Strategic Role of HRM

Strategic HRM

 Development of consistent, aligned

 Collection of practices, programs &
policies
 To facilitate the achievement
 Of the organization’s strategic
objectives.
 Possible roles assumed by HR
Strategic focus

Strategic Change
Partner Agent
Systems People

Administra Employee
tive expert Champion

Operational focus
 Traditional Strategic HR
Responsibility Staff specialist Line managers

Focus Employee Rel. Partnerships with

internal/ external
customers

Role Transaction Transformational

Initiatives Slow, Reactive, Fast, Proactive,

fragmented Integrated

Time horizon Short term Long

Control Bureaucratic Organic

Job Design Div. Of labor, Team, flexible

specialization

Key investment Capital, Products People, knowledge

Accountability Cost centre Investment

Barriers To SHRM
 Short term Mentality
 Inability of HR to think Strategically
 Lack of appreciation of what HR can contribute
 Failure to understand GM’s role as HR mgr.
 Difficulty in quantifying many HR outcomes
 Perception of Human assets as high risk investment
 Incentives for change that may arise.
Outcomes of SHR

Increased performance

Customer & employee

Enhanced Shareholder value
satisfaction

Through

•Effective management of staffing, retention etc.

•Cost-effective utiliztion
•Integrated HR programs & policies
•Facilitation of change
•Tighter focus on customer needs, key & emerging markets
 Model of SHRM
Laws regulating
External Employee
Employment
Environment Separation

Staffing

Corporate Business unit HR training

Strategy Strategy Strategy
HRIS Performance
Mgmt.

Internal
Environment Compensation

Labor
relations
Models of SHRM

 High-commitment Management model

 High-performance Management model
 High-involvement model
Approaches to the development of
HR strategies
 Best practice Approach
 Best- fit
 Bundling
Best- practice
 Employment security
 Selective hiring
 Self-managed teams
 High- compensation contingent on
performance
 Training
 Reduction of status differential
 Sharing information
Best- fit

 Analysis of business needs of the firm

within its context
 Pick & mix various best practice
ingredients
Bundling

 Combining Vertical or external fit&

horizontal or internal fit
Approaches to achieving strategic fit

Approaches

Competitive
strategy

Cost
Innovative Quality
leadership

Organizational
typology

Defender prospector Analyzer

Life cycle
approach

Start-up growth maturity decline

Strategic role of the HR

 Strategic Partner
 Business partner
 Key roles
Strategic Partner

 Shared Mind-set
 Competence
 Consequence
 Governance
 Capacity for change
 Leadership
Business Partner

 Strategic Partner
 Change agent
 Administrative expert
 Employee champion
Key roles

 Strategist Role
 Innovator
 Business Partner
 Change Manager