1. STRATEGIC HUMAN RESOURCE MANAGEMENT Prepared by :- Prof. Shalini Swamy

2. SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT?
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?

3. STRATEGIC HRM DEFINED
Strategic HRM is the process of defining how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices.

4. Strategic management –
MODEL OF STRATEGIC HRM
Strategic HRM
Strategic management –
strategic role of HR
HR strategies –
overall/specific
Strategic choice
Strategic analysis

5. SO WHAT IS THE STRATEGIC ROLE OF HR SPECIALISTS?

6. VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT
‘My credibility depends on running an extremely efficient and cost-effective administrative machine… If I don’t get that right, and consistently, then you can forget about any big ideas.’
HR Director
‘The CIP thinks that we will all be strategic business partners, and we’re not, you know. We have to deal with day-to-day HR issues that arise in the business.’
Student practitioner
‘Give me a break! It’s so demeaning. How many people in marketing or finance have to say they are a partner in the business? Why do we have to think that we’re not an intimate part of the business, just like sales, manufacturing and engineering? I detest and loathe the term and I won’t use it.’
Tim Miller, Standard Chartered Bank
‘The term worries me to death. HR has to be an integral and fundamental part of developing the strategy of the business. I don’t even like the term ‘close to the business’ because, like ‘business partner’, it implies we are working alongside our line management colleagues but on a separate track, rather than people management being an integral part of the business.’
Alex Wilson, BT

7. HR’s STRATEGIC ROLES Formulate integrated HR strategies managers to
Contribute to the
development of
business strategies
Work with line
managers to
support the
achievement of
their business
goals

8. SEVEN STEPS TO BEING STRATEGIC
Practice
evidence-
based
management
Make
convincing
business
case
for
innovation
Act as
change
agent
See the big
picture
Appreciate
how HR
can add
value
Understand
the
business
Aware of
business
context

9. SO WHAT ABOUT HR STRATEGY?

10. HR STRATEGY AREAS Specific: Overall: organization performance
engagement
‘the big idea’
human capital
advantage
HRM process
etc
Specific:
organization
development
corporate social
responsibility
resourcing
talent management
learning and
employee reward
employee
relations
well-being

11. EXAMPLES OF OVERALL HR STRATEGIES
We want GSK to be a place where the best people do their best work. GlaxoSmithKline
A strong focus on the overall effectiveness of the organization, its direction and how it's performing. There is commitment to, belief in, and respect for individuals. New Forest Council
Maintain competitive advantage by continuing to attract very high calibre people. Boots
Staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers. Lands’ End
The only HR strategy you really need is the tangible expression of values and the implementation of values. West Water
Stimulate changes on a broad front aimed at achieving competitive advantage through people. Pilkington Optronics

12. BALANCED SCORECARD IN AN INTERNATIONAL CHARITY
Organizational effectiveness
perspective:
programme development
programme delivery
process development and
management
cost-effectiveness
Financial perspective:
income growth
enlistment and retention of
supporters
cost/income ratio
Stakeholder perspective:
impact on clients
relationships with key funding
agencies and supporters
development of brand
influence
People perspective:
leadership behaviour
talent management
learning and development
employee satisfaction –
a ‘great place to work’

13. HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON
Clear line of sight between strategic aims of the Corporation and its staff
Management sets goals for success and monitors performance
Leadership from the top and at all levels of management
Focus on promoting engagement and commitment
Performance management processes aligned to Corporation objectives
Capacities of people enhanced by comprehensive learning and
development programmes
People valued and rewarded according to their contribution

14. DECLARATION OF STRATEGIC INTENT: CARE DELIVERY CHARITY
Achieve strategic integration – match HR
policies and practices to the business
strategy
Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
Focus on the needs to achieve flexibility,
responsiveness, quality and cost-
effectiveness in the delivery of HR
services

15. CRITERIA FOR HR STRATEGIES
Aligned to corporate goals
Set out clear aims
Supported by business case
Take account of individual as well as
business needs
Contain realistic and achievable
plans for implementation

16. STRATEGIC HRM TOOLKIT

17. CONDUCTING A STRATEGIC REVIEW
Involve senior
management and
line managers
Analysis
Involve employees
and their
representatives
Diagnosis
Conclusions and
recommendations
Action planning

18. HR STRATEGY GOALS: HOW DO THEY RATE? Possible HR strategic objectives
Importance*
Effectiveness*
Support the achievement of organizational goals
Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as ‘a great place to work’
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)
* Scale: 10 = high 0 = low

19. STRATEGIC HRM GAP ANALYSIS
What are the current and desired SHRM characteristics in your organization?
Effective high-performance work
system in place
No attempt made to encourage
high performance
Integrated talent management
programmes are operating
effectively
Talent management is haphazard
or ineffective
Sophisticated techniques are
used to recruit employees
A traditional approach is adopted
with regard to sourcing recruits
and selecting applicants
Focus on using blended learning
and development processes
Reliance on the delivery of
traditional training courses
Reward programmes limited to
financial rewards
A total reward approach is used
effectively
Employees given a voice on all
matters that concern them
Only lip service is paid to
employee participation and
involvement
Mark on the scale: X for current, O for desired – eg:
High-quality HR practices
Poor-quality HR practices O X

20. STRATEGIC HRM GUIDELINES
Be clear on what has to be achieved
and why
Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
Aim for continuous improvement –
evolution not revolution
Don’t follow fashion – do your own
thing
Keep it simple – over-complexity is a
common reason for failure
Don’t rush – it takes longer than you
think
Assess resource requirements and
costs
Manage change – involve,
communicate and train