HRM501: Introduction To IR & HRM Topic 9: Strategic HRM Topic 9 : Strategic HRM 10/10/2017

Learning Objectives Explain the meaning of strategic Human resource management Describe HR Managers role Describe strategic approach to human resource management Appreciate the strategic challenges facing human resource management Topic 9 : Strategic HRM 10/10/2017

Strategic Human resource management Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Topic 9 : Strategic HRM 10/10/2017

What is Strategic Human resource management Human resources may also provide work incentives, safety procedure information, and sick or vacation days Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. Topic 9 : Strategic HRM 10/10/2017

What is Strategic Human resource management This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline Strategic HRM- focuses on the linking of all HR activities with the organization's strategic objectives Topic 9 : Strategic HRM 10/10/2017

Strategic Human resource management Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company. Improving the employee retention rate can reduce the money companies spend on finding and training new employees. Topic 9 : Strategic HRM 10/10/2017

Strategic Human resource management When creating a human resources plan, it is important to consider employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs that smaller companies cannot afford to offer. This does not mean that a smaller company should not engage in strategic human resource management. Providing specialized on-site training, even if provided by senior members of the company, and offering one-on-one assessment and coaching sessions, can help employees reach peak performance rates Topic 9 : Strategic HRM 10/10/2017

Human Resources Manager’s Role A human resources manager is responsible for managing and overseeing the personnel department within a company, organization or agency. This includes posting advertisements or approving advertisements for new employees, screening resumes and applications, setting interview appointments and being involved in the hiring process In most agencies the human resources manager is also key in providing employee supervision and evaluations, retraining employees, offering mediation services for struggling employees as well as firing employees that are not meeting standards. Topic 9 : Strategic HRM 10/10/2017

Human Resources manager’s Role Human resource managers must be aware of local, state and federal employment guidelines, manage payroll issues, maintain employee records, complete and record insurance and other programs offered to employees and be able to assist employees in understanding and evaluating the participation in these programs. Human resource managers may also be actively involved in retraining or training new employees or existing employees or answering questions that employees may have on policies or procedures within the company or agency. Topic 9 : Strategic HRM 10/10/2017

Human Resources manager’s Role Workplace safety, employee absenteeism and health issues are also addressed by the human resources manager. The manager may be able to work directly with outside agencies to provide on-site counseling or even specialized programs for additions or crisis intervention counseling or services. Many human resource managers act as the bridge between management and workers in non-union companies. Topic 9 : Strategic HRM 10/10/2017

Approaches to Human Resource Management Approaches to HRM can be distinguished: --- Instrumental HRM --- Humanistic HRM The instrumental (or hard) approach – stresses the rational (based on reasoning) quantitative and strategic aspects of managing human resources . For eg. Performance improvement and improved competitive advantage are highlighted. The humanistic (or soft) approach – recognizes the need for the integration of the HR policies and practices with the organizations strategic objectives, c but places emphasis on employee development, collaboration, participation, trust and informal choice Topic 9 : Strategic HRM 10/10/2017

Approaches to Human Resource Management Instrumental approaches draw upon the rational-outcome model of strategic management to view Human Resources Management as something which is driven by and derived directly from corporate, divisional or business level strategy, and geared almost exclusively to enhancing competitive advantage. Humanistic approaches, on the other hand, utilize ‘process’ theory to emphasize the reciprocal nature of the relationship between strategic management and Human Resources Management and the latter’s role in ensuring that competitive advantage is achieved through people but not necessarily at their expense. Topic 9 : Strategic HRM 10/10/2017

Approaches to Human Resource Management hard HRM:- *a very instrumental, practical approach *people seen as a passive resources to be used, deployed and if necessary disposed of *hr planning is seen as a factor of production *incompatible with trade unions-may necessitate confrontation to implement concepts soft HRM:- *sometimes known as development humanism *stresses human side *entails trust, collaboration, skill development *place for unions in this model where unions are marginalized and by passed on many issues or alternative forms of employee representation are initiated *above all, about commitment and partnership Topic 9 : Strategic HRM 10/10/2017

Challenges faced by HRM Two types of challenges are faced by HRM today. THE CHANGING ENVIRONMENT Work force diversity (different ethnicity, language, background, thus becomes an important & challenging role to manage diversity and workplace challenges) Economical & Technological changes ( change management in order to reflect positivity, challenges and improve on productivity) Globalization (increasing competition on international markets demanding a increasingly challenging roles of HR Manager) Organisation Restructuring (downsizing, delayering, privatization affects the working environment and role of HR Manager) Changing nature of work (outsourcing, work flexibility, casualization of workforce, increasing part-time). Topic 9 : Strategic HRM 10/10/2017

Challenges faced by HRM CHANGING ROLE OF THE HR MANAGER Flatter organisation (removal of unnecessary organizational levels & hierachies to reduce bureaucracy, to encourage communication efficiency and minimize on cost) Employee empowerment( giving freedom, flexibility , need for employee’s voice at the management table, need to demonstrate professional competencies in HR activities such has remuneration and managing change) Team work (increase profitability through increased productivity by means of increased employee commitment, trust & perceptions of fairness) Ethical management (ensure ethical values, moral duty and obligation , ethical behavior are set with higher standards than that established by law) Topic 9 : Strategic HRM 10/10/2017

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