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LECTURE 01Concept of SHRM
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Contents
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Strategic HRM DenedBasis of SHRMPrinciples of SHRMi!s of SHRM"#$ecti%es of SHRMConcepts of SHRMPerspecti%es of SHRM
Strategic Role of HRSHR S&ste!s #ased on E!plo&!ent Models
Contd.
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Contents 'Contd()
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Strategic %s( Traditional HRStrateg& Dri%en Role Be+a%iorsStrategic T&polog& of HR cti%itiesStrategic Sta,ng PoliciesBarriers to SHRMC+allenges to SHRM"-tco!es of SHRM
Model of SHRMLin.ing People /it+ t+e Strategic needs of
t+e B-siness T+e P Model
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Strategic HRM Dened
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Strategic HRM Dened
SHRM is concerned /it+ seeing t+e people of t+eorgani3ation as a strategic reso-rce for t+e ac+ie%e!ent ofco!petiti%e ad%antage
Hendr& and Pettigre/
set of processes and acti%ities $ointl& s+ared #& +-!an
reso-rces and line !anagers to sol%e peoplerelated#-siness pro#le!s
Sc+-ler and 4al.er
SHRM foc-ses on actions t+at di5erentiates t+e r! fro!its co!petitors( P-rcell
T+e central pre!ise of strategic +-!an reso-rce!anage!ent t+eor& is t+at s-ccessf-l organi3ationalperfor!ance depends on a close t or align!ent #et/een#-siness and +-!an reso-rce strateg&( Batt
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Strategic HRM Dened'Contd() SHRM is largel& a#o-t integration and adaptation( 7ts
concern is to ens-re t+at81( HRM is f-ll& integrated /it+ t+e strateg& and t+e strategic needs
of t+e r!
2( HR policies co+ere #ot+ across polic& areas and across +ierarc+ies
*( HR practices are ad$-sted 9 accepted and -sed #& line !anagersand e!plo&ees as part of t+eir e%er&da& /or.
SHRM is an approac+ t+at denes +o/ t+e organi3ations:goals /ill #e ac+ie%ed t+ro-g+ people #& !eans of HRstrategies and integrated HR policies and practices
Managing SHR incl-des8 ligning HR and B-siness Strateg& Reengineering "rgani3ation Processes Listening and responding to e!plo&ees Managing Transfor!ation and C+anges
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Basis of SHRM
;
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Basis of SHRM
T+ree propositions1( HR=HC pla& a strategic role in s-ccess of an
organi3ation and are a !a$or so-rce ofco!petiti%e ad%antage
2( HR strategies !-st #e integrated /it+ t+e#-siness plans '%ertical integration)
llen > 4+ite8 T+e central pre!ise of SHRM t+eor& is t+at s-ccessf-l
organi3ational perfor!ance depends on a close t or
align!ent #et/een #-siness and HR Strateg&Bo?ell et al8 T+e !a$or foc-s of SHRM s+o-ld #e aligning HR /it+ r!
strategies
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Basis of SHRM 'Contd()
T+ree propositions 'Contd()
*( 7ndi%id-al HR strategies s+o-ld co+ere #&#eing lin.ed to eac+ ot+er to pro%ide !-t-als-pport '+ori3ontal integration)
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Principles of SHRM
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Principles of SHRM
"ndrac. and Aininger8
1( T+ere is an o%erall p-rpose and t+e HRdi!ensions of t+at p-rpose are e%ident
2( process of de%eloping strateg& /it+in t+eorgani3ation e?ists and is -nderstood9 andt+ere is e?plicit consideration of HRdi!ensions
*( E5ecti%e lin.ages e?ist on a contin-ing #asis
to ens-re t+e integration of +-!an reso-rceconsiderations /it+ t+e organi3ationaldecision !a.ing process
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Principles of SHRM 'Contd()
"ndrac. and Aininger 'Contd()8 ( T+e o,ce of t+e c+ief e?ec-ti%e pro%ided t+e
c+allenge for integrating HR considerations to!eet t+e needs of t+e #-siness
( T+e organi3ation of all le%els esta#lis+esresponsi#ilit& and acco-nta#ilit& for HRM
6( 7nitiati%es in t+e !anage!ent of HR arerele%ant to t+e needs of t+e #-siness
;(7t incl-des t+e responsi#ilit& to identif& andinteract in t+e social9 political9 tec+nological andecono!ic en%iron!ents in /+ic+ t+eorgani3ation is and /ill #e doing #-siness
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i!s of SHRM
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i!s of SHRM
-nda!ental i! To generate strategic capa#ilit& #& ens-ring
t+at t+e organi3ation +as t+e s.illed9 engagedand /ell !oti%ated e!plo&ees it needs toac+ie%e s-stained co!petiti%e ad%antage
s per t+e reso-rce #ased %ie/9 t+e strategicgoal8
To create r!s /+ic+ are !ore intelligent ande?i#le t+an t+eir co!petitors9 #& +iring andde%eloping !ore talented sta5 and #&e?tending t+eir s.ills #ase
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i!s of SHRM 'Contd()
s per Sc+-ler8 SHRM is largel& a#o-t integration and
adaptation( 7ts concern is to ens-re t+at8 HRM is f-ll& integrated /it+ t+e strateg& and strategic
needs of t+e r!
HR policies co+ere #ot+ across polic& areas and across+ierarc+ies
HR policies are ad$-sted9 accepted and -sed #& line!anagers and e!plo&ees as part of t+eir e%er&da&/or.
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i!s of SHRM 'Contd()
s per D&er and Holder8 SHRM pro%ides -nif&ing fra!e/or. /+ic+ are at
once #road9 contingenc& #ased and integrati%e( T+e rationale for SHRM is t+e percei%ed
ad%antage of +a%ing an agreed and -nderstood#asis for de%eloping and i!ple!entingapproac+es to people !anage!ent t+at ta.e intoacco-nt t+e c+anging conte?t in /+ic+ t+e r!
operates and its longer ter! re-ire!entsLengnic.Hall8 Underl&ing t+is rationale in a
#-siness is t+e concept of ac+ie%ing co!petiti%ead%antage t+ro-g+ HRM
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i!s of SHRM 'Contd()
s per Store&8 Soft SHRM8 H-!an Relations
Contin-o-s de%elop!ent:Co!!-nication
7n%ol%e!ent
Sec-rit& of e!plo&!ent
4L
4or. life #alance
Hard SHRM8 Field to #e o#tained #& in%esting in Hr in t+e interest of
t+e #-siness
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i!s of SHRM 'Contd()
s per Store& 'Contd()8 SHRM /o-ld atte!pt to ac+ie%e #alance #=/
t+e +ard and t+e soft %ersions
Corporate Social Responsi#ilit&s t+e& dra/ reso-rces fro! t+e societ& and
!-st gi%e #ac. to t+e societ&
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"#$ecti%es of SHRM
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"#$ecti%es of SHRM
1( To identif& and anal&3e e?ternalopport-nities and t+reats t+at !a& #ecr-cial to t+e co!pan&Gs s-ccess(
2( To pro%ide a clear #-siness strateg& and%ision for t+e f-t-re(
*( To s-ppl& co!petiti%e intelligence t+at !a&#e -sef-l in t+e strategic planning process(
( To recr-it9 retain and !oti%ate people(( To de%elop and retain +ig+l& co!petent
people(
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"#$ecti%es of SHRM 'Contd()
6( To ens-re t+at people de%elop!ent iss-esare addressed s&ste!aticall&(
;( To s-ppl& infor!ation regarding t+e
co!pan&Gs internal strengt+s and/ea.nesses(
<( To !eet t+e e?pectations of t+e c-sto!erse5ecti%el&(
@( To ens-re +ig+ prod-cti%it&(10( To ens-re #-siness s-rpl-s t+oro-g+
co!petenc&
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Concepts of SHRM
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Concepts of SHRM
Reso-rce Based ie/De%eloped #& Penrose and e?panded #&
4ernerfeltBased on Ha!el and Pra+alad %ie/8 7t is t+e range of reso-rces in an organi3ation incl-ding its
HR9 t+at prod-ces its -ni-e c+aracter and createsco!petiti%e ad%antage
Ia& Barne&8 Co!petiti%e d%antage arises rst /+en r!s /it+in an
ind-str& are +eterogeneo-s /it+ respect to t+e strategicreso-rces t+e& control and second /+en t+ese reso-rcesare not perfectl& !o#ile across r!s and t+-s+eterogeneit& can #e long lasting(
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Concepts of SHRM 'Contd()
Reso-rce Based ie/ 'Contd() Ia& Barne& 'Contd()8 Creating s-stained co!petiti%e ad%antage t+erefore
depends on t+e -ni-e reso-rces and capa#ilities t+at ar! #rings to co!petition in its en%iron!ent( T+ese
reso-rces incl-de e?perience9 .no/ledge9 $-dg!ent9 ris.ta.ing propensit& and /isdo! of indi%id-als associated/it+ a r!
ttri#-tes re-ired #& a r! to create co!petiti%ead%antage8
1( al-a#le2( Rare
*( 7!perfectl& i!ita#le
( Aons-#stit-ta#le
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Concepts of SHRM 'Contd()
Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an Co!petiti%e ad%antage t+ro-g+ +-!an reso-rces
arises #eca-se8
1( T+ere is +eterogeneit& in t+eir a%aila#ilit& in t+e senseof t+e di5erences t+at e?ist #et/een t+e! across r!sin an ind-str& and
2( T+e& are i!!o#ile in t+e sense t+at co!peting r!s!a& #e -na#le to recr-it t+e!(
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Concepts of SHRM 'Contd()
Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an 'Contd() Criteria go%erning reso-rceGs a#ilit& to pro%ide
co!petiti%e ad%antage8
1( T+e reso-rce !-st add positive value to t+e r!
2( T+e reso-rce !-st #e unique or rare a!ongstc-rrent and potential co!petitors
*( T+e reso-rce !-st #e imperfectly imitable
( T+e reso-rce cannot be substituted /it+ anot+er
reso-rce #& co!peting r!s
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Concepts of SHRM 'Contd()
Reso-rce Based ie/ 'Contd() 4rig+t and McMa+an 'Contd() Bo?all and P-rcell8
Reso-rce #ased HRM can prod-ce HR d%antage( The
aim is to develop strategic capability. T+is !eansstrategic t #et/een reso-rces and opport-nities9o#taining added %al-e fro! t+e e5ecti%e deplo&!entof reso-rces9 and de%eloping people /+o can t+in. andplan strategicall& in t+e sense t+at t+e& -nderstand.e& strategic iss-es and ens-re t+at /+at t+e& do
s-pports t+e ac+ie%e!ent of t+e #-siness:s strategicgoals
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Concepts of SHRM 'Contd()
Reso-rce Based ie/ 'Contd() T+is approac+ +ig+lig+ts the importance of
a human capital management approachto HRM and pro%ides t+e $-stication forin%esting in people t+ro-g+ reso-rcing9 talent!anage!ent and learning and de%elop!entprogra!!es as a !eans of en+ancingco!petiti%e ad%antage(
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Concepts of SHRM 'Contd()
Strategic it 4rig+t and McMa+an
T/o di!ensions t+at disting-is+ strategic HRM8
1( ertical
2( Hori3ontal
Strategic le?i#ilit& #ilit& of a r! to respond and adapt to t+e
c+anges in its co!petiti%e en%iron!ent( En%iron!ental di5erences a5ect e?i#ilit& strateg&
Sta#le9 predicta#le en%t J narro/ range of s.ills andnarro/ range of #e+a%ior
D&na!ic9 -npredicta#le en%t( J organic HR s&ste!s
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Perspecti%es of SHRM
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Perspecti%es on Strategic HRM
1( T+e -ni%ersalistic perspecti%e So!e HR practices are #etter t+an t+e ot+ers and all
organi3ations s+o-ld adopt t+ese #est practices( T+ere is -ni%ersal relations+ip #et/een indi%id-al
K#est: practices and r! perfor!ance2( T+e contingenc& perspecti%e
"rgani3ation:s HR policies !-st #e consistent /it+ot+er aspects of t+e organi3ation
*( T+e cong-rational perspecti%e Holistic approac+
7ndependent %aria#les J HR practices andDependent %aria#le J "rgani3ational Perfor!ance
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() Ric+ardson and T+o!pson8
Best Practice pproac+ 'Uni%ersalistic)
Best it pproac+ 'Contingenc&)
B-ndling 'Cong-rational)
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST PRCT7CE PPR"CH
ss-!ption
T+ere is a set of #est HRM practices and adoptingt+e! /ill ine%ita#l& lead to s-perior organi3ational
perfor!ance( List of #est practices8
s per Pfe5er8
1( E!plo&!ent and sec-rit&
2( Selecti%e +iring
*( Self!anaged tea!s( Hig+ co!pensation contingent to perfor!ance
( Training to pro%ide a s.illed and !oti%ated /or.force
6( Red-ction of stat-s di5erentials
;( S+aring infor!ation
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST PRCT7CE PPR"CH
s per -est8
1( Selection and t+e caref-l -se of selection tests to identif&t+ose /it+ potential to !a.e a contri#-tion
2( Training9 and in partic-lar a recognition t+at training is anongoing acti%it&
*( Io# design to ens-re e?i#ilit&9 co!!it!ent and!oti%ation9 incl-ding steps to ens-re t+at e!plo&ees+a%e t+e responsi#ilit& and a-tono!& f-ll& to -se t+eir.no/ledge and s.ills
( Co!!-nication to ens-re t+at a t/o/a& process .eepse%er&one f-ll& infor!ed
( E!plo&ee s+are o/ners+ip progra!!es to increasee!plo&ees: a/areness of t+e i!plications of t+eir actionson t+e nancial perfor!ance of t+e r!
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST PRCT7CE PPR"CH
Deler& and Dot& J se%en Strategic HR practices8
1( 7nternal career ladders
2( or!al training s&ste!s*( Res-ltsoriented appraisal
( Perfor!ance #ased co!pensation
( E!plo&!ent sec-rit&
6( E!plo&ee %oice
;( Broadl& dened $o#s
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH
HR strategies s+o-ld #e contingent on t+e conte?t9 circ-!stancesof t+e organi3ation and its t&pe
ertical integration Models8
1( Life c&cle Model
De%elop!ent of a r! ta.es place in fo-r stages JStart-p9 gro/t+9 !at-rit& and decline
Baird > Mes+o-la!8 KHRKs e5ecti%eness depends on its t /it+ t+eorgani3ation:s stage of de%elop!ent( s t+eorgani3ation gro/s and de%elops9 HRM progra!!es9practices and proced-res !-st c+ange to !eet its
needs( Consistent /it+ gro/t+ and de%elop!ent!odels it can #e s-ggested t+at +-!an reso-rce!anage!ent de%elops t+ro-g+ a series of stages ast+e organi3ation #eco!es !ore co!ple?
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()
Models 'Contd()8
1( Life c&cle Model 'Contd()
o B-ller and Aapier8
Start-p p+ase J HRM !a& #e loose and infor!alro/t+ p+ase J or!al str-ct-re and f-nctionalspecialties role of HR attract t+e rig+t .inds andn-!#ers of people talent !anage!ent
perfor!ance !anage!ent learning > de%elop!entand re/ard policies and practices
Mat-rit& P+ase J HR !a& #e less inno%ati%e and!ore inclined to consolidate and de%elop e?isting
practices rat+er t+an create ne/ ones(
Decline P+ase J Do/nsi3ing and #eing ta.en o%er
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()
Models 'Contd()8
2( Co!petiti%e strateg&
o Porter8 1( 7nno%ation Strateg&
2( -alit& Strateg&
*( Cost leaders+ip
o Sc+-ler > Iac.son 8 e5ecti%eness can #e
increased #& s&ste!aticall& !elding +-!anreso-rce practices /it+ t+e selectedco!petiti%e strateg&
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()
Models 'Contd()8 2( Co!petiti%e strateg&
INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIPSTRATEGY
Io#s t+at re-ire closeinteraction andcoordination a!onggro-ps of indi%id-als
Relati%el& ?ed ande?plicit $o# descriptions
Relati%el& ?ed ande?plicit $o# descriptions
Ps t+at are !ore li.el& toreect longer ter! andgro-p #asedac+ie%e!ents
Hig+ le%els of e!plo&eeparticipation
Aarro/l& designed $o#s >career pat+s t+atenco-rage speciali3ation(S+ort ter! and res-ltsoriented Ps
Io#s t+at allo/ e!plo&eesto de%elop s.ills t+at can !i? of gro-p andindi%id-al criteria for P Close !onitoring of!ar.et pa& le%els in -se
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()
Models 'Contd()8 2( Co!petiti%e strateg&
INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIP
STRATEGY
Co!pensation s&ste!st+at e!p+asi3e internale-it& rat+er t+ane?ternal or !ar.et #asede-it&
Relati%e egalitariantreat!ent of e!plo&eesand so!e g-arantees ofe!plo&ee sec-rit&
Mini!al le%els ofe!plo&ee T > D
Pa& rates t+at tend to #elo/ #-t allo/ e!plo&eesto #e stoc.+olders and+a%e !ore freedo! toc+oose t+e !i? ofco!ponents
E?tensi%e and contin-o-straining and de%elop!entof e!plo&ees
Practices t+at !a?i!i3ee,cienc& #& pro%iding!eans for !g!t to!onitor and controlclosel& t+e acti%ities ofe!plo&ees
Broad career pat+s toreinforce t+e de%elop!ent
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BEST 7T PPR"CH 'Contd()
Models 'Contd()8
*( Strategic cong-ration
Miles and sno/ identied fo-r t&pes or organi3ations9 %i3(8
1( Prospectors2( Defenders
*( nal&3ers
( Reactors
Deler& and Dot& J organi3ations s+o-ld align t+eir HRs&ste!s /it+ t+e strateg& lin.ed to t+eir organi3ation( T/o
t&pes of s&ste!s8 1( Mar.et t&pe s&ste! 'for Prospector)
2( 7nternal S&ste! 'for Defender)
Hybrid of internal and Market strategy for Analyzer
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Perspecti%es on Strategic HRM'Contd()
*( T+e cong-rational perspecti%e 'Contd() BUADL7A
De%elop!ent and i!ple!entation of se%eral HR practicestoget+er so t+at t+e& are interrelated and t+ereforeco!ple!ent and reinforce eac+ ot+er(
Practices /it+in #-ndles are interrelated and internall&consistent and K!ore is #etter: /it+ respect to t+e i!pacton perfor!ance9 #eca-se of t+e o%erlapping and !-t-all&reinforcing e5ect of !-ltiple practices
T+e ai! is to ac+ie%e +ig+ perfor!ance t+ro-g+
co+erence
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Strategic Role of HR
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Strategic Role of HR
SHRM in%ol%es t+e de%elop!ent of consistent9 alignedcollection of practices9 progra!s9 and policies to facilitate t+eac+ie%e!ent of t+e organi3ation:s strategic o#$ecti%es
Strategic Partner Model8 Da%id Ulric+
HR s+o-ld deli%er res-lts t+at enric+ t+e organi3ation:s %al-eto its c-sto!ers9 in%estors and e!plo&ees( T+is can #eacco!plis+ed in fo-r /a&s8
1( B& HR #eco!ing partner /it+ senior and line !anagers
2( B& HR #eco!ing an e?pert in t+e /a& /or. is e?ec-ted
*( B& HR #eco!ing a c+a!pion for e!plo&ees9 /or.ing to increasee!plo&ee contri#-tion and co!!it!ent to t+e organi3ation
( B& HR #eco!ing an agent of contin-o-s transfor!ation t+ats+apes processes and c-lt-re to i!pro%e an organi3ation:scapacit& for c+ange
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Strategic Role of HR 'Contd()
Strategic oc-s
S&ste!s People
"perational oc-s
StrategicPartner
d!inistrati%e E?pert
E!plo&eeC+a!pion
C+angegent
Possible roles assumed by HR
(Framework develoed !" Dav#d Ulr#$%&
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Strategic Role of HR 'Contd()
Roles 'Contd()8 1( Strategic Partner
Partner in strateg& e?ec-tion
Responsi#le for organi3ational arc+itect-re and str-ct-re
Cond-ct org a-dit to identif& t+ose co!ponents t+at
need to #e c+anged to facilitate strateg& e?ec-tion identif& !et+ods for reno%ating t+e parts of t+eorgani3ational arc+itect-re ta.e stoc. of its o/n /or.and set priorities to ens-re deli%er& of res-lts
2( d!inistrati%e e?pert
S+ed t+eir i!age of r-le !a.ing police /+ile ens-ringt+at t+e re-ired ro-tine /or. still gets done e5ecti%el&and e,cientl&(
Re-ires ret+in.ing or i!pro%ing traditional HR f-nctions
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Strategic Role of HR 'Contd()
Roles 'Contd()8 *( E!plo&ee C+a!pion
Ens-ring t+at e!plo&ees are f-ll& engaged in andco!!itted to t+e organi3ation
Partnering /it+ line !anagers
E!plo&ees: ad%ocate
( C+ange gent B-ild t+e organi3ation:s capa#ilit& to e!#race and
capitali3e on ne/ sit-ations9 ens-ring t+at c+angeinitiati%es are dened9 de%eloped and deli%ered in a
ti!el& !anner
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Strategic Role of HR 'Contd()
HR Roles in .no/ledge #ased econo!& as perLengnic.Hall8
1( H-!an Capital Ste/ard Creation of an en%iron!ent and c-lt-re in /+ic+
e!plo&ees %ol-ntaril& /ant to contri#-te t+eir ideas9
s.ills and energ&( H-!an capital is not o/ned #& t+e organi3ation and
t+-s C can #e !aintained /+en #est e!plo&ees arerecr-ited9 !oti%ated and retained
2( Nno/ledge acilitator
Proc-re!ent of t+e necessar& e!plo&ee .no/ledge ands.ill sets t+at allo/ infor!ation to #e ac-ired9de%eloped9 and disse!inated9 pro%iding a co!petiti%ead%antage
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Strategic Role of HR 'Contd()
HR Roles in .no/ledge #ased econo!& as perLengnic.Hall 'Contd()8
*( Relations+ip B-ilder De%elop!ent of str-ct-re9 /or. practices and
organi3ational c-lt-re t+at allo/ indi%id-als to /or.
toget+er9 across depart!ents and f-nctions( Rapid deplo&!ent specialist
Creation of organi3ation str-ct-re and HR s&ste!s t+atare -id and adapta#le to rapid c+ange in response toe?ternal "s > Ts
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Strategic Role of HR 'Contd()
SHRM Critical Co!petencies'or HR to #e a tr-e B-siness Partner)
1( Strategic Contri#-tion
2( B-siness Nno/ledge
*(Personal Credi#ilit&
( HR deli%er&
( HR tec+nolog&
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Strategic Role of HR 'Contd()
Strategic Role of HR Directors Pro!otes t+e attain!ent of organi3ation:s #-siness goals #&8
De%eloping and i!ple!enting HR strategies t+at are integrated /it+t+e #-siness strateg& and are co+erent and !-t-all& s-pporti%e
Ens-ring t+at a strategic approac+ is adopted #& t+e HR f-nction t+ats-pports t+e #-siness and adds %al-e
Strategic Role of Heads of HR Functions ttain!ent of organi3ational goals #& de%eloping and
i!ple!enting f-nctional strategies t+at are aligned /it+ t+e#-siness strateg& and integrated /it+ t+e strategies for ot+er HRf-nctions and adopt a strategic approac+ in t+e sense ofens-ring t+at HR acti%ities s-pport t+e #-siness and add %al-e
Strategic Role of HR Business Partners ttain!ent of #-siness goals of t+e organi3ational -nit or
f-nction in /+ic+ t+e& operate
Strategic ontribution of HR !dvisors"!ssistants Deli%ering e5ecti%e HR ser%ices /it+in t+eir f-nctions or as
!e!#ers of an HR ser%ice centre(
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Strategic %s( Traditional HR
2
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Strategic %s( Traditional HR
'ASIS Trad##o)al HR Srae*#$ HR
Re+o)+#!#l#",or HR
Sta5 specialists Line !anagers
Fo$-+ E!plo&ee relations Partners+ips /it+ internal ande?ternal c-sto!ers
Role o, HR Transactional9 c+ange follo/erand respondent
Transfor!ational9 c+angeleader and initiator
I)##a#ve+ Slo/9 reacti%e9 frag!ented ast9 proacti%e9 integrated
T#me %or#.o) S+ortter! S+ort9 !edi-!9 long asre-ired
Co)rol B-rea-cratics J roles9 policies9proced-res "rganic J e?i#le9 /+ate%er isnecessar& to s-cceed
/o! De+#*) Tig+t di%ision of la#or9independence9 speciali3ation
Broad9 e?i#le9 crosstraining9tea!s
0e"#)ve+me)+
Capital9 prod-cts People9 .no/ledge
A$$o-)a!#l#" Cost center 7n%est!ent center
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Strateg& Dri%en RoleBe+a%iors
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Strateg& Dri%en Role Be+a%iors
Co!petiti%e strategies re-ire di5erent +-!anreso-rce practices > di5erent role #e+a%iors
INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIPSTRATEGY
HR B#H!$%&RS' (Cooperati%e
Hig+l& creati%e
"riented to/ard t+e longr-n
Ris. ta.ersCo!forta#le /it+a!#ig-it&
'I > I9 HP9 *M)
Place e!p+asis onprod-ction=ser%iceprocesses
Ris. red-ction
Predicta#ilit&
'L( L( Bean9 To&ota9Corning lass)
S+ort ter! foc-sed
Ris. a%erse
Predicta#le res-ltsoriented
Co!forta#le /or.ing #&t+e!sel%es
St t D i R l B + i
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Strateg& Dri%en Role Be+a%iors'Contd()
Re,er Sl#de+ 12 3 45
INNOVATION STRATEGY QUALITY STRATEGY COST LEADERSHIPSTRATEGY
HR PR!T%#S' (
ro-p oriented9 longter!
appraisal s&ste!senerali3ed s.illde%elop!ent and #roadcareer pat+s
Co!pensation approac+esaccent-ating internal
e-it&le?i#le co!pensationpac.ages
E!plo&!ent sec-rit&
g-aranteesE?tensi%e trainingprogra!!es
Participati%e decision!a.ing
PfM S&ste!s e!p+asi3ing
res-lts in t+e s+ort ter!irt-all& no trainingprogra!!es
er& speciali3ed $o#s
Aarro/ and speciali3edcareer pat+s
Proced-res for contin-altrac.ing of /age rates int+e la#or !ar.et
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Strategic T&polog& of HR cti%ities
;
Strategic T&polog& of HR cti%ities
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Strategic T&polog& of HR cti%ities
H#*%
Srae*#$Val-e o,
A$#v#"
Low
Sta)ng Planning
Bene*ts Planning
Retirement Planning
ompliance
Performance#nhancement
onsulting
#mployee Relations
+abor ,egotiations
#-ecutive ompensation
#mployee Development
anagementDevelopment
Recruitment%ntervie/ing
Imora) o E6e$-#ve+
pa&roll
Benets ad!inistration
Retire!ent ad!inistration
E!plo&ee records
Relocation ad!inistration
Recr-it!ent 7nfor!ationProcessing
Recr-it!ent infor!ation
processing E!plo&ee ssistanceProgra!!es
<
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Strategic Sta,ng Policies
@
Strategic Sta,ng Policies
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Strategic Sta,ng Policies
#-ternal
Source&f
+abor
%nternal
F&RTR#SS
0ompanies /ith
dysfunctional strategies1
HR Srae*" 7 Rere)$%me)
E)r" 7 Re$r-#me)
Develome) 7 Ree)#o) o,Core Tale)
E6# 7 Fre8-e) La"o9+
B!S#B!++ T#!
0%nnovation Strategy1
HR Srae*" 7 Re$r-#me)
E)r" 7 Re$r-# a all $areer+a*e+
Develome) 7 O):%e:;o!< l#le,ormal ra#)#)*
E6# 7 H#*% -r)over< emlo"er
$areer a%+
+2B
0+o/ cost producer1
HR Srae*" 7 Ree)#o)
E)r" 7 earl" Career
Develome) 7 A+ *e)eral#++<+low a%+
E6# 7 Low -r)over<Re#reme)
!!D#3
0Focused Strategy4 ,iches4 Bothpdt innovators 5 competitors in
long run1
HR Strategy : development
Entry : stritly early areer
!evelopment : E"tensive training forspei# $obs% elaborate areer
pat&s'$ob ladders
E"it : lo( turnover% retirement%dismissal for poor performane
60
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Barriers to SHRM
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Barriers to Strategic HRM
1( S+ort ter! !entalit& 'foc-s on c-rrent perfor!ance)
2( 7na#ilit& of HR to t+in. strategicall&
*( Lac. of appreciation of /+at HR can contri#-te
( ail-re to -nderstand general !anager:s role as an
HR !anager
( Di,c-lt& in -antif&ing !an& HR o-tco!es
6( Perception of +-!an assets as +ig+erris.in%est!ents
;( 7ncenti%es for c+ange t+at !ig+t rise
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C+allenges to SHRM
6*
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C+allenges to Strategic HRM
o-r !a$or c+allenges8
1( Tec+nological d%ance!ent
2( 7ncreasing attention to et+ical #e+a%ior
*( De!ograp+ics and Di%ersit&
( lo#ali3ation
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent
Process #& /+ic+ inp-ts fro! t+e organi3ation:sen%iron!ent are transfor!ed into o-tp-ts
7ncl-des tools9 !ac+iner&9 e-ip!ent9 /or.
proced-res and e!plo&ee .no/ledge > s.ills 7!pact of tec+nolog& on organi3ations8
Re-ires c+anges in s.ills and /or. +a#it of e!plo&ees
Eli!ination of so!e lo/erle%el positions and la&ers of!anage!ent
Less +ierarc+&9 !ore colla#oration
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()
7ss-es for 7ntegrating Ae/ Tec+nologies8
Consideration of dopting a Ae/ Tec+nolog&
STR!T#6% %SS2#S
7!pact on prod-cti%it&7!pact on -alit& of o-tp-t7!pact on ti!ing=deli%er&of o-tp-t
Cost ofe-ip!ent=tec+nolog&de-ac& of c-rrentfacilitiesAe/ !ar.et opport-nitiesa5orded
STR!T#6% HR %SS2#S
Aecessar&e?pansion=contraction of/or.force Training needed to -tili3ene/ tec+nolog&Costs for +iring9 se%erance9trainingE5ecti%e !anage!ent ofc+ange7!pact on /or. gro-p
d&na!ics
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()
HR 7ss-es and C+allenges related to Tec+nolog&
1( Teleco!!-ting T+e process #& /+ic+ e!plo&ees /or. fro! +o!e
2=*rds of t+e ort-ne 100 co!panies c-rrentl& +a%e
teleco!!-ting progra!!es Benets8
Retention aid
le?i#le /or. en%iron!ent ena#les e!plo&ees to
#alance !-ltiple role
Helps e!plo&ers to retain t+eir in%est!ents ine!plo&ees in sit-ations /+ere t+e e!plo&ees need to
relocate
Creates e?i#ilit& in recr-iting
7ncreases prod-cti%it&
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()
HR 7ss-es and C+allenges related to Tec+nolog&'Contd()
1( Teleco!!-ting 'Contd() 7ss-es8
Di,c-lt& in perfor!ance !onitoring
(Have $lear er,orma)$e mea+-reme) +"+em+&
Di,c-lt& in deciding n-!#er and .ind of e!plo&ees to
#e o5ered t+e teleco!!-ting progra!!e and creationof additional need for strategies to a%oid resent!ent or
!orale pro#le!s a!ongst nonparticipants
(Pa" ae)#o) o #)d#v#d-al emlo"ee$%ara$er#+#$+=
+ele$ emlo"ee+ w%o %ave +ro)* or*a)#.a#o)ala)d #me ma)a*eme) +k#ll+&
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()
HR 7ss-es and C+allenges related to Tec+nolog&'Contd()
1( Teleco!!-ting 'Contd() 7ss-es 'Contd()8
E?pendit-re on p-rc+asing e-ip!ent for e!plo&ee:s+o!e o,ce Lia#ilit& for in$-ries inc-rred /+ile /or.ingat +o!e and 7n%est!ents in net/or.ing s&ste!s
(Aror#ae e$%)olo*" ,ea+#!#l#" a++e++me)&
Managers: resistance in +a%ing direct reports a/a&fro! o,ce
(Tra#)#)* ro*ramme+ ,or ele$omm-er+ a)d+-erv#+or+ $over#)* #++-e+ +-$% a+ *oal +e#)*<#me ma)a*eme) a)d ro;e$ reor#)*&
E?a!ple8 He/lettPac.ard > Cisco
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd()
Tec+nological d%ance!ent 'Contd() HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()
2( 4or.place Monitoring > s-r%eillance Benets of t+e internet8
En+ance!ent of e!plo&ee:s a#ilities to do t+eir $o#
More co!pre+ensi%e and faster data collection
S-pports teleco!!-ting Cond-ct of personal /or. at $o# /+en perfor!ing d-ties
d-ring Knon/or.: ti!e Monitoring
Soft/are to trac. internet -se Detri!ental e5ect on e!plo&ee pri%ac&9 !orale and lo&alt&
Re-ires8
Co!!-nication of !onitoring polic& to t+e e!plo&ees Consent fro! e!plo&ees To #e !ini!-! and consistent /it+ #-siness necessit&
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() Tec+nological d%ance!ent 'Contd()
HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()*( EHR
i!s at le%eraging of tec+nolg& to deli%er HR sol-tions t+at #rings a#o-tcon%ergence in +-!an capital9 processes9 data and tools as a catal&stto/ards ac+ie%ing #-siness strategies
T&pes
"perational J pa&roll9 e!plo&ee data9 etc(
Relational J recr-it!ent9 training9 perfor!ance!anage!ent9 etc(
Transfor!ational J .no/ledge !anage!ent9 strategicreorientation9 etc(
d%antages
collection of infor!ation as t+e #asis for strategic decision!a.ing
integral s-pport for t+e !anage!ent of +-!an reso-rcesand all ot+er #asic and s-pport processes /it+in t+eco!pan&
pro!pt insig+t into reporting and anal&sis
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd()
Tec+nological d%ance!ent 'Contd() HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()
*( EHR 'Contd()
d%antages 'Contd()
a !ore d&na!ic /or.o/ in t+e #-siness process9prod-cti%it& and e!plo&ee satisfaction
a decisi%e step to/ards a paperless o,ce lo/er #-siness costs
Disad%antages
Can alienate sta5 !e!#ers t+at need personals-pport
Red-ces t+e need for !anagers to interact /it+sta5 'i(e( less faceti!e and increased ris. of Glosingto-c+G /it+ sta5)
S-#$ect to corr-ption=+ac.ing=data losses
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd()
Tec+nological d%ance!ent 'Contd() HR 7ss-es and C+allenges related to Tec+nolog& 'Contd()
*( EHR 'Contd() 7ss-es
Resistance of e!plo&ees and line !anagers
etting s-pport fro! s!all co!ponents oft+e co!pan&
-aranteeing sec-rit& and condentialit& E?a!ple8 Do/ C+e!icals9 BAMR"9 ord Motor
Co!pan&9 7BM
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() 7ncreasing attention to et+ical #e+a%ior
Et+ics are not -ni%ersall& dened #-t rat+er s-#$ectto personal %al-es and con%ictions
S-#$ecti%el& assessed
Et+ical concern8 "5 t+e d-t& #e+a%ior
"/ners+ip of /or.
airness of nonco!pete cla-ses
Sol-tion J C"DE " ETH7CS
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit&
Managing Di%ersit& is a strategic process to !anagea di%erse /or.force incl-ding t+e g+t againststereot&pes9 pre$-dice and all .ind of discri!inationd-e to t+e indi%id-al perceptions and ass-!ptionsin t+e !anner to !a?i!i3e t+e #enet and !ini!i3e#arriers of di5erent opinions9 #e+a%ior and attit-desof +-!an #eings /it+in a co!pan&
Di%ersit& /it+ regards to8
enerational Di%ersit&
Ba#& Boo!ers9 en O9 en F 7ndi%id-als /it+ Disa#ilit&
Se?-al "rientation
Personal and fa!il& life c&cle d&na!ics9 etc(
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd()
;6
De!ograp+ics and Di%ersit& 'Contd()
7or8 Related' •Moti%ationPersonalit&4or. et+icE?periencettit-des
Io# responsi#ilitiesE!plo&!ent stat-s
Personal
Race
ge
Religion
ender
Se?-al"rientationP+&sical
#ilit&
Et+nicit&
MaritalStat-s
a!il&Stat-s
Ho##ies
Residen
ce
%ndividualDimensionsof Diversity
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit& 'Contd()
Aeed for !anaging Di%ersit&8
1( Social Responsi#ilit&
2( n Econo!ic Pa&#ac.
*( Reso-rce 7!perati%e( Legal Re-ire!ent
( Mar.eting Strateg&
6( B-siness Co!!-nications Strateg&
;( Capacit&#-ilding Strateg&
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit& 'Contd()
Strategic Manage!ent of Di%ersit&8
1( Deter!ine /+& di%ersit& is i!portant for t+eorgani3ation
2( rtic-late +o/ di%ersit& relates to t+e !ission and
strategic o#$ecti%es of t+e organi3ation
*( Dene di%ersit& and deter!ine +o/ incl-si%e its e5orts/ill #e
( Ma.e a decision as to /+et+er special e5ort s+o-ld #ee?tended to attract a di%erse /or.force
( ssess +o/ e?isting e!plo&ees9 c-sto!ers9 and ot+erconstit-encies feel a#o-t di%ersit&
6( Deter!ine specic t&pes of di%ersit& initiati%es t+at /ill#e -nderta.en
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd() De!ograp+ics and Di%ersit& 'Contd()
HR Managers need to 'Strategic Response toDi%ersit& at 4or.place)8 E!#race Di%ersit&
Recr-it Broadl&
Select airl&
Pro%ide "rientation > Training
Sensiti3e all E!plo&ees
Stri%e to #e le?i#le
See. to Moti%ate 7ndi%id-all& Enco-rage e!plo&ees to e!#race di%ersit&
C+allenges to Strategic HR
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C+allenges to Strategic HR'Contd()
lo#ali3ation lo#al HRM di5ers fro! Do!estic HRM8
Broader range of f-nctional areas
More in%ol%e!ent in t+e e!plo&ees: personal life
Di5erent HR s&ste!s for di5erent locations
More co!ple? e?ternal constit-encies Heig+tened e?pos-re to ris.s '%i3(9 +ealt+ > safet& of
e!plo&ee > fa!il&9 legal iss-es9 possi#le terroris! >+-!an > nancial conse-ences of !ista.es)
Strategic HR 7ss-es in lo#al ssign!ents
Ae?t Slide
'Contd()
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lo#ali3ation 'Contd() Strategic HR 7ss-es in lo#al ssign!ents 'Contd()
6+&B!+ B2S%,#SS
STR!T#63 E?portS-#cintract=license IS-#sidiar&
,ationalulture
+ocal ultureorporate
ulture
Strategic HR %ssues
Purposeof
#-patriation
SelectionE!plo&ee
a!il&
&rientationE!plo&ee >
a!il&H Sta5
anaging#-pats
PMCo!pensation
La#or Relations"ngoing Training
+evel of Std9nEt+nocentricPol¢ricRegiocentriceocentric
Repatriat
ion
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"-tco!es of SHRM
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2
" t f St t i HR
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"-tco!es of Strategic HR
I)$rea+ed
Per,orma)$e
C-+omer 3
Emlo"eeSa#+,a$#o)
E)%a)$ed
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%ro-*%
E9e$#ve ma)a*eme) o, +a>)*< ree)#o) a)d -r)over%ro-*% +ele$#o) o, emlo"ee+ %a ? w#% !o% +rae*"a)d $-l-reCo+:e9e$#ve -#l#.a#o) o, emlo"ee+ %ro-*%#)ve+me) #) #de)#?ed %-ma) $a#al w#% oe)#al ,or%#*% ree)#o)I)e*raed HR ro*ram+ a)d ol#$#e+ %a $learl" ,ollow,rom $ororae +rae*" Fa$#l#a#o) o, $%a)*e a)d adaa#o) %ro-*% a @e6#!le<more d")am#$ or*a)#.a#o)T#*%er ,o$-+ o) $-+omer )eed+< ke" a)d emer*#)*marke+< 8-al#"
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Model of SHRM
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M d l f SHRM
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Model of SHRM
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I)er)ale)v#ro)me)
C-lt-reStr-ct-rePoliticsE!plo&ee S.illsPast Strateg&
Corporate
Strateg&
B-siness Unit
Strateg&
E6er)ale)v#ro)me)
Co!petitiono%ern!entReg-lation Tec+nolog&Mar.et TrendsEcono!ic Trends
HR Srae*"
HR planningDesign of $o#s and
/or. s&ste!s4+at /or.ersdo4+at /or.ersneedHo/ $o#sinterface /it+
ot+ers
E!plo&eeSeparatio
n
La/sreg-lating
E!plo&!ent
HR7S
Sta,ng
Training
PM
Co!pensation
7R
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Lin.ing People /it+ t+e Strategic needs of t+e
B-siness T+e J P Model
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B-sinessT+e P Model
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T+e J P Model
Or*a)#.a#o)al Srae*" 7nitiates t+e process of identif&ing strategic
#-siness needs and pro%ides specic -alitiesto t+e!
Srae*#$ '-+#)e++ Need+E?presses in !ission state!ents or %isionstate!ents and translated into strategic
#-siness o#$ecti%es
7nternalC+aracteristics
E?ternalC+aracteristics
SHR A$#v##e+HR PhilosophyE"pressed in statements de#ning business values ) ulture
HR PoliciesE"pressed as s&ared values *guidelines+
HR Programs Artiulated as HR strategies
HR Practices,or leaders&ip% managerial and operational roles
#-presses ho/ to treat and valuepeople
#stablishes guidelines for action onpeople(related business issues andHR programs
oordinates e:ort to facilitatechange to address ma;or people