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Strategic HRM

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PARDEEP KUMAR
PARDEEP KUMAR

The document discusses strategic human resource management (SHRM). It defines SHRM as integrating human resource considerations into business strategy and goal setting. SHRM aims to build a pool of competent employees to help achieve organizational objectives. It involves aligning HR practices both vertically with business strategy and horizontally with each other. Barriers to effective SHRM include lack of growth strategy and short-term orientation. Benefits include identifying opportunities/threats, developing competent employees, and meeting customer expectations to improve productivity and profits.

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‘Emerging Dimension to Human Resource Management: A Conceptual Review on Strategic Human Resource Management’ (SHRM) Prof. Pardeep Kumar
INTRODUCTION Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage due to • the changes in the business environment • increasing globalization • changing demographics of the workforce • increased focus on profitability through growth • technological changes • competition for intellectual capital and • the never-ending changes that organizations are going through Global business competition is shifting from efficiency to innovation and from enlargement of scale to creation of value, so Management needs to be oriented towards the strategic use of human resources. Prof. Pardeep Kumar
STRATEGY Strategy: Strategies are specific, measurable, obtainable broad statements, patterns of action, decisions, and policies carefully developed with involvement by an institution's stakeholders that guide a group to achieve the stated result, a vision or goals in a specific desired timeframe. “It is the company's plan of how it will balance its internal strengths & weaknesses with external opportunities & threats in order to maintain a competitive advantage”Prof. Pardeep Kumar
SHRM SHRM includes all those activities affecting the behavior of individuals in their efforts to formulate and implement the strategic needs of business “Integrating human resource considerations with other physical, financial, & technological resources in the setting of goals and solving complex organizational problems & emphasizing the implementation of a set of policies and practices that will build employee pool ofProf. Pardeep Kumar
Approaches to SHRM Human Factor Approach:  links Human Resource activities with competency based performance measures including the human resource, their performance and competency  gaining competitive advantage by using people effectively, drawing on their expertise and ingenuity to meet clearly defined objective Surpluses Approach:  links Human Resource activities with business surpluses or profit  Integration of the business surplus to the human competency and performance Prof. Pardeep Kumar
SHRM CONCEPT One-way Vertical Fit  Aligning HRM systems to the business strategy  HR as strategically reactive HR where alignment is taken as the partnering role of HR & HR is highly integrated with business processes  Align the human resources to three kinds of competitive strategies, namely innovation, quality enhancement and cost reduction strategy Two-way Vertical Fit  Aligning to the business strategy & contribute in the strategy formulation.  HR as strategically proactive HR that involves creating future strategic alternatives.  creating a culture change, identifying mergers & acquisition possibilities, tracking the market & proactively making change Prof. Pardeep Kumar
Horizontal fit  Aligning various HRM systems to each other, connections created between and within the people processes.  HR practices should be linked to organizational strategy, but these practices also need to be strategically linked to each other to ensure that they are promoting the same goals. Five key aspects to SHRM  The external environment  The business strategy that affects and is affected by the SHRM process  The internal environment – the organizational context within which SHRM operates SHRM comprising the HR strategy and individual HRM practices  The outcomes of the process of SHRM Prof. Pardeep Kumar
SHRM Process • SGRM process involves determining what needs to be done to achieve corporate objectives, often over 3 - 5 years • Mission statement containing business definition and future plan for success is made • Examining organization and competitive environment • Environmental analysis i.e. opportunities- threats analysis is done and business prepares to meet environmental pressures • Establishing optimal fit between organization and its environment • Organizational self-assessment i.e. strengths-weaknesses analysis is done and the road map for attaining goals is made • Establishing goals and objectives- Laying concrete figures that will help in benchmarking the performance is done. • Reviewing and revising strategic plan. Prof. Pardeep Kumar
Barriers to SHRM • Lack of growth strategy or failure to implement one. • Firms’ short-term orientation • Insufficient general management training of managers • Lack of appreciation & cooperation from the line managers • Increasing focus on the quantifying results • Feeling of risk in investing heavily on human resources • Inability of the HR practices to change according to the business needs • Disincentives related to changes associated with SHRM • High resistance due to lack of cooperation from the bottom line • Interdepartmental conflict • Limited time, money and the resources • Status-quo approach of employees Prof. Pardeep Kumar
SHRM Benefits 1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success. 2. Provides a clear business strategy and vision for the future. 3. To supply competitive intelligence that may be useful in the strategic planning process. 4. To recruit, retain and motivate people. 5. To develop and retain of highly competent people. 6. To ensure that people development issues are addressed systematically. 7. To supply information regarding the company's internal strengths and weaknesses. 8. To meet the expectations of the customers effectively. 9. To ensure high productivity. 10. To ensure business surplus thorough competency. Prof. Pardeep Kumar
CONCLUSION  SHRM practices enhance employee productivity and the ability of agencies to achieve their mission.  Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives.  Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization “When the vision is one year …cultivate flowers When the vision is ten years… cultivate trees When the vision is eternity……cultivate people” Prof. Pardeep Kumar
Prof. Pardeep Kumar

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Strategic HRM

  • 1. ‘Emerging Dimension to Human Resource Management: A Conceptual Review on Strategic Human Resource Management’ (SHRM) Prof. Pardeep Kumar
  • 2. INTRODUCTION Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage due to • the changes in the business environment • increasing globalization • changing demographics of the workforce • increased focus on profitability through growth • technological changes • competition for intellectual capital and • the never-ending changes that organizations are going through Global business competition is shifting from efficiency to innovation and from enlargement of scale to creation of value, so Management needs to be oriented towards the strategic use of human resources. Prof. Pardeep Kumar
  • 3. STRATEGY Strategy: Strategies are specific, measurable, obtainable broad statements, patterns of action, decisions, and policies carefully developed with involvement by an institution's stakeholders that guide a group to achieve the stated result, a vision or goals in a specific desired timeframe. “It is the company's plan of how it will balance its internal strengths & weaknesses with external opportunities & threats in order to maintain a competitive advantage”Prof. Pardeep Kumar
  • 4. SHRM SHRM includes all those activities affecting the behavior of individuals in their efforts to formulate and implement the strategic needs of business “Integrating human resource considerations with other physical, financial, & technological resources in the setting of goals and solving complex organizational problems & emphasizing the implementation of a set of policies and practices that will build employee pool ofProf. Pardeep Kumar
  • 5. Approaches to SHRM Human Factor Approach:  links Human Resource activities with competency based performance measures including the human resource, their performance and competency  gaining competitive advantage by using people effectively, drawing on their expertise and ingenuity to meet clearly defined objective Surpluses Approach:  links Human Resource activities with business surpluses or profit  Integration of the business surplus to the human competency and performance Prof. Pardeep Kumar
  • 6. SHRM CONCEPT One-way Vertical Fit  Aligning HRM systems to the business strategy  HR as strategically reactive HR where alignment is taken as the partnering role of HR & HR is highly integrated with business processes  Align the human resources to three kinds of competitive strategies, namely innovation, quality enhancement and cost reduction strategy Two-way Vertical Fit  Aligning to the business strategy & contribute in the strategy formulation.  HR as strategically proactive HR that involves creating future strategic alternatives.  creating a culture change, identifying mergers & acquisition possibilities, tracking the market & proactively making change Prof. Pardeep Kumar
  • 7. Horizontal fit  Aligning various HRM systems to each other, connections created between and within the people processes.  HR practices should be linked to organizational strategy, but these practices also need to be strategically linked to each other to ensure that they are promoting the same goals. Five key aspects to SHRM  The external environment  The business strategy that affects and is affected by the SHRM process  The internal environment – the organizational context within which SHRM operates SHRM comprising the HR strategy and individual HRM practices  The outcomes of the process of SHRM Prof. Pardeep Kumar
  • 8. SHRM Process • SGRM process involves determining what needs to be done to achieve corporate objectives, often over 3 - 5 years • Mission statement containing business definition and future plan for success is made • Examining organization and competitive environment • Environmental analysis i.e. opportunities- threats analysis is done and business prepares to meet environmental pressures • Establishing optimal fit between organization and its environment • Organizational self-assessment i.e. strengths-weaknesses analysis is done and the road map for attaining goals is made • Establishing goals and objectives- Laying concrete figures that will help in benchmarking the performance is done. • Reviewing and revising strategic plan. Prof. Pardeep Kumar
  • 9. Barriers to SHRM • Lack of growth strategy or failure to implement one. • Firms’ short-term orientation • Insufficient general management training of managers • Lack of appreciation & cooperation from the line managers • Increasing focus on the quantifying results • Feeling of risk in investing heavily on human resources • Inability of the HR practices to change according to the business needs • Disincentives related to changes associated with SHRM • High resistance due to lack of cooperation from the bottom line • Interdepartmental conflict • Limited time, money and the resources • Status-quo approach of employees Prof. Pardeep Kumar
  • 10. SHRM Benefits 1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success. 2. Provides a clear business strategy and vision for the future. 3. To supply competitive intelligence that may be useful in the strategic planning process. 4. To recruit, retain and motivate people. 5. To develop and retain of highly competent people. 6. To ensure that people development issues are addressed systematically. 7. To supply information regarding the company's internal strengths and weaknesses. 8. To meet the expectations of the customers effectively. 9. To ensure high productivity. 10. To ensure business surplus thorough competency. Prof. Pardeep Kumar
  • 11. CONCLUSION  SHRM practices enhance employee productivity and the ability of agencies to achieve their mission.  Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives.  Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization “When the vision is one year …cultivate flowers When the vision is ten years… cultivate trees When the vision is eternity……cultivate people” Prof. Pardeep Kumar