2 STRATEGIC HUMAN RESOURCE MANAGEMENT OBJECTIVES ‡ Understand the Scope of SHRM ‡ Factors Influencing SHRM ‡ Linking of Corporate Strategies to HR Functions ‡ Understand the New Role of HR .

2 STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic management is drafting. 1989) . (David. implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.

Strategy as a plan (i) Strategies are plans made by top managers and their corporate strategy advisors (ii) Strategy is a matter of policy and it precedes action (iii) Strategy and implementation are separate .2 Two Views of Strategy STRATEGIC HUMAN RESOURCE MANAGEMENT Mainstream view.

Strategy as a pattern (i) Strategies are more usefully seen as the outcome of both planned and unplanned activities (ii) Policies often emerge out of actions that have already been taken (iii) Strategy and implementation tend to happen simultaneously .2 Two Views of Strategy STRATEGIC HUMAN RESOURCE MANAGEMENT Processual view.

1 Defining Human Resources and Strategic Human Resource Management Human Resources The efforts. develops and from time to time dispenses with human resources to help it continue in the long-term. . Strategic Human Resource Management The general direction followed by an organization in how it secures. skills or capabilities that people contribute to an employing organization to enable it to continue its existence.2 STRATEGIC HUMAN RESOURCE MANAGEMENT Table 2.

2 Scope Ranges of SHRM STRATEGIC HUMAN RESOURCE MANAGEMENT Exhibit 2.1 The Scope of SHRM From such matters as: The overall organizational structure Merger & acquisition Recruitment policies To: Employees¶ punching cards The smoking/non-smoking policy Casuals on Saturdays .

1 HR Strategy: Strategic Fit .2 STRATEGIC HUMAN RESOURCE MANAGEMENT Figure 2.

2 STRATEGIC HUMAN RESOURCE MANAGEMENT Table 2. closely Employees µempowered¶ encouraged supervised to use discretion and monitored Limited µpsychological¶ commitment sought from employees High µpsychological¶ commitment sought from employees .2 Two Key and Alternative Human Resourcing Principles Direct control/low commitment Indirect control/high commitment Employees given little discretion.

2 ‡ ‡ ‡ ‡ ‡ STRATEGIC HUMAN RESOURCE MANAGEMENT Key factors influence the HR system External environment Changing workforce Organization culture Organization structure Technology .

2 STRATEGIC HUMAN RESOURCE MANAGEMENT STRATEGIC HRM MODELS (i) Life Cycle Model (ii) Competitive Advantage Model .

2 ‡ ‡ ‡ ‡ Introductory stage Growth stage Maturity stage Decline stage STRATEGIC HUMAN RESOURCE MANAGEMENT Life Cycle Model .

1985) Three Major Parameters: (i) Cost leadership.2 STRATEGIC HUMAN RESOURCE MANAGEMENT Competitive Advantage Model (Porter. and (iii) Focus. (ii) Differentiation. .

Information Sharing. Self-Managed Teams. Salaried Workers. Labor/Management Participation. Contingent Compensation. Problem Solving Groups. Job Orientation. Reduction of Status Differences. Merit)3 Work Leaves. Incentive Procedures. Comparatively High Compensation. Selectivity in Recruiting. Stock Ownership1 Employment Security. Information Sharing. Employee Suggestions. Employee Ownership. Status Differentiation. Recruiting Intensity. Wage Compression. Promotion from Within2 Personnel Selection.3 Best Practice Approaches to SHRM Broadly Defi ne Jobs. Self-Managed Teams and Decentralization.Utilization and Cross Training. Decentralization. Employee Participation. Symbolic Egalitarianism. Performance Appraisal. High Wages. Information Sharing Participation and Empowerment. Highly Skilled Workers. Recruitment and Hiring. Sharing Information5 Pfeffer(1995) Huselid(1995) Mac Duffie (1995) Pfeffer & Veiga (1999) . Contingent on Organizational Performance. Promotion Criteria (Seniority Vs. Formal Dispute Resolution. Cross.2 Arthur(1992) STRATEGIC HUMAN RESOURCE MANAGEMENT Table 2. Incentive Pay. Selective Hiring. Self Managed Teams Training and Skill Development. Extensive Skills Training. Attitude Assessment. Training of New Employees. Extensive Training. Training Hours. Training of Experienced Employees4 Employment Security. High Wages.

2 ‡ ‡ ‡ ‡ ‡ STRATEGIC HUMAN RESOURCE MANAGEMENT SHRM AND FUNCTIONS OF HRM Human Resource Planning Recruitment Selection Performance Appraisal and Management Training & Development Compensation .

2 ‡ ‡ ‡ ‡ ‡ Strategic Partner STRATEGIC HUMAN RESOURCE MANAGEMENT Role of Strategic HRM Administrative Expert Employee Champion Company Champion Change Agent .

4. STRATEGIC HUMAN RESOURCE MANAGEMENT The Top Ten Trends: Rise in health care costs Focus on domestic safety and security Use of technology to communicate with employees Growing complexity of legal compliance Use of technology to perform transactional HR functions Focus on global security Preparing for the next wave of retirement/labour shortage Use and development of e-learning Exporting US manufacturing jobs to developing countries Changing definition of family . 9. 2.2 1. 7. 8. 10. 6. 3. 5.