Question 2: Explain SHRM Model?

The process of integrating the strategic needs of an organization into our choice of human resource
management systems and practices to support the organization’s overall mission, strategies, and
performance (value driven, proactive focus).
Organizational goals: an organization’s sort and long-term goals that human resource
management aims to support and enable
 Social
 Environmental
 Economic (shareholder value)

Human resource management: the leadership and management of people within an

organization using systems, methods, processes, and procedures that enable employees to
optimize their performance and in turn their contribution to the organization and its goals
 Recruit, select, motivate and enable employees to achieve outcomes individually and
collectively
 A means of structuring the organization to facilitate and enable the organization to
achieve its objectives

 Human resource department is a specialized group with the primary focus of ensuring the most
effective use of human resource systems across an organization to enhance employee performance
and accomplish organizational goals.

 There isn’t always a designated human resource department in an organization

 Strategic human resource management seeks to recognize that the choice of human resource
tools will depend on what the organization is trying to achieve (alignment)
 Strategy identifies how the organization will create value
 3 levels:
 Corporate – entire organization
 Business – a major activity, business, or division in a large multi-business
organization
 Functional – managers from different activities, services, or geographic areas.

1. Organizational Mission, Goals, and Strategy Analysis

1. Mission statement: statement outlining the purpose, long-term objectives, and activities
the organization will pursue and the course for the future.
2. 3 major generic strategies to achieve goals:
 Cost leadership strategy – aim to gain a competitive advantage through lower
costs.
 Differentiation strategy – focus on creating a distinctive or even unique products
that is unsurpassed in quality, innovative design, or other features.
 Focus strategy – concentrates on a segment of the market and attempts to
satisfy it with a low-priced or a highly distinctive product.
2. Environmental Scan
5 economic forces (economic factors facing Canadian business today, including global
trade forces and the force to increase one’s own competitiveness and productivity levels)

 Economic – cycles, global trade, productivity (outputs/inputs) and innovation

 Technological – flexible work design, connectivity, mechanization
 Demographic – gender balance in the workforce, shift towards knowledge
workers, educational attainment of workers, aging population
 Cultural – diversity, ethics
 Legal
3. Analysis of Organizational Character and Culture
 Organizational character: the product of all the organization’s features – people,
objectives, technology, size, age, unions, policies, successes, and failures
 Equifinality – there are many paths to achieve a goal and choosing this path relies on
knowing the organizational character
 Organizational culture: the core beliefs and assumptions that are widely shared by all
organizational members

4. Choices and Implementation of Human Resource Strategies

a. Strategy must reflect every change in the organizational strategy and support it

b. PLANNING HUMAN RESOURCES

 Enables the determination of demand and supply of various types of human
resources within the firm
 Systematic review of the current state of HR practices
 Identification of needed HR processes, tools, and activities
 Eventual choice of HR practices

c. ATTRACTING HUMAN RESOURCES

 Take action in filling apparent gaps in either people or practices
d. PLACING, DEVELOPING, and EVALUATION HUMAN RESOURCES
 Performance appraisals give employees feedback on their performance
 Helps HR department identify future training needs
e. MOTIVATING EMPLOYEES
 Compensation and benefits
 Partially determined by internal work procedures, climate, schedules; they must
be continually modified to maximize performance
f. MAINTAINING HIGH PERFORMANCE
 Effective organizations have
 Good communication between managers and employees
 Standardized disciplinary procedures
 Counselling systems
 Union-management relations – responding to collective demands by employees
requires HR specialists to have to negotiate collective agreements and administer
them

g. REVIEW, EVALUATION, and AUDIT of HUMAN RESOURCE STRATEGIES

 Contextual factors (PEST) and internal factors (membership characteristics,
role definitions, and internal procedures) necessitate regular strategy evaluation
 Human resource audit: an examination of the human resource policies, practices
and systems of a firm (or division) to eliminate deficiencies and improve ways to
achieve goals (employee satisfaction, managerial compliance, strategy
alignment).
 1. Alignment with organizational strategies
2. Clarifies HR duties and responsibilities
3. Improvement
o The Service Role of the Human Resource Department
o Staff authority: authority to advise, but not to direct, others
o Line authority: authority to make decisions about production, performance, and people
o Functional authority: authority that allows staff experts to make decisions and take
actions normally reserved for line managers (usually given to HR department)
o Today’s Human Resource Management and Professional
o Growing number of HR managers
o Mastery of HR management tools – CHRP designation, MBA with specialization in HR
o Change mastery – communication skills, networking skills, teamwork
o Personal credibility – HR professional should project an image of trustworthy,
ethical, socially responsive, courageous leader who can build relationships.