Upload
chaitanya
View
39
Download
2
Tags:
Embed Size (px)
DESCRIPTION
It gives an idea about strategic Hrm
Citation preview
Prof. S. Pattnaik
HUMAN RESOURCE MANAGEMENT
Prof. S. Pattnaik
Evolution of the HR Function
• Commodity concept
• Factor of Production concept
• Goodwill concept
• Paternalism
• Humanitarian concept
• Human resource concept
• Partnership concept
Prof. S. Pattnaik
Other things being equal……
MOTIVATIONMOTIVATION• Job Job enrichment enrichment• PromotionsPromotions• CoachingCoaching• FeedbackFeedback• RewardsRewards
MOTIVATIONMOTIVATION• Job Job enrichment enrichment• PromotionsPromotions• CoachingCoaching• FeedbackFeedback• RewardsRewards
ENVIRONMENTENVIRONMENT• Management Management philosophy philosophy• CultureCulture• Empowerment Empowerment
ENVIRONMENTENVIRONMENT• Management Management philosophy philosophy• CultureCulture• Empowerment Empowerment
ABILITYABILITY• RecruitmentRecruitment• Selection Selection • TrainingTraining• DevelopmentDevelopment
ABILITYABILITY• RecruitmentRecruitment• Selection Selection • TrainingTraining• DevelopmentDevelopment
Perf = Perf = f f (A,M,E)(A,M,E)Perf = Perf = f f (A,M,E)(A,M,E)
Prof. S. Pattnaik
The Bottomline
• Getting results
– The bottom line of managing
• HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.
The Strategic Role of Human Resource Management
Prof. S. Pattnaik
Strategy
• Strategy is deciding where to go and the means to get there.
• Strategy is a declaration of intent.
Definition
Definition
Prof. S. Pattnaik
Some Organisational Strategies
Company Strategic Principle
General Be number one or number two in Electric every industry in which we compete, or get out
Wal-Mart Low prices, every day
3M Foster innovation
Prof. S. Pattnaik
Strategic PlanningThere are three levels of strategic planning -
Corporate Strategy
FunctionalStrategies
BusinessStrategy
BusinessStrategy
BusinessStrategy
Prof. S. Pattnaik
Types of Strategic Planning
• Corporate-level strategy
– Identifies the portfolio of businesses that, in total, comprise the company and the ways in which these businesses relate to each other.
• Diversification strategy
• Vertical integration strategy
• Consolidation strategy
• Geographic expansion strategy
Prof. S. Pattnaik
Types of Strategic Planning (cont’d)
• Business-level/competitive strategy
– Identifies how to build and strengthen the business’s long-term competitive position in the marketplace.
• Cost leadership
• Differentiation
• Focus
Prof. S. Pattnaik
Types of Strategic Planning (cont’d)
• Functional strategies– Identify the basic courses of action
that each department will pursue in order to help the business attain its competitive goals.
Prof. S. Pattnaik
Business Strategy = Overall Cost Leadership
Common OrganizationalCharacteristics
HR Strategies
• Intense supervision of labor
• Tight cost control requiring frequent, detailed control reports
• Low-cost distribution system
• Structured organizationand responsibilities
• Products designed for ease in manufacture
• Detailed work planning• Emphasis on technical
qualifications and skills• Emphasis on job-specific
training• Emphasis on job-based
pay• Use of performance
appraisal as a control device
Prof. S. Pattnaik
Business Strategy = Differentiation
Common OrganizationalCharacteristics
HR Strategies
• Strong marketing abilities
• Product engineering• Corporate reputation for
quality or technological leadership
• Amenities to attract highly skilled labor, scientists, or creative people.
• Emphasis on innovation and flexibility
• Broad job classes• Loose work planning• External recruitment• Team-based training• Emphasis on individual-
based pay
Prof. S. Pattnaik
Business Strategy = Focus
Common OrganizationalCharacteristics
HR Strategies
Combination of cost-leadership and differentiation strategy directed at a particular strategic target.
Combination of HR strategies of the other two strategies.
Prof. S. Pattnaik
Achieving Strategic Fit
• Michael Porter
– Emphasizes the “fit” point of view that all of the firm’s activities must be tailored to or fit its strategy
• Gary Hamel and C. K. Prahalad
– Argue for “stretch” in leveraging resources—supplementing what you have and doing more with what you have
Prof. S. Pattnaik
STRATEGIC HUMAN RESOURCE MANAGEMENT
• Linking HRM with strategic goals and
objectives to improve business performance
and develop organizational cultures fostering
innovation and flexibility.
• Defines the organisation’s intentions and
plans on how its business goals should be
achieved through people.
Prof. S. Pattnaik
Formulate Business Strategy
Identify Employee Competencies and Behaviors that HR must deliver to achieve the strategy
Formulate HR Policies & Activities that will lead to these Employee Competencies and Behaviors
Linking Corporate and HR Strategy
External environme
nt
Internal Strengths & Weaknesses
Prof. S. Pattnaik
HR’s Strategic Roles
• Identify the human issues that are vital to business strategy.
• Help establish and execute strategy.
• Provide alternative insights.
• Are centrally involved in creating responsive and market-driven organizations.
• Conceptualize and execute organizational change.
Prof. S. Pattnaik
HR’s Strategy Formulation Role
• HR helps top management formulate strategy in a variety of ways by.– Supplying competitive intelligence regarding
the external environment– Supplying information regarding the
company’s internal human strengths and weaknesses.
– Showing how the firm’s HR activities can and do contribute to creating value for the company.
Prof. S. Pattnaik
HR’s Strategy Execution Role
• The HR department’s strategies, policies, and
activities must make sense in terms of the
company’s corporate and competitive
strategies, and they must support those
strategies.
Prof. S. Pattnaik
Implications of SHRM
• Successful SHRM efforts begin with identification of strategic needs.
• Employee participation is critical to linking strategy and HR practices.
• Strategic HR depends on a systematic and analytical mindset.
• Corporate HR departments can have an impact on their organization’s efforts to launch strategic initiatives.
Prof. S. Pattnaik
Cost of HR vs Value added by HR
HR ACTIVITY
Strategic (Planning)
Operational(Service delivery)
Administrative(Record keeping and Compliance)
COSTVALUE ADDED
10%
30%
60%
60%
30%
10%
Prof. S. Pattnaik
Human Resource Competencies
BUSINESS MASTERY• Business acumen• Customer
orientation• External relations
HR MASTERYKnowledge of policies and mastery of practice in HR systems
CHANGE MASTERY• Problem solving
skills• Innovation &
CreativityPERSONAL CREDIBILITY• Trust • Courage• Lived values
Prof. S. Pattnaik
Harvard model of HR
Stakeholder Interests
Situational factors
HR strategy and policy choices
Long-term Consequences for Individual, Individual, Organisation, Organisation, SocietySociety
HR Outcomes• Commitment• Congruence• Cost
effectiveness
Prof. S. Pattnaik
Things to Remember as We Move through the course
• HR management: the responsibility of every manager
• HR practices today must address several basic issues including– Improving competitiveness– Globalizing– Technology and internet-based
advances– Contributing to strategic success