THE EVOLVING/ STRATEGIC ROLE OF HUMAN

RESOURCE MANAGEMENT
 Strategic
Strategic Human
Human Resource
Resource Management
Management

•• Involves
Involves development
development of of consistent,
consistent, aligned
aligned
collection
collection of of practices,
practices, programs,
programs, & & policies
policies toto
facilitate
facilitate achievement
achievement of of strategic
strategic objectives
objectives
•• Requires
Requires abandoning
abandoning mindset
mindset & & practices
practices ofof
“personnel
“personnel management”
management” & & focusing
focusing onon strategic
strategic
issues
issues rather
rather than
than operational
operational issues
issues
•• Integration
Integration of of all
all HR
HR programs
programs within
within larger
larger
framework,
framework, facilitating
facilitating mission
mission & & objectives
objectives
•• Writing
Writing down
down strategy
strategy facilitates
facilitates involvement
involvement & &
buy-in
buy-in ofof senior
senior executives
executives & & other
other employees
employees
 HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based Economy
Economy

•• Human
Human capital
capital steward
steward
–– Creates
Createsananenvironment
environment&&culture
cultureininwhich
whichemployees
employees
voluntarily
voluntarilycontribute
contributeskills,
skills,ideas,
ideas,&&energy
energy
–– Human
Humancapital
capitalisisnot
not“owned”
“owned”by byorganization
organization
•• Knowledge
Knowledge facilitator
facilitator
–– Procures
Procuresnecessary
necessaryemployee
employeeknowledge
knowledge&&skill
skillsets
setsthat
that
allow
allowinformation
informationtotobebeacquired,
acquired,developed,
developed,&&disseminated
disseminated
–– Provides
Providesaacompetitive
competitiveadvantage
advantage
–– Must
Mustbebepart
partofofstrategically
strategicallydesigned
designedemployee
employee
development
developmentplanplan
 HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based Economy
Economy

•• Relationship
Relationship builder
builder
–– Develops
Developsstructure,
structure,work
workpractices,
practices,&&culture
culturethat
that
allow
allowindividuals
individualstotowork
worktogether
together
–– Develops
Developsnetworks
networksthat
thatfocus
focuson
onstrategic
strategic
objectives
objectives
•• Rapid
Rapid deployment
deployment specialist
specialist
–– Creates
Createsfluid
fluid&&adaptable
adaptablestructure
structure&&systems
systems
–– Global,
Global,knowledge-based
knowledge-basedeconomy
economymandates
mandates
flexibility
flexibility&&culture
culturethat
thatembraces
embraceschange
change
 SHRM
SHRM Critical
Critical Competencies
Competencies

•• HR’s
HR’s success
success as
as true
true strategic
strategic business
business partner
partner
dependent
dependent on
on five
five specific
specific competencies:
competencies:
–– Strategic
Strategiccontribution
contribution--development
developmentofofstrategy
strategy
–– Business
Businessknowledge
knowledge--understanding
understandingnutsnuts&&bolts
boltsofof
organization
organization
–– Personal
Personalcredibility
credibility--measurable
measurablevalue
valuedemonstrated
demonstratedinin
programs
programs&&policies
policies
–– HR
HRdelivery
delivery--serving
servinginternal
internalcustomers
customersthrough
througheffective
effective&&
efficient
efficientprograms
programs
–– HR
HRtechnology
technology--using
usingtechnology
technologytotoimprove
improveorganization’s
organization’s
management
managementofofpeople
people
 Barriers
Barriers to
to Strategic
Strategic HR
HR
•• Strategic
Strategic contribution
contribution
•• Business
Business knowledge
knowledge
•• Personal
Personal credibility
credibility
•• HR
HR delivery
delivery
•• HR
HR technology
technology
 Reading
Reading4.1
4.1
Distinctive
DistinctiveHuman
HumanResources
ResourcesAre
AreFirms’
Firms’Core
CoreCompetencies
Competencies

No
Noone
oneset
setof
ofbest
bestpractices,
practices,and
andthere
thereshould
shouldbebeaasubstantial
substantial
fit
fitbetween
betweenHR HRpractices
practicesand
andbusiness
businessstrategies
strategies

People
Peoplemanagement
managementpractices
practicesare
arethe
thedrivers
driverstotocreate
create
distinctive
distinctivecompetencies
competenciesand
andbusiness
businessstrategies
strategies

Pairs
Pairsof
offirms
firmsin
invarious
variousdivergent
divergentindustries
industriesare
areexamined,
examined,
with
witheach
eachpair
pairemploying
employingdifferent
differentHR
HRstrategies
strategiesbased
based
upon
upondifferent
differentcorporate
corporatestrategies.
strategies. Despite
Despitecompeting
competingin in
the
thesame
sameindustry
industryusing
usingdifferent
differentapproaches,
approaches,each
each
organization
organizationwas
wassuccessful
successfulbecause
becauseits
itsHR
HRpractices
practiceswere
were
well
wellsuited
suitedto
toits
itsoverall
overallstrategy.
strategy.
 Reading
Reading4.1
4.1
Distinctive
DistinctiveHuman
HumanResources
ResourcesAre
AreFirms’
Firms’Core
CoreCompetencies
Competencies

•• Professional
ProfessionalSports
Sports--San
SanFrancisco
Francisco49ers
49ersand
andOakland
Oakland
Raiders
Raiders
•• Retailing
Retailing--Sears
Searsand
andNordstrom
Nordstrom
•• Professional
ProfessionalServices
Services--Boston
BostonConsulting
ConsultingGroup
Group(BCG)
(BCG)
and
andMcKinsey
McKinsey& &Company
Company
•• Business
BusinessSchools
Schools--Harvard
Harvardand
andWharton
Wharton(University
(Universityof
of
Pennsylvania)
Pennsylvania)
•• Financial
FinancialServices
Services--Chubb
Chubband
andAIG
AIG
•• Shipping
Shipping--Federal
FederalExpress
Express(Fed
(FedEx)
Ex)and
andUnited
UnitedParcel
Parcel
Service
Service(UPS)
(UPS)
•• Food
Foodand
andBeverages
Beverages--Coke
Cokeand
andPepsi
Pepsi
 Reading
Reading 4.1
4.1
Distinctive
Distinctive Human
Human Resources
Resources Are
Are Firms’
Firms’ Core
Core
Competencies
Competencies

•• ““Flexibility”
Flexibility” dimension
dimension associated
associated with
with
“prospectors”
“prospectors”
•• ““Established
Established markets”
markets” category
category linked
linked to
to
classifications
classifications like
like “defenders”
“defenders”
•• Employment
Employment practices
practices are
are difficult
difficult to
to
change
change & & transfer
transfer
•• Core
Core competencies
competencies should
should drive
drive business
business
strategy
strategy &
& not
not vice
vice versa
versa
 Reading
Reading4.2
4.2
Employee
Employee Engagement
Engagement and
and Commitment
Commitment

•• Critical
Criticalcompetitive
competitiveadvantage
advantagecan
canbebegained
gainedfrom
fromhaving
having
engaged
engagedemployees.
employees. Engagement
Engagementand andenhanced
enhanced
commitment
commitmentresult
resultin
inboth
bothhigher
higherlevels
levelsof
ofproductivity
productivity
and
andlower
lowerlevels
levelsof
ofemployee
employeeturnover.
turnover.

•• Engagement
Engagementisisdefined
defineddifferently
differentlyby
bydifferent
different
organizations
organizationsbut
butthe
thecommon
commonthemes
themescenter
centeraround
around
employee
employeesatisfaction
satisfactionwith
withtheir
theirwork,
work,pride
pridein inthe
the
employer,
employer,employee
employeebelief
beliefin
inwhat
whatthey
theydo
doisisimportant
important
and
andemployee
employeesense
senseof
ofbeing
beingappreciated
appreciatedbybythetheemployer.
employer.
 Reading
Reading4.2
4.2
Employee
Employee Engagement
Engagement and
and Commitment
Commitment
Employers
Employersusually
usuallyattempt
attempttotomeasure
measureengagement
engagementusing
usingthe
thefollowing
followingcriteria:
criteria:

••Pride
Prideininemployer
employer
••Satisfaction
Satisfactionwith
withemployer
employer
••Job
Jobsatisfaction
satisfaction
••Opportunity
Opportunitytotoperform
performwell
wellatatchallenging
challengingwork
work
••Recognition
Recognitionand andpositive
positivefeedback
feedbackforforone’s
one’scontributions
contributions
••Personal
Personalsupport
supportfrom
fromone’s
one’ssupervisor
supervisor
••Effort
Effortabove
aboveand
andbeyond
beyondthetheminimum
minimum
••Understanding
Understandingthe thelink
linkbetween
betweenone’s
one’sjob
joband
andthe
theorganization’s
organization’smission
mission
••Prospects
Prospectsforforfuture
futuregrowth
growthwith
withone’s
one’semployer
employer
••Intention
Intentiontotostay
staywith
withone’s
one’semployer
employer
 Reading
Reading 4.2
4.2
Employee
Employee Engagement
Engagement and
and Commitment
Commitment
Engagement
Engagement can can be
be enhanced
enhanced by
by various
various HR
HR
practices
practices related
related to
to

–– Job
Joband
andtask
taskdesign
design
–– Recruiting
Recruiting
–– Selection
Selection
–– Training
Trainingand
andDevelopment
Development
–– Compensation
Compensation
–– Performance
PerformanceManagement
Management