1. Strategic Human Resource Management: An OverviewBy
Dr. Kitunzi Mutunzi

2. Session Objectives/Scope
To refresh & enhance participants’ capacities to appreciate and gainfully utilize:
An overview of some core concepts & scope of HRM
The meaning & Essence of SHRM
The concepts of strategy & strategic management
Relationship between HR & Strategic management
Basics/ essentials for establishing SHRM
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3. What is Human Resource Management?
Planning, organizing, coordinating, & controlling the Utilization of individuals to achieve organizational objectives
NB: All managers at every level must concern themselves with human resource management
What are the primary (Five) functions of HRM?
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4. Human Resource Management- Basic Functions1
Staffing
Human Resource Management
Human Resource Development
Employee and Labor Relations
Compensation
Safety and Health
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5. What constitutes Staffing in HRM?
Human Resource Planning
Job Analysis
Recruitment
Selection
Orientation/socialization
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6. What is involved in Human Resource Development?
Training
Development
Career Planning
Career Development
Organizational Development
Performance Management
Performance Appraisal
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7. What does Compensation entail in HRM?
Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.
Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.
Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which a person works.
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SHRM-Overview

8. What Comprises Safety and Health in HRM?
Safety - Involves protecting employees from injuries caused by work-related accidents
Health - Refers to employees' freedom from illness and their general physical and mental well being
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9. What is Employee and Labor Relations about in HRM?
Labor Union and Collective Bargaining
Organizations are required by law to recognize trade unions and bargain with them in good faith if their employees want the unions to represent them
Human resource activity is often referred to as industrial relations
NB: Most firms today would rather have a union-free environment
Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005.
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10. What is HR Branding?
HR Branding Shapes a Firm’s corporate image or culture
It embodies values and standards that guide peoples’ behavior
It helps People know what firm a stands for, people it hires, fit between jobs and people, and results it recognizes and rewards
HR Branding is Important in getting high quality applicants to join firms
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11. Interrelationships of HRM Functions
All HRM functions are interrelated
Each function affects other areas
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12. Environment of Strategic Human Resource Management
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Unions
Society
Technology 1
Marketing
Operations
Legal Considerations
Staffing
Human Resource Management
Human Resource Development
Unanticipated Events
Employee and Labor Relations
Finance
Compensation
Other Functional Areas
Economy
Safety and Health
Shareholders
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Customers
SHRM-Overview
Competition
Labor Market

13. HR’s Changing Role: Questions That Are Being Asked
Can some HR tasks be performed more efficiently by line managers or outside vendors?
Can some HR tasks be centralized or eliminated altogether?
Can technology perform tasks that were previously done by HR /personnel?
Many HR departments continue to get smaller
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14. HR’s Changing Role: Who Performs Human Resource Management Tasks?
Human Resource Managers
HR Outsourcing
HR Shared Service Centers
Professional Employer Organization (Employee Leasing)
Line Managers
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15. HR as a Strategic Partner
HR executives must understand complex organizational design
Sharp deviation from what has traditionally been an administrative type role for HR
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16. Measures of HR performance
Human Capital Metrics
Measures of HR performance
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17. Examples of HR Metrics Time to fill open positions HR headcount ratios
Administrative cost per employee
Turnover cost
Training return on investment
Cost per employee for HR administration ranges from $1,200 - $1,600
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18. HR Scorecard Report card of effectiveness of specific persons
Metrics that will best suit each company depends on variety of factors
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19. Human Resource Designations: Executives, Generalists, and Specialists
Vice President, Human Resources
Vice President, Industrial Relations
Manager, Training and Development
Manager, Compensation
Manager, Staffing
Executive: Generalist: Specialist:
Benefits Analyst
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20. Traditional Human Resource Functions in a Large Firm
President and CEO
Vice President, Marketing
Vice President, Operations
Vice President, Finance
Vice President, Human Resources
Manager, Training and Development
Manager, Compensation
Manager, Staffing
Manager, Safety and Health
Manager, Labor Relations
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21. The Evolving HR Organization
HR Outsourcing
HR Shared Service Centers
Professional Employer Organization
Line Manager
Evolve to make HR more strategic
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22. A Possible Evolving HR Organization Example
President and CEO
Vice President, Operations
Vice President, Strategic Human Resources
Vice President, Finance
Vice President, Marketing
Director of Safety and Health
Training & Development (Outsourced)
Compensation (Shared Service Centers)
Staffing (Line Managers, Use of Applicant Tracking Systems)
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23. What is Strategic Human Resource Management (SHRM)?
Various Definitions:
SHRM is an approach to making decisions on the intentions of the organization concerning people-essential components of the organization`s business strategy.
It is about the relationship between HRM and Strategic management in the organization.
SHRM refers to the overall direction the organization wishes to pursue in achieving its objectives through people.
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24. Definition of SHRM cont’d
SHRM can be regarded as an approach to dealing with longer-term people issues as part of the strategic management thrust of the business.
It covers macro-organisational concerns relating to structure and culture, organizational effectiveness & performance, matching resources to future business requirements, & the management of change.
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25. Meaning of SHRM cont…
SHRM deals with `those HR activities used to support the firms competitive strategy (Wright & Snell, 1989).
SHRM encompasses those decisions & actions which concern the management of employees at all levels in the business & which are directed towards creating & sustaining competitive advantage (Miller, 1989).
SHRM is the means of aligning the management of human resources with the strategic content of the business (Walker, 1992).
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26. Matching HRM activities and policies,
Meaning of SHRM cont…
According to Hendry & Pettigrew (1986), SHRM has the following four meanings:
The use of planning
A coherent approach to the design & management of personnel systems based on an employment policy & manpower strategy & often underpinned by a philosophy.
Matching HRM activities and policies,
Seeing the people of the organization as a strategic resource for the achievement of competitive advantage.
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30. What is a Strategy?
A strategy is a process (or approach/ methodology /plan/ measures/ means) through which the basic mission and objectives of an entity are set, and a process through which the entity/ organization uses its resources to achieve its objectives.
Strategy = channel/ plan
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33. Salient Fact to Note:
Human Resources are increasingly a strategic issue because of the following empirical observations:
There is an overall corporate purpose and that the human resource dimensions of that purpose are evident.
A process of developing strategy within the organization exists and is understood, and that there is explicit consideration of human resource dimensions.
The organization at all levels establishes responsibility and accountability for human resource management.
It includes the responsibility to identify and interact in the social, political, technological and economic environments in which the organization is and will be doing business.
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36. What are the Basic Requirements for establishing Effective SHRM?
Entities that effectively observe SHRM often have the following characteristics:
Strong, visionary and often charismatic leadership from the top.
Well articulated vision, mission, objectives and values.
A clearly expressed business strategy which had been implemented successfully
A positive focus on well understood critical success factors
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37. Prerequisites for Good SHRM cont’d
A closely related range of products or services offered by the organization to its customers/clients.
A cohesive top management team.
A personnel/HR director who plays an active part in discussing corporate/business issues as well as making an effective & corporate/ business-oriented contribution on HR matters.
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38. What are Basic Functions of Strategic Human Resource Managers?
General Management of the HR Department
Knowledge of Laws
Interaction with Executive Leadership
Employee Relations
Collaboration
Commitment Building
Building Capacity
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39. End of Session Thank you for your attention/participation
Questions, issues, concerns, etc are yet welcome
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40. Group Work/Exercises
Read the handout given and undertake the following tasks (as prep for subsequent lectures):
Tasks:
Describe the major activities/tasks undertaken in coming up with a good strategic Human resources plan? (pp-15-16)
Identify the Human Resources Strategic Planning Pitfalls that ought to be avoided? (pp16)
Expound the Key Challenges with Human Resource Planning (pp-20)
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41. Group Work/Exercises- cont…
More Tasks:
A typical strategic human resource planning model comprises six specific steps in developing a Human Resource Strategy. Which are these six steps? (pp22)
Read pages 26- to 40 of the notes given for further discussion.
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