STRATEGIC HUMAN CAPITAL MANAGEMENT

(MBL5909)

Name: Dr Takawira M. Ndofirepi

Date: 15 April 2024

Contact: [email protected]

1 1
 Introduction
• Purpose of and outcomes of the module

3 3
 Introduction (cont’d)

• Structure of the module

-Study Unit 1: Strategic Human Capital Management
-Study Unit 2:Complexities in Strategic Human Capital
Management
-Study Unit 3: Metrics for Strategic Human Capital
Management

3
 Introduction (cont’d)
Student assessment
• Assignment 01 (50% of year mark)
• Assignment 02 (50% of year mark)
Year mark(60% of final mark)

Examination
• (40% of final mark)

3 3
 Study unit 1:Strategic human capital
management
By the end of this lesson, students should:
• have a broad understanding of strategic human
capital management (SHCM) and be able to
contrast it to traditional human resource
management.
• know the essential elements of SHCM

3 3
 Business strategy
Meaning of strategy
“the direction and scope of an organisation over the long-term, which achieves
advantage for the organisation through its configuration of resources within a
challenging environment, to meet the needs of markets and to fulfil
stakeholder expectations.” (Johnson, Scholes and Wittington, 2005).
Chandler defines Strategy as “the determination of the basic long-term goals
of an enterprise, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals.”
Wheelen and Hunger (1995, p. 3) define strategic management as ‘that set of
managerial decisions and actions that determines the long-run performance of
a corporation’.
Hill and Jones (2001, p. 4) take a similar view when they define strateg as ‘an
action a company takes to attain superior performance’.

3 3
 The strategic management process model
1. mission and goals
2. environmental analysis
3. strategic formulation
4. strategy implementation
5. strategy evaluation.

3 3
 Business strategy and the HR element
• What is the link?

• Any implications?

3 3
Developments in strategic human resource
management

• Personnel management
• Human resources management
• Strategic human resources management

3 3
 Defining 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 (Armstrong, 2014).
• It was defined by Mabey et al.(1998: 25) as the
process of ‘developing corporate capability to
deliver new organizational strategies’.
• It is based on two key ideas, namely the
resource-based view and the need for strategic
fit.

3 3
 Aims of SHRM
According to Armstrong (2014), SHRM has three main objectives:
• to achieve integration of HR strategies with business strategies.

• To 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 programmes.

• to 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.

3 3
 Reflection question

• Why have academics and HR professionals

embraced SHRM? Is there a strong business
case for the strategic approach to HRM, or is it
more the case that academics and HR
professionals have embraced SHRM out of self-
interest? What do you think of these arguments?
• Think of your current organization in South Africa.
What challenges/considerations stand in the way
of the effective implementation of SHRM? What
are some of the possible solutions to these
hindrances?

3 3
 Traditional versus strategic HRM

• Focus and scope

• Role of HR
• Employee management
• Metrics and management
• Strategic alignment
• Employee Development

3 3
Human resources as assets: the investment
perspective

• The Evolving Value of Employees, and why?

3 3
The investment perspective: relevance to SA
• The Evolving Value of Employees
• Investing in people
• Return on Investment (ROI) in Human Capital

3 3
 Reflection question
Reflect on your own organization. How does it view
its employees? Are there opportunities to adopt a
more strategic investment perspective on human
capital management? What are the challenges to
adopting the investment perspective on people
management?

3 3
 Measurement as key to effective
management
• What is measurement?
• Why measure?
• Examples of measurement metrics in SHCM

17
 Reflection question
Think about potential metrics relevant to your
organization. How can you start measuring the
impact of HR practices to make a stronger case
for strategic human capital management?

18
 The modern organisation and its HR
implications
• Trends in modern organisations
• Implications for HR
• HR as a strategic partner

19
 African Perspectives on Strategic
Human Capital Management
• Uniqueness of the African organisation.
-cultural values
-Ubuntu
-Informal structures
• Is there a "typical" African organization?

20
 Moving beyond western models.

• Embrace Indigenous Knowledge and Practices

• Promote Local Leadership and Talent
Development
• Foster Collaborative Partnerships
• Adapt Technology to Local Needs
• Promote African Values and Ethics
• Advocate for Policy Reform and Economic
Empowerment
• Celebrate Diversity and Inclusion

21
 Reflection questions
Consider an organization you are familiar with.
Can you identify any African cultural influences
on its HR practices? How can SHCM be adapted
to better reflect the specific context of your
organization?

22
 Complexities in strategic human
capital management
Key concepts
• social responsibility and sustainability
• ethics in SHCM
• management of organisational culture
(specifically diversity)
• technology and the virtual space

23
Social responsibility and sustainability

• Balancing objectives
• Short term vs long term perspective
• Measurement and impact
• Integration and alignment
• Stakeholders expectations management
• Need for continuous improvement

24
 Ethics and SHCM
• Competing Priorities
• Transparency and Disclosure
• Global Considerations:
• Evolving Landscape
• Whistleblowing and Difficult Conversations

25
Management of organisational culture
(specifically diversity) and SHCM
Balancing Needs and Perspectives:
• Unconscious Bias
• Accommodating Diverse Values
• Generational Differences
• Global Workforce Management

26
 Technology and the virtual space and
the complexity of SHCM
• New Ways of Working
• Data Privacy and Security
• Technological Change and the Future of Work

27
THE END

Thank you!

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