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By Prof Amaresh C Nayak

Shrm -introduction

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Page 1: Shrm  -introduction

By

Prof Amaresh C Nayak

Page 2: Shrm  -introduction

• “strategy is the pattern of objectives, purposes or

goals and major policies and plans for achieving these

goals, stated in such a way as to define what business

the company is in or is to be in and the kind of

company it is or is to be”

• “strategy is the determination of basic long – term

Asst. Prof. Amaresh C Nayak

• “strategy is the determination of basic long – term

goals and objectives of an enterprise, and the

adoption of courses of action and the allocation of

resources necessary for carrying out these goals”.

• “strategy is the determination of organizational

objectives in the light of environmental variables and

determination of course of action and commitment of

organizational resources to achieve these objectives.”

Page 3: Shrm  -introduction

• This definition of strategy provides its following

features :

– strategy relates the firm to its environment

– strategy is the right combination of factors both

external and internal

Asst. Prof. Amaresh C Nayak

external and internal

– strategy is a relative combination of actions

– strategy may even involve contradictory action

– strategy is forward looking

Page 4: Shrm  -introduction

• Strategy

– is the direction and scope of an organization over

the long term,

– which achieves advantage in a changing

environment

Asst. Prof. Amaresh C Nayak

environment

– through its configuration of resources and

competences

– with the aim of fulfilling stakeholder expectations.

Page 5: Shrm  -introduction

• Strategic management is the process of:

– specifying an organization's objectives,

– developing policies and plans to achieve these

objectives, and

– allocating resources so as to implement the plans.

Asst. Prof. Amaresh C Nayak

– allocating resources so as to implement the plans.

Page 6: Shrm  -introduction

• Philosophy

– Integrating human resource management

strategies and systems to achieve overall mission,

strategies, and success of the firm while meeting

needs of employees and other stakeholders.

Asst. Prof. Amaresh C Nayak

needs of employees and other stakeholders.

Page 7: Shrm  -introduction

• Concepts

– linked to the strategic needs of an organization

– to provide it with an effective workforce while

meeting the needs of its members and other

constituents

Asst. Prof. Amaresh C Nayak

constituents

– human resource department’s methods,

procedures, systems to achieve specific strategies.

Page 8: Shrm  -introduction

• Concept –

– involves all management decisions and practices

that directly affect or influence the people, or

human resources, who work for the organization

– a concern with the ways in which HRM is crucial to

Asst. Prof. Amaresh C Nayak

– a concern with the ways in which HRM is crucial to

organizational effectiveness.

– the management of employees at all levels in the

business, directed towards sustaining competitive

advantage.

Page 9: Shrm  -introduction

• Concept –

– Increasing awareness of the importance of linking

the organization’s human resource practices to

strategy that leads to greater performance

• Definition -

Asst. Prof. Amaresh C Nayak

• Definition -

– “SHRM centers on how organizations can improve

their competitive performance by considering and

utilizing their human resource more effectively.”

Page 10: Shrm  -introduction

• Definition –

– “The pattern of planned human resource

deployments and activities intended to enable the

firm to achieve its goals.”

• focus on a firm’s human resources

Asst. Prof. Amaresh C Nayak

• focus on a firm’s human resources

• the concept of activities highlights HR programs, policies and practices

• the “pattern” and” plan” describe the goal and process of strategy

Page 11: Shrm  -introduction

• Definition –

– SHRM is generally perceived as a distinctive

approach to managing people which seeks to

achieve competitive advantage through the

strategic development of a highly committed and

Asst. Prof. Amaresh C Nayak

strategic development of a highly committed and

capable workforce (s555).

Page 12: Shrm  -introduction

• Definition –

– Strategic Human Resource Management claimed

that

• human resource problems are problems solved by linking HRM and strategy formulation at an early stage

Asst. Prof. Amaresh C Nayak

HRM and strategy formulation at an early stage

• problems with strategy implementation are solved by early adjustment of the HRM to these strategies (299).

Page 13: Shrm  -introduction

• Definition –

– strategic utilization of human resources means

• Management is active, not reactive

• There is high integration between policies

• An orchestration role is played by senior management

Asst. Prof. Amaresh C Nayak

• An orchestration role is played by senior management

• and there is articulation of policies by senior management

Page 14: Shrm  -introduction

• Essential elements of SHRM:

– Internally transforming HR staff and structure:

• Transforming HR staff

• Transforming the organizational structure

– Enhancing administrative efficiency:

Asst. Prof. Amaresh C Nayak

– Enhancing administrative efficiency:

• HR staff is to be “administrative experts”

• Improving administrative efficiency

• Enhancing Administrative efficiency

• Creation of Value

Page 15: Shrm  -introduction

• Essential elements of SHRM:

– Integrating HR into the strategic planning process

– Linking HR practices to business strategy and to

one another

• Vertical fit

Asst. Prof. Amaresh C Nayak

• Vertical fit

• Horizontal fit

• External fit

• Resource Flexibility

• Coordination flexibility

Page 16: Shrm  -introduction

• Essential elements of SHRM:

• Developing a partnership with line

management:

– Step 1. Provide the business with good human

Asst. Prof. Amaresh C Nayak

– Step 1. Provide the business with good human

resource databases

– Step 2. Alter the senior management role when it

comes to human resource management

– Step 3. The line organization must alter its incentive

and control

Page 17: Shrm  -introduction

• Essential elements of SHRM:

– Focusing on the bottom-line impact of HR and

measurement of that impact:

• Customer/stake holder

• HR impact

Asst. Prof. Amaresh C Nayak

• HR impact

• Money value of HR programs

• Benchmarking HR practices

Page 18: Shrm  -introduction

• SHRM focuses to gain competitive advantage

• SHRM practice is coupled with business

strategy

• SHRM elevates micro level (individual

Asst. Prof. Amaresh C Nayak

• SHRM elevates micro level (individual

personal level) to the macro level (business

strategy level)

• SHRM takes global business and social trends

Page 19: Shrm  -introduction

• SHRM analyzes human resources against

current and future business strategies

• SHRM is intended to assist management in

the best use of internal labor market

Asst. Prof. Amaresh C Nayak

the best use of internal labor market

• SHRM includes organizational analysis and

design

• Benchmarking against successful internal and

external organizations

Page 20: Shrm  -introduction

• SHRM is part of the business plan.

• The strategic HR considerations are

– Is the organizational culture supporting the long-

term business strategy?

Asst. Prof. Amaresh C Nayak

– Is the organization’s structure consistent with the

business strategy?

– Is management’s executive staffing adequate? Are

skills adequate?

– Are the management-performance systems

properly focused?

Page 21: Shrm  -introduction

• Human Resource Strategy plays a vital role in

the achievement of an organisation's overall

strategic objectives

• Human resources strategy fully understands

Asst. Prof. Amaresh C Nayak

• Human resources strategy fully understands

and supports the direction in which the

organisation is moving

• HR Strategy also supports other strategic

objectives of marketing, financial, operational

and technology departments.

Page 22: Shrm  -introduction

• An HR strategy should aim to capture "the

people element" of an organisation

– it has the right people in place

– it has the right mix of skills

Asst. Prof. Amaresh C Nayak

– employees display the right attitudes and

behaviours, and

– employees are developed in the right way.

Page 23: Shrm  -introduction

• HR strategy may be more about teasing

"people" content and adds value to

organisation

– articulates more clearly some of the common

themes which lie behind the achievement of other

Asst. Prof. Amaresh C Nayak

themes which lie behind the achievement of other

plans and strategies

– identifies fundamental underlying issues which

must be addressed by business if its people are to

be motivated, committed and operate effectively.

Page 24: Shrm  -introduction

• The areas will entail

– a careful consideration of existing or developing

plans and strategies

– identifying which of these plans and strategies are

so fundamental

Asst. Prof. Amaresh C Nayak

so fundamental

Page 25: Shrm  -introduction

• The areas will include

– workforce planning issues

– succession planning

– workforce skills plans

Asst. Prof. Amaresh C Nayak

– employment equity plans

– black economic empowerment initiatives

– motivation and fair treatment issues

– pay levels designed to recruit, retain and motivate

people

Page 26: Shrm  -introduction

• The areas will include

– the co-ordination of approaches to pay and grading

across the organisation to create alignment and

potential unequal pay claims

– a grading and remuneration system which is seen

Asst. Prof. Amaresh C Nayak

– a grading and remuneration system which is seen

as fair and giving proper reward for contributions

made

– wider employment issues which impact on staff

recruitment, retention, motivation etc.

Page 27: Shrm  -introduction

• The areas will include

– a consistent performance management framework

which is designed to meet the needs of the

organisation

– career development frameworks which look at

Asst. Prof. Amaresh C Nayak

– career development frameworks which look at

development within the organisation at equipping

employees with "employability“

– policies and frameworks to ensure that people

development issues are addressed systematically

Page 28: Shrm  -introduction

• The HR strategy will need careful planning of

the people issues

• HR strategy can add Value

– changes in the overall employment market

Asst. Prof. Amaresh C Nayak

– changes in the overall employment market

– cultural changes which will impact on future

employment patterns

– changes in the employee relations climate

– changes in the legal framework

– HR and employment practice being developed in

other organisations

Page 29: Shrm  -introduction

• Opportunities for development of HR Strategy

– a major new internal initiative could present the

right opportunity to push for an accompanying HR

strategy

• restructuring exercise, a corporate acquisition, joint

Asst. Prof. Amaresh C Nayak

• restructuring exercise, a corporate acquisition, joint venture or merger exercise.

– a new externally generated initiative for HR strategy

– "Right moment“

Page 30: Shrm  -introduction

Asst. Prof. Amaresh C Nayak