Human Resources Management Techniques I PDF

Human Resources Professor: Zulema Nacimiento, PhD. University of Huelva Management UNIT 0-3 Tecnhiques I  Human Resources Management THE MANAGEMENT OF HUMAN RESOURCES AND TH...

Human Resources Professor: Zulema Nacimiento, PhD. University of Huelva Management UNIT 0-3 Tecnhiques I  Human Resources Management THE MANAGEMENT OF HUMAN RESOURCES AND THE BUSINESS STRATEGY: THE STRATEGIC APPROACH.  What is strategy? ?? The strategy of the organization is… As you know, the organization is an open system  What is strategy? ?? The strategy an organization follows is its proposition for how to compete successfully and thereby survive and grow.  What is strategy? !! Strategy, exists in all organizations (even if it’s not written down and articulated) and defines the organisation’s behaviour and how it attempts to cope with its environment.  HR -> Sustainable value creation Most organisations today recognise that people are fundamental to sustainable value creation, which is why they are often referred to as a business’ ‘most important asset’. The idea of ‘human capital’ is important here.  HR -> Sustainable value creation Employees’ knowledge, skills and abilities are assets the organisation should invest in and use to create sustainable value for the organisation and its various stakeholders. An organisation's intangible value relating to its employees is gaining recognition among accountants and investors and its implications for long-term sustained performance are now generally accepted.  Strategic HRM The idea of strategic HRM started around the early 1990s, when academics developed definitions such as: q The undertaking of all those activities affecting the behavior of individuals in their efforts to formulate and implement the strategic needs of business (Schuler). q The pattern of planned human resource deployments and activities intended to enable the organization to achieve its goals (Wright and McMahan).  Within the organization: Being strategic means ‘having a significant impact’ on the most important aspects of an organisation–> the corporate goals and objectives. And nowadays… ü The word strategic is overused by executives to be recognized ü Strategically does not necessarily mean that HR is engaged strategically or has acquired a strategic mindset ü Strategic became somewhat “fashionable” ü There are challenges and difficulties in “knowing” what strategic means for HR. In the HR field, been STRATEGIC involves: 1. People not only need to be connected to their job but to each other and their organization: ü it goes beyond the statement “People are an organization's most important asset” ü it links the acquisition and development of key human resource capabilities and applies these to strategically important organizational objectives ü it means not just creating capabilities but also requiring that they are used. In the HR field, been STRATEGIC involves: 2. An organisations success is the product of its people competence. That link between people and performance should be made visible and available to all stakeholders. ü A genuine problem of utilizing its human resources to their full potential remains a key part of the answer as to why organizations fail to achieve long-term success. In the field of HR, being strategic involves: 3. Under what conditions and as a result of what HR strategies do individual and organizational performance move to a sustainably higher level? ü It has to be recognized that there is never likely to be a single strategic “lever” that can transform HR’s status.  The levers suggested: There are, at least, five broad approaches from different authors: 1. Focus on talent and develop HR strategies based on differentiation and segmentation. 2. Focus on building an organizational culture that supports high-performance working, increased levels of employee engagement and functional flexibility.  The levers suggested: 3. Focus on creating synergies by increasing the level of integration between different HR activities and between these and the business. 4. Change the HR architecture and the nature of the HR discourse and develop new HR models that transform the function into one that can be seen as strategic by key stakeholders. 5. Develop a range of metrics/HR analytics that show changes in key financial and performance indicators in strategically important relationships.  Summary The corporate strategy outlines how to compete successfully within its sector. Every organization has a strategy, even if it is not documented or formalized. Being strategic means impacting the organisation’s key goals and objectives.  Summary Being strategic is not only about individuals but also about connection and interaction between employees and the organisation. An ongoing issue in fully utilising human resources remains a key reason why organisations fail to achieve long-term success. The levers suggested involve five broad approaches.