Strategic HRM

Common Misconceptions about HR

HR is primarily an administrative function HR has little strategic importance and does not represent a potential source of an organizations competitive advantage HR is a cost centre its activities add to an organizations expenses/costs but not to revenue

Overcoming these Misconceptions

HR can and indeed should play a key role in an organizations strategy There is increasing evidence that HR activities are associated with various indicators of organizational performance (e.g., ROI, profitability, stock prices) $ put toward HR systems and activities should be viewed as investment rather than simply cost

What is Strategic HRM?

Strategic

HRM

Integration of HRM systems to the overall mission, strategy, and success of the firm, while meeting the needs of employees and other stakeholders The intentional use of HR systems to help an organization gain competitive advantage
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SHRM
Creating a strategy-oriented HR system
The HR Function HR professionals with strategic management competencies The HR System High Performance Work System (HPWS) consisting of strategically aligned HR policies, practices and activities Employee Behaviors Employee competencies, values, motivation, and behaviors required by the companys strategic plan

SHRM
HRM : Shifting Paradigms Traditional HR
-Reactive -Staff function -Production oriented -People as liability investment -Just a resource in the production process advantage -Isolated from companys role in cos

Strategic HR
-Proactive -Strategic function -People oriented -People as
-key player in competitive -Integrated

What affect do you expect these items to have on HR?

Aging of the labour force Increasing levels of education Shift from manufacturing economy to services Increased number of dual income career families Increased number of women and ethnic minorities in the labour force

HR & Productivity
Outsourcing is becoming increasing popular assists in decreasing inputs and increase flexibility decreases no of permanent workers just contract as required

HR & Productivity
Can help increase productivity by ensuring workers are happy involves:

finding better/more efficiency ways to meet objectives working on improving quality of life retraining and outplacement

Technology
Computerization - increased flex., when & where work is done decreases geographical barriers New issues arising:

Concerns over data control Rights to privacy Using technology to monitor employees

Use of HRIS systems to aid HR departments

Technological Challenges

Technology affects how work gets done

Computerization increased flexibility Automation some hazardous/repetitive jobs being automated Workers need to possess competencies related to technology Job losses (layoffs, etc.) due to technology Changes in how HR activities get done
E.g., internet recruiting
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HR Implications

Demographic Challenges

Refers to the composition of the workforce

Increasing # of women in the workforce
Account for 70% of the employment growth in India over last 20 years Implications: Employment equity, child care, flexible work, etc.

Demographic Challenges

Change in the types of work Shift toward knowledge workers Implications: different skill and training needs Educational attainment of workers
Higher education levels coupled with high illiteracy rates Implications: productivity, safety

Demographic Challenges

Aging workforce
Growing % of workforce is in higher age categories Implications: retirement, job design, re-training, benefits, work schedules, etc. Between 2010-2030, India will add 241 mn people to workforce - ILO Part-time and contingent workers accounts for about 45% of all employment Implications: more flexibility for organizations but raises issues of pay

Demographic Challenges
Need for increased accessibility for disabled persons Shift in worker focus and changes in attitudes towards work life balance

Cultural (Values) Challenges

Attitudes toward work

Different expectations re: work and leisure People want more flexibility, holiday time, etc.

Ethnic diversity
Immigration from numerous countries Potential for conflicts of values, etc. but also opportunity to learn, expand

Attitudes toward government

Negative attitudes toward those in power effects employment relationships
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Legal Challenges

Numerous laws influence organizational (and HR) activities

Employment equity Human rights laws Charter of rights and freedoms Safety legislation

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Internal Environment
Organizational culture = values beliefs and assumptions positive culture = retention and recruitment success Organizational Climate = atmosphere of organization

Trends in HRM

Work-life balance
Reduces absenteeism Increases productivity Improves morale and working relationships Decreases stress Attracts new employees Helps retain current employees Implementation: Lots of consultation Flexibility at workplace Develop a plan with trail period

Trends in HRM
Temporary and contract labour Employee leasing

hiring permanent employees of another company on lease basis to meet short term requirements as per the leasing agreement Global sourcing of labour

Trends in HRM

WTO and labour standards

Labour standards are those that are applied to the way workers are treated. use of child labour and forced labour right to organize trade unions and strike minimum wages health and safety conditions working hours no discrimination at work (including gender discrimination)

Some considerations: whether trade actions could be used to impose labour standards? developing countries believe that it undermines the comparative advantage of lower wage trading partners the question of the relationship between the International Labour Organizations (ILO) standards and the WTO agreements