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 Topics for Discussion..
° What is Strategic HRM
° Strategic HRM v/s Other areas of HRM
° Strategic HRM Policies of various companies
° Fed Ex
° Dell
° Toyota
° Coca Cola
° McDonalds
 Strategic HRM ...
° Strategic HRM - how the management of
people in organizations relates to the ability of
organizations to compete in the marketplace
and, beyond this, to provide a sustainable
competitive advantage.

° Amongst others, also takes care of policies, strategy,

development, outsourcing, telecommuting, performance
evaluation, compensation.. And aligning these with the
company͛s goals..
Changing Role of HR
þ
 


  
 The Strategy Part..
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 How is Strategic HRM Different From
Other Areas of HRM?
° Perspective is on the business and
organizational level; competitive advantage

° Studies typically involve:

Examination of the integration or fit among HRM
practices
HRM practices and other features of the
organization
Key Investments : people, knowledge
° Most studies in the realm of strategic HRM
focus on organizational performance

° Strategic HRM is organic-flexible, short,

medium or long term (as required) whereas
other areas of HRM may be Bureaucratic-rigid
regarding roles, policies, procedures
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° One of Fed-Ex͛s strategic aims : achieve
superior levels of customer satisfaction and
high profitability through a highly committed
workforce, preferably in a non-union
environment.

° Fed-Ex͛s Strategic HR policies stem from this

aim
FedEx was among the first few companies in
the world to develop a formal HR policy which
viewed employees as a means for achieving
long-term growth and profitability. Framed
and valued since FedEx's inception in 1973,
the people-service-profit (PSP) philosophy
views employees as the key contributors to
the company's long term ambitions.
° Some of the policies of Fed-Ex include :

° Using various tools to build two-way communications (corporate

communication program, known as the ͞Survey Feedback Action͟)

° Screening out potential managers whose values are not people oriented

° Guaranteeing to the greatest extent possible fair treatment and

employment security for all employees ('Guaranteed Fair Treatment
Procedure' )

° Utilizing various promotion-from-within activities to give employees every

opportunity to fully realize their potential

° The company has also devised employee development programs such as

'Job Change Application Tracking System' to provide temporary employees
the opportunity to gain regular employment at FedEx
° The company's 'Leadership Evaluation and Awareness Process' gave
FedEx's non-managerial employees the opportunity to seek managerial
positions at FedEx.
° FedEx had also devised a succession planning mechanism ʹ ͞Succession
Planning Executive Education͟ - to groom its mid to senior management
employees for top management positions

There is interplay between human resource strategy and the company͛s

strategic plans and results

° FedEx is considered one of the most employee-friendly companies

in the world because its innovative HR initiatives. The Work Force
magazine wrote, "FedEx is an example of an organization that has
created an effective HR strategy that supports productivity and
profitability, which distinctly sets it apart from its competitors ͟
° The essence of Dell͛s competitive strategy has
always been to be a low-cost leader. The main
challenge for Dell was the implementation of
its business model and interlinking it with the
human resource department. Dell͛s human
resource managers use various HR strategies
to support Dell͛s low cost aims.
° Dell͛s policies include :

° Dell delivers most of its HR services not through a conventional HR

department, but via the web. A manager tools section on Dell͛s
Intranet contains about 30 automated Web applications (including
extensive search reports, hiring tools and automated employee
referrals)

° The Dell employees can administer their own 401(K) plans, check
job postings (internal) and monitor their total compensation
statements. This reduces the number of people required, to
overlook these activities and helps in cutting cost; supports Dell͛s
low cost strategy.
° Dell is an Equal Opportunity Employer and Prohibits Discrimination
and Harassment of Any Kind. All employment decisions at Dell are
based on business needs, job requirements and individual
qualifications, without regard to race, colour, religion, national
origin, sex (including pregnancy), age, disability, HIV status etc.

° Dell Employees Are Encouraged to Report Discrimination,

Harassment, Retaliation or the Threat of Retaliation. In case of a
violation, the person can contact his/her manager, Human
Resources representative, the Office of the Ombuds (if available),
the Global or Regional Ethics Office, or the Ethics Helpline at 1-888-
888-9975
"Because people make our automobiles, nothing
gets started until we train and educate our
people.͞

͞Toyota seeks to develop human resources

through the activity of making things. Toyota
believes that the development of human
resources requires the handing down of values
and perspectives. In conjunction with the
geographic expansion of business and the growth
of business areas, undertaking global actions for
the development of human resources has
become a priority issue͟
° At Toyota, it is the diversity of the workforce and the HR
policies that enable it to create a sustainable advantage
over its competitors.

Some of Toyota͛s policies include:

° Toyota does not have a manufacturing facility that is unavailable to Ford

or Honda, so why is Toyota͛s cars more efficient and of better quality? The
answer : the people behind the making of the cars.
- Small teams of carefully selected, highly trained workers inspecting and
assessing their own work, selecting their own team members, interacting
with engineers and suppliers to improve components.
- A full week of employee screening and testing at the start; 3 weeks of
annual training
- Team based rewards that incentivize the assembly teams to self manage
their own performance
° Some other policies include:

° Work Groups and Team Problem Solving: At Toyota the old adage, "All of
us are smarter than any of us," is truly practiced on a daily basis. People
are organized into work teams with team leaders and review daily
progress, taking problems as opportunities for kaizen.

° Clean and Safe Workplace: health and safety system reflects company
policy and compliance with laws and regulations. Have ͞health and safety
committees͟ that respond within the same day that a health or safety
issue materializes.

° Two-Way Communication and Visual Management: ͞T-Book͟ is a tool for

employees to be constantly in touch with their immediate superiors on
the go. Also have a kind of in-house yellow pages which has contact
details, birthdays, anniversaries, promotion details etc of each and every
employee of Toyota throughout the world
° Hoshin-Kanri (Policy Deployment): Toyota's continuous
improvement is driven by ͞hoshin-kanri͟, also referred to as policy
deployment, a system of setting objectives for improvement,
starting at the very top of Toyota and coming to agreements at
every level down to the team member.

Each employee has a hoshin - specific measurable objectives that

are reviewed throughout the year. When all team members feel like
they are a valued long-term part of a team whose fate is tied to the
fate of the company, hoshin-kanri is a powerful mechanism for
converting their energy into exceptional levels of performance.
° Toyota Institute : In January 2002, the Toyota Institute was
established as an internal human-resource development
organization that aims to reinforce the organic integration of global
Toyota companies by way of sharing the Toyota Way as well as to
promote self-sufficiency. Training modules are set as benchmarks.
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Some of Coca Cola͛s Policies :
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͞ In order to be competitive, McDonald needs HR people with
full-range experience and talents, and the skills in recruitment
and retention. We believe that in this competitive
environment , employee performance management,
development and reward and sound appraisal mechanisms
are what distinguishes us from the rest. It is our competitive
secret͟
- James A. Skinner
(CEO, McDonalds Corporation)
° 
 
 

: Got help from IBM, Ford, and GM, to
bargain with the insurance companies to provide a lower rates for
employees, McDonald's new plan, called om  



o, attracts more people to join the workforce and keep
talents within the corporation.
° 30 to 40 % of the chain's operators buy into McDonald's corporate
umbrella health care plan for hourly workers, and 75 percent of
franchisees are part of a coop that provides management medical
coverage.

° The McDonald's UK division also pioneered on-street information

kiosks, called ' ', for recruitment advertising.

Both strategies fit the McDonald's way of doing thing fast and efficiently
° McDonalds ͞

   ͟ also helps assist
mentally and physically challenged individuals; the
͞ 
  ͟ recruits, trains, and retain people aged
fifty-five and over.

° Once the workers are hired, the corporation uses an upgraded

orientation process to help new employees acclimate, which
reduces the number of new hires who leave before
completing three months on the job.
 
  
  

 
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° McDonald's is improving its corporate training and employment
development. The corporation has a 6 m#$

 
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help them build leadership, team, and organization. It also includes
action learning, emphasizing on innovation in restaurant process.

° There is also a " '" program, in which corporate

headquarters provides each country manager with a menu of
business principles to focus. The principles include customer
service, marketing, or restaurant reimaging.