Strategic Human Resource Management PDF

Strategic Human Resource Management MODULE II and IV HRM 112  01 Definition of Strategic HRM 02 Conceptual Basis of HRM Presentation 03 Concepts of Strategic HRM Perspectives on Strategic Outline 04 HRM Best f...

Strategic Human Resource Management MODULE II and IV HRM 112  01 Definition of Strategic HRM 02 Conceptual Basis of HRM Presentation 03 Concepts of Strategic HRM Perspectives on Strategic Outline 04 HRM Best fit vs best practice 05 approach 06 HR Strategies Strategic HRM An approach to the development and implementation of HR strategies that are integrated with business strategies and support their achievement Armstrong & Taylor, 2014 Strategic HRM The interface between HRM and strategic management. It takes the notion of HRM as a strategic, integrated and coherent approach and develops that in line with the concept of strategic management. Boxall, 1996 Strategic HRM linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims Dessler (2005) LINK BETWEEN ORGANIZATIONAL STRATEGY AND HR STRATEGY Source: Dessler, G. (2005). Human Resource Management. Prentice Hall Inc  GC ORGANIZATIONAL STRATEGY LINKED TO GC HR STRATEGY PESTLE ANALYSIS Political - new administration, govt - increase students STRATEGIC PLAN support - stricter admission Economic - recession - accreditation Sociocultural - expectations of - open new programs higher education, equity - internationalize Technological - new products Legal - UAQTEA, data privacy, ORGANIZATIONAL Environmental - pandemic GC PERFORMANCE SWOT ANALYSIS strategic Situation Strengths - qualified faculty, LMS, better organizational free education, stronger ICT infra, -recruitment performance high caliber students, high - training and (accomplish vision to enrollment development become the premier Weaknesses - no building/small - compensation higher education campus - rewards institution in region 3 Opportunities - open new programs? HR STRATEGIES - talent management by 2025) accept more students, scholarships - performance management for faculty Threats - pandemic, competitors Conceptual Strategy The approach or the course of Basis of SHRM action chosen to attain specific future goals a course of action the organization's long term plan for how it will balance its external strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage Two critical elements of strategies Strategic objectives (what the strategy is designed to accomplish) A plan of action ( the means by which it is proposed that the objectives will be met). Charactertistics of strategy It is forward looking. It recognizes that the organizational capability of a firm (its capacity to function effectively) depends on its resource capability (the quality and quantity of its resources and their potential to deliver results). It aims to achieve strategic fit.  Strategic management Strategic management is best defined as a process. It is the process of strategy making, of forming and, if the firm survives, reforming its strategy over time (Boxall & Purcell, 2003) Understanding the strategic position of an organization, making strategic choices for Conceptual the future, and turning strategy into action (Johnson, 2005) Basis of SHRM Fundamental aim of SHRM The fundamental aim of strategic HRM is to generate organizational capability by ensuring that the organization has the skilled, engaged, committed and well-motivated employees it needs to achieve sustained competitive advantage. Fundamental aim of SHRM Achieve integration (the vertical alignment of HR strategies with business strategies and the horizontal integration of HR strategies) 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 employees can be met by the development and implementation of coherent and practical HR policies and programs Contribute to the formulation of business strategy by drawing attention to ways in which the business can capitalize on the advantages provided by the strengths of its human resources Resource-based view of SHRM It is the range of resources in an organization, including its human resources, that produces its unique character and creates competitive advantage. Emphasizes that investment in people increases their value to the firm. Proposes that sustainable competitive advantage is attained when the firm has a human resource pool that cannot be imitated or substituted by its rivals. Competitive advantage (Barney, 1991) ‘a firm is said to have a competitive advantage when it is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy’. This will happen if their resources are valuable, rare, inimitable and non-substitutable. Strategic fit Stresses that when developing HR strategies it is necessary to achieve congruence between them and the organization’s business strategies within the context of its external and internal environment. vertical strategic fit (linking of HRM practices with the strategic management processes of the organization) horizontal strategic fit (congruence among HRM practices)  PERSPECTIVES ON SHRM UNIVERSALISTIC CONTINGENCY CONFIGURATIONAL PERSPECTIVE PERSPECTIVE PERSPECTIVE Some HR practices are To be effective, an This is a holistic approach better than others and all organization’s HR policies that emphasizes the organizations should must be consistent with importance of the pattern of adopt these best other aspects of the HR practices and is practices. There is a organization. The primary concerned with how this universal relationship contingency factor is the pattern of independent between individual ‘best’ organization’s strategy variables is related to the practices and firm (vertical fit). dependent variable of performance. organizational performance. Best-Practice Model This strategy is based on the notion that there is a set of best HRM practices that must be followed to get superior organizational results. Pfeffer (1994) outlined the following best practices: employment security; selective hiring; self-managed teams; high compensation contingent on performance; training to provide a skilled and motivated workforce; reduction of status differentials; sharing information. Best Fit Model It underlines the importance of aligning HR initiatives with the organization's context and circumstances. The term 'best fit' refers to the vertical integration or alignment of an organization's business and HR goals. Three models: life cycle model competitive strategy strategic configuration Life cycle model Based on the idea that a company's development is divided into four stages: start-up, growth, maturity, and decline Main points: A company's development is divided into four stages: start-up, growth, maturity, and decline As the organization grows and develops, human resource management programs, practices and procedures must change to meet its needs. Image source: https://www.istockphoto.com/photos/product-life-cycle HRM develops through a series of stages as the organization becomes more complex. Best fit and competitive strategies Three strategies aimed at gaining a competitive advantage (Porter, 1985) innovation – being the unique producer quality – delivering high-quality goods and services to customers cost leadership – the planned result of policies aimed at ‘managing away’ expense. Strategic configuration Prospectors Asserts that businesses will be more effective if they adopt a strategic configuration policy (Delery & Doty, Defenders 1996). Match strategy to one of the ideal Analyzers types defined by theories such as those produced by Miles and Snow (1978). Reactors  Operate in an environment characterized by rapid and unpredictable changes Prospectors Innovators and developers Operate in a more stable and predictable environment than prospectors and Defenders engage in more long-term planning Often are in a mature where less chance to innovate, so seek profits or revenue Operate in stable environments, like defenders, and also in markets where new products are constantly required, like prospectors. Analyzers Are large corporations, often market leaders that build on others' innovations and develop new products Unstable organizations existing in what they believe to be an unpredictable environment Reactors Lack consistent well-articulated strategies and do not undertake long-range planning. Have no specific approach but just reacts to market changes Bundling The process of combining the development and implementation of numerous HR practices such that they are interconnected and so complement and support one another (horizontal integration or the application of "complementarities”).  Human Resource Strategies Define what the company aims to do with its human resource management policies and procedures, as well as how they should be integrated with the company's overall strategy and with one another. HR strategies are intended to help the organization achieve its objectives by fulfilling the demands of the organization as well its human resources. General HR Strategies The total system or bundle of complementary HR practices that the organization proposes to adopt or implement to improve organizational performance is referred to as general strategies. Specific HR Strategies Set out what the organization intends to do General HR Strategies High performance management This strategy aims to improve the organization's performance in areas like productivity, quality, customer service, growth, and profits by implementing high- performance work systems (HPWS) HPWS are bundles of practices that enhance employee performance and facilitate their engagement, motivation, and skill enhancement. General HR Strategies High performance work systems practices rigorous recruitment and selection procedures extensive and relevant training and management development activities incentive pay systems performance management processes. General HR Strategies High commitment management ‘A form of management which is aimed at eliciting a commitment so that behavior is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust.’ (Wood, 1996) Examples: improved employee development communications disciplinary practices General HR Strategies High involvement management Focus on employee decision-making, power, access to information, training and incentives.’ (Benson et.al, 2006) Examples: job enrichment (expanding job content to create more opportunities for job satisfaction) team-based organizations (opportunities to participate in making decisions about the completion of work and at the same time, assume greater responsibilities) Specific HR Strategies HUMAN CAPITAL MANAGEMENT KNOWLEDGE MANAGEMENT CORPORATE SOCIAL RESPONSIBILITY Obtaining, analyzing and reporting on Creating, acquiring, capturing, sharing and Commitment to managing the business data that informs the direction of value- using knowledge to enhance learning and ethically to make a positive impact on adding, people management, strategic, performance. society and the environment. investment and operational decisions. EMPLOYEE ENGAGEMENT ORGANIZATION DEVELOPMENT EMPLOYEE RESOURCING Development and implementation of Planning and implementation of programs Attracting and retaining high-quality policies designed to increase the level of designed to enhance the effectiveness people. employees’ engagement with their work with which an organization functions and and the organization. responds to change. TALENT MANAGEMENT LEARNING AND DEVELOPMENT EMPLOYEE WELL-BEING How the organization ensures that it has Providing an environment in which Meeting the needs of employees for the talented people it needs to achieve employees are encouraged to learn and a healthy, safe and supportive work success. develop. environment EMPLOYEE RELATIONS REWARD Defining the intentions of the organization about what needs to Defining what the organization wants to do in the longer term to be done and what needs to be changed in the ways in which the develop and implement reward policies, practices and processes organization manages its relationships with employees and that will further the achievement of its business goals and meet their trade unions. the needs of its stakeholders. Criteria for an effective HR Strategy An effective HR strategy is one that works in the sense that it achieves what it sets out to achieve. will satisfy business needs; is founded on detailed analysis and study and is evidence-based it is not just wishful thinking; can be turned into actionable programs that anticipate implementation requirements and problems is coherent and integrated, being composed of components that fit with and support each other; takes account of the needs of line managers and employees generally as well as those of the organization and its other stakeholders Formulating HR Strategy Inside-out approach. This begins with the status quo HR function (in terms of skills, processes, technologies, etc.) and then attempts (with varying degrees of success) to identify linkages to the business (usually through focusing on ‘people issues’), making minor adjustments to HR activities along the way; Outside-in approach. The starting point is the business and the customer, competitor and business issues it faces. The HR strategy then derives directly from these challenges to add real value. Formulating HR Strategy Source: https://www.researchgate.net/publication/37148361_Current_Approaches_to_HR_Strategies_In side-Out_vs_Outside-In Basic Model of How to Align HR Strategy and Actions with Business Strategy Source: Adapted from Garrett Walker and J. Randal MacDonald, ―Designing and Implementing an HR Scorecard,‖ Human Resources Management 40, no. 4 (2001), p. 370. Vision By 2025, the College envisions to be a premier local institution of higher learning in Region 3 committed to the holistic development of the human person and society. Mission To produce well-trained, skilled, dynamic, and competitive individuals imbued with values and attitudes responsive to the changing needs of the local, national and global communities. Goals Gordon College shall Provide opportunities that will enable individuals to acquire a high level of professional, technical and vocational courses of studies. Develop innovative programs, projects, and models of practice by undertaking functional and relevant research studies. Promote community development through relevant extension programs. Provide opportunities for employability and entrepreneurship of graduates Objectives To provide degree programs which are needed by the local, national and global communities within the standards set by Commission on Higher Education (CHED); To continuously evaluate educational programs to ensure high standard, quality and relevance in delivery of the intended outcomes; To develop research in different disciplines to improve existing knowledge and practices; To provide extension programs to sustain the greater impact of the college to the community; To integrate moral principles/ standards in the curriculum to strengthen the moral responsibilities of the lifelong learners; To strengthen the institution-industry collaboration/partnership to ensure graduates’ employability and entrepreneurship; To increase the national passing percentage for board courses and national qualification. Human Resource Competencies Instruction - knowledge of content, instructional skills, communication skills, teaching for independent learning, management of learning, flexible learning modality Research - data collection, research question formulation, data analysis etc. Extension - communication, continuous learning, customer service, diversity, flexibility, interpersonal relationships HR Strategic Policies and Initiatives 1. Open more plantilla positions to ensure that talented faculty are hired and retained. 2. Strengthen training and development in the areas of instruction, research and extension. 3. Provide more incentives for research and extension outputs. 4. Create a career partnership program to motivate employees across their career. HR Scorecard Measures 1. 3o % of the total full time faculty population have permanent appointment 2. 30% of the faculty population has undergone professional training and seminars 3. Each faculty, regardless of employment status have at least one (1) planned training per semester. 4. Institutionalization of a rewards and recognition program for research and extension. 5. Institutionalization of a career partnership program.  End of presentation. Thank you. References Armstrong, M. (2008). Strategic Human Resource Management. Kogan Page Limited Armstrong, M. & Taylor, S. (2014). Handbook of Human Resource Management. Kogan Page Limited Dessler, G. (2005). Human Resource Management. Prentice Hall Inc