Strategic Human Resource Management

Strategic

hrm

STRATEGIC HRM

Strategic HRM is about how the employment relationships for all employees can be managed in such a way as to contribute optimally to the organization’s goal achievement.

STRATEGIC HRM

Managerial Process requiring HR Policies & Practices to be linked with the Strategic Objectives of the Company

HR Systems & Organizational structure is managed in a way that is congruent with organizational strategy

Matching Model

•Linking HR Policies & Practices with SMP •Internalization of HR function •Commitment of Workforce to strategic Goals

5 P‟s of HR Strategy

Philosophy Policies Programmes Practices Process

Philosophy

•Set of Views & Theories followed or advocated •Distinguishing Value followed in an Organization •Core belief followed by Employees •Mostly derived from Founders/Leaders •If Changed, may change the Character of an ORG

Jindal Steel Philosophy The Company embraces certain core values in order to function ethically, effectively and prosper further r: •Individual: Recognize each individual's contribution in the growth and development of the Company. •Integrity: Conduct all business dealings along transparent lines.

•Meritocracy: Foster an environment of excellence in performance . •Dynamic Thinking: Demonstrate a winner's attitude, with a clear focus to deliver sustained values for all stakeholders. •Creativity & Innovation: Encourage creative experimentation, embrace new ideas. •Social Responsibility: Work on social and environmental issues

Policies Policies are broad general guidelines to action that establish boundaries within which employees must operate. Written & Communicated “answering all written customer complaints in writing within 10 days” „Our organization wont give any Bribe” „Recruitment Policy‟ Minimum Wages

Policies

No cost Reduction at the cost of the Quality

Policies

GE Must be number one or two wherever it competes

Policies

„No question Asked when customer return merchandise‟

Programme FedEx

A programme is a plan of action aimed at accomplishing a clear objectives with details on what work is to be done by whom, when & what means or resources will be used

1-13

Process

Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee ,time , energy, machines money) to convert inputs (data, materials, parts, etc.) into outputs

HR Process

•Recruitment Process •Selection Process •Probation Process •Training Process •Retrenchment Process •Appraisal Process •Promotion Process

HR Processes

•Human resource planning Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff. •Employee remuneration and Benefits Administration •Performance Management. •Employee Relations

Practice

The actual application or use of an idea or belief or method

•Courtesy •Reliability •Transparency •Fair Trading •24 hrs opening •Maintaining Hygiene

HR Strategy Models

Control Based Model Resource Based Model Integrative Model

HR Strategy Models Control Based Model---

Resource Based Model-

Management Monitor and control employees performance

interactive and behaviour improvement is tried

Integrative Model Integration of both Models

Competitive HR Strategies

Commitment HR Strategy

Collaborative HR Strategy

Paternalistic HR Strategy

Traditional HR Strategy

Competitive HR Strategies

Commitment HR Strategy

Internal Development of Employees Competencies and keeping Control over them

Competitive HR Strategies

Paternalistic HR Strategy

Giving Learning Opportunities to Employees, Internal Promotions for their compliance with process based control Mechanism

Competitive HR Strategies

Collaborative Strategy

Sub Contracting work to external independent experts. Evaluation in terms of End Results

Competitive HR Strategies

Traditional HR Strategy

External Recruitment of Competencies & Behavioural based Control

Competitive HR Strategies

Outcome

Process

Internal

External

Commitment HR Strategy

Collaborative Strategy

Paternalistic HR Strategy

Traditional HR Strategy

Need & Importance of Shrm

•Goals Attainment •Manpower Development •Organizational Development •Integration of SMP & Shrm •Team Development •Conducive Environment •Global Competitiveness •Retention of Manpower

Summary