Strategic and International Human Resources Management PDF

Strategic and International Human Resources Management Prof. Gema Garcia HUMAN RESOURCE MANAGEMENT DEFINED strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achieveme...

Strategic and International Human Resources Management Prof. Gema Garcia HUMAN RESOURCE MANAGEMENT DEFINED strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives. The Matching Model The Harvard Framework incorporates recognition of a range of stakeholder interests; recognizes the importance of ‘trade- offs’, either explicitly or implicitly, between the interests of owners and those of employees as well as between various interest groups; widens the context of HRM to include ‘employee influence’, the organization of work and the associated question of supervisory style; acknowledges a broad range of contextual influences on management’s choice of strategy. emphasizes strategic choice – it is not driven by situational or environmental determinism. Aims of HR?? OVERALL PURPOSE Human Resource Management is to ensure that the organization is able to achieve success through people. HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities.’ STRATEGIG AIMS Organizational effectiveness Human Capital Knowledge management Reward Management Employee Relations Meet diverse needs HRM Objectives and Functions Examples of Differences between Personnel Management and HRM CRITERIA FOR AN EFFECTIVE HR STRATEGY A good strategy is one which actually makes people feel valued. It makes them knowledgeable about the organization and makes them feel clear about where they sit as a group, or team, or individual. It must show them how what they do either together or individually fits into that strategy. Importantly, it should indicate how people are going to be rewarded for their contribution and how they might be developed and grow in the organization. BASICALLY : 1) will satisfy business needs; 2) l be founded on detailed analysis and study, not just wishful thinking; 3) l can be turned into actionable programmes that anticipate implementation requirements and problems; 4) is coherent and integrated, being composed of components that fit withand support each other; 5) takes account of the needs of line managers and employees generally as well as those of the organization and its other stakeholders. Specific HR strategies talent management – how the organization intends to ‘win the war for talent’ continuous improvement –continuous incremental innovation sustained over a period of time knowledge management – creating, acquiring, capturing, sharing and using knowledge to enhance learning and performance; resourcing – attracting and retaining high-quality people; learning and developing – providing an environment in which employees are encouraged to learn and develop; reward – defining what the organization wants to do in the longer term to develop and implement reward policies, practices and processes tha will further the achievement of its business goals and meet the needs of its stakeholders; employee relations – defining the intentions of the organization about what needs to be done and what needs to be changed in the ways inwhich the organization manages its relationships with employees and their trade unions. HR not a functional area but more! Partnership with the whole organization, ensuring alignment: 1) Change agent 2) Administrative expert and functional expert 3) Human Capital developer 4) Employee advocate Creating a good HRM strategic plan: 1.Make it applicable. plans sit in a file somewhere and are never actually used. A good strategic plan should be the guiding principles for the HRM function. It should be reviewed and changed as aspects of the business change. 2.Be a strategic partner. Alignment of corporate values in the HRM strategic plan should be a major objective of the plan. In addition, the HRM strategic plan should be aligned with the mission and objectives of the organization as a whole. 3.Involve people. An HRM strategic plan cannot be written alone. The plan should involve everyone in the organization. Meet with the financial department and executives who do the budgeting and communicating a plan can gain positive feedback that ensures the plan is aligned with the business objectives. 4.Understand how technology can be used. Organizations oftentimes do not have the money or the inclination to research software and find budget-friendly options for implementation. People are sometimes nervous about new technology.  Conduct a Strategic Analysis A strategic analysis looks at three aspects of the individual HRM department: Understanding company mission and values (imperative for the HR manager to align department objectives with organizational objectives) Understanding of the HRM department mission and values (often a list of of what the department does, without strategic approach) a) poor mission statement : “The human resource department provides resources to hiring managers and develops compensation plans and other services to assist the employees of our company. b) strategic statement: “HR’s responsibility is to ensure that our human resources are more talented and motivated than our competitors’, giving us a competitive advantage. This will be achieved by monitoring our turnover rates, compensatio and company sales data and comparing that data to our competitors” Understanding the challenges of the department. Lifecycle Stages and HRM Strategy SWOT analysis to determine the gaps between HR’s strategic plan and the company’s strategic plan. Writing the HRM Plan Determine HR needs The first part of an HR plan will consist of determining how many people are needed. This step involves looking at company operations over the last year and asking a lot of questions: 1. Were enough people hired? 2. Did you have to scramble to hire people at the last minute? 3. What are the skills your current employees possess? 4. What skills do your employees need to gain to keep up with technology? 5.Who is retiring soon? Do you have someone to replace them? 6.What are the sales forecasts? How might this affect your hiring? Recruit & select, determine compensation, Knowing how many people to hire, what skills they should possess, and hiring them when the time is right are major challenges in the area of recruiting. Hiring individuals who have not only the skills to do the job but also the attitude, personality, and fit can be the biggest challenge in recruiting. Time to review résumés, time to interview candidates, interview expenses for candidates, possible travel expenses for new hire or recruiter, possible relocation expenses for new hire, additional bookkeeping, payroll, insurances, costs related to lack of productivity while new employee gets up to speed Because it is so expensive to hire, it is important to do it right. Pay systems must be developed that motivate employees and embody fairness to everyone working at the organization. However, organizations cannot offer every benefit and perk because budgets always have constraints. The organization life cycle can determine the pay strategy for the organization. The supply and demand of those skills in the market, economy, region, or area. Develop training 1.Company culture is the organization’s way of doing things. Every company does things a bit differently, and by understanding the corporate culture, the employee will be set up for success. 2.Skills needed for the job. If you work for a retail store, your employees need to know how to use the register. If you have sales staff, they need to have product knowledge to do the job. If your company uses particular software, training is needed in this area. 3.Human relations skills. These are non-job-specific skills your employees need not only to do their jobs but also to make them all- around successful employees. Skills needed include communication skills. Performance Appraisal 1. Employee appraisal 2. Performance review 3. 360 review 4. Career development review Strategic review sequence