Managing persons in organizations

Chapter # 2

STRATEGIC HUMAN RESOURCE MANAGEMENT

By: Saba Gulzar

STRATEGIC HRM DEFINED

Strategic HRM is the process of defining how the organizations goals will be achieved through people by means of HR strategies and integrated HR policies and practices.

MODEL OF STRATEGIC HRM

Strategic HRM

Strategic management strategic role of HR

HR strategies overall/specific

Strategic choice

Strategic analysis

SO WHAT IS THE STRATEGIC ROLE OF HR SPECIALISTS?

SEVEN STEPS TO BEING STRATEGIC

Practice evidenceMake based convincing business management case for innovation

Aware of business context

Understand the business

Appreciate how HR can add value

See the big picture

Act as change agent

HR STRATEGY AREAS

Overall: performance; engagement; the big idea; human capital advantage; HRM process advantage

Specific: organization development; corporate social responsibility; resourcing; talent management; learning and development; employee reward; employee relations; employee well-being.

EXAMPLES OF OVERALL HR STRATEGIES

The only HR strategy you really need is the tangible expression of values and the implementation of values. West Water

We want GSK to be a place where the best people do their best work. GlaxoSmithKline

Stimulate changes on a broad front aimed at achieving competitive advantage through people. Pilkington Optronics

Maintain competitive advantage by continuing to attract very high calibre people. Boots

A strong focus on the overall effectiveness of the organization, its direction and how it's performing. There is commitment to, belief in, and respect for individuals. New Forest Council

Staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers. Lands End

BALANCED SCORECARD IN AN INTERNATIONAL CHARITY

Organizational effectiveness perspective: programme development programme delivery process development and management cost-effectiveness

Financial perspective: income growth enlistment and retention of supporters costincome ratio People perspective: leadership behaviour talent management learning and development employee satisfaction a great place to work

Stakeholder perspective: impact on clients relationships with key funding agencies and supporters development of brand influence

HIGH-PERFORMANCE STRATEGY: CORPORATION

Clear line of sight between strategic aims of the Corporation and its staff. Management sets goals for success and monitors performance. Leadership from the top and at all levels of management. Focus on promoting engagement and commitment.

Performance management processes aligned to Corporation objectives.

Capacities of people enhanced by comprehensive learning and development programmes. People valued and rewarded according to their contribution.

CRITERIA FOR HR STRATEGIES

Aligned to corporate goals. Set out clear aims.

Supported by business case.

Take account of individual as well as business needs. Contain realistic and achievable plans for implementation.

CONDUCTING A STRATEGIC REVIEW

1. Analysis

Involve senior management and line managers

2. Diagnosis

3. Conclusions and recommendations

Involve employees and their representatives

4. Action planning

HR STRATEGY GOALS: HOW DO THEY RATE?

Possible HR strategic objectives Support the achievement of organizational goals Meet the needs of employees Develop a high-performance culture Ensure that the organization is seen as a great place to work Increase engagement and commitment Recruit and retain talented people Develop talented people Reward people according to their contribution Provide employees with a voice Provide a good working environment Other (specify) Importance* Effectiveness*

* Scale: 10 = high, 0 = low

STRATEGIC HRM GAP ANALYSIS

What are the current and desired SHRM characteristics in your organization?
1 Effective high performance work system in place Integrated talent management programmes are operating effectively Sophisticated techniques are used to recruit employees 2 3 4 5 6 7 No attempt made to encourage high performance

Talent management is haphazard or ineffective A traditional approach is adopted with regard to sourcing recruits and selecting applicants

Focus on using blended learning and development processes

A total reward approach is used effectively Employees given a voice on all matters that concern them

Reliance on the delivery of traditional training courses

Reward programmes limited to financial rewards Only lip service is paid to employee participation and involvement

High quality HR practices Mark on the scale: X for current, O for desired eg

Poor quality HR practices

STRATEGIC HRM GUIDELINES

Be clear on what has to be achieved and why. Ensure that what you do fits the business strategy, culture and circumstances of the organization. Aim for continuous improvement evolution not revolution. Dont follow fashion do your own thing. Keep it simple over-complexity is a common reason for failure. Dont rush it takes longer than you think. Assess resource requirements and costs. Manage change involve, communicate and train.

HR POLICIES AND PROCEDURES

OVERALL HR POLICY

The overall HR policy defines how the organization fulfils its social responsibilities for its employees.

REQUIREMENTS FOR HR POLICIES AND PROCEDURES

HR policies and procedures are required to ensure that human resource management issues are dealt with consistently in line with the values of the organization on how people should be treated, and that legal requirements are met.

DISTINCTION BETWEEN HR POLICIES AND PROCEDURES

A policy provides continuing guidelines and generalized guidance on how HR issues should be dealt with to ensure that an appropriate approach is adopted throughout the organization. A procedure spells out precisely what steps should be taken to deal with major employment issues such as grievances, discipline, capability and redundancy.

HR POLICY VALUE HEADINGS

Equity. Consideration. Respect. Organizational learning. Performance through people. Quality of working life. Working conditions.

SPECIFIC HR POLICIES
Specific HR policies cover: age and employment; Work life Balance; bullying; discipline; e-mails and the internet; employee development; employee relations; employee voice; employment; equal opportunity;

grievances; health and safety; managing diversity; promotion; redundancy; reward; sexual harassment; substance abuse;

HR PROCEDURES

HR procedures set out the ways in which certain actions concerning people should be carried out by the management or individual managers. In effect they constitute a formalized approach to dealing with specific matters of policy and practice. The main procedures are: discipline, capability and redundancy.