STRATEGIC HUMAN

RESOURCE MANAGEMENT
(ELEC 2)
Ms. AMY M. BANSAGAN,MBA
INSTRUCTOR III

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Intended Learning Outcomes (ILO)
After the completion of the chapter, students will be able to:
✓ describe the process of the evolution of human resource management
✓ appreciate the role of different theories in shaping human resource management practice;
✓ recognize similarities and difference between personnel and human resource management;
✓ examine the role of performance review and appraisal in human resource management
✓ describe the importance of training and development in developing HR strategies
✓ explain the relationship between corporate/business strategies and human resource strategies;
✓ examine the requirements for effective development and the implementation of human resource
strategies;
✓ assess the relevance of strategic fit in organizational performance; and
✓ explain challenges facing managers in developing and implementing human resource strategies
and how such challenges can be used as opportunities

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 Introduction to
Human Resource
Management
Human Resource Management (HRM) is the strategic and
comprehensive approach to managing people in an organization. Its
primary objective is to ensure that an organization's human capital is
effectively utilized to achieve organizational goals. HRM plays a crucial
role in optimizing employee performance, productivity, and
engagement, ultimately contributing to the overall success of the
organization.

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Importance of HRM in Organizations
Talent Acquisition Employee Development
HRM plays a crucial role in attracting, recruiting, and selecting the best talent HRM focuses on developing employees' skills and knowledge through
for the organization. By implementing effective recruitment strategies, HR training programs, mentoring, and career advancement opportunities. This
ensures that the organization hires individuals with the necessary skills and helps employees grow professionally and enhance their contributions to the
qualifications to contribute to its success. organization.

Performance Management Employee Relations

HRM implements performance management systems to monitor, evaluate, HRM fosters positive employee relations by creating a fair and supportive
and improve employee performance. This involves setting clear work environment. It handles employee grievances, promotes open
performance goals, providing regular feedback, and recognizing communication, and ensures that employees feel valued and respected.
achievements to motivate and encourage employees to excel.
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Shift from Administrative to Strategic Role
Traditional HRM 1
Previously, HRM was largely administrative, focusing on tasks such
as payroll, benefits, and record keeping. It was seen as a support
function rather than a strategic partner. 2 Strategic HRM
Modern HRM has evolved into a strategic function, directly
contributing to the organization's success. HR professionals are

HR as a Strategic Partner now actively involved in strategic planning, aligning HR practices

3 with the organization's overall goals and objectives.
Today, HR is viewed as a strategic business partner, working
closely with other departments to drive organizational growth and
achieve business objectives. HR professionals contribute to talent
management, organizational development, and innovation.
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Key Functions of HRM
1 Talent Acquisition 2 Employee Development
Identifying, attracting, recruiting, and selecting qualified Providing training, development, and career advancement
candidates for open positions within the organization. opportunities to employees to enhance their skills and
knowledge.

3 Performance Management 4 Compensation and Benefits

Setting performance goals, providing feedback, evaluating Developing and administering competitive compensation and
performance, and recognizing and rewarding employees for benefits packages to attract and retain top talent.
their contributions.
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Evolution of HRM: Personnel Management
Early 1900s Industrial Revolution Emphasis on Efficiency
Personnel management emerged as a The Industrial Revolution led to the Personnel management focused on
distinct function in organizations during growth of large-scale factories and the maximizing efficiency and productivity.
the early 1900s, primarily focusing on need for a systematic approach to It aimed to reduce labor costs and
administrative tasks. managing employees. ensure smooth operations within the
organization.
• Hiring and firing employees • Increased workforce
• Setting wages and salaries • Labor relations issues • Scientific management principles

• Administering employee benefits • Need for standardization • Time and motion studies

• Maintaining employee records • Workforce optimization

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Evolution of HRM: Employee Relations and Development

Shifting Focus Employee Relations Employee Development Employee Empowerment

During the 1950s and 1970s, the Recognizing the importance of Investing in employee development There was a growing emphasis on
focus of HRM shifted from purely positive employee relations, HRM became a priority. Training empowering employees and giving
administrative tasks to employee started addressing issues such as programs, performance reviews, them more autonomy and control
relations and development. employee morale, communication, and career development initiatives over their work. This led to the
and conflict resolution. were implemented to enhance emergence of participative
employee skills and knowledge. management styles and employee
involvement programs.

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Evolution of HRM: Strategic HRM
Era Key Features Focus

1990s–Present Aligning HR with organizational strategy Business performance and competitive

advantage

Emphasis on talent management Attracting, retaining, and developing top Innovation, agility, and adaptability
talent

Data-driven decision-making Using data and analytics to measure HR Continuous improvement and
effectiveness optimization
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Aligning HR with Organizational Objectives

Strategic Planning Collaboration Data-Driven Insights Continuous Improvement

HR professionals actively HR collaborates with other HR uses data and analytics to
participate in strategic planning, departments, such as finance, measure the effectiveness of HR HR is constantly evolving and
ensuring that HR practices align marketing, and operations, to programs and identify areas for adapting to meet the changing
with the organization's goals and ensure that HR initiatives support improvement. This data-driven needs of the organization. This
objectives. the organization's overall strategy. approach helps ensure that HR includes staying informed about
practices are contributing to the industry trends and best practices
organization's success. and implementing new initiatives
to enhance HR effectiveness.
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Main Trends in HR Profession
Employee Well-being Diversity & Inclusion
Focus on mental health and work-life balance making sure employees feel good mentally Creating a workplace where people from different backgrounds, cultures, genders, races,
and emotionally, while also ensuring they have enough time for both work and their abilities, and experiences are welcomed and valued. Diversity refers to having a mix of
personal life. It’s about reducing stress, preventing burnout, and helping people maintain a different people, while Inclusion means making sure everyone feels respected, supported,
healthy balance between their job and things like family, hobbies, and rest. This makes and able to contribute equally, no matter who they are. It’s about building a fair
employees happier, healthier, and more productive.- environment where everyone has equal opportunities.

Remote Work
Leading and coordinating a group of people who work remotely, often from different
Data-Driven HR
Making decisions in Human Resources (HR) based on facts, numbers, and analysis, rather
locations. Since team members aren’t physically together in an office, managers use
than just intuition or guesswork. HR collects data about employees, such as performance,
technology like video calls, chat apps, and project management tools to communicate,
attendance, job satisfaction, and turnover rates. This data is then analyzed to understand
assign tasks, and track progress. The goal is to keep everyone connected, productive,
trends, make better decisions about hiring, training, promotions, and to improve employee
and working well together, despite being in different places. It also involves making sure
well-being. Using data helps HR teams be more efficient and make smarter choices that
the team feels engaged, supported, and clear about their goals.. preencoded.png

benefit both the company and its employees.

 Applications of IT in HR
Recruitment and Talent Acquisition) 1
Job Posting: Online platforms
Applicant Tracking Systems (ATS)
Video Interviews Performance Management and Appraisals
Social Media and Networking
2
Performance Tracking Tools
Automated Appraisals:
Self-Assessment and Peer Reviews
Training and Development 3 Continuous Feedback:
E-Learning Platforms
Virtual Training Sessions Employee Engagement Tools
4 Surveys and Feedback Tools:
Mobile Learning
Communication Platforms:
Recognition and Rewards Systems
Wellness and Engagement Apps
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HRIS (Human Resource Information System)
What is HRIS?
❑ A system for managing HR activities and data.
❑ Automates payroll, employee data management, attendance, and performance tracking.
❑ Improves accuracy, saves time, and enhances decision-making.

Benefits of HRIS
❑ Centralized data storage
❑ Improved compliance with regulations
❑ Enhanced reporting capabilities
❑ Streamlined HR processes
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 HR Dept
Organizational
Charts

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 Summary

✓ HRM has evolved from administrative tasks to strategic roles.

✓ IT and HRIS play critical roles in modern HR management.
✓ Organizational charts clarify HR’s structure and functions within an
organization.

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