Professional Documents
Culture Documents
Strategic HRM - SecG
Strategic HRM - SecG
Strategic HRM - SecG
HUMAN RESOURCES
MANAGEMENT
Saurabh
FN-102
Nikhil FN121
Vishal DM176
Srikanth
Training &
Developm
ent
Planning
Manpower
Hire
People
Managi
ng
Change
Appraising
Performanc
e
Managing
Attrition
BUSINESS STRATEGY
External
Mission
Program
Environmental Scanning
Strategy Formulation
Objectives
Internal
Strategies
Strategy Implementation
Budgets
Performance
Policies
Procedures
Strategy
Strategy
Formulation
Formulation Role
Role
Supplying
Supplying
competitive
competitive
intelligent
intelligent regarding
regarding
the
the external
external
environment
environment
Supplying
Supplying
information
information
regarding
regarding the
the
companys
companys internal
internal
human
human strengths
strengths
and
and weaknesses
weaknesses
Showing
Showing how
how the
the
firms
firms HR
HR activities
activities
Strategy
Strategy Execution
Execution
Role
Role
Formulating
Formulating HR
HR
Policies
Policies &
& Activities
Activities
that
that will
will lead
lead to
to
required
required Employee
Employee
Competencies
Competencies and
and
Behaviors
Behaviors to
to achieve
achieve
strategic
strategic goals
goals
Creating
Creating and
and
sustaining
sustaining
competitive
competitive
advantage
advantage
Conceptualizing
Conceptualizing and
and
executing
executing
Early 20th
century
Staffing
function
People
treated as
commodities
No attention paid
to sensitivity
1950s
Personnel
department
Hiring,
compensation,
benefits
Talent
availability
1970s
Human
Resource
department
1990s
Strategic
HRM
Linking HR
policies with
company goals
Globalizati
on
Outsourcing
-Increased
Competition
War for
top talent
Decline in
customer
loyalty
Why SHRM
now?
Increased
pace of
technologi
cal change
SHRM in Whirlpool
1990s
Sales at a standstill
Reason being stagnation in
product line
HR Strategy
Company
Goals
Innovation to be embedded
as a core competency
Increase in sales
Increase in customer loyalty
Results
Revenues from
innovative products up
80 times in a course of 4
years
Share price doubled in
the same period
Increase in customer
loyalty
Point of
difference
TRADITIONAL HRM
STRATEGIC HRM
Partnership with internal
and external customers
Focus
Employee relations
Role of HR
Initiatives
Time horizon
Short term
Job design
Key
investments
Capital, products
People, knowledge
Accountability
Cost centre
Investment centre
Walmart
3M
TCS
Longo
Toyota
Foster innovation
Organisatio
nal
Strategies
- Combination of cost-leadership
and differentiation strategy directed
at a particular strategic target
HR
Strategie
s
- Detailed work planning
- Emphasis on job-specific
training
- Emphasis on job-based pay
- Use of performance appraisal as a
control device
- Emphasis on innovation & flexibility
- Broad job classes
- External recruitment
- Team-based training
- Emphasis on individual- based pay
st
Co ers
ad
le hip
r
fe
Di e n io
t
tia n
cu
Fo
s
COST
10%
30%
60%
HR
HR ACTIVITY
ACTIVITY
VALUE
ADDED
Strategic
Strategic
(Planning)
(Planning)
60%
Operational
Operational
(Service
(Service delivery)
delivery)
30%
Administrative
Administrative
(Record
(Record keeping
keeping and
and
Compliance)
Compliance)
10%
Recognize the
roadblocks and
political landmines
Know what you
stand for and what
you believe in, have
courage to follow
them
Asses & upgrade HR
talent
Change some key
leaders, make
series of hires at
early and midcareer
levels, develop
skills at existing
levels
Clarify the roles of
generalist and
specialist, Design
the structure of
your new
organization
Asses organizations
readiness for
change
To position the
change effort with
appropriate focus
Institutionalize
framework
Is it widely used,
recognized and
reinforced. Does it
provide a high level
understanding of
the role
Understand senior
HRs role and
clarify line
managers role
Facilitating
leadership sessions
and engaging top
Tasks of HR as
change agent
Look afresh, know
reality, bridge gap,
align line
leadership, identify
needed resources
SURVEY STATISTICS
1.Employee
engagement
Able to Engage
passionte employees
algined with
organisation goals
SURVEY STATISTICS
2. Stronger Cultural
Alignment
Resulting more
productive beahviour
4.Better
Financial
Results
3. Strong
Reputation
Helps in retaining and
attracting employees.
91% will like to
recommend their firm
to their friends
compared to 77%.
THANK YOU
Strategic thinking in HR is a choice that
organizations make. There is a wide gap between
theorization and implementation. This gap can
only be reduced with practical testing of the HR
philosophy and its core values.