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Vision of Strategic Human Resource Management

Strategic human resource management is concerned with linking human resource management with organizational strategic goals and objectives to improve business performance. It involves closely aligning individual actions with organizational objectives. There are several models of strategic HRM, including the 5-P model, environmental model, matching model, and resource-based view model. These models emphasize linking HR strategies with business strategies considering environmental factors. Strategic HRM operates at three levels - aligning HR strategies, integrating HR functions, and making HR a part of overall strategic management.

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Zulqarnain Asab
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50 views

Vision of Strategic Human Resource Management

Strategic human resource management is concerned with linking human resource management with organizational strategic goals and objectives to improve business performance. It involves closely aligning individual actions with organizational objectives. There are several models of strategic HRM, including the 5-P model, environmental model, matching model, and resource-based view model. These models emphasize linking HR strategies with business strategies considering environmental factors. Strategic HRM operates at three levels - aligning HR strategies, integrating HR functions, and making HR a part of overall strategic management.

Uploaded by

Zulqarnain Asab
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online on Scribd
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Vision of Strategic Human Resource Management.

We are in one of those great historical periods that occur every 200 to 300 years when people dont understand the world anymore, when the past is not sufficient to explain the future Peter F. Drucker

Try not to become a man of success but rather to become a man of value Albert Einstein

Definitions
Section-B Strategic human resource management is the linking of human resource management with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Truss & Gratton:1994

Definitions
Strategic Human Resource Management is concerned with all those activities affecting the behavior of individuals in their effort to formulate and implement the strategic needs of the business Schuler: 1992

To leverage its people, the corporations must integrate human resource management into its business strategy aligning individual action to organizational objectives as the new mandate. Peter F. Drucker

Concepts and perspectives on Strategic HRM Introduction:


The concept of strategic HRM is of very recent origin of 1990s. The concept is gaining momentum due to strategic importance of human resources- the way they are managed, developed, integrated, engaged, retained and utilized to gain corporate competitive advantage.

Business organizations exist in a extremely competitive environment with scarce resources, managing those resources ( physical, organized, information and human) effectively gives the organization a distinctive competitive advantage. The term strategic HRM can be divided as: Strategic HRM= Strategic + HRM Strategic means dividing a comprehensive decision plans that sets critical direction for an organization and guide the allocation of resources.

Features/Characteristics of strategic HRM


A long-term focus
Strategic human resource management has long-term focus, more than a year, as the business strategies itself are long-term oriented.

Linkage between human resource and strategy process


Strategic human resource management involves closely linking human resource outcomes to organizational outcomes for excellence. Excellence in the development of specific skills ( ideas, inventions and innovations) to create superior organizational performance.

Effective performance
Strategic human resource managements policies, produces organizational performance benefits, which are measureable and quantifiable. This facilitates initiation of corrective measures to fill-up gaps, if any.

Foster Corporate Excellence Skills


Strategic HRM facilitates learning of new age skills of:
a) Creative insight
identify opportunities and finding solutions

b) Sensitivity
Increasing sensitivity to organization culture.

c) Vision
Developing clear vision for creating future.

d) Versatility
Adopting change and pursuing difficult skills.

Foster Corporate Excellence Skills


e) Focus
Implementing successful and long lasting change and harmonizing strategy and change.

f) Patience
Committing to long-term perspectives of the organization.

Framework of strategic HRM


HR Practices HR Behaviors
HR Outcomes, organization

Context
(Structure, business Strategies, culture, technology, industry

Framework of strategic HRM


a) Human Resource Practices/strategies Employee influence Human Resource flow Reward systems Work systems

b) Human Resource Behavior


Commitment Competence Workforce characteristics Management philosophy Human Resource market Social values

c) Outcomes
Individual well-being Organizational effectiveness Societal well-being Corporate well-being

Models of Strategic HRM


1. 2. 3. 4. The 5-P Model The environmental Model The Matching Model The Resource Based View Model

The 5-P Model


Schuler (1992) developed a 5-P model of strategic HRM, which moulds various human resource activities with strategic needs. Strategic needs represent the overall corporate plan for survival, growth, adaptability, and profitability.

The 5-P Model


HR Philosophy
Express how treat and value people

HR Policies

Establishes guidelines for action on people related business issues and HR programs Co-ordinate efforts to facilitates change to address major HR related business issues

HR Programs

Motivates needed role behavior

HR Practices
Define how these activities are carried out

HR Processes

The environmental Model


Human Resource Strategy

Environmental Influences

Business strategy

The environmental Model


Bamberger and phillips (1991) devised this model which links between three poles:
The Environment, Human Resource Strategy Business strategy

The environmental Model


The organizations has to evolve a sustainable competitive advantage which the rivals cannot duplicate by: Coming up with something very rarer or hard to copy Improving so fast that the rivals cannot catch up

The environmental Model


Schuler & Jackson (1987) gave three competitive advantage strategies that the organization use for competitive advantage:

1. Innovation strategy
The primary focus is to develop products or services different from those of competitors or offering something new and different.

The environmental Model


2. Quality Enhancement strategy
The primary focus is on enhancing the quantity of products and/or services through more human resources involvement and flexible work process.

3. Cost reduction strategy


The primary focus is to become the lowest cost producer by attracting and retaining highly motivated employees through right human resource practices.

The Matching Model


This model was devised by Boxall (1992). This model emphasize that human resources systems and organizations structure should be managed in a way that is congruent with organizational strategy.

The Matching Model


political forces

Economy forces

Mission & Strategy

Cultural forces

Organization HRM Organizational Structure

The Resource Based View Model


This Model was devised by Barney (1991). This model emphasizes that all assets, capabilities, organizational processes, organizational attributes, information, knowledge, etc as controlled by on organization that unable the organization to conceive of and implement strategies that improve its efficiency and effectiveness.

The Resource Based View Model


Organizations resources can be classified into four categories:
1. Financial capital resources
Money from Entrepreneurs, shareholders, banks, retained earnings.

2. Physical capital resources


Plant, Equipment, technology geographical location, access to raw material.

1. Human capital resources


Training, experience, judgment, intelligence of individuals.

1. Organizational capital resources


Reporting structure, planning, controlling and coordinating system, culture informal relations with the organization and with other organizations.

Pfeiffer (1994) has given 16 human resources practices for competitive advantage through people: 1. Employment security 2. Selectivity in recruiting 3. High wage 4. Incentive pay 5. Employee ownership

6. Information sharing 7. Participation and empowerment 8. Teams and job redesign 9. Training and skill development 10. Symbolic egalitarianism 11. Wage compression 12. Promotion from within

13. Long-term perspective 14. Measurement of practices 15. Overarching philosophy 16. Cross utilization and cross training

Three levels of strategic HRM


HRM as part of strategic Management

Vertical integration

Organization

Human Resource Strategies

HRM function

Horizontal integration

Strategic Management of single HRM areas

HR Sub functions

Selection, Appraisal, Reward, Development

Three levels of strategic HRM


The first step is to select, retain, develop and utilize competent human resource. Then, the organizations shall practices a relevant human resources policies and practices in line with human resource strategy so that human resources and human resources strategies are perfectly aligned in the desired direction.

Three levels of strategic HRM


Then human resources strategies to be fit with organizational strategic management process so that the organization can achieve competitive advantage in its industry.

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