Professional Documents
Culture Documents
Scope of SHRM:
SHRM is the link between the goals, objectives, strategies of the organisation and
its human resource. It aims at improving business performance by developing a
good organisational culture. It also furthers competitive advantage, innovation and
flexibility in the organisation.
It aims at focussing at the ways how the human resource of the organisation can
directly impact the growth of the company. HR managers adopt strategies to
develop and retain hos workforce in order to meet the objectives of the
organisation.
Organisation frames a strategic plan and quantifiable strategic aims or goals. These
plans and aims suggest certain staff requirements. These are in terms of worker
skills and behaviours required to attain the company’s strategic goals.
Process of SHRM:
Develop an understanding of the Goals of the Organisation: The HR strategies are
dependent on how well the company goals and achievements are envisioned. Both
the long-term and short-term goals must be understood clearly in order to build
effective strategies of HRM.
Evaluate the Capability of HR: This assists the manager in learning what kind of
employees are present in the organisation and how they are contributing to the
organisational goals. This step also considers developing skill inventories and
learning about the expertise of the employee in a particular area. The skills of the
employees are tested and employees who have a keen interest in being trained are
identified
Analysing Current Capacity: This will help the manager in recognising barriers and
implementing plans to capitalise the opportunities and combat threats effectively.
The HR manager will learn about the skills of the current workforce and assists
them in building their competencies in order to fulfil the strategies goals of the
company.
Estimating Future Human Resource Requirements of the Company: The manager
must forecast on the basis of supply and demand aspects of HRP. This comprises
of estimating the number of employees required with particular skills and matches
it with the current workforce or supply of the organisation.
Identifying the Tools Required: The manager must collaborate with other
departments to ascertain how certain software’s tools and techniques are used by
the employees. He studies how the usage of these tools affects the productivity of
the workforce. There is an audit of Software’s, tool kits or hardware that are the
prerequisite for more organised and timely completion of work
Q2. Elaborate different Approaches to strategic human resource
management in details.
1. Strategy-focused Approach
Authors like Mathis& Jackson and Beer et al view HRM and SHRM to be
identical.
They define that HRM by its nature itself is strategic. The elements of HRM like
training, recruitment, selection all of them operate as derivatives of requirements of
strategy within the organization.
Strategic planning suggests HRM planning. This view is not accepted by many of
the scholars and views that HRM is strategic to some extent but not in all aspects.
Several authors view HRM and SHRM as identical. According to them, HRM is a
strategy focussed and contains certain elements. This means that HRM by its very
nature is strategic.
The elements of HRM such as recruitment and selection or compensation do not
strictly operate in isolation but are derivatives of the requirements of the strategy
that an organization employs.
Strategic planning dictates HRM planning. Though desirable and idealistic, this
view does not seem to be fully accepted by thinkers. There is a feeling that HR
planning is to some extent strategic but not in all its aspects.
On the other hand, for instance, recruitment and selection are primarily
administrative and operational functions yet there are some strategic issues in these
functions too.
2. Decision-focused Approach
Tichy defines that there are three management levels, namely: strategic (long-
term), managerial (medium-term) and operational (short-term). The author views
that the HR functions performed at the strategic management level are SHRM.
The managerial and operational level HR functions do not come under SHRM and
would rather be considered as functional HRM activities.
According to some authors, Tichy et al (1984)., there are three management levels-
strategic (long-term), management (medium-term) and operational (short-term)
and HR functions performed at the strategic management level is SHRM.
It is implied in their writings that managerial- and operational-management level
activities that deal with medium, and short-term HR functions do not come under
SHRM. Rather, these are functional HRM activities.
It can also be inferred that the strategic management level activities are directed to
achieve strategic goals. From this angle, this approach is similar to the blending
strategies requiring the creation of a fit between HRM and strategy.
3. Content-focused Approach
Torrington & Hall identify that in the model of HRM process, there are always
some elements and in every such element there are some strategic aspects that are
referred to as SHRM.
According to this approach, the functional aspects of HRM elements can also be
included with the organization’s strategy leading to the emergence of SHRM.
Torrington & Hall (1995) opine that in the model of HRM process, there are some
elements and in every such element there are certain strategic aspects. These
strategic aspects are collectively referred to as SHRM.
In other words, in every element of HRM, there are two aspects: the strategic and
the functional. This view of defining SHRM is contradictory to the idea of
blending strategies. In this, when HRM elements match with the organization’s
strategy, SHRM emerges.
In the content-focused approach, the functional aspects of HRM elements can also
be blended with the organization’s strategy which leads to the emergence of
SHRM.
4. Implementation-focused Approach
Miles & Snow view that organizations do have some competitive objectives that
are achieved through some business strategies. To formulate and implement such
strategies appropriate HRM systems are necessary and those HR systems are
strategic so-called SHRM.
Miles & Snow (1984) express the view that organizations have some competitive
objectives that are achieved by some business strategies. To formulate and
implement these business strategies, appropriate types of HRM systems are
required
Such HRM systems are strategic and this approach can be termed as SHRM.
Q5. What are the different criteria for an effective hr strategy? Discuss.
The answer is that an organisation can aspire to market leadership in its chosen
sector, but unless it has the organisational capability to make this possible, its
executive team would be well advised to re-adjust its ambitions. All organisations,
whether driven by product or services, need the best human resource available to
deliver those products or services.
1. Aligning business and HR needs
The business’ goals – that is its strategic imperatives – sit at the heart of any HR
strategy and in order to align business and HR needs one key question must to be
answered, “Can your organisation’s internal capability deliver its business goals?”
This is where HR receives most criticism. The function is frequently accused of
failing to fully understand its business, goals and strategy for achieving these
goals, and its business model and how it delivers to its customers. For those who
already understand the demands of their business, it is easy to identify where the
business has strong core competencies and where the business is weakest.
Sometimes these weaknesses are related to essential systems or processes, but
more often – and significantly for HR – these weaknesses relate to the quality of
the workforce, its motivation and ability to deliver organisation performance.
Taking steps to understand your business and where it has competitive advantage
is an essential first step towards determining the key HR interventions that form
the basis of an HR strategy.
2. Developing your HR strategy
Deeper knowledge and understanding of your business goals and business model
can identify potential threats and opportunities in the quantity and quality of
human resource required by your organisation. This in turn identifies the key
components of your HR strategy and the virtuous circle of providing whatever
your organisation needs for success.
It is also critical that the HR team has a high level of expertise in aligning major
HR interventions and their relevance to business performance. This calls for expert
HR thinking and identifies the requisite interventions and, equally important, how
they fit together to leverage organisation performance.
If there is a strong need for the organisation to develop its management capability,
for instance, should you align your compensation strategy to reinforce this
objective? If the organisational structure defines the accountabilities clearly at
every level of the organisation, is your HR team selecting and developing against
them? This is joined-up HR at work.
Another concern for HR is when it should make strategic interventions. Easy, it
either follows your business cycle, or is triggered by other key events such as a
merger, an acquisition or a change in business direction.
3. Organisational performance
Organisational performance is the process by which business goals and objectives
are cascaded and managed across and down an organisation. It provides a link and
rationale for all other HR activity and, in addition, the greatest opportunity to
directly impact business success, enhancing HR’s reputation and contribution.
HR needs to create and install a robust performance management process that sets
out performance objectives for all levels of staff within a business. This is an
opportunity to develop line managers’ skills in being able to disseminate and set
stretch targets for their business.
A critical part of this process is a robust performance review process, which gives
people feedback about what has been achieved – what people have done well and
not so well.
The third element is a personal development review process where individual
strengths and weaknesses are identified for the purposes of assessing and meeting
organisational development needs.
4. Organisational design and structure
Organisational design is the shape, size and structure of the organisation required
to meet customers’ needs. It reflects the management processes that drive the
business model and determines organisational agility and flexibility. These
processes can be a source of competitive advantage or sources of frustration,
unnecessarily absorbing time, cost and resources.
Decisions affecting the shape, size and cost of the organisation will be aligned with
the business strategy. It should be relatively easy to see whether an organisation
invests in marketing, sales or manufacturing, for instance, and whether the
organisation is maximising its work flow capability.
As people experts, the role of HR is to add value to the structure and operation of
the business. Structural weaknesses offer an opportunity to revamp any part of the
organisation by identifying and making appropriate changes, reductions in size or
cost; or improvements to the quality of the operation.
Conversely, structural strengths are a signal to the HR team to reinforce
organisational competence.
5. Strategic resourcing
Achieving clarity throughout the organisation’s structure is critical in order for
resourcing strategies to work well. If the organisation is transparent about its
key roles and accountabilities, this will define the skills and knowledge required
to undertake the work and determine strategic resourcing requirements.
Deciding on your resourcing strategy means identifying a number of critical
components. These range from the processes needed to determine resourcing
needs, the processes to attract the right people and the processes for assessing and
selecting the right people. HR has a strong traditional involvement in all of the
above. In addition, it is essential to ensure each stage of the resourcing activity is
aligned and in direct response to the strategic imperatives.
Another important component determining the effectiveness of any resourcing
strategy is the need to create a ‘recruitment brand’ – how the image (or brand) of
the organisation appears to the recruitment market can either support or undermine
the success of a resourcing strategy.
6. Organisation development
If strategic resourcing is about providing a pipeline for importing external talent,
then an organisation’s development strategy is the way in which the HR team
decides what changes and improvements need to be made to the current workforce.
Usually these responses work at three levels – the individual, team and
organisation – and all are geared to achieve high levels of organisational
performance. It requires a close examination of the strategic imperatives and
clarity about the capabilities to execute it.
Development responses will aim to increase business skills, the application of
business skills (sometimes called competencies) and the behavioural elements – all
of which contribute to an organisation’s effective performance. It is important at an
individual level, particularly for senior people, that they feel their development
needs are agreed and that they are provided with the skills to do their jobs.
At a team level, it defines individuals’ ability to work with others flexibly and
align individual and team skills and activity to business goals – all of which ensure
that the organisation is equipped to deliver its goals.
7. Compensation and benefits
Often called reward strategy, the purpose of compensation and benefits systems is
to align the performance of the organisation with the way it rewards its people,
providing the necessary incentives and motivation required for an organisation to
deliver its goals.
Its components are a combination of base pay, bonuses, profit sharing, share
options, and a range of appropriate benefits, usually based on market or competitor
norms and the organisation’s ability to pay. Typically, the components of an
organisation’s reward strategy will reflect the particular performance culture of a
business.
There is evidence that organisations see compensation as a strategic management
lever and are increasingly experimenting with new practices – team bonuses, for
example, aimed at improving team performance or skills/behaviour payments to
upskill the workforce or reinforce culture or behaviour change. A company’s
reward policy in particular benefits from clarity about which other elements of the
HR strategy it aims to support.
8. Organisation culture
Culture is usually described as the “way we do things round here” – the way the
organisation acts, reacts and interacts. The trend in the last 10 to 15 years has been
to align organisational behaviour more strongly with customers’ needs, creating
customer-facing units and customer-sensitive behaviours. This has been as a direct
result of the increased competition around product, quality, prices and packaging.
In re-aligning an organisation’s culture there can be real benefit and competitive
advantage through improved service.
HR teams which are closely involved with the organisation’s cultural ambitions
can lead these initiatives through their knowledge of organisation psychology such
as describing new behaviours and work styles; and through their skills in
organisational
development and being able to provide development solutions to deliver the
improvements.
1. Interpersonal Roles
The three roles of figure-head, leader and Liaison grow out of the Managers’
formal authority and focus on interpersonal relationships. By assuming these roles,
the manager is also able to perform informally which, in-turn, lead directly to the
performances of decisional roles. All managerial jobs require some duties that are
symbolic or ceremonial in nature. The manager’s leadership role involves directing
and coordinating the activities of the subordinates. This may involve staffing
(hiring, training, promoting, dismissing) and motivating subordinates. The
leadership role also involves controlling, making sure that things are going
according to plan. The Liaison roles involve managers in interpersonal
relationships outside of their area of command. This role may involve contacts
both inside and outside the organization. Within the organization, managers must
interact with numerous other Managers and other individuals. They must maintain
good relations with the managers who send work to the units as well as those who
receive work from the unit.
3. Decisional Roles
Developing interpersonal relationships and faltering information are important, but
they are not ending in themselves. They serve as the basic inputs to the process of
decision-making. Some people believe decisional roles – entrepreneur,
disturbances handler, resource allocator, and negotiator are a Manager’s most
important roles. The purpose of the entrepreneurial role is to change the unit for
the better. The effective first-line supervisor is continually looking for new ideas or
new methods to improve the Units performance. In the disturbance handler role,
managers make decisions or take corrective action in response to pressure that is
beyond their control. Usually the decisions must be made quickly, which means
that this role takes priority over other roles. The Resource allocator – places a
manager in the position of deciding who will get what resources. These resources
include money, people, time and equipment. Invariably there are not enough
resources to go around, and the manager must allocate the scarce goods in many
directions. Resource allocations, therefore, is one of the most critical of manager’s
decisional roles. A first-line supervisor must decide whether an over time schedule
should be established or whether part-time workers should be hired. In the
negotiator role, a manager must bargain with other units and individuals to obtain
advantages for his or her units. The negotiations may concern work, performance,
objectives, resources, or anything else influencing the units. A sales manager may
negotiate with the production department over a special order for a large customer.
A first-line supervisor may negotiate for new typewriter, while a top manager may
negotiate with a labour union representative. Mintzberg suggests that recognizing
these 10 roles serves three important functions: first, they help explain the job of
managing while emphasizing that all the roles are inter-related, neglecting one or
more of the roles hinders the total progress of the manager. Second, a team of
employees cannot function effectively if any of the roles is neglected. Team work
is an organizational setting, required that each role be performed consistently.
Finally, the magnitude of the 10 roles points out the importance of managing time
effectively, an essential responsibility of managers if they are to successfully
perform each of the (10) ten roles.
Importance of Recruiting
Through your succession planning process, you recruit superior employees,
develop their knowledge, skills, and abilities, and prepare them for advancement or
promotion into ever more challenging roles in your organization.
The preparation for the employee's next role may also include transfers to different
jobs or departments and on-the-job shadowing, so the employee has a chance to
observe various jobs in action.
In other conversations, senior leadership teams put forth the names of employees
they believe are strong players with great potential in their organizations. This
helps other senior leaders know who is available for potential promotion or
reassignment when they are looking for an employee to fill a key role.
The advantage of a more formalized system is that the organization exhibits more
of a commitment to mentor and develop the employee so that they are ready to take
over. In the above example of Eric taking over Mary's role if she leaves or is
promoted, developing his skills is a priority.
Organizationally, it allows all managers to know who the key employees are in all
areas of the organization. This allows them to consider strong players when any
key role opens up.
The employee's value is shared with the rest of the organization so that if an
opportunity comes up, the managers can consider the employee to fill the role. In
an informal system, managers organization-wide may not know the value of the
employee and their skills. (Even if the current manager has shared this information,
in a busy world it's tough to remember.)
Effective, proactive succession planning leaves your organization well prepared for
all contingencies. Successful succession planning builds bench strength.
Through your succession planning process, you also retain superior employees
because they appreciate the time, attention, and development that you are investing
in them. Employees are motivated and engaged when they can see a career path for
their continued growth and development.
You need to identify and understand the developmental needs of your employees.
You must ensure that all key employees understand their career paths and the roles
they are being developed to fill. You need to focus resources on key employee
retention. You need to be aware of employment trends in your area to know the
roles you will have a difficult time filling externally.
Q9. Elaborate the difference Between Career Planning and Succession
Planning.
Planning is one of the important aspects of human life, which implies thinking
beforehand, what is to be done in future. At the individual level, career planning is
quite common, which implies establishing the goals and timelines, within which
the individual has to achieve them. It analyses a person’s skills, abilities and
interest, to lay down long-term goals of a person.
At the organizational level, for the perpetual succession of an organisation, there
must be potential employees, to fill the key positions and take charge of the
organisation, which is possible only through proper succession planning. It
analyses the critical jobs in an organisation and what kind of person is required to
fulfil that position.
The main difference between career planning and succession planning lies in the
fact that who performs it. Check out the article to know more on the two topics.
Content: Career Planning Vs Succession Planning
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
Basis for
Career Planning Succession Planning
Comparison
Succession Planning enables the managers and executives to assess and develop a
talent pool of employees, who has the ability and willingness to fill the positions,
vacant in the organisation.
Key Differences Between Career Planning and Succession Planning
The difference between career planning and succession planning can be drawn
clearly on the following grounds:
A process through which an employee chooses the goals of his work life and look
for the ways to reach the goals is known as career planning. On the contrary,
succession planning is all about recognising and developing the employees who
can take the critical positions in the organisation, when they become vacant.
While career planning is a part of career management, succession planning is a
step of succession management.
Career planning is nothing but the planning process performed by an individual for
his/her career. As against, the succession planning is an organisational strategy
adopted to keep the business going, by replacing the key incumbents, with the best-
selected employee for that position.
In career planning, one person holds various positions in his work life. Conversely,
in succession planning, a single position is held by different persons in an
organisation.
Career planning is helpful to get success in one’s career. On the other extreme,
succession planning ensures consistency in leadership, for the key roles in the
organisation.
Conclusion
An effective career planning is going to benefit an individual, whereas the entire
organisation is benefitted by succession planning. Both succession planning and
career planning are pro-active in nature, as well as they are future-focused.
3. Relationship-Building
Creating a cohesive HR department that works collaboratively to achieve the goals
of the department as well as help the organization reach its goals related to
workforce development is a competency that HR managers must have.
Relationship-building and interpersonal relationship skills are fundamental to an
HR manager's success. One of the challenges HR faces is establishing credibility
with employees -- many employees equate their HR departments with the school
principal's office, which suggests a level of intimidation and trepidation associated
with their view of HR's purpose. That being said, an HR manager must have the
ability to establish credibility and trust as well as balance the obligation to be an
advocate for both the organization and its employees.
4. Leadership
Leadership skills are an essential competency for HR managers. HR managers are
responsible for creating strategic plans for the HR department as well as the overall
workforce. Therefore, leadership skills are critical, particularly in the process of
justifying the functional elements of a strategic plan to the company's management
team. In addition, HR managers have to direct the activities of the HR department,
and in doing so, they need the type of leadership skills that influence HR
generalists' and HR specialists' commitment to the HR department goals.
Q11. Why competencies are more useful than skills in strategic human
resource management?
How Are Skills and Competencies Similar?
In some ways, a skill and a competency are similar. On a basic level, they both
identify an ability that an individual has acquired through training and experience.
But the two concepts are quite different in terms of the function they perform
within the talent-management process.
4 Incorporate all information in the skills matrix and act on the insights
Now you know both the required and the available competencies, you can
create the competency matrix. This matrix helps to visualize what skills are
available and what skills are missing. This will result in the following
template.
An organisation can grow when the employees are happy, and your
employees will be happy if they are allowed to have a balance between their
work and personal life. From reducing the number of working hours to
allowing employees to work from a remote location during an emergency,
introduce small initiatives to help employees to focus on their work and life
efficiently.
5. Trust and respect should be the two arms of your company culture
Every employee – an inexperienced intern or a CEO deserves respect. Make
respect and trust the two arms of your company. Trust the employees to be
faithful to your organisation. Do not stalk them on social media to see what
they do. Similarly, do not allow employees especially the seniors to bully or
disrespect others in the organisation. As an HR manager, your responsibility
is to discourage disrespectful behaviour and help the perpetrators understand
they are equal in the organisation and their power is only limited to taking
business decisions.
7. Encourage teamwork
For an organisation to progress, its employees have to work with each other with
strong understanding. They have to understand that while personal objectives are
important, company’s objectives are also a priority. Hence, as an HR manager, you
need to ensure that the teams are aligned with the company goals and are working
in full cooperation with each other. Do not hesitate to pick out employees who try
to break the team spirit and recognise the contribution of the team that has worked
in unity consistently.
As companies grow in size, maintaining the core culture of the company becomes
an issue. You may not be able to personally oversee the practices within the
company. However, by giving the senior employees of the organisation the role of
a mentor, you will be able to pass on the baton of good culture across the
organisation, as well as give them the sense of being an important part of the
organisation. And with an open communication line, respect, trust, and teamwork,
you will be able to keep the core values of your company alive even as it grows
leaps and bounds.
Q17. What are the strategies for developing learning organization? explain
The value proposition of being a learning organization extends beyond employees
to shareholders as well. Shareholders can often expect better products with more
innovation resulting from the company’s freedom to try new things and its
unrelenting focus on building the core capabilities of the people who work there.
It’s no surprise, then, that a lot of companies are either talking about being or
trying to become a learning organization. Often, though, being a learning
organization is more aspirational than current reality. Many companies are
constrained by tight operating margins and limited resources. These companies
often feel as though those realities limit their ability to become learning
organizations. In addition, truly being a learning organization requires different
mindsets around success and failure as well as recognizing the less immediately
tangible value of consistent investments made in people over the long term.
The value proposition of being a learning organization extends beyond employees
to shareholders
Getting there isn’t something that can be driven just by learning and development
leaders. It often requires leadership alignment and sponsorship at the highest levels
to create that culture. Whether that top level of sponsorship and alignment is in
place or not, though, here are four key ways that L&D can help build the
foundation for a learning organization to emerge.
1. Work with the business to ensure that learning directly supports strategy
and objectives.
Even if there are limited resources for learning, one of the best ways to help
leaders feel good about its value is to ensure that it is a key driver of business
strategies. This alignment is often done through an annual, if not more frequent,
needs assessment that is directly focused on business needs.
The key is to ask the right questions, such as:
What is the core capability gaps that, if not solved, are barriers to achieving
our strategies?
Where are we continuing to have skill gaps that are negatively impacting our
business’ current performance?
What are the skills we will need in the future to meet our long-term business
aspirations and vision?
Directly tying a learning program to a key business imperative or initiative shows
business value.
Directly tying a learning program to a key business imperative or initiative shows
business value.
2. Provide learning for employees in innovative ways.
Move beyond traditional learning, and think about how to bring learning to people
in different ways with high frequency and low costs. The kinds of strategies that fit
into this category are limitless. Some examples include:
Implementing “one-minute daily learning bite” videos with calls to action
Weekly emails from leaders with management best practices encouraging
learners to try them out during the week
Regular forums for employees to learn from each other
These kinds of strategies begin to embed learning as a daily practice and require
minimal administrative support.
Move beyond traditional learning, and embed learning as a daily practice.
3. Customize learning for the company’s culture.
This isn’t to say that canned training programs aren’t effective (especially if they
reduce the need to re-invent the wheel for tried and true learning needs), but they
often feel foreign to the company’s culture. Tailoring them makes them feel highly
relevant, which helps learners feel higher levels of ownership.
4. Work with the business to find ways to reward and recognize people for
learning.
This is the ultimate low-cost, high-return approach. If the company acquired a new
competency as a result of learning from something that didn’t work, finding ways
to recognize that learning not only allows the new competency to spread but also
reinforces the learning culture. The key is to ensure that the organization is
rewarding the development of new capabilities through learning.
Ensure that the organization is rewarding the development of new capabilities
through learning.
Transforming to a true learning culture takes time, but these four tips can help lay a
foundation for getting there.