Human Resources Management Strategic aspects

Marzena Fryczyoska, Phd

Learning outcomes
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.

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)

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

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

M. Armstrong, 2001

Linking company and HR strategies

G.Dessler, 2011

G.Dessler, 2011

Vertical and horizontal fit of HR strategy

Business strategy
Vertical fit

HR strategy Organization Rewarding HRD Resourcing Employee Performance relations management

Horizontal fit Bundling process

M. Armstrong, 2001

Aligning HR strategy to business strategy

G.Dessler, 2011

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Southwest Airlines Activity System

G.Dessler, 2011

Three important strategic HR tools

Strategy Map HR Scorecard Digital Dashboard

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.

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.

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

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

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HR Scorecard
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 a picture is worth a thousands words corrective action

G.Dessler, 2011

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

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