11. Evolution of SHRM Personnel Management Human Resource
Management (early 1970s) Strategic Human Resource Management (early
1980s)
12. Objectives of SHRM To ensure the availability of a
skilled,commited, & highly motivated workforce in the
organization to achieve sustained competitive advantage. To provide
direction to the organization so that both the business needs of
the organization & the individual & collective needs of its
workforce are met.
13. Difference b/w SHRM & Traditional HRM Traditional HRM
SHRM Focus of activity Employee relations Partnership with internal
& external groups Role of HR Reactive & transactional
Proactive & transformational, change leader Initiative for
change Slow & not integrated with larger issues Fast,flexible
& systematic Time Horizon Short-term Consider various time
frames Control Bureaucratic control Organic control Job design
Focused job design Broad job design Important investment
Capital,products,technol People & their ogy & finance
knowledge skills & abilities
14. Difference b/w SHRM & HR Strategy SHRM HR Strategies A
general approach to strategic management to HR Aligned with the
organizational intention with future directions Focus on long term
people issue Defines the areas in which specific HR strategies need
to be developed Focus on macro concern such as structure &
culture Strategic HRM decisions are built into strategic business
plans Outcome of the general SHRM approach. Focus on specific
organizational intentions about what needs to be done. Focus on
specific issues that facilitate the achievement of corporate
strategy. Human resource strategy derived from SHRM
15. Strategic FIT: A Conceptual Framework The strategic fit
proposes that if an organization seeks to maximize its competitive
advantage, it must match its internal resources & skills with
opportunities available in the external enviornment. Five types of
Fit1. Best fit approach 2. Fit as contingency 3. Best Practice
approach 4. Fit getalt 5. Fit as bundles.
16. Strategic FIT: A Conceptual Framework Best Fit
Approach-This linkage is reffered as external fit or vertical
integration means the linkage of HR strategies with business
strategies. Bases of classification of HR Strategies: Different
types of business strategies Stages in the business or product
cycle Types & number of products HR strategy
classification
17. HR Practices corresponding to the stages of an
organizations life cycle Life Cycle Stages HR Practices Start-up
Flexible patterns of work Recruitment of highly motivated &
committed employees. Competitive pay Little formality Growth More
sophisticated recruitment & selection Training &
development Performance Mgmt process Reward systems Developing
stable employee relations Maturity Attention to the control of
labour cost Focus on increasing productivity Control compensation
Decline Emphasis on rationalization of
19. Miles & Snows Classification of Business Strategy with
HR strategy Dominant culture of organization (Business Strategy) HR
strategy Defenders Find change threatening Favour strategies which
encourage continuity & security Bureaucratic approach Planned
& regularly maintained policies Build human resource
Prospectors Thrive on change Favour strategies of product or market
development Creative & flexible management style Have high
quality human resource Little opportunity for long term HR
planning. Emphasize on recruitment,selection & performance
based compensation Analyzers Seek to match new ventures with the
present business set-up These firms are followers- the Low level of
monitoring & coordination Buy as well as Make key human
resources
20. Other frameworks Golden & Ramanjuman(1985)-4 types of
linkage 1. Administrative Linkage 2 .One way linkage 3. Two way
linkage 4. Integrated Linkage
21. HR Bundles Approach In general terms the bundles approach
is also termed as internal fit or horizontal integration. The
purpose of bundling is to bring about coherence b/w HR
practises.Coherence exist when a mutually reinforcing set of HR
practices is developed to contribute to the strategic objectives of
the organizations so that these practices ensure the matching of
resources to the needs of organization & bring about the
performance quality.
22. Best Practice Approach This approach focus on the view that
organizations should adopt best practice irrespective of the
context. According to this view, superior management practices are
readily identifiable & are transferable across organizations.
It contains employment security Selective hiring Team working High
pay contingent Extensive training Reduction of status differences
Information sharing
23. Distinctive Human Resources Practices HR competencies
Outside Development Flexibility Prospect ors Inside selection
Outside Development Business Strategies Outside Development
Established Markets/niches Inside selection Defenders
24. Theoretical Perspectives of SHRM SHRM Fit Perspective
Functional perspective Economic Perspective Typological
perspective
25. Theoretical Perspectives of SHRM Fit Perspective-match its
internal resources & skills with opportunities available in the
external environment. Functional Perspective-An organization
performs best when each departmental unit maximizes its
contributions limited to its unique area of expertise. Economic
perspective- Human resources are a unique & distinguishable
source of competitive advantage. Typological Perspective-Three
distinct types of HR strategies Inducement Investment
Involvement
26. SHRM Approaches: The Indian Context Three Major approaches
to understanding people function developed in India are presented-
Integrated System Model SHRM(Indian context) HRD Framework HRD as
an approach
27. Alternative HR Strategies Contract companies in
manufacturing sector- The use of contract workers has increased
significantly at the production sites in electric & auto
industries. Business Strategy of Contract firmsOperation Workers
Skill Workers Skill Management Policy Level (Development Type)
Level (Acquisition Type) Contractormanaged type Development/Cont
ractor-managed type Acquisition/Contra ctor-managed type Client
Managed type Development/Clien Acquisition/Client t Managed type
Managed type
28. Restructuring & SHRM in Healthcare Organization The
healthcare industry is in a growth mode & there is high level
of focus on healthcare cost. As the part of strategy, the hospital
industry is likely to engage in downsizing & restructuring
Steps involved in plan to restructuring of hospital Environmental
scan prior to developing restructuring activities. The
environmental scan will result in defining the business strategy
Pre-structuring Re- structuring Post-restructuring
29. Competition related HRM changes in the Retail Banking
Industry Since the mid-1990s,the retail banking divisions of
commercial banks are under pressure to change the way they do
business banks are faced with an extremely competitive environment
as well as threats from non-banking institutions Focus or Niche
Strategy-the typical initiatives are as follows: being a one-stop
financial service provider. Aggressive selling to new customers
Aggressive cross selling of new products to existing customers.
Establishing a presence in chosen geographical markets.
Establishing alternative channels of delivery of
