1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Traditional HR Versus Strategic HR
Strategic Human Resource Management

12. 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

13. 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

14. THREE STAGE PROCESS OF SHRM
Strategic Human Resource Management

15. 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

16. 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

17. 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

18. 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

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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. Thank you.
Strategic Human Resource Management