Strategic Human Resource Management

SHRM - Meaning & Concept

Human resource strategy is the result of a set of decisions a company makes about the humans with whom it does business Who are The Humans Only Employees HR cant be Strategic What about Humans / People
Human Capital Management Humans are Assets Assets are to be Controlled for Long Term success

All the People / Stakeholders

Human Relationships Behaviors - cant be controlled

Human Relationship Management Strategy

Top 10 Non-Financial Variables

Execution of Corporate Strategy Management Credibility

Market Share Management Expertise Alignment of Compensation with Shareholders Interests Research Leadership Quality of Major Business Processes

Quality of Corporate Strategy

Innovation Ability to attract and retain talent

A direct link between human capital and corporate financial results is not readily apparent in traditional accounting practices. Right now, we are only beginning to understand the potential of this tool, but its the measurement process thats important Once we are able to measure intangible assets more accurately, I think investors and finance professionals will begin to look at human capital metrics as another indicator of companys value.
Lawrence R. Whitman, Deputy CFO at GTE

What is Strategic HRM?

The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Formulating and executing HR systems - HR policies and activities - that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Creating a Strategy - Oriented HR System

Components

of HR system The basic architecture of HR Strategic management, strategic planning and HRMs strategic roles
Strategic

management process Strategic planning Linking corporate strategy and HR strategy Translating strategy into HR policies and practice

Components of the HR Process

HR

professionals who have strategic and other skills HR policies and activities that comprise the HR system itself Employee behaviors and competencies that the companys strategy requires

Basic Architecture of HR

Overview of Strategic Management

The Balanced Scorecard

Translating Strategy into HR Policy

Basic Model of How to Align HR Strategy and Actions with Business Strategy

Corporate and HR Strategies

Strategic HR Relationships

HR Activities

Emergent Employee Behaviors

Strategically Relevant Organizational Outcomes

Organizational Performance

Achieve Strategic Goals

Strategy and HR Process

Companys Strategic Plan What Business are you in? On what basis will you compete? How do you plan to expand?

Develop Personnel Plans & Job Descriptions

Recruit Candidates

Interview & Select Employees

Train Employees Based on Job requirements

Appraise Employees

Reward Employees

Confirm to Ethical Standards & HR Related Laws

Strategic HR Management
HR Practices - recruitment - job analysis - training - job design - performance - selection management - development - labor relations - pay structure - HR planning - incentives - benefits

Strategic Choice:
Cost leadership Differentiation Operational excellence Customer intimacy Innovation Growth Retrenchment

HR Needs - skills - behaviors - culture

HR Capability - skills - abilities - knowledge

Performance And Results

Case 2
TTC have recently launched a water purifier focusing on the bottom of the pyramid i.e. the rural market. During the process they hired some of the world class consultants from around the world. Unfortunately things have not worked for them. And now they have hired you as the team member of new consulting team. You are an HR specialist, and Mr. CEO is expecting a lot from you.
What would be your contribution as an HR Specialist to make this project a successful venture? Give justifications to the decisions you have taken.