Human Resources Management

Strategic aspects
Marzena Fryczyoska, Phd
1
1. Explain why strategic planning is important to all managers.
2. Define strategic human resource management.
3. Describe SHRM models.
4. Explain linkage between strategy and HR strategy.
5. Give an example of strategic human resource management in
practice.
6. Briefly describe three important strategic human resource
management tools.
Learning outcomes
Business plan: table of contents
G.Dessler, 2011
Achieving strategic fit
The Fit Point of View (Porter)
All of the firms activities must be tailored to or fit the
chosen strategy such that the firms functional strategies
support its corporate and competitive strategies.
Leveraging (Hamel and Prahalad)
Stretch in leveraging resourcessupplementing what
you have and doing more with what you havecan be
more important than just fitting the strategic plan to
current resources.
G.Dessler, 2011
Type of strategy at each company level
G.Dessler, 2011
Strategic Human Resources Management (SHRM)
6

The pattern of planned human resources
deployments and activities intended to enable the
firm to achieve its goals Wright, Mc Mahan, 1992

Formulating and executing human resources policies
and practices that produce the employee
competencies and behaviors the company needs to
achieve its strategic aims Dessler, 2011
Model for SHRM
7

M. Armstrong, 2001
HIGH-COMMITMENT
MANAGMENT MODEL
To enhancing mutual
commitment by self
regulating and mutual
trust
It requires trainability,
flexibility, reduction of
hierarchies, emphasis on
group-work



HIGH-PERFORMANCE
MANAGMENT MODEL
To make an impact on
the performance of the
firm through its people in
such areas as
productivity, quality,
levels of customer
service, growth, profits
It requires rigorous HR
processes


HIGH-INVOLVMENT
MODEL
To gain mutual
understanding of what is
to be achieved and a
framework for managing
and developing people to
ensure that it will be
achieved
It requires partnership,
communication and
dialogue between
managers and
subordinates
Linking company and HR strategies
8
G.Dessler, 2011
G.Dessler, 2011
Vertical and horizontal fit of HR strategy
9

Business strategy
HR strategy
Organization
HRD
Employee
relations
Resourcing
Performance
management
Rewarding
Vertical fit
Horizontal fit
Bundling process
M. Armstrong, 2001
Aligning HR strategy to business strategy
10

G.Dessler, 2011
Southwest Airlines Activity System
G.Dessler, 2011
Three important strategic HR tools
HR Scorecard Strategy Map Digital Dashboard
A process for managing
employee performance
and for aligning all
employees with key
objectives, by assigning
financial and nonfinancial
goals, monitoring and
assessing performance,
and quickly taking
corrective action.
A 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.
An information
technology tool that
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.
Strategy Map Southwest Airlines
13

Graphical tool that
summarizes the
chain of activities
contribute to a
companys success
and so shows
employees the big
picture of how their
performance
contributes to
achieving the
companys overall
strategic goals
G.Dessler, 2011
G.Dessler, 2011
HR Scorecard
14

HR Scorecard a
process for managing
employee performance
and for aligning all
employees with key
objectives, by assigning
financial and nonfinancial
goals, monitoring and
assessing performance
and quickly taking
corrective action
a picture is worth a
thousands words
G.Dessler, 2011
Key terms
15

Strategic planning
Strategic fit
Vertical fit
Horizontal fit
Strategic human resources management
SHRM models
Strategy map
HR Scorecard
Digital dashboard