1. IMPROVING BUSINESS PERFORMANCE THROUGH STRATEGIC HRM
Presented By:
Sumedha Rode (8106)

2. ‘BE STRATEGIC’- ‘BE A BUSINESS PARTNER’
Current ‘MANTRA’ for HR Practitioners:
‘BE STRATEGIC’- ‘BE A BUSINESS PARTNER’
Incorporate HR Practices & Policies into HR Strategies,
Link HR strategies with Business strategies,
Implement strategic plans effectively & efficiently.

4. What is ‘high-performance management’ model
Innovation
Superior customer service
Employee commitment
Excellent HR practices:
- Rigorous recruitment & selection procedure
- Extensive T&D
- Incentive pay & performance management systems

5. ‘high-performance management’ cycle
Greater Satisfaction
Greater Motivation
Employee Commitment
Better Performance
New Strategies
Excellent HR practices

6. ‘low performance management’ cycle

7. Excellent HR practices
Expand progressive people management practices.
Bundling of HR practices for more effectiveness.
Effective execution of the practices.
Forming Learning Organization.

8. Attractive HR practices
Skills acquisition & development
Knowledge management
Motivation
Commitment
Job design
Employee involvement
And many more…………

9. Competitive advantage through SHRM is achieved if a firm can obtain & develop human resources which enable it to learn faster & apply its learning more effectively than its rivals. - Hamel & Prahalad (1989)

10. Characteristics of Hr practices that make an impact on performance
Integrated with business needs.
Should specify how it meets those needs.
Should add a value in business goal.
Understood & accepted by top management, line managers as well as staff.
Easy to comprehend by line management.
Supported by top management.
Should meet the success criteria already decided.

11. Hr practices impacting on performance
HR PRACTICE AREA
HOW IT IMPACTS
ACTUAL IMPACT
Job Design
By providing stimulating work, autonomy & flexibility to perform these jobs
Enhanced job satisfaction resulting in greater performance & productivity
T & D
By developing the level of skills & competence in the workforce
Provides organization with the skilled & committed people to achieve biz objectives
Attracting & retaining high-quality people
By matching human resources to strategic & operational needs of the organization, selecting & promoting quality people as per strategic requirement
Retain superior people with great performance, productivity, innovation
Knowledge management
By providing learning opportunities to share knowledge in systematic way
Retains vital stocks of knowledge & improves flow of knowledge, info & learning

12. Hr practices impacting on performance
HR PRACTICE AREA
HOW IT IMPACTS
ACTUAL IMPACT
Increase motivation, commitment & role engagement
By developing motivation processes through the use of fin. & non-financial rewards,
By job design & role building process which increases interest in work
Encourages people to willingly & effectively contribute for achieving organizational goals
Empowering employees to exhibit the behaviors associated with high performance (leadership, risk-taking, innovation, knowledge sharing, teamwork, etc.)
By creating organizational climate for exhibiting such behaviors, rewarding them through PMS
Fosters development of motivated & committed staff having knowledge & leadership skills to exhibit high job satisfaction & hence productivity

13. High-performance hr practices
Sophisticated selection & recruitment, induction and TNA as well as training processes.
Clear job design along with autonomy & authority to ensure flexibility, commitment & motivation.
Two-way communication
Coherent appraisal systems (Pay for performance)
Job rotation & job variety
Self-managed teams
Use of Quality-circles
Use of incentive schemes
Employment security
High level participation process
Proper grievance procedures

14. Developing appropriate hr strategic policies
1) Four-Task Model (Schuler, Jackson & Storey 2001): a] Manage employee assignments & opportunities (Right no. at right place at right time) b] Manage employee competencies (Required skills, knowledge, ability to perform successfully) c] Manage employee behaviors d] Manage employee motivation

15. 2) High-performance Model (Buchanan-1987, Stevens-1998): a] Management is clear about what new methods it needs & their results. b] It sets goals & standards for success. c] Decision-making power with those closest to the customers. d] Develops learning-organization with emphasis on self-management, team-capabilities to support performance improvement. e] Processes are aligned to the organizational objectives to build enthusiasm & commitment within employees.

16. 3) High-involvement Model (Pil & MacDuffie, 1999): a] ‘On-line’ work teams b] ‘Off-line’ employee involvement activities & problem-solving groups c] Job rotation d] Suggestion programmes e] Decentralization of quality efforts

17. Factors affecting the degree to which hr practices improve biz performance
The organizational context,
The views of top management,
The competence of HR specialists,
The attitudes & behaviors of line managers.

18. Organizational context
The organizational context conductive to high performance:
An appropriate organizational culture.
Core values & beliefs.
The sector & economic climate in which organization operates.
Identification of priority HR areas that assist in delivering business objectives
Employing high proportion of skilled, committed & knowledge-workers.

19. The views of top management
Appreciating significance & potential of HR practices.
Enlightening those who do not appreciate the same.
Incorporating the HR practices in business objectives.

20. Hr competence Ultimately it is HR that makes the difference.
HR manager should possess convincing power to convince top management & line managers for applying HR policies & practices which will generate added value in their business.

21. Attitude & behavior of line managers
Support of line managers.
It has to be won, earned & fostered.
Involvement of line managers in decision- making.

22. Formulating hr strategy
Decide who is to be involved & how.
Define business strategy.
Analyze the context (SWOT analysis of the organization, its core competencies & critical success factors).
Identify business needs that should be addressed by HR strategy. (e.g. in case of M&A, assess the HR capabilities of the biz that is to be taken over.)
Identify key HR issues directly affecting biz objectives & goals.

23. Continued….
Develop the strategic framework (strategic goals, their interconnections & priorities).
Define the specific HR strategies (how they will meet biz needs, resources required, added value thereby).
Assess HR capability & resources required.
Prepare action plan (what, how, when & by whom )- The plan should involve line managers & staff in task forces.

24. Practical approach to formulate hr strategy
Is the strategy to be formulated newly or is it updating of existing one?
What are the key issues with which HR strategies are concerned?
Are the resources available to develop & implement the strategy?
Will top management & line managers support the strategies?
what are the expected results?
Who should be involved in developing the strategies?

25. Organizations should ‘beware of attempts to improve performance by simple and singular changes’……. - Andrew Pettigrew (1999)

26. Achieving integration
It is one of the aims of SHRM to achieve vertical & horizontal integration:
Vertical Integration: Achieved when there is fit between biz & HR strategy.
Fit is achieved by examining biz strategy & then assessing its implication on people to formulate HR strategy. E.g.
Biz Strategy
HR Strategy
Achieve competitive advantage through innovation
Recruit & retain high-quality people with innovative skills,
Train & develop innovative skills & intellectual capital,
Provide incentives & recognition for successful innovation.

27. HR Strategy area-common elements
Horizontal Integration: Achieved when various HR strategies cohere & are mutually supporting.
It is achieved by ‘bundling’ i.e. the use of complementary HR practices.
No single aspect of HR strategy should be considered in isolation. E.g.
Overall HR Strategy
HR Strategy area-common elements
Improve performance
Resourcing: Competence based recruiting, assessment centers.
HR Development: Competence based T&D centers.
Reward: Competence-related pay

28. Challenge in implementing hr strategies
The challenge is to cover the gap between the rhetoric of HR strategies & the reality.
It can be done by adopting good management which:
Is based on a clear business strategy,
Builds competitive advantage by recruiting good people & develops intellectual capital,
Rewards deserving people,
Emphasizes on line management’s role in bringing HR policies & practices to live,
Supports formulation & development of HR strategies.

29. How to bring this change?
Strong commitment & visionary leadership from the top.
Understanding the culture of the organization.
Developing temperament & leadership skills in line managers.
Building an environment conductive to change by forming ‘learning organization’.
Adopting participative management.
Encouraging innovation & recognizing the success in achieving such change in advance.
Expecting the failures & learning from them.

30. Continued….
Changing processes, structure & systems to change the behaviors of people.
To anticipate problems of implementation like resource shortage, willingness of middle management to support the change, etc.
Explaining why change is essential & how it will affect everyone in the organization.
Protecting the interests of those going to be affected by change.

31. conclusion Progressive HR strategies improve biz performance by
ensuring that the organization has skilled, flexible, motivated & committed workforce;
improving job satisfaction, motivation & job commitment to encourage productivity & hence profitability.

32. THANK YOU