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

1. STRATEGIC HUMAN RESOURCE MANAGEMENT Prepared by :- Prof. ShaliniSwamy

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. 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 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 • Overall: • performance • engagement • ‘the big idea’ • human capital • advantage • HRM process • advantage • etc • Specific: • organization • development • corporate social • responsibility • resourcing • talent management • learning and • development • employee reward • employee • relations • employee • 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 1. Analysis Involve employees and their representatives 2. Diagnosis 3. Conclusions and recommendations 4. Action planning

18. HR STRATEGY GOALS: HOW DO THEY RATE? * 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 1 2 3 4 5 6 7 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