Strategic HRM

Agenda
• Employee Lifecycle
• SHRM Definition
• VRIO Approach
• 7 Steps of SHRM Planning
• HR Verticals where SHRM can impact
• Importance of Measurement
• Role of IT
• Examples in BHEL
• Few Situations where we learnt the hard way – COVID-19
• Biggest Barriers in implementation of Strategic HR Plan
What thoughts get triggered on seeing the
points below:
• Employee Vs Organisation Perspective
• Joining of Employee Vs Birth of Organisation
• Growth of Employee (through Job Rotation etc.) Vs Growth of Organisation
(Business Diversification leading to requirement of variety of talent pool)
• Separation of Employee (Superannuation/Resignation/Other Attrition Modes)
Vs Succession Planning at Organisation (Creation of Organisation Memory)

• SHRM
• Fosters Flexibility, Builds a cultural fit and ensures superior business
performance through people.
HR Practices corresponding to the stages of
an organization’s life cycle (1/2)
• Start-Up Stage
• Flexible Patterns of Work
• Recruitment of highly motivated and committed employees.
• Competitive Pay
• Little Formality, More Flexibility
• Growth Stage
• More sophisticated recruitment and selection
• Training and Development
• Performance Management Process
• Reward Management Systems
• Developing stable employee relations
HR Practices corresponding to the stages of
an organization’s life cycle (2/2)
• Maturity Stage
• Attention to the control of labour cost
• Focus on increasing productivity
• Control Compensation
• Decline Stage
• Emphasis on rationalization of cost.
SHRM - Definition
• HRM + HR Strategy of the organization
• HR Strategic Plan to meet the overall business strategy through people
to meet the Vision, Mission and Values
• People can be the source of sustained competitive advantage
• Possible Questions:
• How to make workforce stick to organization? (With Money/Without Money)
• How to increase employee engagement and make the employees feel valued?
• How to retain the best possible talent and encourage good performance culture
in the organization? How to promote DEI Work Environment?
• How to meet Organisational Goals while developing the workforce in the best
possible manner?
• HRM – Transactional, SHRM - Transformational
VRIO Approach amongst several possible
approaches
7 Steps of SHRM Planning
• Define Goals
• Determine Objectives
• Create Strategies
• Develop Tactics
• Implement Plan
• Monitor Performance
• Evaluate Performance
HR Verticals where SHRM can impact
• Training and Development
• Employee Relations/Employee Engagement
• Performance Management
• Compensation and Benefits
Importance of Measurement
• You cannot improve what you cannot measure.
• Measure  Monitor  Improve
• Simple Concept we follow in our daily life as well.
• Very Important to identify the patterns and have purposeful plans.

• Identify areas of weakness and strengths

• Establish objectives to measure progress toward the end goal
• Make sure there is alignment between business strategy and HR
Strategy
Role of IT
• Good System leads to appropriate data collection at all relevant employee
touch points.
• It has good interconnectivity between various modules
• Process Flows are simple and cover most of the exceptions
• System comes with lot of reports and a Good Dashboard
• System raises red flags as per the given configuration.
• Variable Cost between Rs.50 per month per employee to 250 per month per
employee.
• Decision between standardization Vs Customisation.
• Still most of the HRIS are in their very basic stage. A lot needs to be done.
Examples in BHEL
• Business Requirement – Diversification leading to requirement of
manpower in new growth areas
• Steps Taken –
• Manpower redeployment
• FTA Policy
• New Policy for hiring laterals
• Introduction of specified training programs in new growth areas
Examples in BHEL
• Business Requirement – Decrease in Employee Engagement leading to
reduction in performance.
• Steps Taken –
• Introduced Sabbatical Leave, Child Care Leave
• Introduced Best Employee of the Quarter Scheme
• Increased Communication Channels and sent curated content – EKAM,
WhatsApp Groups, emails from Corporate Communication Department
• Introduced Inter Unit Transfer Request (IUTR) System
• Implementation of FR-56J
Examples in BHEL
• Business Requirement – Loss of Organisational Memory due to high
number of Superannuation.
• Steps Taken –
• Competency Management and Succession Planning.
• PCMM –
• Position Competencies, People Competencies
• Competency Gap
• Competency Gap can be used in various HR Verticals like Recruitment, Training,
Succession Planning, Career Planning and Job Rotation
Other Examples in BHEL
• Organisation having diversified product portfolio.
• Having 35 Business Units all over India.
• 5 Year Strategic Plan is made and course correction is done whenever
required.
• Regular Benchmarking of HR Policies is done.
• Job Security, Work Life Balance and Townships having excellent
amenities.
• Best in the Industry – Medical Facilities
Few Situations where we learnt the hard way
• Importance of Training and Development Function was realized
during COVID-19 Pandemic.
• Penny wise Pound Foolish – Rationalisation of Cost was not required
in few areas.
• Remember Pareto’s Rule of 80-20. 20% of the additional employee
spending leads to 80% of Employee Satisfaction.
Barriers in implementation of SHRM Plan
• Lack of Buyin from Top Management
• Overthinking/Fear of Failure
• Communication Issue leading to Resistance from Employees/Labour
Union
• Rigidity
• Lack of Long Term Vision (Will not happen in your case as you are
smart)
Thank You