WHAT IS STRATEGIC HRM

AND
ROADMAP TO TRANSITION TO
STRATEGIC HR

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The field of HR strategy differs from traditional HR management research
in two important ways. First, SHRM focuses on organizational performance
rather than individual performance. Second, it also emphasizes the role of
HR management systems as solutions to business problems (including
positive and negative complementarities) rather than individual HR
management practices in isolation. But strategic means more than a
systems focus or even financial performance. Strategy is about building
sustainable competitive advantage that in turn creates above-average
financial performance. The simplest depiction of the SHRM model is a
relationship between a firm’s HR architecture and firm performance. The
HR architecture is composed of the systems, practices, competencies, and
employee performance behaviors that reflect the development and
management of the firm’s strategic human capital. Above-average firm
performance associated with the HR architecture reflects the quasi rents
associated with that strategic resource.

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Brian E. Becker &
Mark A. Huselid
Journal of Management, Vol. 32
No. 6, December 2006 898-925

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“SHOULD WE DO AWAY WITH HUMAN RESOURCES
(HR)? IN RECENT YEARS, A NUMBER OF PEOPLE
WHO STUDY AND WRITE ABOUT BUSINESS – ALONG
WITH MANY WHO RUN BUSINESSES – HAVE BEEN
DEBATING THAT QUESTION. THE DEBATE ARISES
OUT OF SERIOUS AND WIDESPREAD DOUBTS
ABOUT HR’s CONTRIBUTION TO ORGANIZATIONAL
PERFORMANCE.

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“AND AS MUCH AS I LIKE HR PEOPLE … I MUST
AGREE THAT THERE IS A GOOD REASON FOR
HR’s BELEAGUERED REPUTATION. IT (HR) IS
OFTEN INEFFECTIVE, INCOMPETENT AND
COSTLY; IN A PHRASE, IT IS VALUE SAPPING.
INDEED, IF HR WERE TO REMAIN CONFIGURED
AS IT IS TODAY IN MANY COMPANIES, I WOULD
HAVE TO ANSWER THE QUESTION ABOVE WITH A
RESOUNDING “YES – ABOLISH THE THING”!
“A NEW MANDATE FOR HUMAN RESOURCES”, BY DAVE
ULRICH, Harvard Business Review, pp 124 – 134, January –
February 1998. Version 2017 5
“NOT LONG AGO, I MET WITH A CEO WHO COULDN’T
IMAGINE WHY HE WOULD INVITE HIS HEAD OF HR
TO BECOME A REGULAR PART OF THE BUSINESS
TEAM. ALTHOUGH THIS CEO SAW THE VALUE OF
PEOPLE ISSUES TO HIS BUSINESS, HE SIMPLY
DIDN’T BELIEVE THAT HR COULD ADD VALUE TO
THE BUSINESS TEAM AS THEY GRAPPLED WITH
SIGNIFICANT ISSUES. HE, LIKE TOO MANY CEOs,
WAS HOPELESSLY BIASED BY A BELIEF THAT THE
HR GROUP PROVIDES ONLY ADMINISTRATIVE
SUPPORT.”
‘Roadmap to Strategic HR’, Ralph
Christensen, PHI, New Delhi, 2008
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 PERCEPTIONS OF HR PEOPLE AS TO WHY THEY (HR) ARE
NOT ACCEPTED BY THE BUSINESS
THEY DISCUSS DETAILS OF HR STUFF WHICH MOSTLY
DOES NOT RELATE TO THE ISSUES OF BUSINESS. THEY
SEEK LINE MANAGERS’ DIRECTION & LEADERSHIP RATHER
THAN PROVIDING THE SAME. THEY LACK BUSINESS
KNOWLEDGE, DON’T UNDERSTAND CUSTOMERS,
TECHNOLOGY OF BUSINESS, COMPETITION & INDUSTRY.
THEY FAIL TO TIE HR INITIATIVES TO THE BOTTOMLINE OF
BUSINESS.
THEIR ‘LANGUAGE’ FAIL TO GENERATE INTEREST AMONGST
EMPLOYEES AND MANAGEMENT. DON’T BRING ENOUGH TO
STRATEGIC CONVERSATION AND GO FOR DETAILS OF
EXECUTION. DON’T REALLYVersion
HELP 2017
OTHERS TO 7
UNDERSTAND WHY HR IS AT THE STRATEGIC DISCUSSION
WHY HR LEADERS ARE NOT ACCEPTED AT THE BUSINESS:
HR PEOPLE SPEND TOO MUCH TIME DISCUSSING THE DETAILS OF
HUMAN RESOURCES STUFF THAT DOES NOT APPEAR TO RELATE
TO THE ISSUES OF THE BUSINESS
HR PEOPLE SEEK LINE MANAGEMENT’S DIRECTION AND
LEADERSHIP AND DON’T THINK OFTEN ENOUGH ABOUT PROVIDING
THAT LEADERSHIP THEMSELVES
HR PEOPLE LACK THE DETAILED BUSINESS KNOWLEDGE THAT
ALLOWS THEM TO TALK INTELLIGENTLY ABOUT THE BUSINESS
ISSUES. THEY DON’T UNDERSTAND THE CUSTOMERS, THE
TECHNOLOGY, THE INDUSTRY, THE COMPETITORS, THE CHANNELS
AND SO ON
HR PEOPLE DON’T TIE HUMAN RESOURCES INITIATIVES TO THE
BOTTOM LINE WELL ENOUGH
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HR PEOPLE USE UNIQUE LANGUAGE THAT DOES NOT APPEAL
TO THE EMPLOYEE OR MANAGEMENT

HR PEOPLE DO NOT BRING ENOUGH TO THE STRATEGIC

CONVERSATION. THEY MOVE TOO QUICKLY TO THE DETAILS
OF EXECUTION

HR PEOPLE HAVE NOT HELPED OTHERS AT THE BUSINESS

TABLE EITHER THROUGH CONCEPT OR EXPERIENCES WHY
HR IS AT THE TABLE

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“BUT THE TRUTH IS, HR HAS NEVER BEEN MORE NECESSARY. THE
COMPETITIVE FORCES THAT THE MANAGERS FACE TODAY AND WILL
CONTINUE TO CONFRONT IN THE FUTURE DEMAND ORGANIZATIONAL
EXCELLENCE…”

THE RELEVANT QUESTION IS:

‘WHAT SHOULD WE DO WITH HR?’

“THE ANSWER IS: CREATE AN ENTIRELY NEW ROLE AND AGENDA FOR
THE FIELD THAT FOCUSES IT NOT ON TRADITIONAL HR ACTIVITES,
SUCH AS STAFFING AND COMPENSATION, BUT ON OUTCOMES. HR
SHOULD NOT BE DEFINED BY WHAT IT DOES BUT BY WHAT IT
DELIVERS – RESULTS THAT ENRICH THE ORGANIZATION’S VLAUE TO
CUSTOMERS, INVESTORS, AND EMPLOYEES.”
“A NEW MANDATE FOR HUMAN RESOURCES”, BY
DAVE ULRICH, Harvard Business Review, pp 124
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– 134, January – February 1998.
“There has never been a more exciting time
to be a HR professional. The business world
demands greater value from the HR profession
and HR is uniquely positioned to deliver these
organizational capabilities”

Wayne Brockbank
University of Michigan

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“I DEEPLY BELIEVE THAT HR
WILL BE A GREAT PLACE TO
WORK IN THE COMING DECADE”
- RALPH CHRISTENSEN
was Senior Vice President at
HALLMARK CARDS INC., and Vice
President of WYATT COMPANY.

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STRATEGIC HUMAN RESOURCE MANAGEMENT (HRM) DEFINED
It is an approach to making decisions on the intentions and plans of
the organization in the shape of policies, programmes and practices
concerning the employment relationship, resourcing, learning and
development, performance management, reward, and employee
relations.
Strategic HRM is an approach to the strategic management of
human resources in accordance with the intentions of the organiz-
ation on the future direction it wants to take. What emerges from this
process is – how the human resources of the organization need to be
managed and defining areas in which specific HR strategies need
to be developed. These focus on the decisions of the organization on
what needs to be done and what needs to be changed in the areas
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of people management.
 STRATEGIC HRM

SHRM IS BUILT AROUND THREE IMPORTANT PROPOSITIONS:

1. THE HUMAN RESOURCES OF A FIRM ARE A MAJOR

SOURCE OF COMPETITIVE ADVANTAGE; IN A WAY PEOPLE
CAN MAKE OR BREAK AN ORGANISATION

2. SUCCESSFUL ORGANISATIONAL PERFORMANCE DEPENDS

ON A CLOSE FIT BETWEEN BUSINESS AND HUMAN
RESOURCE STRATEGY

3. INDIVIDUAL HR STRATEGY SHOULD COHERE BY BEING

LINKED TO EACH OTHER TOVersion
OFFER2017
MUTUAL SUPPORT. 14
Strategic HRM has four meanings:

a) The use of planning

b) A coherent approach to the design and management of personnel
systems based on an employment policy and manpower strategy
often underpinned by a ‘philosophy’
c) Matching HRM activites and policies to some explicit business
strategy
d) Seeing the people of the organization as a ‘strategic resource’
for the achievement of ‘competitive advantage’.

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 HR’s ROLE IN STRATEGY FORMULATION
WHEN HR IS ACCEPTED AS A STRATEGIC PARTNER IN
BOTH THE FORMULATION OF THE COMPANY’S
STRATEGIES, AS WELL AS IN THE IMPLEMENTATION
OF THOSE ACTIVITES THROUGH HR POLICIES AND
PRACTICES –

A) HR CAN PLAY A VITAL ROLE, ESPECIALLY IN

DENTIFYING AND ANALYZING EXTERNAL THREATS
AND OPPORTUNITIES WHICH MAY BE CRUCIAL TO
HE COMPANY’S SUCCESS.
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B) HR CAN ALSO OFFER COMPETITIVE INTELLIGENCE
(e.g. INCENTIVE PLANS INTRODUCED BY THE
COMPETITOR, DATA REGARDING CUSTOMER
COMPLAINTS etc).

C) HR CAN ALSO THROW LIGHT ON COMPANY’S

INTERNAL STRENGTHS AND WEAKNESSES. THE
RESULTING STRATEGIC PLANS CAPITALIZE ON THE
FIRM’S STRNGTHS & OPPORTUNITIES AND MINIMIZE
OR NEUTRALISE ITS THREATS AND WEAKNESSES.
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FOUR ROLES THAT HR PROFESSIONALS PLAY

STRATEGIC PARTNER

EMPLOYEE CHAMPION

ADMINISTRATIVE EXPERT

CHANGE AGENT

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THE EVOLVING ROLE OF HUMAN RESOURCE MANAGEMENT

STRATEGIC
FOCUS

STRATEGIC CHANGE
PARTNER AGENT

SYSTEM PEOPLE

ADMINISTRATIVE EMPLOYEE
EXPERT CHAMPION
OPERATIONAL
FOCUS
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THE COMPLEXITY OF THE CHALLENGES TO HRM
DAVE ULRICH (1998) RALPH CHRISTENSEN (2008)
• GLOBALIZATION • GLOBALIZATION
• PROFITABILITY THROUGH • THE WAR FOR TOP TALENT
GROWTH (COMPANIES MUST • INCREASING PRESSURE ON
BE CREATIVE & INNOVATIVE, EMPLOYEES
FREE FLOW OF INFORMATION
AND SHARED LEARNING AMONG • CONTINUING DECLINE IN
EMPLOYEES) EMPLOYEE LOYALTY
• TECHNOLOGY • ONGOING DECLINE IN
• INTELLECTUAL CAPITAL CUSTOMER LOYALTY
• CHANGE…CHANGE… • INTERVENTIONS OF
MORE CHANGE SHAREHOLDERS AND
BOARDS OF DIRECTORS
• INCREASED SPEED OF CHANGE
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HR CAN HELP DELIVER ORGANIZATIONAL EXCELLENCE IN THE
FOLLOWING WAYS:
FIRST, HR SHOULD BECOME A PARTNER WITH SENIOR AND LINE
MANAGERS IN STRATEGY EXECUTION, HELPING TO MOVE
PLANNING FROM THE CONFERENCE ROOM TO THE
MARKETPLACE,
SECOND, IT SHOULD BECOME AN EXPERT IN THE WAY WORK IS
ORGANIZED AND EXECUTED, DELIVERING ADMINISTRATIVE
EFFICIENCY TO ENSURE THAT COSTS ARE REDUCED WHILE
QUALITY IS MAINTAINED,
THIRD, IT SHOULD BECOME A CHAMPION FOR EMPLOYEES,
VIGOROUSLY REPRESENTING THEIR CONCERNS TO SENIOR
MANAGEMENT AND AT THE SAME TIME WORKING TO INCREASE
EMPLOYEE CONTRIBUTION; THAT IS, EMPLOYEES’ COMMITMENT
TO THE ORGANIZATION AND THEIR ABILITY TO DELIVER RESULTS,
AND FINALLY, HR SHOULD BECOME AN AGENT OF CONTINUOUS
TRANSFORMATION, SHAPING PROCESSES AND A CULTURE THAT
TOGETHER IMPROVEVersion
AN ORGANIZATION’S
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CHANGE.
 The HR challenge is to shift from ‘doables’ to
‘deliverables’ and in doing so the transition has to be
from:
* Operational to strategic
* Qualitative to quantitative
* Policing to partnering
* Short-term to long-term
* Administrative to consultative
* Functionally oriented to business oriented
* Internally focused to externally and
customer–focused
* Reactive to proactive
* Activity-focused toVersion
solutions-focused.
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 NATURE OF STRATEGIC HRM
STRATEGIC MANAGEMENT REFERS TO THE PROCESS OF
FORMULATING, IMPLEMENTING AND EVALUATING BUSINESS
STRATEGIES TO ACHIEVE ORGANISATIONAL OBJECTIVES.
STRATEGIC HRM REFERS TO THE PROCESS OF DEVELOPING
PRACTICES, PROGRAMMES AND POLICIES THAT HELP ACHIEVE
ORGANISATIONAL OBJECTIVES.
STRATEGIC HRM CONSIDERS THE IMPLICATIONS OF BUSINESS
STRATEGY FOR ALL HR SYSTEMS WITHIN THE FIRM BY
TRANSLATING COMPANY OBJECTIVES INTO SPECIFIC PEOPLE
MANAGEMENT SYSTEMS.

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 SET OF PRINCIPLES FOR
STRATEGIC HUMAN RESOURCES
1 TALENT IS THE ENGINE BEHIND THE CREATION OF ALL VALUE

2 EVERY BUSINESS ISSUE (PROBLEM & OPPORTUNITY) IS A

SYMPTOM OF DEEPER HUMAN OR ORGANIZATIONAL ISSUES

3 TALENT WILL BE THE RESOURCE OF SCARCITY IN THE FUTURE

4 ALL HUMAN RESOURCES WORK MUST BE DIRECTLY CONNECTED TO

THE BUSINESS STRATEGY AND CUSTOMER NEEDS

5 LINE MANAGEMENT IS RESPONSIBLE FOR HUMAN RESOURCES

WORK IN THE ORGANIZATION Version 2017 24
MODEL OF STRATEGIC HRM – SIX VARIABLES
5. INSTITUTIONAL /
FIRM STRATEGY POLITICAL FORCES
6. RESOURCE
DEPENDENCE &
POWER (practices caused
by power & political influences
1. RESOURCE such as legislation, unionisation,
BASED VIEW HRM control of resources, expectations
of social responsibility)
OF THE FIRM
PRACTICES 2. BEHAVIOURAL
3. CYBERNATIC SYSTEMS/ APPROACH (the practices
4. AGENCY/ TRANSACTION designed to control & influence
COSTS (adoption or abandonment of practices attitudes and behaviours)
resulting from feedback, e.g. training programme might be
adopted to help company pursue a strategy. Also, why
controls are necessary.)
FIRM-LEVEL OUTCOMES
(PERFORMANCE,
SATISFACTION, AND
HR CPAITAL POOL
HR BEHAVIOURS
Version 2017 ABSENTEEISM etc.)25
(SKILLS & ABILITIES)
(Ref: Charles R Greer, SHRM, Pearson, 2006, p144, in Aswathappa)
 MODEL OF STRATEGIC HRM
EXTERNAL LAWS REGULATING - PROCUREMENT
ENVIRONMENT EMPLOYMENT - DEVELOPMENT
• COMPETITION - PERFORMANCE
• GOVT. POLICY MANAGEMENT
• TECHNOLOGY - COMPENSATION
• MARKET TRENDS HR STRATEGY - LABOUR
• ECO FACTORS • HR PLANNING RELATIONS
CORPORATE • JOB DESIGN
BUS.STRATEGY • WHAT WORKERS
STRATEGY
DO OUTCOME
INTERNAL • WHAT WORKERS • Increased
ENVIRONMENT NEED perform.
• CULTURE • HOW JOBS • Customer
• STRUCTURE & Employee
INTERFACE WITH Satisfaction
• POLICIES OTHERS • Enhanced
• SKILLS Version 2017 share value
26
• PAST STRATEGY HRIS
 ROLE OF HR IN STRATEGIC MANAGEMENT
STRATEGY STRATEGY EVALUATION
ENVIRONMENTAL
SCANNING FORMULATION IMPLEMENTATION AND C0NTROL

CORPORATE STRATEGY
FORMULATION
EXTERNAL
PROGRAMMES STRATEGIC CONTROL
BUSINESS UNIT
BUDGETS PROCESS AND
STRATEGY FORMULATION
PROCEDURES PERFORMANCE
INTERNAL FUNCTIONAL STRATEGY
FORMULATION

STRATEGIC MANAGEMENT PROCESS

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 STRATEGIC HUMAN RESOURCES FRAMEWORK
BUSINESS ENVIRONMENT
VISION,STRATEGIES, PRIORITIES AND GOALS

LEARNING &
CORE CAPABILITIES
EMPLOYEE
DEVELOPMENT RELATIONS

WORKFORCE PERFORMANCE
PLANNING & MANAGEMENT
TALENT
STAFFING
DIVERSITY

ORGANIZATION STRATEGIC
TACTICAL
DEVELOPMENT
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 STRATEGY, CAPABILITY AND DRIVERS
STRATEGY CAPABILITY DRIVER
Focus on external Ability to focus on internal Focus on implication that drives
strategic outcomes that ability required to fulfill strategy new skills and / or head count
build competitive level
advantage
Win with new product Ability to effectively acquire and Workforce planning that requires
offerings through integrate new business new talent in acquisitions
acquisitions

Become a low-cost Lowest-cost automated • Automation-driven workforce

provider in the distribution system reduction
marketplace • New talent base required by
new technology
Achieve highest level of Ability to partner with Plan to place permanent
overall customer customers employees on-site with
satisfaction customers

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FOUR ROLES OF HR EXECUTIVES RELEVANT IN THE CONTEXT OF
PARTNERING WITH THE SENIOR MANAGEMENT :
FIRST, HR SHOULD DEFINE AN ORGANISATION’S ARCHITECTURE, e.g. A
JUDICIOUS MIX OF STRUCTURE, SYSTEMS, REWARDS, PROCESSES,
PEOPLE, STYLES, SKILLS AND SHARED VALUES (i.e. IT SHOULD IDENTIFY
THE UNDERLYING MODEL OF THE COMPANY’S WAY OF DOING
BUSINESS).
SECOND, HR NEEDS TO BE ACCOUNTABLE FOR CONDUCTING AN
ORGANISATIONAL AUDIT – TO IDENTIFY WHICH COMPONENTS OF THE
ARCHITECTURE SHOULD BE CHANGED TO FACILITATE STRATEGY
EXECUTION.

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THIRD, HR SHOULD IDENTIFY METHODS FOR RENOVATING THE
PARTS OF THE ORGANISATIONAL ARCHITECTURE THAT NEED
IT. HR MANAGER SHOULD TAKE LEAD IN PROPOSING,
CREATING AND DEBATING BEST PRACTICES WHICH CAN HELP
IMPLEMENT STRATEGIES.

FOURTH, HR MUST TAKE STOCK OF ITS OWN WORK AND SET

CLEAR PRIORITIES. MUST INITIATE SEVERAL INITIATIVES, i.e.
PAY-FOR-PERFORMANCE, GLOBAL TEAM WORK, ACTION-
LEARNING DEVELOPMENT EXPERIENCES. HR MUST JOIN WITH
LINE MANAGERS TO CONTINUOUSLY ASSESS THE IMPACT OF
EACH ONE OF THESE INITIATIVES.

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TACTICAL HUMAN RESOURCES
BASELINE ADMINISTRATION OF PEOPLE ISSUES AND DATA.
EXAMPLES:
BENEFITS, ADMINISTRATION, COMPENSATION ADMINISTRATION,
EMPLOYEE RECORDS AFFIRMATIVE ACTION REPORTING POLICY
DEVELOPMENT AND ENFORCEMENT

IMPLEMENTATION OF TRADITIONAL HUMAN RESOURCES

PROGRAMMES AND WORK

HIRING

BASIC SKILLS TRAINING, SALARY SURVEYS AND COMPENSATION

PROGRAMME DESIGN EMPLOYEE RELATIONS WORK OF
RESOLVING DAY-TO-DAY EMPLOYEE CONCERNS AND PROBLEMS
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“THE HR CHANGE AGENT EXISTS IN A WORLD OF TENSION,
LIVING IN THE OLD WORLD AND CREATING THE NEW WORLD
AT THE SAME TIME. HE IS CONTINUALLY WORKING TO ALIGN
LINE MANAGERS IN A WAY THAT INEVITABLY FORCES THEM
TO DEAL WITH HIGHLY CHARGED QUESTIONS, SOME OF
WHICH WILL PUSH THEM WELL OUT OF THEIR COMFORT
ZONE. HE WALKS THE TIGHTROPE OF HONORING THE PAST
WORK OF THE HR DEPARTMENT AND YET HELPING HR
EMPLOYEES SEE THE NEED TO CHANGE THE APPROACHES
THAT THEY HAVE DESIGNED AND LEARNED TO CONTROL. HE
HAS TO PUSH HARD ENOUGH TO MAKE LOTS OF PEOPLE
UNCOMFORTABLE, BUT NOT SO HARD THAT THEY
SYSTEMATICALLY REJECT HIM ALTOGETHER”.
- RALPH CHRISTENSEN
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 STRATEGIC HR?

VIEW IT FROM HISTORICAL PERSPECTIVE

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 HR: STAGES OF DEVELOPMENT
FUNCTION USUALLY PRIMARY FOCUS TALENT
KNOWN AS BACKGROUND
PURCHASING HIRING & FIRING AT BEST COSTS CONTRACT
NEGOTIATIONS
LABOUR RELATIONS NEGOTIATING WITH UNIONS REPRE- LEGAL & NEGOTIATING
SENTING EMPLOYEES; NEGOTIATING BACKGROUND
TALENT FOR LEAST COSTS
PERSONNEL ADMINISTERING EMPLOYEE ISSUES ADMINISTRATIVE
SUCH AS BENEFITS, COMPENSATION, BACKGROUND
& EMPLOYEE RELATIONS; TENDS TO
HAVE A STRONG EMPHASIS ON
CONTROL
HUMAN RESOURCES REPRESNTS PRIMARILY A NAME BOTH ADMINISTRATIVE &
CHANGE WITH LITTLE SUBSTANTIVE EMPLOYEE RELATIONS
(HR) DIFFERENCE, REGARDLESS OF THE BACKGROUND;
IMPLICATION OF A MOVE TOWARD INCREASING FOCUS ON
BEING MORE STRATEGIC BUSINESS
STRATEGIC HR PERFORMANCE MANAGING BACKGROUND IN BUSI -
ORGANIZATIONAL & EMPLOYEE NESS STRATEGY, PEOP-
Version 2017 PLE, SYSTEMS AND35
ORGANIZATION
ROADMAP TO STRATEGIC HR–RALPH CHRISTENSEN
1 ASSESS ORGANIZATION’S READINESS FOR CHANGE
2 DEVELOP AND INSTITUTIONALIZE A FRAMEWORK AND
LANGUAGE FOR HUMAN RESOURCES
3 UNDERSTAND THE SENIOR HR LEADER’S ROLE AS
ORGANIZATIONAL ARCHITECT
4 CLARIFY LINE MANAGEMENT’S ROLE AND ENGAGE TOP
MANAGEMENT IN CREATING AND OWNING HUMAN
RESOURCES STRATEGY
5 CREATE A HUMAN AND ORGANIZATIONAL PLAN (HRP)
6 UNDER STAND THE FIVE HUMAN RESOURCES PROCESSES
THROUGH A STRATEGIC LENS -
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 MAKING A COMPELLING CASE FOR A NEW HUMAN RESOURCES

 PROVIDING CLARITY AROUND THE DIFFERENT ROLES THAT HR

PROFESSIONALS MIGHT PLAY (DAVE ULRICH: STRATEGIC PARTNER,
ADMINISTRATIVE EXPERT, EMPLOYEE CHAMPION, CHANGE AGENT)

 IDENTIFYING THE COMPETENCIES THAT ARE NEEDED IN EACH OF

THESE AREAS. AS A RESULT, RAPIDLY GROWING NUMBER OF HR
PROFESSIONALS HAVE STARTED THE PROCESS OF DEVELOPING
THESE COMPETENCIES

 OFFERING NEW INSIGHTS INTO THE MEASUREMENT OF HUMAN

RESOURCES RESULTS AND SUGGESTING HOW TO KNOW IF HR IS
MAKING ANY REAL DIFFERENCE

 CREATING THE CONCEPT OF BUSINESS PARTNERSHIP, THE NEED

TO CONNECT WITH THE BUSINESS AND
Version 2017MAKE A DIFFERENCE ON 37
BOTTOM-LINE RESULTS
7 CLARIFY THE ROLES OF GENERALIST AND SPECIALIST

8 DESIGN THE STRUCTURE OF YOUR NEW HR

ORGANISATION

9 ASSESS AND UPGRADE YOUR HR TALENT

10 RECOGNIZE THE ROADBLOCKS AND POLITICAL

LANDMINES IN MAKING THE TRAINSITION TO STRATEGIC
HR

[NOT IN LINEAR OCCURRENCES, ROLL OUT IN INTEGRATED

MANNER]
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 IS HR A LINE MANAGEMENT RESPONSIBILITY?
YES.
BUT THIS CAN HAPPEN ONLY WHEN THE HR PEOPLE WOULD
AGREE TO BLOW UP THE CURRENT PARADIGM –
HR WOULD DEVELOP PROPOSALS FOR HUMAN RESOURCES
DIRECTION AND SELL THE SAME TO THE MANAGEMENT.
THE LINE MANAGERS MUST ACTUALLY OWN HUMAN
RESOURCES WORK.
IT NEEDS TO OWN THE PROCESSES, THE PLAN, THE
DECISIONS AND THE RESULTS.
THE STRATEGIC DIRECTION FOR PEOPLE AND
ORGANISATIONAL ISSUES SHOULD
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BE MANAGEMENT’S 39
DECISION, NOT HR’S.
 HR AS COP vs. PARTNER
COP PARTNER
• SETS POLICY AND • OFFERS EXPERTISE AND
POWER BASE COMPLIANCE CRITERIA COMPETENCE
• KEEPS CONTROL • HAS ABILILTY TO MAKE REAL
BUSINESS DIFFERENCE
• MAINTAIN CONTROL • FOSTER BUSINESS GROWTH
OBJECTIVE AND SUCCESS
• PROVIDE CONSISTENCY
• PROVIDES MANAGEMENT • LETS MANAGEMENT OWN
APPROACH WITH A SAFETY NET PROPOSALS AND BE
• PUSHES HUMAN ACCOUNTABLE
RESOURCES WORK • LETS MANAGEMENT PULL
HUMAN RESOURCES WORK
• OFFERS CONSULTATIVE
PERSUASION
• HR BECOMES AN EASY • HR AND MANAGEMENT ARE
RESULT TARGET PARTNERS AND COOWNERS
OF IMPORTANT HUMAN
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HR’s ROLE NEEDS TO SHIFT FROM “COP”
TO “PARTNER”.

COP ROLE = HR HAS THE POWER TO CONTROL

MANAGEMENT AROUND ISSUES OF POLICIES
AND PRACTICE.

THE COP CONTINUALLY TELLS MANAGEMENT WHAT

IT CAN DO AND CANNOT DO.

MANAGEMENT HATES THIS. IT COMPLAINS ABOUT

IT, AND YET COLLUDES IN IT.
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HOW?

MANAGEMENT KNOWS THAT THE COP IS

RESPONSIBLE FOR MAKING SURE THAT THE
MANAGER DOES NOT DRIVE HIMSELF OVER THE
CLIFF. THE HR COP ALWAYS ENSURES THE
SAFETY NET AND NEVER LETS MANAGEMENT
MAKE A REAL BIG MISTAKE.

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 STRATEGIC HRM Vs. CONVENTIONAL HRM
TRADITIONAL / STRATEGIC HRM
CONVENTIONAL HRM
RESPONSIBILITY STAFF SPECIALISTS LINE MANAGERS
FOR HRM
FOCUS EMPLOYEE RELATIONS PARTNERSHIPS WITH INTL. &
EXTL. CUSTOMERS
ROLE OF HR TRANSACTIONAL, CHANGE TRANSFORMATIONAL,
FOLLOWER & RESPONDENT CHANGE LEADER & INITIATOR
INITIATIVES SLOW, REACTIVE, FAST, PROACTIVE &
FRAGMENTED INTEGRATED
TIME HORIZON SHORT TERM SHORT, MEDIUM & LONG
TERM
CONTROL BUREAUCRATIC ROLES, ORGANIC-FLEXIBLE,
POLICIES & PROCEDURES WHATEVER IS NECESSARY TO
BE SUCCESSFUL
JOB DESIGN DIVISION OF LABOUR, BROAD, FLEXIBLE, CROSS
SPECIALISATION FUNCTIONAL & TEAMS
KEY INVESTMENTS CAPITAL , PRODUCTS PEOPLE, KNOWLEDGE &
SKILLS
ACCOUNTABILITY COST CENTREVersion 2017 INVESTMENT CENTRE 43
 BARRIERS OF STRATEGIC HRM
 SHORT-TERM MENTALITY / FOCUS ON CURRENT
PERFORMANCE
 INABILITY OF HR TO THINK STRATEGICALLY
 LACK OF APPRECIATION OF WHAT HR CAN CONTRIBUTE
 FAILURE TO UNDERSTAND GENERAL MANAGER’S ROLE AS
AN HR MANAGER
 DIFFICULTY IN QUANTIFYING MANY HR OUTCOMES
 PERCEPTION OF HUMAN ASSETS AS HIGHER RISK
INVESTMENTS
 INCENTIVES FOR CHANGE THAT MIGHT ARISE
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 MANAGING THE ROADBLOCKS IN
MAKING THE TRANSITION TO STRATEGIC HR

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TEN POTENTIAL ROADBLOCKS TO MAKING THIS TRANSITION IN HR
AND SUGGESTIONS FOR APPROACHING THEM:

1 IT IS HARD TO BALANCE VALUING THE PAST WITH THE NEED

TO CHANGE

2 SOME WITHIN HR WILL LOVE THE CHANGES, AND SOME WILL

HATE THOSE

3 THE NEW ROLE OF HR CAN BE THREATENING TO SOME

LINE MANAGERS

4 LINE, HR, AND EMPLOYEES DO NOT SHARE A COMMON VIEW OF

HUMAN RESOURCES

5 SOME MANAGERS DON’T MAKE THE CONNECTION BETWEEN

PEOPLE AND BUSINESS RESULTS AND ARE UNCLEAR ABOUT 46
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THE ROLE OF THE HR DEPARTMENT
6 MANY LINE MANAGERS ARE AVERSE TO EXAMINING
PROCESS WORK

7 DIVERSITY IS NOT A WORK PROCESS BUT RATHER A

SUBSET OF ALL ASPECTS OF HUMAN RESOURCES

8 HR SKILL GAPS CANNOT BE IGNORED

9 THE INTEGRATION OF GENERALIST, SPECIALIST, AND

SERVICE CENTRE ROLES IS VERY DIFFICULT

10 COMMUNICATION WITHINVersion
HR IS OFTEN WEAK
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 STRATEGIC MANAGEMENT
• Strategic Human Resource Management
- Involves aligning initiatives involving how people are
managed with organizational mission and objectives

• Strategic Management Process

- Determining what needs to be done to achieve corporate
objectives, often over 3 - 5 years
- Examining organization and competitive environment
- Establishing optimal fit between organization and its
environment
- Reviewing and revising strategic plan

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 BENEFITS OF A STRATEGIC APPROACH TO HR

• Facilitates development of high-quality workforce through focus

on types of people and skills needed

• Facilitates cost-effective utilization of labor, particularly in

service industries where labor is generally greatest cost

•Facilitates planning and assessment of environmental

uncertainty, and adaptation of organization to external forces

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 The Five P’s Model of SHRM

• Successful SHRM efforts begin with identification of

strategic needs
• Employee participation is critical to linking strategy and
HR practices
• Strategic HR depends on systematic and analytical
mindset
• Corporate HR departments can have impact on
organization’s efforts to launch strategic initiatives

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 The Five P’s Model of SHRM

• Philosophy
Statements of how organization values and treats
employees; essentially culture of the organization

• Policies
Expressions of shared values and guidelines for action on
employee-related business issues

• Programs
Coordinated and strategized approaches to initiate,
disseminate, and sustain strategic organizational change
efforts necessitated by strategic
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 The Five P’s Model of SHRM
• Practices
- HR practices motivate behaviors that allow individuals to
assume roles consistent with organization’s strategic
objectives

- Three categories of roles:

Leadership
Managerial
Operational

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 The Five P’s Model of SHRM

• Processes

- Continuum of participation by all employees in

specific activities to facilitate formulation and
implementation of other activities

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