Human Resource Management Strategy

Dr. Wafaa Hashem

Gary Dessler.
LEARNING OBJECTIVES:
When you finish studying this chapter, you should be able to:

List with examples the main types of strategies.

 Define strategic human resource management,
Example of strategic human resource management
in practice.
Give examples of what employers can do to have
high-performance systems.
 Explain how would you improve employee
engagement.
How to measure employee engagement.
 Introduction:
To understand what human resource management is?
It’s useful to start with what managers do?
A manager is someone who is responsible for
accomplishing the organization’s goals, and who does
so by managing the efforts of the organization’s people.
Managing is to perform five basic functions:
 planning, organizing, staffing, leading, and controlling.
● Staffing: Determining what type of people should be
hired; recruiting prospective employees; selecting
employees; setting performance standards; compensating
employees; evaluating performance; counseling
employees; training and developing employees
Human resource management (HRM):

The process of acquiring hiring, training,

appraising, and compensating employees, and of
attending to their labor relations, health and
safety, and fairness concerns.
Why Is Human Resource Management
Important to All Managers?
The HR concepts and techniques are important to all managers for
several reasons:
AVOID PERSONNEL MISTAKES. you don’t want:
● To have your employees not doing their best.
● To hire the wrong person for the job.
● To experience high turnover.
● To have your company in court due to your discriminatory actions.
● To let a lack of training undermine your department’s effectiveness.
● To commit any unfair labor practices.
ALSO IMPROVING PROFITS AND PERFORMANCE: More
important, it can help ensure that you get results—through people.
A strategic plan:
 Is the company’s overall plan for how it will
match its internal strengths and weaknesses
with its external opportunities and threats in
order to maintain a competitive position.

Strategy:
 A course of action the company can follow to
achieve its strategic aims.
Vision statement: A general statement of the
firm’s intended direction; it shows, in broad
terms, “what we want to become.”
vision statement describes in broad terms what
the business should be.

Mission statement: Summarizes the answer to the

question, “What business are we in?” Or
summarizes what the company’s main tasks are
today.
Types/ levels of strategic planning:
corporate level strategic planning.
Business unit (or competitive) strategic planning.
 functional (or departmental) strategic planning.

The three standard competitive strategies:

cost leadership, differentiation, or focus.
Strategic Human Resource
Management
 Strategic Human Resource Management (SHRM)
is the process of aligning human resource
practices and policies with the overall goals and
strategy of an organization to enhance
performance and achieve long-term business
success rather than day-to-day HR operations.
 formulating and executing human resource policies and practices
that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
 Strategic HR management enables businesses to
use their human resources as a tool to achieve
broader goals, whether it’s innovation, market
reach, or customer satisfaction.
 Managers often refer to their specific HR policies and practices as
HR strategies.
Aligning strategic HR management
with business objectives:
HR concepts aligning with business objectives:

 Workforce Planning to Support Expansion

 Starbucks
• Business Objective: Global expansion and consistent
customer service.
• HR Strategy aligned
• Outcome: A scalable workforce that supports the
company’s growth without compromising quality.
 Talent Development for Innovation
 Google
• Business Objective: Maintain leadership in innovation
and technology.
• HR Strategy aligned
• Outcome: Successful innovations like Gmail and Google
Maps emerged from these HR practices, driving business
Aligning strategic HR management
with business objectives:
HR concepts aligning with business objectives:

 Employee Engagement to Improve Productivity

 Zappos
• Business Objective: Deliver exceptional customer
service.
• HR Strategy aligned
 Outcome: High employee satisfaction, leading to better
customer service and long-term profitability.

 Data-Driven Recruitment to Reduce Costs

IBM
• Business Objective: Optimize operational efficiency.
• HR Strategy aligned
 Outcome: Lower recruitment costs and improved employee
performance, aligning with business efficiency goals.
Strategic Human Resource Management Tools:
 Managers use several tools to translate the company’s strategic
goals into human resource management policies and practices.
These tools include:
 Strategy Map Graphical tool that summarizes the chain of
activities that contribute to a company’s success, and so shows
employees the “big picture” of how their performance contributes to
achieving the company’s overall strategic goals
 HR Scorecard A process for assigning ­nancial and non­nancial
goals or metrics to the human resource management– related chain
of activities required for achieving the company’s strategic aims and
for monitoring results.
 Digital Dashboard Presents the manager with desktop graphs and
charts, so he or she gets a picture of where the company has been
and where it’s going, in terms of each activity in the strategy map.
 Strategic Human Resource Management Tools:
 Human resource metrics:
 The quantitative measurement of a human resource management
activity, such as employee turnover, hours of training per employee,
or qualified applicants per position. And also employee tenure, cost
per hire, and annual overall turnover rate.
 Benchmarking:
 The manager may want to benchmark the results—compare high
performing companies’ results to your own, to understand what
makes them better.
 HR audit:
 An HR audit is an analysis of the completeness, efficiency, and
effectiveness of the organization’s HR functions, including HR
policies, practices, processes, and relevant metrics.
 High-Performance Work Systems:
A high-performance work system (HPWS) is a set of
human resource management policies and practices that
together produce superior employee performance and
promote organizational effectiveness.
In other words, an aim of the high-performance
recruiting, screening, training, and other human resources
practices is to nurture an engaged, involved, informed,
empowered, and self-motivated workforce.
Employee Engagement and Performance

 Employee engagement refers to being psychologically involved in,

connected to, and committed to getting one’s jobs done.
 Engaged employees “experience a high level of connectivity with their
work tasks,” and work hard to accomplish their task-related goals.
 Employee engagement is important because it drives performance and
productivity
 researches showing a positive correlation. the percentage of
productivity improvement linked to employee engagement, it can vary
depending on the industry. However, here are some general insights:
Employee Engagement and Performance
 Gallup Studies: Research by Gallup shows that highly engaged
teams achieve a 21% higher productivity compared to teams with
low engagement levels.
 McKinsey & Company: The organizations with engaged employees
see a productivity increase ranging from 20% to 25%.
 Hay Group found that hotels with high employee engagement
experience up to 30% higher guest satisfaction scores
• Hotels and Restaurants employees who are highly engaged deliver:
• Faster service times due to teamwork and motivation.
• Higher customer satisfaction and loyalty through personalized
interactions.
• Revenue increases due to repeat business and positive reviews.
Creative Industries: A study by Adobe highlighted that teams with high
engagement in creative roles produce 40% more innovative outputs.
What Can organizations Do to Improve
Employee Engagement?
 Clear Communication: ensure employees understand
their roles, responsibilities, and organizational goals.
 Empowerment: Allow employees to take ownership of
their work by granting autonomy and involving them
in decision-making processes.
 Provide Regular Feedback: Offer constructive
feedback and recognize.
 Employee Development: Invest in training and
development.
 Show Appreciation: Express gratitude and reward
employees for their contributions.
 Build a Positive Work Environment: Create a
supportive culture where employees feel respected,
valued, and part of a team.
 Work-Life Balance: Promote policies that support
How to Measure Employee Engagement:

“say, stay, and strive.”

First, How positively the employee speaks about the

company and recommends it to others.
Second, it looks at who stays with the company.
Third, it looks at “strive.” For instance, “do employees take
an active role in the overall success of the organization
by moving beyond just doing tasks to going above and
beyond?”.

 Engagement survey