Professional Documents
Culture Documents
ACTION
LECTURE 5
Strategic Role of HR :
Strategic Nature of HRM
Human resource practitioners perform in two
areas :
1) Transactional roles : functional activities
that gives service to the organization.
2) Strategic roles: Work with line
management in the continuous development
and implementation of business, values,
goals, and strategies
performance drives.
Help senior management to understand
implications of its strategy for the HR function.
Know how HR practices contribute to the
achievement of the strategic goals.
Ensure that their activities provide added value of
the organisation.
Be aware of the broader context in which HRM
operates.
HR Strategy
Growth
Aggressive hiring,
training , promotion,
layoff, termination
Retrenchment
Early retirement
Diversification
Merger, acquisition
Corporate
acculturation, hiring
and laying off
Decentralized
hiring and training
Luxury/High quality
Divestitures
Staff reconfiguration,
layoff , reassignment .
development center.
6. Capable HRM to manage knowledge
and intellectual capital.
6. Increases engagement, commitment, and
motivation of the people by providing them
identity and core values.
Mission
Formulating Mission
Mission is statement given by the
What we do.
Why we are here.
Determining Vision
Vision is a road map of a companys future
vision
reflects managements
aspirations for the organization and its business,
providing a panoramic view of the destiny.
Objectives Setting
Objectives
converts
the
managerial
statement of strategic mission and vision
into specific performance targets results and
outcomes the organization wants to achieve.
Objectives
Crafting Strategies
A strategy of a company reflects managerial
Crafting Strategies
Strategies are of two types
a) Corporate strategies
b) Business strategies
Corporate strategies
Corporate
strategy is the
overall managerial game plan for
a diversified company that gives
an umbrella over all companies
under a parent company.
Business strategies
Business strategies refers to the
Formulating HRM
Strategy
Now, we are to formulate strategic human
Formulating Strategic
HRM
In other words, strategic HRM is an approach
Formulating Strategic
HRM
There are three types of approach here i) Hard approach
ii) Soft approach.
iii) Combined approach.
The management can choose the combined
Formulating Strategic
HRM
2. The structure of the
organization.
3. The rewards system.
4. The training and
development strategy.
5. The performance appraisal
strategy.
Formulating Strategic
HRM
6. The industrial or employee relations
strategy.
8. The benefit and incentive strategy.
8. The organization development strategy.
This is formulated to make the organization
adaptive to changes and
reengineer the
process and positions to improve those to be
effective in the context of the environment.
9. The total quality management strategy.
Formulating Strategic
HRM
10. The integration strategy.
This strategy is designed to integrate human
resource strategy with business strategies so
that business strategies are well implemented
by the employees through their process of work.
It is done through
Clear, purposeful and articulated corporate and
business strategies.
Powerful driving force.
Ownership of top management.
Team working.
Participation of HR in corporate/business strategy
formulation .
Union involvement .
Development orientation of HR strategies.
The process of formulating strategic human resource
management is a continual process because
learning from mistakes will make process more
effective and dynamic to develop the organization
and the people in it.