Strategic Human Resource Management

Delivering Strategic HR Management:

HR function had two goals:
1) to contain cost.
2) To deliver max value to company’s business units realigning HR leaders as
strategic partners with business leaders.
Organization typically view it as a low-risk, low-return function whose
performance they could measure on quantifiable benchmarks like total
compensation, employee turnover, cost per hire and employee attitudes.
HR practitioners typically reported to line managers and played a limited role. In
mid 50s, GE launched Croton Ville, the first corporate university.
The first wave of SHRM:
Companies made significant investments in customized-executive training
programs. E.g. Toyota’s corporate university where HR practitioners act as
consultants to discuss problems with heads of different departments and meet
business needs.
The Second wave of SHRM:
ERP systems and Balanced Scorecard were introduced. Role of HR expanded to
new managerial roles and leadership practices. New roles reflected new titles
such as relationship manager, solutions consultant and change consultant etc.
Some firms invited head of HR to direct report to the CEO. SHRM called for HR
actions and outcomes that help execute firm’s strategy, demonstrate alignment
with that strategy motivate strategic behavior and directly serve the
implementation of firm strategy.
Outsourcing HR:
Companies should consider three things before outsourcing tactical HR.
1) Transactional: Regular employees rather than outsourced labor
2) Social: Employee of firm entails membership to the company and trustworthy
when compare with outsourced employee.
3) Administrative: whether company should outsource and rely solely on
contractor or not.
The SHRM Challenge:
Few managers were yet capable of translating company strategy and operational
goals into actionable and measurable HR goals. The value of strategic HR is best
realized under a leader with deep knowledge of HR practices. Some companies
demonstrated right strategies, systems, skills and leadership and Help Company
maintain their competitive edge.

21st Century job descriptions:

Jobs are much more fluid, project-oriented and multifaceted. Mergers and
Acquisitions have led to wholesale elimination of job categories. Many people
argued like how well written JD should be.
“If job description is too restrictive and detailed, people can’t think out of the
box.”
“I think you need JD to ground and attach yourself somewhere. Otherwise you are
liable to lose sight of the job you are supposed to do.”
“So, JD is imp to build relationship, to know what each side is expecting.”
JD should describe what results company wants from the employee. Some key
elements to remember when writing a JD:
Consult the entire team: Because each job affects all other relevant parts of the
company.
Distinguish among credentials, skills and traits: Spend some time figuring out
what you need in each area.
Take your time: Make sure you thought through how the position will help fulfill
the company needs and goals.
Make sure you comply with all legal restrictions: Don’t prevent people with
disabilities from getting hired.
Describe your company’s culture: Avoid culture clashes because it can
deteriorate company’s performance.
Write JDs for external not internal audience: Describe JDs in terms that attract
people from outside.
Reveal the salary ranges: It will help attract people and you will know your
company’s worth.
Well written JDs:
1) Shape the beginning of employee relationship
2) Help everyone involved to understand the mission, culture, needs and goals of
the company.
3) Clear performance objectives and measurements.

ABCs of Job interview:

Prepping for the interview:
1) Write out a job profile based on the job description.
2) Your HR dept. can help in determining the most imp characteristics and
otherwise preparing you for an interview.
3) Prepare a written interview guide.
Checklist of items as a basis for an interview guide:
1) Consult resume, application for job, experience, accomplishments that are
most relevant to your job requirements.
2) Plan questions touching on the qualities you are looking for.
3) Prepare a step by step scenario of how to present the position.
4) Do the same for your company, division and department.
It will help you stay focused In your questioning, thus ensuring each applicant a
fair shake and preventing you from putting applicants on the defensive.
Past Performance:
Ask questions that uncover personality characteristics. You are looking for a
particular kind of behavior for every critical requirement you have listed for the
job. What this candidate has done in the past to meet these requirements.
You cannot assess how well candidates have master HR skills but you can test
people-management skills.
Wrong and Right tacks:
Corporations and executives are being dragged into courts with dismaying
frequency and juries are awarding enormous sums. If a question is not directly
related to job description and relevant then don’t ask it.
Choosing the right applicants for important management slots is a key to
achieving exceptional results for you and your company.

The Risky business of hiring stars:

Star performers’ performance plummets by as much as 20% when new company
hire them. 30% performance derive from individual capability and 70% from
organization’s resources and qualities specific to that company. Group’s
performance slips when they see star performer being hired at such lucrative
salary and benefit. It reduces morale and productivity. Recruit bright people
through disciplined hiring strategies. Use training and mentoring to develop them.
Then strive to retain them.
Establish Support:

 Systems and Processes: Establish procedures and routines that fuel

individual’s success. Keep up to date their performance.
  Leadership: Even talented employees needs training and mentoring to
excel. They gather nuts and bolts guidance from their bosses.
 Internal Network: Encourage people to forge relationships across
functions; they will deliver better results.
 Training: Offer programs that accelerate talented employee’s
development.
 Teams: Working with smart colleagues spark ideas that stimulate
productivity.
Use Savvy Retention Strategies:
Understand what motivates your high performers, then take steps to satisfy
their interests.

Getting 360-Degree Feedback Right

Peer appraisals exacerbates bureaucracy, heightens political tensions and
consumes enormous number of hours. PA, when conducted effectively, can
bolster the overall impact of 360-degree feedback.
PA can takes place without negative effects if executives understand and
manage four inherent paradoxes.
1) The paradoxes of Role: You cannot be both a peer and Judge.
2) The Paradox of group performance: Focusing on individual can put entire
group on risk.
3) The Measurement Paradox: The easier feedback is to gather and harder it is
to apply.
4) The Paradox of Rewards: When peer appraisals count the most but help the
least.

The Paradox of Roles: People can only judge performance of others when
they work together or closely associated. Bosses may not have all the information
for appraisals. Feedback gathered from peers can be distorted, overly positive and
unhelpful to managers. To some employees feedback become perplexing and
risky both professionally and personally evaluating peers. They find it comfortable
if isn’t a matter of record. People are torn between supportive colleagues or hard
nose judge.

The Paradox of Group Performance: A focus on individual doesn’t

address how important is work to all group members. Sometimes
people in groups are asked to compare themselves with other peers in
the group. Peer appraisal can harm close-knit and successful groups. An
example of a group in a bank who performed well but dismissive of
bank’s appraisal system even though the program was well designed.
People in that group has already formed cordial relations with each
other so peer appraisal threatens balance of status and responsibility
they have shared within a group.
The Measurement of Paradox: Simple objective and straightforward
rating systems should generate the most useful appraisals especially
letter grades etc. but simple measurements and fewer dimensions will
make evaluation less useful. Simple ratings are just not enough.
Qualitative data is time-consuming and difficult to interpret when pose
personal or highly idiosyncratic comments.
The Paradox of Rewards: People are keenly attuned to PA when it
affects salary reviews and promotions. Ignoring feedbacks and peer
appraisals, people focus more towards rewards. Most people don’t
deliberately ignore peer appraisals feedback, but even the most
confident and successful find it hard to interpret objectively when it is
part of the reward system.
The nature of paradox isn’t easily changed, but the way it is viewed can
be changed easily. The potential benefits may seem obvious at first, but
when the purpose and scope of these peer appraisal aren’t made
explicit, conflict soon takes over.
Purpose: Help individuals improve their performance. Detailed
qualitative feedback from peers accompanied by coaching and
supportive counselling from a manager are essential. If purpose of peer
appraisal is to check if things are going smoothly and to head off major
conflicts, a quick and dirty evaluation using only few members will
suffice. Managers should focus the appraisal effort on the entire group
rather than on particular members. The effects on the paradox of group
performance will be stemmed. It can then folded into reward system
thus decreasing the effects of Reward Paradox.
Scope: Managers need to be selective about using PA and 360-degree
feedback. Giving feedback to all employees isn’t fruitful and company
have to compromise its ability to function. You should keep in mind
that not all jobs are same while evaluating criteria for PA. Keeping
balance between evaluating individuals and acknowledging the
interdependencies and connections within groups will make Group
performance paradox less of an issue. Companies need to develop trust
and confidence to make the most PA without incurring dysfunctional
consequences. Executives should keep themselves open to praise and
criticism from all directions and invite others to do the same. In this
way they can make improvements and change the way employee view
these paradoxes.