Aliening HR Strategies with business growth

Sneha Gajbhiye
MB12(Sem II)
Sub:- HRM

Guided By :-Dr Neha Gupta Maam

Sneha Gajbhiye
 SO WHAT IS STRATEGIC HUMAN
RESOURCE MANAGEMENT?

Is it about long-range strategic planning?

Is it about day-to-day strategic management?

Or is it about both?

Sneha Gajbhiye
 STRATEGIC HRM DEFINED

Strategic HRM is the process of

defining how the organization’s goals
will be achieved through people by
means of HR strategies and
integrated HR policies and practices.

Sneha Gajbhiye
 MODEL OF STRATEGIC HRM

Strategic HRM

Strategic management – HR strategies –

strategic role of HR overall/specific

Strategic choice

Strategic analysis

Sneha Gajbhiye
SO WHAT IS THE STRATEGIC
ROLE OF HR SPECIALISTS?

Sneha Gajbhiye
 VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT
‘My credibility depends on
running an extremely
efficient and cost-effective
administrative machine…
If I don’t get that right, and
consistently, then you can
forget about any big
ideas.’
HR Director
‘Give me a break! It’s so demeaning.
How many people in marketing or
finance have to say they are a
partner in the business? Why do we
have to think that we’re not an
intimate part of the business, just
like sales, manufacturing and
engineering? I detest and loathe the
term and I won’t use it.’
Tim Miller, Standard Chartered Bank
Sneha Gajbhiye
‘The CIP thinks that we will all
be strategic business
partners, and we’re not, you
know. We have to deal with
day-to-day HR issues that
arise in the business.’
Student practitioner
‘The term worries me to death. HR has to be
an integral and fundamental part of developing
the strategy of the business. I don’t even like
the term ‘close to the business’ because, like
‘business partner’, it implies we are working
alongside our line management colleagues but
on a separate track, rather than people
management being an integral part of the
business.’
Alex Wilson, BT
 HR’s STRATEGIC ROLES

Formulate integrated
HR strategies

Work with line

managers to
Contribute to the support the
development of achievement of
business strategies their business
goals

Sneha Gajbhiye
 SEVEN STEPS TO BEING STRATEGIC
Practice
Make evidence-
convincing based
business management
case
Act as for
change innovation
agent
See the big
picture
Appreciate
how HR
can add
value
Understand
the
business
Aware of
business
context

Sneha Gajbhiye
SO WHAT ABOUT HR STRATEGY?

Sneha Gajbhiye
 HR STRATEGY AREAS

Specific:
Overall: • organization
• performance
development
• engagement • corporate social
• ‘the big idea’
responsibility
• human capital • resourcing
advantage • talent management
• HRM process • learning and
advantage
development
• etc • employee reward
• employee
relations
• employee
well-being

Sneha Gajbhiye
 EXAMPLES OF OVERALL HR STRATEGIES

We want GSK to be a
A strong focus on the
place where the best
overall effectiveness Maintain
of the organization, its people do their best
competitive work. GlaxoSmithKline
direction and how it's advantage by
performing. There is continuing to
commitment to, belief attract very high
in, and respect for calibre people.
individuals. New Boots
Forest Council

Staff who are enjoying

themselves, are being
The only HR strategy Stimulate changes
supported and
you really need is the on a broad front
developed, and who
tangible expression of aimed at achieving
feel fulfilled and
values and the competitive
respected at work, will
implementation of advantage through
provide the best
values. West Water people. Pilkington
service to customers.
Optronics
Lands’ End

Sneha Gajbhiye
 BALANCED SCORECARD IN AN INTERNATIONAL CHARITY
Organizational effectiveness
perspective:
• programme development
• programme delivery
• process development and
management
• cost-effectiveness

Stakeholder perspective:
Financial perspective:
• income growth
• impact on clients
• enlistment and retention of
• relationships with key funding
agencies and supporters
supporters
• cost/income ratio
• development of brand
• influence

People perspective:
• leadership behaviour
• talent management
• learning and development
• employee satisfaction –
a ‘great place to work’

Sneha Gajbhiye
 HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON

• Clear line of sight between strategic aims of the Corporation and its staff
• Management sets goals for success and monitors performance
• Leadership from the top and at all levels of management
• Focus on promoting engagement and commitment
• Performance management processes aligned to Corporation objectives
• Capacities of people enhanced by comprehensive learning and
development programmes
• People valued and rewarded according to their contribution

Sneha Gajbhiye
DECLARATION OF STRATEGIC INTENT CARE DELIVERY
CHARITY

• Achieve strategic integration – match HR

policies and practices to the business
strategy
• Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
• Focus on the needs to achieve flexibility,
responsiveness, quality and cost-
effectiveness in the delivery of HR
services
Sneha Gajbhiye
 CRITERIA FOR HR STRATEGIES

• Aligned to corporate goals

• Set out clear aims
• Supported by business case
• Take account of individual as well as
business needs
• Contain realistic and achievable
plans for implementation

Sneha Gajbhiye
STRATEGIC HRM TOOLKIT

Sneha Gajbhiye
 CONDUCTING A STRATEGIC REVIEW

1. Analysis

2. Diagnosis
Involve senior Involve employees
management and and their
line managers 3. Conclusions and representatives
recommendations

4. Action planning

Sneha Gajbhiye
 HR STRATEGY GOALS: HOW DO THEY RATE?

Possible HR strategic objectives Importance* Effectiveness*

Support the achievement of organizational goals
Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as ‘a great place to
work’
Increase engagement and commitment

Recruit and retain talented people

Develop talented people

Reward people according to their contribution
Provide employees with a voice

Provide a good working environment

Other (specify)

* Scale: 10 = high 0 = low

Sneha Gajbhiye
 STRATEGIC HRM GAP ANALYSIS
What are the current and desired SHRM characteristics in your organization?
1 2 3 4 5 6 7

Effective high-performance work No attempt made to encourage

system in place high performance

Integrated talent management Talent management is haphazard

programmes are operating
or ineffective
effectively

A traditional approach is adopted

Sophisticated techniques are
with regard to sourcing recruits
used to recruit employees
and selecting applicants

Focus on using blended learning Reliance on the delivery of

and development processes traditional training courses

Reward programmes limited to

A total reward approach is used
financial rewards
effectively

Only lip service is paid to

Employees given a voice on all
employee participation and
matters that concern them
involvement

Mark on the scale: X for current, O for desired – eg:

High-quality HR practices OSneha Gajbhiye

X Poor-quality HR practices
STRATEGIC HRM GUIDELINES
• Be clear on what has to be achieved
and why
• Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
• Aim for continuous improvement –
evolution not revolution
• Don’t follow fashion – do your own
thing
• Keep it simple – over-complexity is a
common reason for failure
• Don’t rush – it takes longer than you
think
• Assess resource requirements and
costs
• Manage change – involve,
communicate and train
Sneha Gajbhiye
Thank you

Sneha Gajbhiye