Strategic Role of Hrm 163

8/8/2019 Strategic Role of Hrm 163

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Strategic Role of HRM



Strategic HRM

Development of consistent, aligned

Collection of practices, programs &

policies

To facilitate the achievement

Of the organization¶s strategic

objectives.



Possible roles assumed by HR

Operational focus

PeopleSystems

Strategic focus

StrategicPartner

Change

Agent

Administra

tive expert EmployeeChampion



Traditional Strategic HR

Responsibility Staff specialist Line managers

Focus Employee Rel. Partnerships withinternal/ external

customers

Role Transaction Transformational

Initiatives Slow, Reactive,fragmented

Fast, Proactive,Integrated

Time horizon Short term Long

Control Bureaucratic Organic

Job Design Div. Of labor,specialization

Team, flexible

Key investment Capital, Products People, knowledge

Accountability Cost centre Investment



Barriers To SHRM

Short term Mentality

Inability of HR to think Strategically

Lack of appreciation of what HR can contribute

Failure to understand GM¶s role as HR mgr.

Difficulty in quantifying many HR outcomes

Perception of Human assets as high risk investment

Incentives for change that may arise.



Outcomes of SHR

Increased performance

Through

Customer & employee

satisfaction Enhanced Shareholder value

Effective management of staffing, retention etc.

Cost-effective utiliztion

Integrated HR programs & policies

Facilitation of change

Tighter focus on customer needs, key & emerging markets



Model of SHRM

CorporateStrategy

Business unitStrategy

Internal

Environment

External

Environment

HR Strategy

Employee

Separation

Laws regulating

Employment

HR IS

Compensation

Performance

Mgmt.

training

Staffing

Labor

relations



Models of SHRM

High-commitment Management model

High-performance Management model

High-involvement model



Approaches to the development of

HR strategies

Best practice Approach

Best- fit

Bundling



Best- practice

Employment security

Selective hiring

Self-managed teams High- compensation contingent on

performance

Training

Reduction of status differential Sharing information



Best- fit

Analysis of business needs of the firm

within its context

Pick & mix various best practiceingredients



Bundling

Combining Vertical or external fit&

horizontal or internal fit



Approaches to achieving strategic fit

Approaches

Competitive

strategy

Organizational

typology

Life cycle

approach

Innovative QualityCost

leadership

Defender prospector Analyzer

Start-up growth maturity decline



Strategic role of the HR

Strategic Partner

Business partner

Key roles



Strategic Partner

Shared Mind-set

Competence

Consequence

Governance

Capacity for change

Leadership



Business Partner

Strategic Partner

Change agent

Administrative expert

Employee champion



Key roles

Strategist Role

Innovator

Business Partner

Change Manager

Documents

Strategic Role of Hrm 163