Strategic HRM {HR}
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The document outlines the differences and roles of strategic human resource management (SHRM) compared to traditional human resource management (HRM), emphasizing the strategic integration of HR within business planning. It highlights the proactive nature of SHRM in aligning HR practices with organizational goals and change management, whereas traditional HRM is more functional and reactive. Successful transformation to SHRM requires collaboration, the involvement of HR in strategic decisions, and restructuring HR to better serve organizational needs.
Strategic HRM {HR}
- 2. Strategic HRMStrategic HRM The role of SHRM is to see that human resource issues are taken into account when an organization develops its business strategy – and that that strategy then derives the development of human resources practices within the firm
- 3. The Traditional HRMThe Traditional HRM The traditional role of HR is essentially functional and revolves around- Human Resource planning Recruiting of staff Job analysis Performance review Wages, salary and benefits administration Employee training Personnel administration Legislative compliance Labor relations
- 4. Traditional HRMTraditional HRM H R M Staffing Pay Training Etc RESEARCH & DEVELOPMENT PRODUCTION FINANCE MARKETING
- 5. Strategic HRMStrategic HRM Strategic Goals Marketing Production H R M R & D Finance
- 6. The Roles of SHRMThe Roles of SHRM Strategic Role Informational and Problem Solving Role Strategic Functional Role Administrative Role Change Management Role
- 7. Strategic RoleStrategic Role HR Participates in business decisions HR translates corporate strategy into human resource strategy HR helps managers create value HR helps employees satisfy customers’ needs
- 8. Informational and PS roleInformational and PS role HR provides information and expertise on best practices in other companies HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions HR diagnoses and recommends solutions to problems arising in employment relations
- 9. Strategic Functional roleStrategic Functional role HR helps select employees to fit both strategy and culture HR assists in designing and implementing performance planning and appraisal systems HR assists in designing and implementing motivation and reward systems HR assists in designing benefits to complement strategy HR assists in designing and implementing development and career management systems HR helps enable all executives to perform critical, strategic HR functions
- 10. Administrative roleAdministrative role HR assists in designing and improving personnel administrative systems HR does much of the necessary administrative work involved in employment, legal compliance and record keeping
- 11. Change Management roleChange Management role HR calls attention to the management process and its impact on organizational success or failure HR helps design / redesign the organization HR facilitates change that is consistent with the underlying values of the company HR facilitates wide ranging organizational change HR implements employee involvement and relations systems HR maximizes the value of work force diversity
- 12. Differences between TraditionalDifferences between Traditional and SHRMand SHRM Strategic roles Traditional HRM Strategic HRM Important relations Labor-management Int and ext customers Nature of HR initiatives Reactive and piecemeal Proactive/ integrated Imp of corp plan Marginal Central Speed of DM Slow Fast Planning time horizon Short Term S/ M/ L as needed Informational roles Nature of communication process Indirect Direct Level of communicationRestricted High Sources of communication Mainly internal and Wide- ranging as hierarchical needed
- 13. Differences between TraditionalDifferences between Traditional and SHRMand SHRM Administrative roles Traditional HRM Strategic HRM Importance and nature carefully written contracts unnecessary of contracts contracts needed usually going beyond formal contracts Importance of rules Clear rules essential Getting job done paramount Key guide to management Policies and procedures Whatever is needed actions for business success
- 14. Differences between TraditionalDifferences between Traditional and SHRMand SHRM Functional roles Traditional HRM Strategic HRM Selection Separated from business Integrated with strategy and of marginal business strategy importance a key task of HR Pay Job based relatively fixed Performance based and flexible Working conditions Separately negotiated In harmony with strategy and org culture Labor-Mgmt relationsCollective bargaining Individual contracts adversarial in nature cooperative nature Job categories Many Few
- 15. Differences between TraditionalDifferences between Traditional and SHRMand SHRM Functional roles Traditional HRM Strategic HRM Job design Tightly defined Broadly defined division of labor focused on team work T & D Specialized, with More generalized tightly controlled with development access to training of a learning orgn Change Management roles HR management’s role Transactional, change Transformational follower change leader Dealing with conflict Temp control,minimize Manage climate and
- 16. Differences between TraditionalDifferences between Traditional and SHRMand SHRM Change Management roles Traditional HRM Strategic HRM Nature of HR interventions Focused on procedures Wide- ranging and cultural Important frames of ref Norms and traditional Strategic values to guide action customs and mission
- 17. Key HR skillsKey HR skills Traditional HRM Strategic HRM Specialist Generalist A good policy and procedure writer A good communicator Current focus Current and future focus Monolingual( speaks “HR – ese”) Speaks language of business Management-hierarchy focused Customer focused , good customer relations skills Few financial/ marketing skills Understanding these aspects of the business Focused on the internal organization Focused on the internal orgn and the broader society Factual communicator Persuader A nationalist An internationalist
- 18. Reasons for slower / lesserReasons for slower / lesser transformation to SHRMtransformation to SHRM Non existence of a competent and persistent SHRM champion Political forces with competing coalitions with different self interests may preclude adoption of SHRM Firms experiencing stressful business conditions The Vicious cycle
- 19. Vicious cycleVicious cycle HR dept managers not involved in the Strategic planning process due to sr mgmt preference and tradition Mgmt has poor perception of Role and competencies of HR And its ability to contribute to Strategic biz initiatives Although HR not involved in Strategy formulation, it is Expected to implement key Aspects of biz strategy No perceived alignment bet HR activities and biz strategy Significant problems in Implementing strategy Related to HR issues
- 20. Successful transformation toSuccessful transformation to SHRMSHRM Integration of HR within the strategic planning process Development of a partnership between HR and other members of the organization Linkage of HR activities to business strategy and core cultural values of the organization Restructuring the HR department to ensure success of all the above
- 21. IntegrationIntegration A strategic planning process occurs in an orgn HR managers play an important role in that process The strategic planning process, with significant HR input, should establish an identifiable strategic direction for the organization along with appropriate goals and objectives This planning process should also identify a set of organizational cultural principles and values that enhance and contribute to the achievement of strategic goals and objectives For full integration, HR managers must have both process control( ability to influence the development and selection of information used in making a decision) and decision
- 22. PartnershipPartnership To become a business partner, HR must 1. Learn the firm’s business 2. Be more responsive to and aware of the organization’s needs and direction 3. Shift away from traditional HR functions 4. Become more involved in supportive, collaborative relationship with managers throughout the organization 5. Demonstrate the criticality of HR to the success of the business
- 23. LinkageLinkage Linkage of HR practices to overall business strategy Interrelationship among HR activities
- 24. Restructuring HRRestructuring HR Decentralized service teams to focus on defining and managing needed activities in specific business units Executive HR services to address the unique needs of developing managerial talent within the organization Centralized HR services used to gain cost efficiencies in the provision of basic company wide activities e.g compensation, professional recruiting and HRIS data bases
- 25. HR Strategy • Strategies for HR flow out of the overall business plans / strategy and mainly focus on individual activities of staffing, C&B, performance management, career panning, T& D etc • The focus in the HR strategy is to do the individual activities better and more efficiently to contribute towards the organisation’s goals.
- 26. Strategic HR Vs HR Strategy Strategic HR HR Strategy • Organisation Building Organisation survival and renewal and growth • Core competencies Individual activities • Holistic approach Piecemeal approach • Focus on processes Focus on results • Core Value of the Orgn Derivative
- 27. Strategic HR Vs HR Strategy Strategic HR HR Strategy • Emphasis on Creation Emphasis on change/ of culture,values,systems adaptation of culture, values, systems • Proactive / Learning Reactive / Training • Result is the development Results are more of organisation’s core efficient HR competencies processes
- 28. Strategic HR Vs HR Strategy Strategic HR HR Strategy • Purpose Translate business Build a HR strategy strategies to orgn orgn and action plan capabilities and then focussed on making HR fn into HR practices or dept more effective • Owner Line managers HR executives • Measures Business results thro Effectiveness and effy use of HR practices of HR practices • Audience Mgrs who use HR for HR prof who design and business results deliver HR practices Emp affected by HR Line mgrs who use HR practices practices
- 29. Strategic HR Vs HR Strategy Strategic HR HR Strategy • Audience customers who receive benefits of effective organisations Investors who reap rewards of orgn cap • Roles Line mgr as owner Line mgr as investor HR professional as HR professional as facilitator creator