1.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Fundamentals of
Strategic HRM

2.
Introduction
People, not buildings, make a company successful.

3.
Introduction
• It is important to note that achieving organizational goals
cannot be done without human resources.
• What is Google without its employees?
• A lot of buildings, expensive equipment, and some
impressive bank balances.
• Similarly, if you removed the employees from such varied
organizations as the Google, Microsoft, Hallmark, what
would you have left? Not much.
• People—not buildings, equipment, or brand names—make
a company.

4.
Why Is HRM Important to an Organization?
• New requirements on employers concerning
hiring and employment practices.
• Jobs have changed. They have become more
technical and require employees with greater
skills.
• Global competition has increased the importance
of improving workforce productivity and looking
globally for the best-qualified workers.

5.
What is strategic planning?

6.
The Strategic Nature
• Strategic planning is a process used by an organization
to determine its long-term vision and goals and how to
accomplish them.
• Many companies today recognize the importance of
people in meeting their goals.
• HRM must therefore balance two primary
responsibilities:
1. assisting the organization in its strategic direction
2. representing and advocating for the organization’s
employees.
• HR professionals must align HR practices and plans with
the overall organizational strategy.

7.
Importance of HRM
HRM has a dual nature:
.
Strategic HRM provides a clear connection between the
organization’s goals and the activities of employees.
supports the
organization’s strategy
represents and advocates
for the employees

8.
Strategic human resource management
• SHRM is aligning HR policies and decisions with
the organizational strategy and mission.
• Strategic human resource management creates
a clear connection between the goals of the
organization and the activities of the people who
work there.
• All employees should see the link between their
daily tasks and achievement of a purpose or
goal.

9.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

10.
The HRM Functions
The HR functions of staffing, training, and development
are important to supporting organization strategy
through human capital.
In other words, hiring people, preparing them, stimulating
them, and keeping them.
staffing
training and
development
motivation
maintenance

11.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

12.
The HRM Functions
Staffing has fostered the most change in HR departments
during the past 30 years.
staffing
 strategic human resource planning: match peoples’ skills to
the company’s strategy needs
 recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants. Focus is on KSAs.
 selection: thin out pool of applicants to find the best choice
Google example

13.
The HRM Functions
The goal is to have competent, adapted employees.
training and
development
 orientation: teach the rules, regulations, goals, and culture of the
company
 employee training: help employees acquire better skills for the job
 employee development: prepare employee for future position(s) in the
company
 organizational development: help employees adapt to the company’s
changing strategic directions
 career development: provide necessary information and assessment
in helping employees realize career goals

14.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

15.
The HRM Functions
motivation
 theories and job design: environment and well-constructed jobs
factor heavily in employee performance
 performance appraisals: standards for each employee; must provide
feedback
 rewards and compensation: must be link between compensation and
performance
 employee benefits: should coordinate with a pay-for-performance
plan

16.
The HRM Functions
Job loyalty has declined over the past decade. Why?
maintenance
 safety and health: caring for employees’ well-being has a big
effect on their commitment
 communications and employee relations: keep employees
well-informed of company doings, and provide a means of
voicing frustrations

17.
HRM from Islamic perspective
1. Staffing
The Qur’an states, (28:26): “said one of the (damsels): ‘O
my (dear) father! Engage him on wages; truly the best of
men for you to employ is the (man) who is strong and
trust worthy.”
2. Training and development
Allah said (39:9) “are those who know equal to those
who know not? But only they who are endowed with
understanding keep this in mind.”
The Prophet Muhammad (S.A.W) also declared it
compulsory for Muslims to acquire knowledge when he
said “Seeking knowledge is a duty on every Muslim man
and woman”.

18.
And prepare against them whatever you are able of power
and of steeds of war by which you may terrify the enemy of
Allah and your enemy and others besides them whom you do
not know [but] whom Allah knows. And whatever you spend in
the cause of Allah will be fully repaid to you, and you will not
be wronged (Anfal:60).
3. Motivation & maintenance
And for all there are degrees [of reward and punishment] for
what they have done, and [it is] so that He may fully
compensate them for their deeds, and they will not be
wronged (46:19).
The employees should be rewarded as soon as their work
done and completed (Sunan Ibn Majah)

19.
"As for one who wrongs, we will punish
him. Then he will be returned to his Lord,
and He will punish him with a terrible
punishment”. (Surat Al-Kahf )
“No soul shall have a burden laid on it
greater than it can bear.” (Surat Al-
Baqarah ) .

20.
External Influences on HRM
management
thought
labor
unions
laws and
regulationsHRM
dynamic
environment
External influences affect HRM functions.

21.
External Influences on HRM
dynamic
environment
“The only constant in life is change.”
globalization decentralized work sites
technology
teams
workforce diversity
employee involvement
ethicschanging skill requirements
continuous improvement

22.
External Influences on HRM
laws and
regulations
 legislation has an enormous effect on HRM
 laws protect employee rights to union representation, fair
wages, family medical leave, and freedom from discrimination
based on conditions unrelated to job performance

23.
External Influences on HRM
labor unions
assist workers in dealing with company management
negotiate wages, hours, and other terms of employment
promote and foster a grievance procedure between workers
and management
When a union is present, employers can not fire workers for
unjustified reasons.

24.
What are the benefits of strategic HR planning?
• ENCOURAGEMENT OF PROACTIVE RATHER THAN
REACTIVE BEHAVIOR
• Being proactive means looking ahead and developing a
vision of where the company wants to be and how it can
use human resources to get there.
• In contrast, being reactive means responding to problems
as they come up.
• Companies that are reactive may lose sight of the long-
term direction of their business; proactive companies are
better prepared for the future.

25.
What are the benefits of strategic HR planning?
• EXPLICIT COMMUNICATION OF COMPANY GOALS
• Strategic HR planning can help a firm develop a focused set of
strategic objectives that capitalizes on its special talents and know-
how.
• STIMULATION OF CRITICAL THINKING AND ONGOING
EXAMINATION OF ASSUMPTIONS
• Managers often depend on their personal views and experiences to
solve problems and make business decisions. The assumptions on
which they make their decisions can lead to success if they are
appropriate to the environment in which the business operates.
Strategic HR planning can stimulate critical thinking and the
development of new initiatives only if it is a continuing and flexible
process rather than a rigid procedure with a discrete beginning and a
specific deadline for completion.

26.
What are the benefits of strategic HR planning?
• IDENTIFICATION OF GAPS BETWEEN CURRENT
SITUATION AND FUTURE VISION
• Strategic HR planning can help a firm identify the
difference between “where we are today” and “where we
want to be.”
• IDENTIFICATION OF HR CONSTRAINTS AND
OPPORTUNITIES
• When overall business strategy planning is done in
combination with HR strategic planning, firms can identify
the potential problems and opportunities with respect to
the people expected to implement the business strategy.

27.
What are the benefits of strategic HR planning?
• CREATION OF COMMON BONDS
• A substantial amount of research shows that, in the long run,
organizations that have a strong sense of “who we are” tend to
outperform those that do not.
• A strategic HR plan that reinforces, adjusts, or redirects the
organization’s present culture can foster values such as a customer
focus, innovation, fast growth, and cooperation.
• ENCOURAGEMENT OF LINE MANAGERS’ PARTICIPATION
• For HR strategy to be effective, line managers at all levels must buy
into it. If they do not, it is likely to fail.

28.
Task for next class
• What are the challenges of strategic HR
planning?