UNIT-3

• https://www.youtube.com/watch?v=3Oy1u_Q
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 HR STRATEGY
• HR strategy is concerned with two key elements
(Richardson and Thompson, 1999):
1. Determining the strategic objectives (What
goals is the strategy supposed to achieve? For
example, the goals may be high productivity,
reduced accidents, etc.).
• 2. Developing a plan of action (How will the
human resources be organized and allocated to
accomplish the objectives of the organization?).
Components of SHRM
 ORGANIZATIONAL HR STRATEGY
• ORGANIZATIONAL HR STRATEGY is the overall
plan for diversified business (Michael Porter)

• Three types of business strategy:

• Growth
• Stability
• Retrenchment
 FUNCTIONAL HR STRATEGY
• FUNCTIONAL HR STRATEGY : Is related to
particular business interests

• Three types of business strategy:

– Cost leadership
– Differentiation
– Focus
 IMPROVING BUSINESS PERFORMANCE
THROUGH STRATEGIC HRM

Given by (Dyer and Holder typologies for

strategies)

It is a fit between HR strategy and organization

strategy to achieve /drive business
performance
 Three types of Dyer and Holder typologies
for strategies

1. INVESTMENT
2. INDUCEMENT
3. INVOLVEMENT
1. INVESTMENT: is adopted by those organization
which keeps track on changing market and
encouraging innovation and creativity
2. INDUCEMENT: aims at retaining the employees
by encouraging loyalty
3. INVOLVEMENT: where organizations gives
importance to both innovation and cost cutting
 Employee Engagement
• The term employee engagement was originated in
1990’s by the Gallup Research Group (Endres and
Mancheno-Smoak, 2008; and Little and Little, 2006).

• Employee engagement is a fundamental concept in

the effort to understand and describe, both
qualitatively and quantitatively, the nature of the
relationship between an organization and its 
employees.
 Engaged employees and Disengaged
employeees
• An "engaged employee" is defined as one who is fully
absorbed by and enthusiastic about their work and so
takes positive action to further the organization's
reputation and interests. An engaged employee has a
positive attitude towards the organization and its values.

•  In contrast, a disengaged employee may range from

someone doing the bare minimum at work (aka
'coasting'), up to an employee who is actively damaging
the company's work output and reputation.
• https://www.youtube.com/watch?v=aK8iINv0
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 Dimensions of Employee engagement
• i. Vigor is characterized by willingness to invest efforts
while experiencing high levels of positive energy and
mental resiliency at work (e.g., “At my work, I feel
bursting with energy).
• ii. Dedication refers to the strong involvement in one’s
work, a feeling of meaningfulness, significance, pride
and challenge (e.g., “My job inspires me”).
• iii. Absorption explains one’s state of being fully
engrossed and concentrated in the work (e.g., “I get
carried away when I am working”).
Drivers of Employee engagement
–CASE STUDY
–(Narmada International
Bank)