03 Introduction to SHRM

7/26/2019 03 Introduction to SHRM

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LECTURE 01Concept of SHRM



Contents

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Strategic HRM DenedBasis of SHRMPrinciples of SHRMi!s of SHRM"#$ecti%es of SHRMConcepts of SHRMPerspecti%es of SHRM

Strategic Role of HRSHR S&ste!s #ased on E!plo&!ent Models

Contd.



Contents 'Contd()

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Strategic %s( Traditional HRStrateg& Dri%en Role Be+a%iorsStrategic T&polog& of HR cti%itiesStrategic Sta,ng PoliciesBarriers to SHRMC+allenges to SHRM"-tco!es of SHRM

Model of SHRMLin.ing People /it+ t+e Strategic needs of

t+e B-siness T+e P Model



Strategic HRM Dened



Strategic HRM Dened

SHRM is concerned /it+ seeing t+e people of t+eorgani3ation as a strategic reso-rce for t+e ac+ie%e!ent ofco!petiti%e ad%antage

Hendr& and Pettigre/

set of processes and acti%ities $ointl& s+ared #& +-!an

reso-rces and line !anagers to sol%e peoplerelated#-siness pro#le!s

Sc+-ler and 4al.er

SHRM foc-ses on actions t+at di5erentiates t+e r! fro!its co!petitors( P-rcell

T+e central pre!ise of strategic +-!an reso-rce!anage!ent t+eor& is t+at s-ccessf-l organi3ationalperfor!ance depends on a close t or align!ent #et/een#-siness and +-!an reso-rce strateg&( Batt



6

Strategic HRM Dened'Contd() SHRM is largel& a#o-t integration and adaptation( 7ts

concern is to ens-re t+at81( HRM is f-ll& integrated /it+ t+e strateg& and t+e strategic needs

of t+e r!

2( HR policies co+ere #ot+ across polic& areas and across +ierarc+ies

*( HR practices are ad$-sted 9 accepted and -sed #& line !anagersand e!plo&ees as part of t+eir e%er&da& /or.

SHRM is an approac+ t+at denes +o/ t+e organi3ations:goals /ill #e ac+ie%ed t+ro-g+ people #& !eans of HRstrategies and integrated HR policies and practices

Managing SHR incl-des8 ligning HR and B-siness Strateg& Reengineering "rgani3ation Processes Listening and responding to e!plo&ees Managing Transfor!ation and C+anges



Basis of SHRM

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Basis of SHRM

T+ree propositions1( HR=HC pla& a strategic role in s-ccess of an

organi3ation and are a !a$or so-rce ofco!petiti%e ad%antage

2( HR strategies !-st #e integrated /it+ t+e#-siness plans '%ertical integration)

llen > 4+ite8 T+e central pre!ise of SHRM t+eor& is t+at s-ccessf-l

organi3ational perfor!ance depends on a close t or

align!ent #et/een #-siness and HR Strateg&Bo?ell et al8 T+e !a$or foc-s of SHRM s+o-ld #e aligning HR /it+ r!

strategies



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Basis of SHRM 'Contd()

T+ree propositions 'Contd()

*( 7ndi%id-al HR strategies s+o-ld co+ere #&#eing lin.ed to eac+ ot+er to pro%ide !-t-als-pport '+ori3ontal integration)



Principles of SHRM

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Principles of SHRM

"ndrac. and Aininger8

1( T+ere is an o%erall p-rpose and t+e HRdi!ensions of t+at p-rpose are e%ident

2( process of de%eloping strateg& /it+in t+eorgani3ation e?ists and is -nderstood9 andt+ere is e?plicit consideration of HRdi!ensions

*( E5ecti%e lin.ages e?ist on a contin-ing #asis

to ens-re t+e integration of +-!an reso-rceconsiderations /it+ t+e organi3ationaldecision !a.ing process



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Principles of SHRM 'Contd()

"ndrac. and Aininger 'Contd()8 ( T+e o,ce of t+e c+ief e?ec-ti%e pro%ided t+e

c+allenge for integrating HR considerations to!eet t+e needs of t+e #-siness

( T+e organi3ation of all le%els esta#lis+esresponsi#ilit& and acco-nta#ilit& for HRM

6( 7nitiati%es in t+e !anage!ent of HR arerele%ant to t+e needs of t+e #-siness

;(7t incl-des t+e responsi#ilit& to identif& andinteract in t+e social9 political9 tec+nological andecono!ic en%iron!ents in /+ic+ t+eorgani3ation is and /ill #e doing #-siness



i!s of SHRM

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1

i!s of SHRM

-nda!ental i! To generate strategic capa#ilit& #& ens-ring

t+at t+e organi3ation +as t+e s.illed9 engagedand /ell !oti%ated e!plo&ees it needs toac+ie%e s-stained co!petiti%e ad%antage

s per t+e reso-rce #ased %ie/9 t+e strategicgoal8

To create r!s /+ic+ are !ore intelligent ande?i#le t+an t+eir co!petitors9 #& +iring andde%eloping !ore talented sta5 and #&e?tending t+eir s.ills #ase



1

i!s of SHRM 'Contd()

s per Sc+-ler8 SHRM is largel& a#o-t integration and

adaptation( 7ts concern is to ens-re t+at8 HRM is f-ll& integrated /it+ t+e strateg& and strategic

needs of t+e r!

HR policies co+ere #ot+ across polic& areas and across+ierarc+ies

HR policies are ad$-sted9 accepted and -sed #& line!anagers and e!plo&ees as part of t+eir e%er&da&/or.



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s per D&er and Holder8 SHRM pro%ides -nif&ing fra!e/or. /+ic+ are at

once #road9 contingenc& #ased and integrati%e( T+e rationale for SHRM is t+e percei%ed

ad%antage of +a%ing an agreed and -nderstood#asis for de%eloping and i!ple!entingapproac+es to people !anage!ent t+at ta.e intoacco-nt t+e c+anging conte?t in /+ic+ t+e r!

operates and its longer ter! re-ire!entsLengnic.Hall8 Underl&ing t+is rationale in a

#-siness is t+e concept of ac+ie%ing co!petiti%ead%antage t+ro-g+ HRM



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s per Store&8 Soft SHRM8 H-!an Relations

Contin-o-s de%elop!ent:Co!!-nication

7n%ol%e!ent

Sec-rit& of e!plo&!ent

4L

4or. life #alance

Hard SHRM8 Field to #e o#tained #& in%esting in Hr in t+e interest of

t+e #-siness



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s per Store& 'Contd()8 SHRM /o-ld atte!pt to ac+ie%e #alance #=/

t+e +ard and t+e soft %ersions

Corporate Social Responsi#ilit&s t+e& dra/ reso-rces fro! t+e societ& and

!-st gi%e #ac. to t+e societ&



"#$ecti%es of SHRM

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"#$ecti%es of SHRM

1( To identif& and anal&3e e?ternalopport-nities and t+reats t+at !a& #ecr-cial to t+e co!pan&Gs s-ccess(

2( To pro%ide a clear #-siness strateg& and%ision for t+e f-t-re(

*( To s-ppl& co!petiti%e intelligence t+at !a&#e -sef-l in t+e strategic planning process(

( To recr-it9 retain and !oti%ate people(( To de%elop and retain +ig+l& co!petent

people(



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"#$ecti%es of SHRM 'Contd()

6( To ens-re t+at people de%elop!ent iss-esare addressed s&ste!aticall&(

;( To s-ppl& infor!ation regarding t+e

co!pan&Gs internal strengt+s and/ea.nesses(

<( To !eet t+e e?pectations of t+e c-sto!erse5ecti%el&(

@( To ens-re +ig+ prod-cti%it&(10( To ens-re #-siness s-rpl-s t+oro-g+

co!petenc&



Concepts of SHRM

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2*

Concepts of SHRM

Reso-rce Based ie/De%eloped #& Penrose and e?panded #&

4ernerfeltBased on Ha!el and Pra+alad %ie/8 7t is t+e range of reso-rces in an organi3ation incl-ding its

HR9 t+at prod-ces its -ni-e c+aracter and createsco!petiti%e ad%antage

Ia& Barne&8 Co!petiti%e d%antage arises rst /+en r!s /it+in an

ind-str& are +eterogeneo-s /it+ respect to t+e strategicreso-rces t+e& control and second /+en t+ese reso-rcesare not perfectl& !o#ile across r!s and t+-s+eterogeneit& can #e long lasting(



2

Concepts of SHRM 'Contd()

Reso-rce Based ie/ 'Contd() Ia& Barne& 'Contd()8 Creating s-stained co!petiti%e ad%antage t+erefore

depends on t+e -ni-e reso-rces and capa#ilities t+at ar! #rings to co!petition in its en%iron!ent( T+ese

reso-rces incl-de e?perience9 .no/ledge9 $-dg!ent9 ris.ta.ing propensit& and /isdo! of indi%id-als associated/it+ a r!

ttri#-tes re-ired #& a r! to create co!petiti%ead%antage8

1( al-a#le2( Rare

*( 7!perfectl& i!ita#le

( Aons-#stit-ta#le



2


Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an Co!petiti%e ad%antage t+ro-g+ +-!an reso-rces

arises #eca-se8

1( T+ere is +eterogeneit& in t+eir a%aila#ilit& in t+e senseof t+e di5erences t+at e?ist #et/een t+e! across r!sin an ind-str& and

2( T+e& are i!!o#ile in t+e sense t+at co!peting r!s!a& #e -na#le to recr-it t+e!(



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Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an 'Contd() Criteria go%erning reso-rceGs a#ilit& to pro%ide

co!petiti%e ad%antage8

1( T+e reso-rce !-st add positive value to t+e r!

2( T+e reso-rce !-st #e unique or rare a!ongstc-rrent and potential co!petitors

*( T+e reso-rce !-st #e imperfectly imitable

( T+e reso-rce cannot be substituted /it+ anot+er

reso-rce #& co!peting r!s



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Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an 'Contd() Bo?all and P-rcell8

Reso-rce #ased HRM can prod-ce HR d%antage( The

aim is to develop strategic capability. T+is !eansstrategic t #et/een reso-rces and opport-nities9o#taining added %al-e fro! t+e e5ecti%e deplo&!entof reso-rces9 and de%eloping people /+o can t+in. andplan strategicall& in t+e sense t+at t+e& -nderstand.e& strategic iss-es and ens-re t+at /+at t+e& do

s-pports t+e ac+ie%e!ent of t+e #-siness:s strategicgoals



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Reso-rce Based ie/ 'Contd() T+is approac+ +ig+lig+ts the importance of

a human capital management approachto HRM and pro%ides t+e $-stication forin%esting in people t+ro-g+ reso-rcing9 talent!anage!ent and learning and de%elop!entprogra!!es as a !eans of en+ancingco!petiti%e ad%antage(



2@


Strategic it 4rig+t and McMa+an

T/o di!ensions t+at disting-is+ strategic HRM8

1( ertical

2( Hori3ontal

Strategic le?i#ilit& #ilit& of a r! to respond and adapt to t+e

c+anges in its co!petiti%e en%iron!ent( En%iron!ental di5erences a5ect e?i#ilit& strateg&

Sta#le9 predicta#le en%t J narro/ range of s.ills andnarro/ range of #e+a%ior

D&na!ic9 -npredicta#le en%t( J organic HR s&ste!s



Perspecti%es of SHRM

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Perspecti%es on Strategic HRM

1( T+e -ni%ersalistic perspecti%e So!e HR practices are #etter t+an t+e ot+ers and all

organi3ations s+o-ld adopt t+ese #est practices( T+ere is -ni%ersal relations+ip #et/een indi%id-al

K#est: practices and r! perfor!ance2( T+e contingenc& perspecti%e

"rgani3ation:s HR policies !-st #e consistent /it+ot+er aspects of t+e organi3ation

*( T+e cong-rational perspecti%e Holistic approac+

7ndependent %aria#les J HR practices andDependent %aria#le J "rgani3ational Perfor!ance



*2

Perspecti%es on Strategic HRM'Contd()

*( T+e cong-rational perspecti%e 'Contd() Ric+ardson and T+o!pson8

Best Practice pproac+ 'Uni%ersalistic)

Best it pproac+ 'Contingenc&)

B-ndling 'Cong-rational)



**


*( T+e cong-rational perspecti%e 'Contd() BEST PRCT7CE PPR"CH

ss-!ption

T+ere is a set of #est HRM practices and adoptingt+e! /ill ine%ita#l& lead to s-perior organi3ational

perfor!ance( List of #est practices8

s per Pfe5er8

1( E!plo&!ent and sec-rit&

2( Selecti%e +iring

*( Self!anaged tea!s( Hig+ co!pensation contingent to perfor!ance

( Training to pro%ide a s.illed and !oti%ated /or.force

6( Red-ction of stat-s di5erentials

;( S+aring infor!ation



*



s per -est8

1( Selection and t+e caref-l -se of selection tests to identif&t+ose /it+ potential to !a.e a contri#-tion

2( Training9 and in partic-lar a recognition t+at training is anongoing acti%it&

*( Io# design to ens-re e?i#ilit&9 co!!it!ent and!oti%ation9 incl-ding steps to ens-re t+at e!plo&ees+a%e t+e responsi#ilit& and a-tono!& f-ll& to -se t+eir.no/ledge and s.ills

( Co!!-nication to ens-re t+at a t/o/a& process .eepse%er&one f-ll& infor!ed

( E!plo&ee s+are o/ners+ip progra!!es to increasee!plo&ees: a/areness of t+e i!plications of t+eir actionson t+e nancial perfor!ance of t+e r!



*



Deler& and Dot& J se%en Strategic HR practices8

1( 7nternal career ladders

2( or!al training s&ste!s*( Res-ltsoriented appraisal

( Perfor!ance #ased co!pensation

( E!plo&!ent sec-rit&

6( E!plo&ee %oice

;( Broadl& dened $o#s



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*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH

HR strategies s+o-ld #e contingent on t+e conte?t9 circ-!stancesof t+e organi3ation and its t&pe

ertical integration Models8

1( Life c&cle Model

De%elop!ent of a r! ta.es place in fo-r stages JStart-p9 gro/t+9 !at-rit& and decline

Baird > Mes+o-la!8 KHRKs e5ecti%eness depends on its t /it+ t+eorgani3ation:s stage of de%elop!ent( s t+eorgani3ation gro/s and de%elops9 HRM progra!!es9practices and proced-res !-st c+ange to !eet its

needs( Consistent /it+ gro/t+ and de%elop!ent!odels it can #e s-ggested t+at +-!an reso-rce!anage!ent de%elops t+ro-g+ a series of stages ast+e organi3ation #eco!es !ore co!ple?



*;


*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()

Models 'Contd()8

1( Life c&cle Model 'Contd()

o B-ller and Aapier8

Start-p p+ase J HRM !a& #e loose and infor!alro/t+ p+ase J or!al str-ct-re and f-nctionalspecialties role of HR attract t+e rig+t .inds andn-!#ers of people talent !anage!ent

perfor!ance !anage!ent learning > de%elop!entand re/ard policies and practices

Mat-rit& P+ase J HR !a& #e less inno%ati%e and!ore inclined to consolidate and de%elop e?isting

practices rat+er t+an create ne/ ones(

Decline P+ase J Do/nsi3ing and #eing ta.en o%er



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Models 'Contd()8

2( Co!petiti%e strateg&

o Porter8 1( 7nno%ation Strateg&

2( -alit& Strateg&

*( Cost leaders+ip

o Sc+-ler > Iac.son 8 e5ecti%eness can #e

increased #& s&ste!aticall& !elding +-!anreso-rce practices /it+ t+e selectedco!petiti%e strateg&



*@



Models 'Contd()8 2( Co!petiti%e strateg&

INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIPSTRATEGY

Io#s t+at re-ire closeinteraction andcoordination a!onggro-ps of indi%id-als

Relati%el& ?ed ande?plicit $o# descriptions

Relati%el& ?ed ande?plicit $o# descriptions

Ps t+at are !ore li.el& toreect longer ter! andgro-p #asedac+ie%e!ents

Hig+ le%els of e!plo&eeparticipation

Aarro/l& designed $o#s >career pat+s t+atenco-rage speciali3ation(S+ort ter! and res-ltsoriented Ps

Io#s t+at allo/ e!plo&eesto de%elop s.ills t+at can !i? of gro-p andindi%id-al criteria for P Close !onitoring of!ar.et pa& le%els in -se



0



Models 'Contd()8 2( Co!petiti%e strateg&

INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIP

STRATEGY

Co!pensation s&ste!st+at e!p+asi3e internale-it& rat+er t+ane?ternal or !ar.et #asede-it&

Relati%e egalitariantreat!ent of e!plo&eesand so!e g-arantees ofe!plo&ee sec-rit&

Mini!al le%els ofe!plo&ee T > D

Pa& rates t+at tend to #elo/ #-t allo/ e!plo&eesto #e stoc.+olders and+a%e !ore freedo! toc+oose t+e !i? ofco!ponents

E?tensi%e and contin-o-straining and de%elop!entof e!plo&ees

Practices t+at !a?i!i3ee,cienc& #& pro%iding!eans for !g!t to!onitor and controlclosel& t+e acti%ities ofe!plo&ees

Broad career pat+s toreinforce t+e de%elop!ent



1



Models 'Contd()8

*( Strategic cong-ration

Miles and sno/ identied fo-r t&pes or organi3ations9 %i3(8

1( Prospectors2( Defenders

*( nal&3ers

( Reactors

Deler& and Dot& J organi3ations s+o-ld align t+eir HRs&ste!s /it+ t+e strateg& lin.ed to t+eir organi3ation( T/o

t&pes of s&ste!s8 1( Mar.et t&pe s&ste! 'for Prospector)

2( 7nternal S&ste! 'for Defender)

Hybrid of internal and Market strategy for Analyzer



2


*( T+e cong-rational perspecti%e 'Contd() BUADL7A

De%elop!ent and i!ple!entation of se%eral HR practicestoget+er so t+at t+e& are interrelated and t+ereforeco!ple!ent and reinforce eac+ ot+er(

Practices /it+in #-ndles are interrelated and internall&consistent and K!ore is #etter: /it+ respect to t+e i!pacton perfor!ance9 #eca-se of t+e o%erlapping and !-t-all&reinforcing e5ect of !-ltiple practices

T+e ai! is to ac+ie%e +ig+ perfor!ance t+ro-g+

co+erence



Strategic Role of HR

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Strategic Role of HR

SHRM in%ol%es t+e de%elop!ent of consistent9 alignedcollection of practices9 progra!s9 and policies to facilitate t+eac+ie%e!ent of t+e organi3ation:s strategic o#$ecti%es

Strategic Partner Model8 Da%id Ulric+

HR s+o-ld deli%er res-lts t+at enric+ t+e organi3ation:s %al-eto its c-sto!ers9 in%estors and e!plo&ees( T+is can #eacco!plis+ed in fo-r /a&s8

1( B& HR #eco!ing partner /it+ senior and line !anagers

2( B& HR #eco!ing an e?pert in t+e /a& /or. is e?ec-ted

*( B& HR #eco!ing a c+a!pion for e!plo&ees9 /or.ing to increasee!plo&ee contri#-tion and co!!it!ent to t+e organi3ation

( B& HR #eco!ing an agent of contin-o-s transfor!ation t+ats+apes processes and c-lt-re to i!pro%e an organi3ation:scapacit& for c+ange



Strategic Role of HR 'Contd()

Strategic oc-s

S&ste!s People

"perational oc-s

StrategicPartner

d!inistrati%e E?pert

E!plo&eeC+a!pion

C+angegent

Possible roles assumed by HR

(Framework develoed !" Dav#d Ulr#$%&



6


Roles 'Contd()8 1( Strategic Partner

Partner in strateg& e?ec-tion

Responsi#le for organi3ational arc+itect-re and str-ct-re

Cond-ct org a-dit to identif& t+ose co!ponents t+at

need to #e c+anged to facilitate strateg& e?ec-tion identif& !et+ods for reno%ating t+e parts of t+eorgani3ational arc+itect-re ta.e stoc. of its o/n /or.and set priorities to ens-re deli%er& of res-lts

2( d!inistrati%e e?pert

S+ed t+eir i!age of r-le !a.ing police /+ile ens-ringt+at t+e re-ired ro-tine /or. still gets done e5ecti%el&and e,cientl&(

Re-ires ret+in.ing or i!pro%ing traditional HR f-nctions



;


Roles 'Contd()8 *( E!plo&ee C+a!pion

Ens-ring t+at e!plo&ees are f-ll& engaged in andco!!itted to t+e organi3ation

Partnering /it+ line !anagers

E!plo&ees: ad%ocate

( C+ange gent B-ild t+e organi3ation:s capa#ilit& to e!#race and

capitali3e on ne/ sit-ations9 ens-ring t+at c+angeinitiati%es are dened9 de%eloped and deli%ered in a

ti!el& !anner



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HR Roles in .no/ledge #ased econo!& as perLengnic.Hall8

1( H-!an Capital Ste/ard Creation of an en%iron!ent and c-lt-re in /+ic+

e!plo&ees %ol-ntaril& /ant to contri#-te t+eir ideas9

s.ills and energ&( H-!an capital is not o/ned #& t+e organi3ation and

t+-s C can #e !aintained /+en #est e!plo&ees arerecr-ited9 !oti%ated and retained

2( Nno/ledge acilitator

Proc-re!ent of t+e necessar& e!plo&ee .no/ledge ands.ill sets t+at allo/ infor!ation to #e ac-ired9de%eloped9 and disse!inated9 pro%iding a co!petiti%ead%antage



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HR Roles in .no/ledge #ased econo!& as perLengnic.Hall 'Contd()8

*( Relations+ip B-ilder De%elop!ent of str-ct-re9 /or. practices and

organi3ational c-lt-re t+at allo/ indi%id-als to /or.

toget+er9 across depart!ents and f-nctions( Rapid deplo&!ent specialist

Creation of organi3ation str-ct-re and HR s&ste!s t+atare -id and adapta#le to rapid c+ange in response toe?ternal "s > Ts



0


SHRM Critical Co!petencies'or HR to #e a tr-e B-siness Partner)

1( Strategic Contri#-tion

2( B-siness Nno/ledge

*(Personal Credi#ilit&

( HR deli%er&

( HR tec+nolog&



1


Strategic Role of HR Directors Pro!otes t+e attain!ent of organi3ation:s #-siness goals #&8

De%eloping and i!ple!enting HR strategies t+at are integrated /it+t+e #-siness strateg& and are co+erent and !-t-all& s-pporti%e

Ens-ring t+at a strategic approac+ is adopted #& t+e HR f-nction t+ats-pports t+e #-siness and adds %al-e

Strategic Role of Heads of HR Functions ttain!ent of organi3ational goals #& de%eloping and

i!ple!enting f-nctional strategies t+at are aligned /it+ t+e#-siness strateg& and integrated /it+ t+e strategies for ot+er HRf-nctions and adopt a strategic approac+ in t+e sense ofens-ring t+at HR acti%ities s-pport t+e #-siness and add %al-e

Strategic Role of HR Business Partners ttain!ent of #-siness goals of t+e organi3ational -nit or

f-nction in /+ic+ t+e& operate

Strategic ontribution of HR !dvisors"!ssistants Deli%ering e5ecti%e HR ser%ices /it+in t+eir f-nctions or as

!e!#ers of an HR ser%ice centre(



Strategic %s( Traditional HR

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Strategic %s( Traditional HR

'ASIS Trad##o)al HR Srae*#$ HR

Re+o)+#!#l#",or HR

Sta5 specialists Line !anagers

Fo$-+ E!plo&ee relations Partners+ips /it+ internal ande?ternal c-sto!ers

Role o, HR Transactional9 c+ange follo/erand respondent

Transfor!ational9 c+angeleader and initiator

I)##a#ve+ Slo/9 reacti%e9 frag!ented ast9 proacti%e9 integrated

T#me %or#.o) S+ortter! S+ort9 !edi-!9 long asre-ired

Co)rol B-rea-cratics J roles9 policies9proced-res "rganic J e?i#le9 /+ate%er isnecessar& to s-cceed

/o! De+#*) Tig+t di%ision of la#or9independence9 speciali3ation

Broad9 e?i#le9 crosstraining9tea!s

0e"#)ve+me)+

Capital9 prod-cts People9 .no/ledge

A$$o-)a!#l#" Cost center 7n%est!ent center



Strateg& Dri%en RoleBe+a%iors



Strateg& Dri%en Role Be+a%iors

Co!petiti%e strategies re-ire di5erent +-!anreso-rce practices > di5erent role #e+a%iors


HR B#H!$%&RS' (Cooperati%e

Hig+l& creati%e

"riented to/ard t+e longr-n

Ris. ta.ersCo!forta#le /it+a!#ig-it&

'I > I9 HP9 *M)

Place e!p+asis onprod-ction=ser%iceprocesses

Ris. red-ction

Predicta#ilit&

'L( L( Bean9 To&ota9Corning lass)

S+ort ter! foc-sed

Ris. a%erse

Predicta#le res-ltsoriented

Co!forta#le /or.ing #&t+e!sel%es

St t D i R l B + i



6

Strateg& Dri%en Role Be+a%iors'Contd()

Re,er Sl#de+ 12 3 45


HR PR!T%#S' (

ro-p oriented9 longter!

appraisal s&ste!senerali3ed s.illde%elop!ent and #roadcareer pat+s

Co!pensation approac+esaccent-ating internal

e-it&le?i#le co!pensationpac.ages

E!plo&!ent sec-rit&

g-aranteesE?tensi%e trainingprogra!!es

Participati%e decision!a.ing

PfM S&ste!s e!p+asi3ing

res-lts in t+e s+ort ter!irt-all& no trainingprogra!!es

er& speciali3ed $o#s

Aarro/ and speciali3edcareer pat+s

Proced-res for contin-altrac.ing of /age rates int+e la#or !ar.et



Strategic T&polog& of HR cti%ities

;





H#*%

Srae*#$Val-e o,

A$#v#"

Low

Sta)ng Planning

Bene*ts Planning

Retirement Planning

ompliance

Performance#nhancement

onsulting

#mployee Relations

+abor ,egotiations

#-ecutive ompensation

#mployee Development

anagementDevelopment

Recruitment%ntervie/ing

Imora) o E6e$-#ve+

pa&roll

Benets ad!inistration

Retire!ent ad!inistration

E!plo&ee records

Relocation ad!inistration

Recr-it!ent 7nfor!ationProcessing

Recr-it!ent infor!ation

processing E!plo&ee ssistanceProgra!!es

<



Strategic Sta,ng Policies

@





#-ternal

Source&f

+abor

%nternal

F&RTR#SS

0ompanies /ith

dysfunctional strategies1

HR Srae*" 7 Rere)$%me)

E)r" 7 Re$r-#me)

Develome) 7 Ree)#o) o,Core Tale)

E6# 7 Fre8-e) La"o9+

B!S#B!++ T#!

0%nnovation Strategy1

HR Srae*" 7 Re$r-#me)

E)r" 7 Re$r-# a all $areer+a*e+

Develome) 7 O):%e:;o!< l#le,ormal ra#)#)*

E6# 7 H#*% -r)over< emlo"er

$areer a%+

+2B

0+o/ cost producer1

HR Srae*" 7 Ree)#o)

E)r" 7 earl" Career

Develome) 7 A+ *e)eral#++<+low a%+

E6# 7 Low -r)over<Re#reme)

!!D#3

0Focused Strategy4 ,iches4 Bothpdt innovators 5 competitors in

long run1

HR Strategy : development

Entry : stritly early areer

!evelopment : E"tensive training forspei# $obs% elaborate areer

pat&s'$ob ladders

E"it : lo( turnover% retirement%dismissal for poor performane

60



Barriers to SHRM

61



62

Barriers to Strategic HRM

1( S+ort ter! !entalit& 'foc-s on c-rrent perfor!ance)

2( 7na#ilit& of HR to t+in. strategicall&

*( Lac. of appreciation of /+at HR can contri#-te

( ail-re to -nderstand general !anager:s role as an

HR !anager

( Di,c-lt& in -antif&ing !an& HR o-tco!es

6( Perception of +-!an assets as +ig+erris.in%est!ents

;( 7ncenti%es for c+ange t+at !ig+t rise



C+allenges to SHRM

6*



6

C+allenges to Strategic HRM

o-r !a$or c+allenges8

1( Tec+nological d%ance!ent

2( 7ncreasing attention to et+ical #e+a%ior

*( De!ograp+ics and Di%ersit&

( lo#ali3ation

C+allenges to Strategic HR



6

C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent

Process #& /+ic+ inp-ts fro! t+e organi3ation:sen%iron!ent are transfor!ed into o-tp-ts

7ncl-des tools9 !ac+iner&9 e-ip!ent9 /or.

proced-res and e!plo&ee .no/ledge > s.ills 7!pact of tec+nolog& on organi3ations8

Re-ires c+anges in s.ills and /or. +a#it of e!plo&ees

Eli!ination of so!e lo/erle%el positions and la&ers of!anage!ent

Less +ierarc+&9 !ore colla#oration




66

C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()

7ss-es for 7ntegrating Ae/ Tec+nologies8

Consideration of dopting a Ae/ Tec+nolog&

STR!T#6% %SS2#S

7!pact on prod-cti%it&7!pact on -alit& of o-tp-t7!pact on ti!ing=deli%er&of o-tp-t

Cost ofe-ip!ent=tec+nolog&de-ac& of c-rrentfacilitiesAe/ !ar.et opport-nitiesa5orded

STR!T#6% HR %SS2#S

Aecessar&e?pansion=contraction of/or.force Training needed to -tili3ene/ tec+nolog&Costs for +iring9 se%erance9trainingE5ecti%e !anage!ent ofc+ange7!pact on /or. gro-p

d&na!ics




6;


HR 7ss-es and C+allenges related to Tec+nolog&

1( Teleco!!-ting T+e process #& /+ic+ e!plo&ees /or. fro! +o!e

2=*rds of t+e ort-ne 100 co!panies c-rrentl& +a%e

teleco!!-ting progra!!es Benets8

Retention aid

le?i#le /or. en%iron!ent ena#les e!plo&ees to

#alance !-ltiple role

Helps e!plo&ers to retain t+eir in%est!ents ine!plo&ees in sit-ations /+ere t+e e!plo&ees need to

relocate

Creates e?i#ilit& in recr-iting

7ncreases prod-cti%it&




6<


HR 7ss-es and C+allenges related to Tec+nolog&'Contd()

1( Teleco!!-ting 'Contd() 7ss-es8

Di,c-lt& in perfor!ance !onitoring

(Have $lear er,orma)$e mea+-reme) +"+em+&

Di,c-lt& in deciding n-!#er and .ind of e!plo&ees to

#e o5ered t+e teleco!!-ting progra!!e and creationof additional need for strategies to a%oid resent!ent or

!orale pro#le!s a!ongst nonparticipants

(Pa" ae)#o) o #)d#v#d-al emlo"ee$%ara$er#+#$+=

+ele$ emlo"ee+ w%o %ave +ro)* or*a)#.a#o)ala)d #me ma)a*eme) +k#ll+&




6@


HR 7ss-es and C+allenges related to Tec+nolog&'Contd()

1( Teleco!!-ting 'Contd() 7ss-es 'Contd()8

E?pendit-re on p-rc+asing e-ip!ent for e!plo&ee:s+o!e o,ce Lia#ilit& for in$-ries inc-rred /+ile /or.ingat +o!e and 7n%est!ents in net/or.ing s&ste!s

(Aror#ae e$%)olo*" ,ea+#!#l#" a++e++me)&

Managers: resistance in +a%ing direct reports a/a&fro! o,ce

(Tra#)#)* ro*ramme+ ,or ele$omm-er+ a)d+-erv#+or+ $over#)* #++-e+ +-$% a+ *oal +e#)*<#me ma)a*eme) a)d ro;e$ reor#)*&

E?a!ple8 He/lettPac.ard > Cisco




;0

C+allenges to Strategic HR'Contd()

Tec+nological d%ance!ent 'Contd() HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()

2( 4or.place Monitoring > s-r%eillance Benets of t+e internet8

En+ance!ent of e!plo&ee:s a#ilities to do t+eir $o#

More co!pre+ensi%e and faster data collection

S-pports teleco!!-ting Cond-ct of personal /or. at $o# /+en perfor!ing d-ties

d-ring Knon/or.: ti!e Monitoring

Soft/are to trac. internet -se Detri!ental e5ect on e!plo&ee pri%ac&9 !orale and lo&alt&

Re-ires8

Co!!-nication of !onitoring polic& to t+e e!plo&ees Consent fro! e!plo&ees To #e !ini!-! and consistent /it+ #-siness necessit&




;1


HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()*( EHR

i!s at le%eraging of tec+nolg& to deli%er HR sol-tions t+at #rings a#o-tcon%ergence in +-!an capital9 processes9 data and tools as a catal&stto/ards ac+ie%ing #-siness strategies

T&pes

"perational J pa&roll9 e!plo&ee data9 etc(

Relational J recr-it!ent9 training9 perfor!ance!anage!ent9 etc(

Transfor!ational J .no/ledge !anage!ent9 strategicreorientation9 etc(

d%antages

collection of infor!ation as t+e #asis for strategic decision!a.ing

integral s-pport for t+e !anage!ent of +-!an reso-rcesand all ot+er #asic and s-pport processes /it+in t+eco!pan&

pro!pt insig+t into reporting and anal&sis




;2



*( EHR 'Contd()

d%antages 'Contd()

a !ore d&na!ic /or.o/ in t+e #-siness process9prod-cti%it& and e!plo&ee satisfaction

a decisi%e step to/ards a paperless o,ce lo/er #-siness costs

Disad%antages

Can alienate sta5 !e!#ers t+at need personals-pport

Red-ces t+e need for !anagers to interact /it+sta5 'i(e( less faceti!e and increased ris. of Glosingto-c+G /it+ sta5)

S-#$ect to corr-ption=+ac.ing=data losses




;*



*( EHR 'Contd() 7ss-es

Resistance of e!plo&ees and line !anagers

etting s-pport fro! s!all co!ponents oft+e co!pan&

-aranteeing sec-rit& and condentialit& E?a!ple8 Do/ C+e!icals9 BAMR"9 ord Motor

Co!pan&9 7BM




;

C+allenges to Strategic HR'Contd() 7ncreasing attention to et+ical #e+a%ior

Et+ics are not -ni%ersall& dened #-t rat+er s-#$ectto personal %al-es and con%ictions

S-#$ecti%el& assessed

Et+ical concern8 "5 t+e d-t& #e+a%ior

"/ners+ip of /or.

airness of nonco!pete cla-ses

Sol-tion J C"DE " ETH7CS




;

C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit&

Managing Di%ersit& is a strategic process to !anagea di%erse /or.force incl-ding t+e g+t againststereot&pes9 pre$-dice and all .ind of discri!inationd-e to t+e indi%id-al perceptions and ass-!ptionsin t+e !anner to !a?i!i3e t+e #enet and !ini!i3e#arriers of di5erent opinions9 #e+a%ior and attit-desof +-!an #eings /it+in a co!pan&

Di%ersit& /it+ regards to8

enerational Di%ersit&

Ba#& Boo!ers9 en O9 en F 7ndi%id-als /it+ Disa#ilit&

Se?-al "rientation

Personal and fa!il& life c&cle d&na!ics9 etc(





;6

De!ograp+ics and Di%ersit& 'Contd()

7or8 Related' •Moti%ationPersonalit&4or. et+icE?periencettit-des

Io# responsi#ilitiesE!plo&!ent stat-s

Personal

Race

ge

Religion

ender

Se?-al"rientationP+&sical

#ilit&

Et+nicit&

MaritalStat-s

a!il&Stat-s

Ho##ies

Residen

ce

%ndividualDimensionsof Diversity




;;

C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit& 'Contd()

Aeed for !anaging Di%ersit&8

1( Social Responsi#ilit&

2( n Econo!ic Pa&#ac.

*( Reso-rce 7!perati%e( Legal Re-ire!ent

( Mar.eting Strateg&

6( B-siness Co!!-nications Strateg&

;( Capacit&#-ilding Strateg&




;<


Strategic Manage!ent of Di%ersit&8

1( Deter!ine /+& di%ersit& is i!portant for t+eorgani3ation

2( rtic-late +o/ di%ersit& relates to t+e !ission and

strategic o#$ecti%es of t+e organi3ation

*( Dene di%ersit& and deter!ine +o/ incl-si%e its e5orts/ill #e

( Ma.e a decision as to /+et+er special e5ort s+o-ld #ee?tended to attract a di%erse /or.force

( ssess +o/ e?isting e!plo&ees9 c-sto!ers9 and ot+erconstit-encies feel a#o-t di%ersit&

6( Deter!ine specic t&pes of di%ersit& initiati%es t+at /ill#e -nderta.en




;@


HR Managers need to 'Strategic Response toDi%ersit& at 4or.place)8 E!#race Di%ersit&

Recr-it Broadl&

Select airl&

Pro%ide "rientation > Training

Sensiti3e all E!plo&ees

Stri%e to #e le?i#le

See. to Moti%ate 7ndi%id-all& Enco-rage e!plo&ees to e!#race di%ersit&




<0


lo#ali3ation lo#al HRM di5ers fro! Do!estic HRM8

Broader range of f-nctional areas

More in%ol%e!ent in t+e e!plo&ees: personal life

Di5erent HR s&ste!s for di5erent locations

More co!ple? e?ternal constit-encies Heig+tened e?pos-re to ris.s '%i3(9 +ealt+ > safet& of

e!plo&ee > fa!il&9 legal iss-es9 possi#le terroris! >+-!an > nancial conse-ences of !ista.es)

Strategic HR 7ss-es in lo#al ssign!ents

Ae?t Slide

'Contd()



lo#ali3ation 'Contd() Strategic HR 7ss-es in lo#al ssign!ents 'Contd()

6+&B!+ B2S%,#SS

STR!T#63 E?portS-#cintract=license IS-#sidiar&

,ationalulture

+ocal ultureorporate

ulture

Strategic HR %ssues

Purposeof

#-patriation

SelectionE!plo&ee

a!il&

&rientationE!plo&ee >

a!il&H Sta5

anaging#-pats

PMCo!pensation

La#or Relations"ngoing Training

+evel of Std9nEt+nocentricPol&centricRegiocentriceocentric

Repatriat

ion

<1



"-tco!es of SHRM

<

2

" t f St t i HR



<

*

"-tco!es of Strategic HR

I)$rea+ed

Per,orma)$e

C-+omer 3

Emlo"eeSa#+,a$#o)

E)%a)$ed

S%are%olderVal-e

%ro-*%

E9e$#ve ma)a*eme) o, +a>)*< ree)#o) a)d -r)over%ro-*% +ele$#o) o, emlo"ee+ %a ? w#% !o% +rae*"a)d $-l-reCo+:e9e$#ve -#l#.a#o) o, emlo"ee+ %ro-*%#)ve+me) #) #de)#?ed %-ma) $a#al w#% oe)#al ,or%#*% ree)#o)I)e*raed HR ro*ram+ a)d ol#$#e+ %a $learl" ,ollow,rom $ororae +rae*" Fa$#l#a#o) o, $%a)*e a)d adaa#o) %ro-*% a @e6#!le<more d")am#$ or*a)#.a#o)T#*%er ,o$-+ o) $-+omer )eed+< ke" a)d emer*#)*marke+< 8-al#"



Model of SHRM

<

M d l f SHRM



Model of SHRM

<

I)er)ale)v#ro)me)

C-lt-reStr-ct-rePoliticsE!plo&ee S.illsPast Strateg&

Corporate

Strateg&

B-siness Unit

Strateg&

E6er)ale)v#ro)me)

Co!petitiono%ern!entReg-lation Tec+nolog&Mar.et TrendsEcono!ic Trends

HR Srae*"

HR planningDesign of $o#s and

/or. s&ste!s4+at /or.ersdo4+at /or.ersneedHo/ $o#sinterface /it+

ot+ers

E!plo&eeSeparatio

n

La/sreg-lating

E!plo&!ent

HR7S

Sta,ng

Training

PM

Co!pensation

7R



Lin.ing People /it+ t+e Strategic needs of t+e

B-siness T+e J P Model

<

6

B-sinessT+e P Model



T+e J P Model

Or*a)#.a#o)al Srae*" 7nitiates t+e process of identif&ing strategic

#-siness needs and pro%ides specic -alitiesto t+e!

Srae*#$ '-+#)e++ Need+E?presses in !ission state!ents or %isionstate!ents and translated into strategic

#-siness o#$ecti%es

7nternalC+aracteristics

E?ternalC+aracteristics

SHR A$#v##e+HR PhilosophyE"pressed in statements de#ning business values ) ulture

HR PoliciesE"pressed as s&ared values *guidelines+

HR Programs Artiulated as HR strategies

HR Practices,or leaders&ip% managerial and operational roles

#-presses ho/ to treat and valuepeople

#stablishes guidelines for action onpeople(related business issues andHR programs

oordinates e:ort to facilitatechange to address ma;or people

Documents

03 Introduction to SHRM