Strategic Human Resource Management Presented by: Amit Bhunjia (03) Deepak Rajouria (09) Himanshu Chauhan (012 ) Shipra Anand (024) Tapan Gohel (034) Ankush Singla (050 ) Strategic Human Resource Management

Agenda Human Resource – A perspective. Paradigm shift. 4/25/2018 Agenda Human Resource – A perspective. Paradigm shift. Revolutionizing HR transformation Strategic Human Resource Management (SHRM). Model & Framework for SHRM Internal & External Factors. Advantage & Limitation of SHRM Future Challenges Conclusion Strategic Human Resource Management Strategic Human Resource Management

Human Resource – A perceptive Success of any Organization is through people. Like any other resource Human Resource is also an asset of an organization Organizations are increasingly looking and investing to make their people their “Ultimate Business Advantage.” Strategic Human Resource Management

HR : the new solution provider Employees are looking for a superior ‘value proposition’ in their roles/ functions HR : the new solution provider Competitive advantage depends on intangible assets : your workforce CEO’s are seeking business results from every department The new frontier : the link between human performance and shareholder value !! Strategic Human Resource Management

PARADIGM SHIFT Source: Source: © Mercer Human Resource Consulting Ltd (2007), 'Transforming HR: understanding the human resources evolution' A recent study by Mercer Human Resource Consulting (Mercer) has found that HR executives recognize the need to transform their functions if they are going to help their organizations meet the ambitious people management goals they have set. Strategic Human Resource Management

EVOLUTION OF HRM TO SHRM The role of Human Resource management is changing, and changing very fast to help companies achieve their goals. HRM has gone through following phase: From hiring & firing Relationship Building Legislation role Protector & screener to Strategic partner Strategic Human Resource Management

Integration of Strategy and HR There are four stages in the evolution of linkages between business strategy and human resource management Administrative Linkage One way linkage Two way linkage Integrative linkage Strategic Human Resource Management

Strategic Human Resource Management Strategic HR means accepting the HR function as a strategic partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Strategic HR managers needs a change in their mindset from seeing themselves as relationship managers to resource managers knowing how to utilize the full potential of their human resources. As a strategic partner HR professional should be able to identify the HR practices that make the strategy work. Strategic Human Resource Management

HRM is strategy focused i.e by itself it is strategic in nature Views regarding SHRM Kazmi and Ahmad (2001) classify various definitions of strategic human resource management (SHRM) based on strategy-focused, decision-focused, content-focused and implementation-focused approach. Strategy focus approach Decision-focused HRM is strategy focused i.e by itself it is strategic in nature There are three levels of decisions, namely strategic, managerial/ administration and operating, HRM at strategic level is SHRM Strategic Human Resource Management

Views regarding SHRM Content-focused Implementation-focused In the model of HRM process, there are some elements and in every such element there are strategic aspects, which are called SHRM In order to formulate and implement business strategies , appropriate type of HRM systems are required and such blending of business strategies with HRM systems is called SHRM Strategic Human Resource Management

Traditional HR Versus Strategic HR Strategic Human Resource Management

The Five P’s Model of SHRM Philosophy Statements of how organization values and treats employees; essentially culture of the organization Expressions of shared values and guidelines for action on employee-related business issues Coordinated and strategized approaches to initiate, disseminate, and sustain strategic organizational change efforts necessitated by strategic business needs Policies Programs Strategic Human Resource Management

Cont.. HR practices motivate behaviors that allow individuals to assume roles consistent with organization’s strategic objectives Three categories of roles: Leadership Managerial Operational Continuum of participation by all employees in specific activities to facilitate formulation and implementation of other activities Practices Processes Strategic Human Resource Management

THREE STAGE PROCESS OF SHRM Strategic Human Resource Management

FIRST STAGE (Formulation) It provide the ground for the happening of effective SHRM. The presence of the HR department in the top team formulating the organizational strategy will strengthen the pro-active strategic linkage of the HRM systems. The policies and practices may be the written rules that are followed regarding jobs or behavior in the organization Strategic Human Resource Management

SECOND STAGE (Implementation) Implementing various HRM systems based on the HR strategy. Policies and practices of various HRM systems are set or modified according to the strategy implementation needs. HR department plays a key role at the implementation stage. Process and practices are implemented for the employees and therefore managers, customers play an important role in the successful implementation. The second stage has two way link with the first stage. Strategic Human Resource Management

THIRD STAGE (Evaluation) The final stage of the model deals with the evaluation/ review of effectiveness of HRM systems and their strategic integration. Evaluation stage in this model includes various surveys and evaluation processes. Performance reviews and associated actions are part of this stage. Strategic Human Resource Management

Factors affecting SHRM Factors can be segregated further in external and internal factors : Trade Liberalization Access to cheaper labor and resources Similarity of consumer demand around the world Advances in Technology and communication Political, social, cultural and economical environment External Strategic Human Resource Management

Cont.. Developing Human Capital Workforce Availability and Quality Training and Development Employee Retention Policies Reward and compensation Internal Strategic Human Resource Management

Advantages of SHRM There are many advantages and benefits that strategic human resource management offers. It helps analyze the opportunities and threats that are crucial, from the point of view of the company. It is possible to develop strategies and have a vision for the future. The need for competitive intelligence, which is of utmost importance in strategic planning, is fulfilled by means of implementing strategic human resource management. The attrition rate can be reduced, if strategic HRM is implemented properly. It also performs the important task of motivating employees. Strategic Human Resource Management

Cont.. Development and maintenance of competency among employees, is the most important benefit offered by strategic HRM. It helps determine the weaknesses and strengths of the company, thereby enabling the management to take appropriate measures. It helps keep a check whether the expectations of employees are addressed properly. Business surplus is achieved by making the employees competent enough to deliver the goods. Strategic Human Resource Management

Limitations of SHRM Resistance to change from the bottom line workers. Inability of the management in communicating the vision and mission of the company clearly to the employees. Interdepartmental conflict and lack of vision among the senior management in implementing the HR policies. The diversity of workforce that makes it difficult for the management to handle them accordingly. Strategic Human Resource Management

Cont.. The resistance from institutions such as the labor unions. Conflict among the employees over the issue of authority and the related fear of victimization. The resistance from institutions such as the labor unions. Changes that take place in the organizational structure. The changing market scenario which in turn creates pressure on the effective implementation of strategic HRM. Strategic Human Resource Management

Future Challenges Responding to multiple Stakeholder Corporate accountability beyond shareholders Measuring HRD impact and Utility Correlate with productivity, welfare of company Future of HR depends on the measurable value it brings to organization Linking learning and human process to performance &measuring learning, human process & resulting change in performance are crucial challenges Orienting towards future HRD researcher need to indentify what is needed when and how it can contribute to near future Become strategically proactive than being reactive Strategic Human Resource Management

Future Challenges Focus on problems and outcomes of HRD practices. HRD would forced to think systematically and deliver major contribution Work in problem focused, solution driven, multi disciplinary teams to solve problems Achieving professional recognitions Strategic Human Resource Management

Conclusion SHRM is relatively young field. A significant sustainable advantage will depend on how strategically one use their Human Resources. human resources can be a core competency for organizations Strategic Human Resource Management

Thank you. Strategic Human Resource Management