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Shrm-strategic human resource management.
Strategy: Course of action
strategic HR management is best defined by
the outcomes of the work done by the
function that drives, or contributes to,
attainment of strategic business goals of the
organization. By strategic business goals It
mean goals that provide greater returns to
stakeholders.
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Goals that make the business stronger from a balancesheet perspective, that is enhancement of net worthor enhancement of return on assets, or
Goals that solidify business performance providing
greater confidence in the future of the business tostakeholders and analysts, as they seem to determinethe market worth more than any one constituency.These would include either goals, which ensuregreater financial returns in the near term or goals,which build the platforms for greater financial
returns in the medium to longer term.
Goals that significantly enhance market share orbuild brands leading to longer term financial returnsfor shareholders.
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PARAMETER TRADITIONAL HR SHRM1) Focus 1) Employee relations 1) Partnerships with internal and external
customers
2) Role of HR 2) Transactional change, follower andrespondent 2) Transformational change leader andinitiator.
3) Initiatives 3) Slow, reactive fragmented 3) Fast proactive and integrated4) Time horizon 4) Short term 4) Short , medium and long (as required)
5) Control 5) Bureaucratic roles, policiesprocedures 5) Organic flexible whatever is necessary tosucceed
6) Job design 6) Tight division of labor, independencespecialization 6) Broad flexible cross training teams.
7) Key investments 7) Capital products, 7) People knowledge8) Accountability 8) Cost center 8) Investment center
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Strategic HR offers three critical outcomes:
increased performance,
enhanced customer and employeesatisfaction and
increased shareholder value
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These outcomes are accomplished througheffective management of staffing,
retention and turnover processes,
selection of employees that fit with both theorganizational strategy and culture,
cost effective utilization of employee throughinvestment in identified human capital with thepotential for higher return ;
integrated HR programs and policies that clearly
follow from corporate strategy facilitation ofchange and adaptation;
and tighter focus on customer needs, emergingmarkets and quality
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This typology was developed by Alan Speaker.
The typology categorized hr activities in a
2X2 matrix acc. To the two dimension.
The two dimension are: The extend to which such activities are
rational or transactional.(administrative or
impersonal)
Whether they have high or low strategicvalue.
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High
staff planning,benefit
planningretirement
planning,compliance
Performance
enhancement,employee
relation,labor
negotiation,executive
compensation,employeedevelopment,management
development.recruitment
interviewingStrategic value
payroll,benefit
administration,retirement
administration,employeerecords,relocation
administration,
Recruitment informationprocessing,employee
assistance programme.Low
Transactional ---------type of hr activity---------relationship
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A co-ordinated set of actions aimed at
integrating an organizations culture,
organization, people and systems in order to
achieve business goals.
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four key dimensions of an organization must be
addressed. These are:
Culture: the beliefs, values, norms and
management style of the organization
Organization: the structure, job roles and
reporting lines of the organization
People: the skill levels, staff potential and
management capability
Human Resources systems: the people focused
mechanisms which deliver the strategy
employee selection, communications, training,
rewards, career development, etc.
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Employee security
Selective hiring
Team working
Compensation
Training
Sharing information
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Economic- good economy then good wages
salary,
Demographic-work force, diversity, dual
career, women, leaves, part time workers,work at home.
Legislation- laws, compensation, leaves,
health insurance, working hours.
Technology-general &specific training,teamwork, specific recruitment
Cultural system-language ,religion,social.
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Private organizations:
Creating high trust culture, team work,
Flexibility, update knowledge, deadline and
punctuality, change managementGovernment organization:
Government policies, mostly old and not
updated, job security, slow in action and
steps.
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Organization size
Organization structure.
Past practices and traditions
Top management Power and politics
Academic and professional influence.