1. CHAPTER 4: The Evolving/Strategic Role of Human Resource Management

2. Strategic Human Resource Management
Involves development of consistent, aligned collection of practices, programs, and policies to facilitate achievement of strategic objectives
Practices of “personnel management” and focusing on strategic issues rather than operational issues
Integration of all HR programs within larger framework, facilitating mission and objectives
Writing down strategy facilitates involvement and buy-in of senior executives and other employees

3. Exhibit 4-1 (Ulrich’s Framework) Possible Roles Assumed by HR Function

4. Less focus on traditional functional activities ( for example – compensation, Staffing), and more on outcomes
HR should deliver results that enrich the organization’s value to its customers, investors, and employees

5. This can be achieved in four ways:
HR becoming a partner with senior and line managers in strategy execution identifying areas that require changeidentifying methods for changedelivery results
Training and Development
HR becoming an expert in the way that work is organized and executed
Policy, routine task activities
Change in the recruitment process and technology

6. 3. HR becoming a champion for employees, working to increase employee contribution and commitment to the organization
Key decisions and impact
4. HR becoming an agent of continuous transformation that shapes processes and culture to improve an organization’s capacity for change
Planning and cope with changes

7. HR Roles in Knowledge-Based Economy
Human capital steward
Creates an environment and culture in which employees voluntarily contribute skills, ideas, and energy
Human capital is not “owned” by organization
Knowledge facilitator
Procures necessary employee knowledge and skill sets that allow information to be acquired, developed, and disseminated
Provides a competitive advantage
Must be part of strategically designed employee development plan; i.e. – knowledge sharing

8. HR Roles in Knowledge-Based Economy
Relationship builder
Develops structure, work practices, and culture that allow individuals to work together
Develops networks that focus on strategic objectives
Rapid deployment specialist
Creates fluid and adaptable structure and systems
External opportunities and minimizing threats
Global, knowledge-based economy mandates flexibility and culture that embraces change

9. SHRM Critical HR Competencies
HR’s success as true strategic business partner dependent on five specific competencies:
Strategic contribution - development of strategy
Business knowledge - understanding nuts and bolts of organization
Personal credibility - measurable value be demonstrated in programs and policies implemented
HR delivery - serving internal customers through effective and efficient programs
HR technology - using technology to improve the organization’s management of people

10. Exhibit 4-4 Lepak and Snell’s Employment Models
Please consider – HUMAN CAPITAL!
Q1: Training & Development, Employee Autonomy, engagement, Job security, compensation system.
Q2: Standardized work System with shorter time frame.
Q3: Rules, Regulations, Procedures.
Q4: Outsourcing

11. Exhibit 4-5 Traditional HR Versus Strategic HR

12. Barriers to Strategic HR
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 high-risk investments
Incentives for change that might arise

13. Outsourcing Key benefits of outsourcing:
Reducing HR staff and saving money
Enhancing the quality of HR services provided
Freeing up HR staff to focus on more strategic , value –added activities
‘Bundling’ of services with other employers and cost minimizing