Shrm -introduction

• “strategy is the pattern of objectives, purposes or
goals and major policies and plans for achieving these
goals, stated in such a way as to define what business
the company is in or is to be in and the kind of
company it is or is to be”
• “strategy is the determination of basic long – term
goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of
resources necessary for carrying out these goals”.
• “strategy is the determination of organizational
objectives in the light of environmental variables and
determination of course of action and commitment of
organizational resources to achieve these objectives.”
Asst. Prof. Amaresh C Nayak

• This definition of strategy provides its following
features :
– strategy relates the firm to its environment
– strategy is the right combination of factors both
external and internal
– strategy is a relative combination of actions
– strategy may even involve contradictory action
– strategy is forward looking


• Strategy
– is the direction and scope of an organization over
the long term,
– which achieves advantage in a changing
environment
– through its configuration of resources and
competences
– with the aim of fulfilling stakeholder expectations.


• Strategic management is the process of:
– specifying an organization's objectives,
– developing policies and plans to achieve these
objectives, and
– allocating resources so as to implement the plans.


• Philosophy
– Integrating human resource management
strategies and systems to achieve overall mission,
strategies, and success of the firm while meeting
needs of employees and other stakeholders.


• Concepts
– linked to the strategic needs of an organization
– to provide it with an effective workforce while
meeting the needs of its members and other
constituents
– human resource department’s methods,
procedures, systems to achieve specific strategies.


• Concept –
– involves all management decisions and practices
that directly affect or influence the people, or
human resources, who work for the organization
– a concern with the ways in which HRM is crucial to
organizational effectiveness.
– the management of employees at all levels in the
business, directed towards sustaining competitive
advantage.


• Concept –
– Increasing awareness of the importance of linking
the organization’s human resource practices to
strategy that leads to greater performance
• Definition -
– “SHRM centers on how organizations can improve
their competitive performance by considering and
utilizing their human resource more effectively.”


• Definition –
– “The pattern of planned human resource
deployments and activities intended to enable the
firm to achieve its goals.”
• focus on a firm’s human resources
• the concept of activities highlights HR programs, policies
and practices
• the “pattern” and” plan” describe the goal and process of
strategy


• Definition –
– SHRM is generally perceived as a distinctive
approach to managing people which seeks to
achieve competitive advantage through the
strategic development of a highly committed and
capable workforce (s555).


• Definition –
– Strategic Human Resource Management claimed
that
• human resource problems are problems solved by linking
HRM and strategy formulation at an early stage
• problems with strategy implementation are solved by early
adjustment of the HRM to these strategies (299).


• Definition –
– strategic utilization of human resources means
• Management is active, not reactive
• There is high integration between policies
• An orchestration role is played by senior management
• and there is articulation of policies by senior management


• Essential elements of SHRM:
– Internally transforming HR staff and structure:
• Transforming HR staff
• Transforming the organizational structure
– Enhancing administrative efficiency:
• HR staff is to be “administrative experts”
• Improving administrative efficiency
• Enhancing Administrative efficiency
• Creation of Value


– Integrating HR into the strategic planning process
– Linking HR practices to business strategy and to
one another
• Vertical fit
• Horizontal fit
• External fit
• Resource Flexibility
• Coordination flexibility
•


• Developing a partnership with line
management:
– Step 1. Provide the business with good human
resource databases
– Step 2. Alter the senior management role when it
comes to human resource management
– Step 3. The line organization must alter its incentive
and control


– Focusing on the bottom-line impact of HR and
measurement of that impact:
• Customer/stake holder
• HR impact
• Money value of HR programs
• Benchmarking HR practices


• SHRM focuses to gain competitive advantage
• SHRM practice is coupled with business
strategy
• SHRM elevates micro level (individual
personal level) to the macro level (business
strategy level)
• SHRM takes global business and social trends


• SHRM analyzes human resources against
current and future business strategies
• SHRM is intended to assist management in
the best use of internal labor market
• SHRM includes organizational analysis and
design
• Benchmarking against successful internal and
external organizations


• SHRM is part of the business plan.
• The strategic HR considerations are
– Is the organizational culture supporting the long-
term business strategy?
– Is the organization’s structure consistent with the
business strategy?
– Is management’s executive staffing adequate? Are
skills adequate?
– Are the management-performance systems
properly focused?


• Human Resource Strategy plays a vital role in
the achievement of an organisation's overall
strategic objectives
• Human resources strategy fully understands
and supports the direction in which the
organisation is moving
• HR Strategy also supports other strategic
objectives of marketing, financial, operational
and technology departments.


• An HR strategy should aim to capture "the
people element" of an organisation
– it has the right people in place
– it has the right mix of skills
– employees display the right attitudes and
behaviours, and
– employees are developed in the right way.


• HR strategy may be more about teasing
"people" content and adds value to
organisation
– articulates more clearly some of the common
themes which lie behind the achievement of other
plans and strategies
– identifies fundamental underlying issues which
must be addressed by business if its people are to
be motivated, committed and operate effectively.


• The areas will entail
– a careful consideration of existing or developing
plans and strategies
– identifying which of these plans and strategies are
so fundamental


• The areas will include
– workforce planning issues
– succession planning
– workforce skills plans
– employment equity plans
– black economic empowerment initiatives
– motivation and fair treatment issues
– pay levels designed to recruit, retain and motivate
people


– the co-ordination of approaches to pay and grading
across the organisation to create alignment and
potential unequal pay claims
– a grading and remuneration system which is seen
as fair and giving proper reward for contributions
made
– wider employment issues which impact on staff
recruitment, retention, motivation etc.


– a consistent performance management framework
which is designed to meet the needs of the
organisation
– career development frameworks which look at
development within the organisation at equipping
employees with "employability“
– policies and frameworks to ensure that people
development issues are addressed systematically


• The HR strategy will need careful planning of
the people issues
• HR strategy can add Value
– changes in the overall employment market
– cultural changes which will impact on future
employment patterns
– changes in the employee relations climate
– changes in the legal framework
– HR and employment practice being developed in
other organisations


• Opportunities for development of HR Strategy
– a major new internal initiative could present the
right opportunity to push for an accompanying HR
strategy
• restructuring exercise, a corporate acquisition, joint
venture or merger exercise.
– a new externally generated initiative for HR strategy
– "Right moment“


Shrm -introduction

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