Strategic HRM (3).pptx

Human Resource Management Strategic HRM Strategy Defined What is strategy? https://www.youtube.com/ watch?v=TD7WSLeQtVw Strategy Formulation  Strategic HRM Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means...

Human Resource Management Strategic HRM Strategy Defined What is strategy? https://www.youtube.com/ watch?v=TD7WSLeQtVw Strategy Formulation  Strategic HRM Strategic HRM is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Adopted from: Armstrong M. (2004; 33) Strategic HRM is concerned with ‘seeing the people of the Strategic HRM The central premise of strategic human resource management theory isthat successful organizational performance depends on a close fit or alignment between business and human resource strategy’ (Batt, 2007).. HRM takes the lead in assisting management with the “people” AIMS OF SHRM Generate strategic capabilities by ensuring that the organization has skilled, committed & well motivated employees Integrate with the organizational strategy Provide a sense of direction in an often turbulent environment so that the business needs of the organization and the individual and the collective needs of its Strategic HRM Different organizational strategies call for tailor-made HR strategies. i. Cost differentiation Strategy : Provide great value at low cost. Emphasizes on acquiring materials at low cost, streamlining processes, minimizing wastes, Strategic HRM HR implications; Jobs & departments are structured to maximize cross training and knowledge sharing Compensation programs designed to reward savings , cost savings Employees are selected on the Strategic HRM ii) Product differentiation: Product/service is similar to competitors but incorporates a feature(s) that differentiates it. Emphasis on creativity and innovation as consumers are faced with multiple choices. Identify features that make the product/service stand out e.g. Android phones, food Strategic HRM HR implications; Compensation systems reward creativity, innovation. Need to educate employees about product/ service differentiating features. Creation of marketing campaign to promote special product features Strategic HRM ii) Customer intimacy: Strong personal relationship between provider of product/service and customer. Emphasize relationship between consumers and point person. Personalized service differentiates the Strategic HRM HR implications; Recruit and select job candidates with strong customer service and customer relations skills to help fortify the provider/consumer relationship. Strategic HRM iv) Customer / Market focus: Unique target market characteristics. Emphasize the needs of a specific target market, such as generational or lifestyle (e.g., luxury cars) Strategic HRM HR implications; Use market research to drive recruitment and selection so employees have a strong understanding of the target market. Emphasize versatility and adaptability as products and services are subject to rapid change.  https://www.youtube.com/watch? v=eHWDm0hgPPI DELIVERY OF THE HR STRATEGY The framework for delivering HRM is provided by the HR architecture of an organization, which consists of the following as adopted by the HR function; HR systems (strategy & policies) HR practices HR delivery model adopted by the HR function. Thus each organization decides the model to use How does the HR function Deliver? The provision of advice and services relating to human resource management is the responsibility of the HR function The delivery of HRM is up to line managers who put HR Strategies /policies into practice. There are various models in which HR can use to deliver the HR Strategy HR Models in organizations Models help explain the role of HR in organization's and how the HR department operates. Examples include; Harvard's framework for HR management. Line managers are responsible for the alignment of a competitive strategy and HR Strategi Org. effectiveness c How does the HR Engage Aligning HR & Business Strategies Function deliver? ment Engagement, reward, HR Tools development e.t.c Foundat Pay , rations, recruitment ional