101. Introduction - SHRM

8/2/2019 101. Introduction - SHRM

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Strategic

Human ResourceManagement


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SHRM - Meaning & Concept

Who are The Humans

Human resource strategy is the result of a set of decisions a companymakes about the humans with whom it does business

Only Employees

All the People / StakeholdersHR cant be Strategic

What about Humans / People

Human Capital

ManagementHumansare Assets

Assets are to beControlled for Long

Term success

HumanRelationships

Behaviors - cant becontrolled

Human Relationship

Management

Strategy


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Top 10 Non-Financial Variables

Execution of Corporate

Strategy

Management Credibility Quality of Corporate

Strategy

Innovation

Ability to attract and

retain talent

Market Share

Management Expertise

Alignment ofCompensation with

Shareholders Interests

Research Leadership

Quality of Major

Business Processes


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A direct link between human capital and corporatefinancial results is not readily apparent in

traditional accounting practices. Right now, we areonly beginning to understand the potential of this

tool, but its the measurement process thatsimportant Once we are able to measureintangible assets more accurately, I think investors

and finance professionals will begin to look at

human capital metrics as another indicator ofcompanys value.

Lawrence R. Whitman, DeputyCFO

at GTE


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What is Strategic HRM?

The linking of HRM with strategic goals andobjectives in order to improve businessperformance and develop organizational culturesthat foster innovation and flexibility.

Formulating and executing HR systems - HR

policies and activities - that produce theemployee competencies and behaviors thecompany needs to achieve its strategic aims.


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Creating a Strategy - Oriented HR System

Components of HR system

The basic architecture of HR

Strategic management, strategic planning andHRMs strategic roles

Strategic management process

Strategic planningLinking corporate strategy and HR strategy

Translating strategy into HR policies and practice


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Components of the HR Process

HR professionals who have strategic and

other skills

HR policies and activities that comprise the

HR system itself

Employee behaviors and competencies that thecompanys strategy requires


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Basic Architecture of HR


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Overview of Strategic Management


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The Balanced Scorecard


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Basic Model of

How to Align HR

Strategy and

Actions with

Business Strategy

Translating

Strategy intoHR Policy


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Corporate and HR Strategies


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Strategic HR Relationships

HRActivities

EmergentEmployeeBehaviors

StrategicallyRelevant

OrganizationalOutcomes

OrganizationalPerformance

AchieveStrategic

Goals


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Strategy and HR Process

Develop

Personnel

Plans

& Job

Descriptions

Recruit

Candidates

Interview

& Select

Employees

Train

Employees

Based on

Job

requirements

Appraise

Employees

Reward

Employees

Companys Strategic Plan What Business are you in?

On what basis will you compete?

How do you plan to expand?

Confirm to Ethical Standards&

HR Related Laws


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Strategic HR Management

StrategicChoice: Cost leadership

Differentiation Operational

excellence

Customerintimacy

Innovation

Growth Retrenchment

HR Needs

- skills- behaviors

- culture HRCapability

- skills- abilities- knowledge

HR Practices

- recruitment- training- performancemanagement

- labor relations- HR planning

- job analysis- job design- selection- development

- pay structure- incentives- benefits

PerformanceAnd

Results


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Case 2

TTC have recently launched a water purifier focusing onthe bottom of the pyramid i.e. the rural market. During

the process they hired some of the world class consultants

from around the world. Unfortunately things have not

worked for them. And now they have hired you as the

team member of new consulting team. You are an HR

specialist, and Mr. CEO is expecting a lot from you.

What would be your contribution as an HR Specialist to make thisproject a successful venture? Give justifications to the decisions youhave taken.

Documents

101. Introduction - SHRM