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Strategic Human Resource Management. Strategy Abell’s (1993) ‘ mastering the present and pre-empting the future. Strategy It is forward looking. It is about deciding where you want to go and how you mean to get there. Strategy formulation.

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strategic human resource management

Strategic Human Resource Management


Abell’s (1993) ‘ mastering the present and pre-empting the future.


It is forward looking.

It is about deciding where you want to go and how you mean to get there.

strategy formulation
Strategy formulation

The process of deciding on a strategic direction by defining a company’s mission and goals, its external opportunities and threats, and its internal strengths and weaknesses

formulation of strategy
Formulation of Strategy

It is a process for developing a sense of direction and ensuring strategic fit.

Whittington model

1. Define the mission

2. Set objectives


4. Analyze existing strategies

5. Define the light of the analysis

formulation of strategy1
Formulation of Strategy

6. Define the key strategic issues

7. Determine corporate and functional strategies

8. Prepare integrated strategic plans for implementing strategies.

9. Implement the strategies

10. Monitor implementation and revise.

concept of shrm
Concept of SHRM

Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices.

Strategic HRM focuses on actions that differentiate the firm from its competitors.

fitting hr characteristics to competitive strategies
Fitting HR characteristics to competitive strategies
  • Innovation Strategy
  • Quality Strategy
  • Cost Leadership Strategy
challenges related to technology
Challenges related to technology
  • Telecommuting
  • Employee Surveillance and Monitoring
  • e-HR
  • Ethical Behavior
  • Intrapreneurship at intel- New Business Initiative (NBI)
  • Workforce Demographic changes and diversity
challenges in shrm demographics changes on job satisfaction
Challenges in SHRM- demographics changes on job satisfaction

A shifting Industrial Base




Company size


Work/life balance

Relationship with supervisor

Career development and opportunities

Job security

Benefits and Compensation

5 p model
5- P Model
  • HR Philosophy
  • HR Policies
  • HR Programs
  • HR Practices
  • HR Processes
traditional hr vs strategic hr
Traditional HR Vs strategic HR

Responsibility for HR

Staff specialists- Line managers


Employee relations - internal /external customers

Role of HR

Transactional, change follower, and respondent

Transformational, change leader, and initiator


Slow, reactive, fragmented

Fast , proactive, integrated

traditional hr vs strategic hr1
Traditional HR Vs strategic HR

Time horizon

short term short, medium, long


Bureaucratic-roles, policies, procedures

Organic- flexible

Job design

Tight division of labor, independence, specialization

Broad, flexible, cross-training, teams

Key investments

Capital , Products People, Knowledge


Cost center Investment center

barriers to strategic hr
Barriers to strategic HR
  • Short term mentality/ focus on current performance
  • Inability of HR to think strategically
  • Lack of appreciation of what HR can contribute
  • Failure to understand general manager’s role as an HR manager
  • Difficulty in quantifying many HR outcomes
  • Perception of human assets as higher-risk investments
  • Incentives for change that might arise
best hr practices
Best- HR Practices

General Electric (GE)

Leadership Programme

Succession Planning

Learning and Development

360 degree performance appraisal

Regular employee satisfaction surveys

Flattened organization structure

best hr practices1
Best- HR Practices


1. Recruitment

2. Succession Planning

3. Rigorous Leadership Training Programme

4. Open and Transparent

5. Family like work atmosphere


1. Competency based HR Practices

2. Promoting based on competencies

3. Continuous appraisal Process

4. Developing Training programmes

best hr practices2
Best- HR Practices

South West Airlines

- ‘LUV’ & ‘FUN’

- Value creating

-Value capturing

-Value sharing

- Rigorous Training Programme

-Treat employees well

best hr practices3
Best- HR Practices
  • IBM

Developing Leaders

Classroom and internet courses

Work-life balance

Variable pay program based on Individual performance.

Changing Technology- Strategy

  • Hero Honda

Employment engagement

Developing leadership skills through broad vision

Family like work atmosphere

Uniformity in Dress codes

best hr practices4
Best- HR Practices
  • Caterpillar

Welfare and Fringe benefits

Incentive (Profit sharing)

Flexible hours

Food Coupon Pass

On –the- job and Off-the –job Training

best hr practices5
Best- HR Practices
  • TCS

-Competency Mapping exercises

- Balanced Scorecard

- Benchmarking of remuneration Strategies with that of the industry

- Performance Linked Variable Compensation


Diversity in the work place (Intel)

HPWS (high performance work systems)

HR Value chain-employee, organizational, financial& accounting and market based

Intelligence Vs Conscientiousness

sarasota memorial hospital
Sarasota Memorial Hospital

“Pillars of exellence”

Service, people, quality, finance and growth

Cross functional teams

Leadership development

Service recovery

Reward and recognition

Inpatient, outpatient satisfaction

Customer satisfaction increased from 43% to 97%

first tennessee national corporation
First Tennessee National Corporation


-Maximize Financial performance

-Demonstrate to shareholders the value added benefits of HR programs and policies

-Strategic Partnership-HR and finance

hr strategies
HR Strategies
  • HR Strategies
  • Purpose
  • Types
  • Main areas in Which HR Strategies are developed
  • Criteria for an effective HR Strategy
  • Development of HR Strategy
  • Implementation of HR Strategy
hr roles at mercantile bank
HR roles at Mercantile Bank
  • Strategic partner
  • Change agent
  • Administrative expert
  • Employee Champion

-1990’s strategically redesigned its HR functions

-record keeping and compliance

-streamlining work processes, eliminating unnecessary activities

-reevaluating technology, outsourcing non strategic functions.

-39 M& A’s

barriers to strategic hr1
Barriers to strategic HR
  • Short term mentality/focus on current performance
  • Inability of HR to think strategically
  • Lack of appreciation of what HR can contribute
  • Failure to understand general manager’s role as an HR manager
  • Difficulty in quantifying many HR outcomes
  • Perception of human assets as higher-risk investments
  • Incentives for change that might arise
strategic reorganization of the hr at ge
Strategic reorganization of the HR at GE
  • Decentralization
  • 3T’s- technology ,talent and transformation.
design of work systems
Design of work systems

Job Enlargement


-Product quality

-Reduction in idle time

Eli Lilly Pharma

-Salary increases


-Career development opportunities

design of work systems1
Design of work systems
  • Job enrichment
  • Job rotation

U.S. and Japanese Culture

  • Conflict and conformity
  • Power and hierarchy
  • Time orientation
  • Cultural and demographic homogeneity
employment law
Employment Law
  • EEOC pay’s $1 million to the victims of sexual harassment case.
  • Equal Pay Act
  • Racial Discrimination at Coca-cola
  • Kroger Co -1,400 supermarkets , 200,000 employees -45 min
  • Turnover Cost differs based on sectors
  • Recruiting- Temporary versus Permanent employees

- Internal versus External Recruiting




Have performance data available


Less training/socialization time


Less Expensive


Possible Politics

“Loser” effects


Promotions chain




Fresh ideas and viewpoints

Expand Knowledge base


Unknown entities

Detrimental to internal applicants

Training and socialization

Time consuming

Can be expensive


When and how extensively to recruit

Stages of Recruiting Process which takes 15 weeks.

Accept Job Offer 10

Receive job offer 15

Attend Second Interview 30

Invited to Second Interview 40

Invited to first interview 60

Applicants 120



word of mouth


J & J (employee referral)

Staffing at St.Peter’s Health Care

- nurses biding for shifts at a rate/hr

Outsourced Recruitment at Kellogg

College Recruiting via Internships at Microsoft

Call – Center Staffing at Capital One-VISA credit cards , consumer Master Card –extensive assessments in selection.

training and development
Training and Development
  • Benefits of Training and Development
  • Planning and Strategizing Training
  • Integrating Training with Performance systems and compensation
  • *Marketing Products
  • *e-Training
  • *Boot camp (exposed and committed to culture)
T &D

T & D framework

Plan Do Check Act

Targeting and the four P’s of Training level analysis



off- the –job

Equipment required

T &D
  • Product

purpose, content , constraint, Presentation option

  • Promotion

Strategic Planning Involvement

Company newsletter

Personal communication


  • Price (budget)





employee separation
Employee Separation

Layoffs at Kodak

Range of services

Allowance of two weeks’ pay for each year of employment

retained medical, dental, and life insurance for four months;

outplacement counseling; and a retraining allowance of up to $5000 for schooling.