Strategic human resource management

Syed Awais Ahmed

unit 10





Strategic human resource management

Syed Awais Ahmed

unit 10

1.1 The word strategy means long term planning or aim to achieve a specific purpose. Human resource management is based in the efficient use of employees. The main purpose of Human Resource Management is to use of skills and abilities of employees in such a manner to achieve a desired result of the operational objective that are utmost aim of organization. Strategic human resource management means human resource function linked with strategy of the organization. Wheelen and Hunger (1995, p.3) define strategic management as the set of managerial decisions and action that determine long run performance of corporation. Hill and Jones take a similar view they define strategy as µan action a company takes to attain superior performance¶. The strategic Human Resource Management means the decision of a business organization about what to do and what not to do when learning, training, developing and organizing human resource. For example Apple¶s recent decision to create a new iPad was a strategic decision. Strategic Human Resource Management focuses on performance of organization rather than performance of individual.


The most important part of organization is its employees and it is necessary for organization to manage and improve the employee¶s efficiency and working condition. It is important that Organizations make some strategies and involve its

potential and contribution to the betterment of society. (From teacher lecture notes) Tesco believe that employees are the future of the organization and their employees recognize their job as member of organization society to exert their full attention. Tesco success depends upon its employees and always provides necessary training and other scheme to their employees. 3 . The HR strategy supports the direction of the business strategy. Strategic human resource management is frequently described as to achieve a fit between human resource strategy and overall strategy of the organization. SHRM helps the organization to achieving the objectives of organization by making strategies form employees.Strategic human resource management Syed Awais Ahmed unit 10 employees in work related decision for better future of organization. and also achieve the coherent approach to managing people in which the various practices are mutual supportive. SHRM is the integral part of the business.

Strategic human resource management Syed Awais Ahmed unit 10 1. Now a day world is going to complex and it is very important for success of business that organization¶s employees must play important role. 4 . CIPD work found that µpractices alone do not create business performance. The SHRM is very important for organizations who work hard to meet well the needs of their employees can prepare and use the work atmosphere contributing to productivities. This means every employee must be in correct position and doing right job. the willingness of the individual to perform above the minimum or give extra effort. Strategic human resource management needs to think about future of company and make some action or strategies that also well meet the requirement of its employees. All these factors will promote µdiscretionary behavior¶. these types of strategies improve the company¶s performance as well as improve the level of abilities of employees to perform well for company and also this improve the employee¶s retention level and reduce the company expenses that spend on find and training new employees. However. this will only feed through into higher levels of business performance if these individuals have positive management relationships with their superiors in a supportive environment with strong values. It is very important to make some business plan for survival of a organization. They can create µhuman capital¶ or a set of individuals who are highly skilled. highly motivated and have the opportunity to participate in organizational life by being given jobs to do. making plan for employees insurance. SHRM improve the economic performance of organization and increase the survival rate and decrease the labour turnover. organization¶s environment and HR policies. The action of organization means training of employees. SHRM built relationship between the organization strategies.3 SHRM is basically management of employees.

Apple.Strategic human resource management Syed Awais Ahmed unit 10 It is this discretionary behavior that makes the difference to organizational performance. 5 . µ The big organization like Nokia. The small organizations also involved them in SHRM but on low level. Audi and Tesco etc normally have sufficient time and money for training of employees and other benefit programmes but small organizations can¶t do such a activities.

6 . Productivity of employees it important part of general economic condition. religious and disability act. Tesco follows the government law and regulation when planning human resource.Strategic human resource management Syed Awais Ahmed unit 10 Task 2 2. The competitiveness means organization expands and maintains the income of employees under free and fair conditions and produce quality services and goods that meet international market. when an organization makes decision about hiring. Tesco employees take part in these activities. discipline. Tesco provide off the job and on the job training to their employees and enhance the potential and confidence of the employees. promotion. The goal and strategies can be differing among the different department of organization. There are lots of problem occur for example language and culture of countries. The internal factor means the inside factor of an organization and external factor means outer factor of organization. race. These all factors considered when organization plans human resource. There are lots of disable employees in Tesco¶s different managerial post and as well as different store. The government law and regulation are powerful external factor which directly affect the organization. It is influenced by and influences the external and internal environment factor. The location of organization also consider when planning human resource it affect the kinds of people it hiring and the HRM activities it conducts. Tesco believes on equal opportunity and discriminate the sex. This is very important consideration when organization operating on other countries.1 HRM plan and programme does not work easily.

Employees play important role for the success of project.2 In human resource management it is necessary to coordinate the human resource on a project for example Christmas. For temporary project like Christmas means that personal and organization relationship generally also temporary. Staff management Processes must recognize and address these changing needs. assign and release the staff over the life off project. Project¶s success and failure depend upon the management of human resource. obtain.Strategic human resource management Syed Awais Ahmed unit 10 2. In this situation processes include those needed to plan. For example at starting there will be limited number of staff in the project and as we move along we formally introduce more staff into the project. Both the nature and number of people involved in a project change as the project moves through its life cycle. Actually the temporary project usually have small life cycle. 7 .

July 2007 (Vol. Tesco regularly evaluate the performance of its employees which means manager and employees knows whether they have necessary knowledge. Issue VII)) In Tesco different technical expertise and competencies may be required for in store and out store in any given condition. 2. Tesco well prepared for any project and has widely varied workforce and staffs are given opportunity to grow and develop. Develop plan around critical issue. Conduct a SWOT analysis for the organization that focus on strength and weakness of people side of business. obtaining staff and performance assessment. understanding and resource to carry out required task. people and human resource system. IX.3 There are some steps involve in development of human resource plan. The scope of responsibility of the project manager may lie somewhere between: O A responsibility. the resource deployment manager and/or the people development manager. Complete the SWOT analysis and think carefully about service levels and competence s of personal staff. including the selection of sourcing organizations. Concentrate on organizational culture.Strategic human resource management Syed Awais Ahmed unit 10 µHuman resource management activities are often divided between project management and other managers within the performing organization. O A limited responsibility focused on coordination with the permanent roles outside the project such as the functional manager. Before develop a human resource plan it is necessary to understand the plan and after that develop a mission statement that relate the people side business. skill.¶ (Published in PM World Today . y y y y y y y y Development and training of employees Development of management Organization development of organization performance appraisal employee reward employee selection and recruitment manpower planning Communication 8 .

Provide the conventional training to new and young worker to undertake the higher grade task. To keep possession of good staff and give support and confidence them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.  S specific Describe what is the task to be done? What are the details?  M done? Has a target that can be measure against  A achievable Do you need personal development in order to achieve the task? Is possible within the trainee¶s current role. Activity plan need to have SMART object.Strategic human resource management Syed Awais Ahmed unit 10 Improve the performance of individual contributor by training. timetable and development. skill and experience  R realistic Why target is important Is this target moving forward? Is it improving? Is task achievable within the time and resources available  T time bound When the task should be complete Has a deadline measurable What evidence could be used to show if and how well the task has been 9 . Continuously judge the performance of employees after training.

every organization should have a human resources plan that outlines their people strategy. and operational departments. in evaluating an organization's HR function. organizations must develop both long-range (strategic) and short-range (tactical) plans. once the behavior patterns necessary for achieving business objectives are identified. In order to be successful of plan. both the extent to which current behaviors are 10 . Hence. resources must be organized and assign to carry out organizational objective in an effective and efficient way. Human Resources professionals need to practical and effective use of those same approaches to strategic planning and business development that are exist in the marketing. which is influenced. In addition. Lado & Wilson. 1997). 1999. So. These organizational capabilities are achieved through the individual and collective behavior of an organization's employees. In light of this. an HR system should be designed that attempts to develop these key capabilities (Yeung & Berman. by the organization's HR practices (Cabrera & Bonache. in turn.4 Effective decision making is founded on strong planning. financial.Strategic human resource management Syed Awais Ahmed unit 10 2. 1994). Every organization has a marketing plan to guide their product and/or service strategy. technology.

The strategic policy (Future) started in the company¶s supermarkets. In Tesco Manager and trainees hold a weekly informal review session as well as more formal four week sessions. A human-resource-led business strategy has helped Tesco to take the lead over its rivals in the fiercely-competitive UK supermarket sector. In Tesco every employee has opportunity to aware of his or her role and how his or her action affects the company¶s business.Strategic human resource management Syed Awais Ahmed unit 10 contributing to the achievement of the organization's strategic objectives and the extent to which current HR practices are encour aging the desired behaviors must be assessed. Traditional HR measures of operational efficiency do not provide this information. where its aim was to free up stores 11 . These policies make transparent the organization in from of employees on o o o o o Behavior of organization Expectation to employees from organization Expectation of organization from employees How policies work Environment of organization HR policies are very effective at supporting and building the expected organizational culture.1 Every organization has different HR policies. The feedback record and carefully scored. Task 3 3. Tesco¶s structured approach to training and developing its existing and new employees provides a strong foundation for its continuing growth.

Now Tesco become an employer of choice and Tesco HR policies Is very strong and everyone want to do job in Tesco. Tesco use different strategies HR policies. Tesco¶s policies clearly show that Tesco basically focus on training of their employees.Strategic human resource management Syed Awais Ahmed unit 10 employees so they could do more and improve customer service (Anonymous 2003). 12 . Tesco adopt strategies to keep their employees on order to keep away from high turnover. The manager of Tesco must make practical and effective used of aspects of HR in their decision making.

religion believe. This act provides legal right for disabled people in employment and other fields.2 There are some rules and law that are implementing in Human resource management. opportunities for advancement. religious belief. Tesco¶s employment policies and method provide for equal opportunity and in fair manner in employment decisions. ethnic descent. and allow to equal pay for equal work. This act prevents discrimination against man or woman or marital status. gender. Tesco also try hard to ensure that all employees are treated very well in all aspects of the employment relationship. Disability discrimination act This act prevents the disability discrimination. sexual orientation and gender reassignment. Age discrimination acts This act prevents discrimination against age and experience. civil partnership. Tesco 13 . Tesco doesn¶t discriminate on the basis of race. 4. Equal employment opportunity act This acts prevent discrimination on the basis of marriage. 1. age. disability. including performance appraisals. 3. 5. and disciplinary matters. family status or source of income and Tesco take steps to command with all applicable affirmative action legislation. It is unlawful for employers to discriminate a person on the basis of age. color. marital status. 2. Equal pay act This act prevents the wages or salary discrimination based on sex. sexual orientation. place of origin.Strategic human resource management Syed Awais Ahmed unit 10 3. Sex discrimination act It is illegal or unlawful for organization or employer to discriminate someone on sex base. compensation.

Strategic human resource management Syed Awais Ahmed unit 10 believe that employees are entitled to privacy and we recognize our obligations as set out in applicable privacy legislation. 14 .

Strategic human resource management Syed Awais Ahmed unit 10 15 .

In a centralized structure. controlled. In a decentralized structure. Therefore. and responsibilities are delegated. and coordinated. power. An organization chart illustrates the organizational structure. and how information flows between levels of management.1 According to business dictionary Organization culture define as µFormal and informal framework of policies and rules. Organizational structure determines the manner and extent to which roles. the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them.¶ Organizational structure of an entity can enhance the competitiveness of an organization because it can directly influence the productivity and efficiency of the employees. As the significant asset for any organization is its human resource therefore. the decision making power is distributed and the departments and divisions have varying degrees of autonomy. employees of an organization which has flatter organizational structure are more ambitious to achieve organizational objective as compare to the employees of a tall organization.Strategic human resource management Syed Awais Ahmed unit 10 Task 4 4. and allocates rights and duties. the more is the decentralization and increase in the employee participation. The flatter the organizational structure. It can result the employees' involvement and participation in the organization. organizational structure makes a difference. within which an organization arranges its lines of authority and communications. 16 .

Tall organization has many level of management. In matrix organization there is interconnected relationship between employees and manager. There is clear progression and promotion ladder in this type of organizational structure. The organization that has lots of different departments and each department has separate manager and all connected through director.Strategic human resource management Syed Awais Ahmed unit 10 managing director manager staff staff staff Flat organization will have relatively few management layers. Tesco¶s all employees know their role. There is a narrow span of control ie each manager has a small number of employees under their control. The basic advantage of this flat organization is greater communication between manager and staff. 17 . The Tesco has tall organization and there are many layers within the hierarchy. This means that employees can be closely supervised. Tall organizations are often large organization in which function of each department is clear and distinct. Flat organizations are often small organizations.

There is no best culture for the development of human resource. An organization with value shared by a large majority of the employees is strong culture. organizational culture is the personality of the organization. It supply benchmark of the quality of performance among employees and provide clear guideline on attendance. punctuality and services. It is very important for the manager of an organization to accurately understand the organizational culture in order to control the activities in productive way and avoid the negative and unhelpful influence of having employees who are not committed to the company¶s objectives. The fundamental nature of organizational culture is exhibited by the organization¶s way of doing business the manner in which it treats customers and employees. The organizational culture represents the perception held by organization employees.2 The organization culture means a system of shared meaning held by members that differ the organization from the other organization. Actually. The organizational can be strong or weak.Strategic human resource management Syed Awais Ahmed unit 10 4. Culture can have impact on productivity and expectation of employees. 18 . Tesco has very strong culture and has 280000 employees in UK and 460000 employees in worldwide.

Performance appraisal is one of the popular concepts among the multinational and local companies. (1981) as µthe process which allows firms to measure and consequently evaluate an employee¶s achievements and behaviour over a certain period of time. productivity and valuable to the organization in the long term. Essay evaluation method is usually used with graphic rating method and in this method the manager of organization describes the strength and weakness of employees. a learning log) and produce endure competence as employees more positive. 19 .. The concept has been defined by DeVries et al. Performance ranking method is used to identify the employee¶s performance from best to worst.Strategic human resource management Syed Awais Ahmed unit 10 Tesco¶s basic aim is to train more and more employees rather than recruiting new staff because hiring new staff is more expensive than training existing staff.3 One of the most popular method uses to examine and monitor human resource management is Performance appraisal. There are lots of methods by which performance can be checked such as Graphic rating scale is oldest and mostly used method. (Case study) 4.¶ The employee¶s efforts with the overall objective of the organization can be aligned by using performance appraisal. in this method the manager of the organization simply checks the performance level of employees. Tesco focus on personal development plan (activity plan.

political.Strategic human resource management Syed Awais Ahmed unit 10 Management by objective method in this method periodically evaluate the performance of employees by setting different task for employees and give the reward according to result. their growths. and socio-cultural environments. This is also helps the management of organization to keep track of each employee. Nokia has embodied performance appraisals in its plans for its employees. reward and promotion. Tesco uses scheduled tasks. This also helps the management of organization to firmly decide that who is eligible for performance bonus.4 Now a day people are more important for organization because they are highly involved in more complex technology and are making a effort to function in more complex economic. marketing. Similarly Tesco uses different tools such as setting the objectives for employee¶s self assessment. and sales of a goods and services the more vulnerable the organization will be to critical shortages of the right kinds of human resources. measures the checklists to monitor and evaluate training and development. 4. The company has allowed the philosophy of pay-for-performance and therefore measuring and gauging different performance indicators of each employee is essential to the company. The measurement of effectiveness of human resource management is sometime used to help an employee keep track of their development within the organization and within their department. The different technical skills there are involved in the design. y Use a system to track human resource performance y Organize and carry out regular investigation into human resource department and their working y Regularly involved in every task of human resource department 20 . 360 degree performance appraisal in this method an anonymous feedback gives to the employees from the worker around them. There are some thing through an organization improve the effectiveness of human resource management. timetables. manufacture. areas for improvement and more.

There are various ways through which an organization improve organization¶s human resources effectiveness and performance which will in turn. y Review HR policies and procedures. Reference Strategic human resource management by John Bratton Human resource management by ATG educational Human resource management ninth edition by Jhon M.html http://www.accel-team. improve the performance of any new employees the HR department brings reward as motivation of job well done y Terminate poorly performing or disruptive employees.wikipedia. trains and works with. y Treat your exempt employees properly as exempt.Strategic human resource management Syed Awais Ahmed unit 10 y Properly train the employees of human resource department and nurture their skills y Give performance www.Ivancevich http://www.themanager.html www.pdf http://www.html Case study Toward a Strategic Human Resource Management Model of High Reliability Organization Performance 21 This creates a better. stronger work unit for organization as a Teacher¶s notes www.accel-team.

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