Introduction To Strategic Human Resource Management

Introduction to Strategic Human
Resource Management.
“We are in one of those great historical
periods that occur every 200 to 300 years
when people don’t 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 management’s 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 Outcomes,
HR Practices HR Behaviors 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. The 5-P Model
2. The environmental Model
3. The Matching Model
4. 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
Establishes guidelines for action on

HR Policies people related business issues and
HR programs
Co-ordinate efforts to facilitates

change to address major HR related
HR Programs business issues
Motivates needed role behavior

HR Practices
Define how these activities are

HR Processes carried out
The environmental Model
Human Resource Strategy
Environmental Influences Business strategy

Bamberger and phillips (1991) devised this
model which links between three poles:
• The Environment,
• Human Resource Strategy
• Business strategy
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
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.
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
Mission &
Strategy
Economy forces
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
Organization’s 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

Horizontal integration
HRM function
Strategic Management of single

HRM areas Selection, Appraisal,
Reward, Development
HR Sub functions
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.
Then human resources strategies to be fit
with organizational strategic management
process so that the organization can
achieve competitive advantage in its
industry.

Introduction To Strategic Human Resource Management

Uploaded by

Copyright:

Available Formats

Introduction To Strategic Human Resource Management

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction To Strategic Human Resource Management

Uploaded by

Copyright:

Available Formats

Introduction to Strategic Human

The term strategic HRM can be divided as:

Strategic HRM= Strategic + HRM

Strategic means dividing a comprehensive decision

Strategic HRM facilitates learning of new

HR Philosophy Express how treat and value people

Establishes guidelines for action on

Co-ordinate efforts to facilitates

Motivates needed role behavior

Define how these activities are

Human Resource Strategy

Environmental Influences Business strategy

Organization’s resources can be

1. Organizational capital resources

Human Resource Strategies

Strategic Management of single

You might also like