1. Role of STRATEGIC Human Resources Management (HRM) in Business strategy
GMB 6070 - Session 2
16th May 11

2. Presentation Plan
Discussion - Strategy formulation process
Discussion - Role of environment in strategy development
Role of Strategic Human Resources in the contribution to overall strategy
Group discussion - Situational approach to strategy
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3. Strategy formulation process
Involves planning and taking decisions that lead to the establishment and achievement of the organizations goals of a specific plan.
The process comprises three phases:
Diagnosis
Formulation
Implementation
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4. Strategy formulation process
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Diagnosis:
Analyzes internal environment of the organization - this is also called performing a situation analysis.
It involves evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses
Analyzes external environment to review major opportunities and threats
Identifies major critical issues usually a set of two to five major problems, threats, weaknesses, and/or opportunities that require priority attention by management

5. Strategy formulation process
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Formulation stage:
Development of a clear set of recommendations with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them.
Looks for "sustainable" competitive advantages (despite steady erosion by the efforts of competition).
In order to align "fits" between resources plus competencies with opportunities, and also fits between risks and expectations the SHRM will help to focus on the following:

6. Strategy formulation process
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Review the current key objectives and strategies of the organization, identified and evaluated as part of the diagnosis
Identify a rich range of strategic alternatives to address the three levels of strategy formulation
Balance evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization
Decide on the alternatives that should be implemented or recommended.

7. GMB 6070 - Session 2 May 16th
Role of Environment on strategy formulation

8. Environmental scanning

• If an organization understands the environment in which it operates, half the problems would be sorted.
• 9. This requires an analysis of what is happening outside the organization and an evaluation of current resources (strength and weaknesses) and an assessment of opportunities and threats present in the environment.
• 10. Environment could be classified as external and internal.

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11. Environmental scanning

• External:
• 12. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management.
• 13. They may be general forces and trends within the overall set-up which consist of political, economic, socio-cultural, technological, legal and environment, (PESTLE).

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14. Environmental scanning

• Internal:
• 15. The internal environment of a corporation consists of variables (strengths and weaknesses) that are within the organization and are not usually within the short run control of top management.
• 16. These include the corporate culture, structure, resources and competencies.
• 17. One of the widely used methods for internal analysis of the firms is Value Chain Analysis which assesses the strengths and areas of improvement that divide a business into a number of linked activities, each of which may produce value to the customers.

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18. Environmental scanning

• HR Partnership
• 19. Parenting the manner in which the management coordinates activities and deploys resources and cultivates capabilities among product lines and business units.

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20. Environmental scanning
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21. HR Challenges

• Business acumen
• 22. Influencing performance
• 23. Measuring performance
• 24. Determining competencies
• 25. Creating an enabling environment
• 26. Creating passion for quality and competitiveness.
• 27. ..HR BA.pptx

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28. GMB 6070 - Session 2 May 16th
Role of Strategic human resources in strategy implementation

29. Role of Strategic human resources in strategy implementation

• Understanding the Corporate Mission:
• 30. An organizations mission is the purpose or the reason for the organizations existence.
• 31. HR should articulate the fundamental, uniqueness and focus that sets a company apart from other firms of its type and identifies the scope of the company's operation in terms of the products offered and markets.
• 32. HR should formulate policies to communicate the corporate mission to all employees.

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33. Role of Strategic human resources in strategy implementation

• Some of the key policies to drive the HR agenda include:
• 34. On-boarding - (Orientation) policy,
• 35. Induction policy,
• 36. Remuneration Policy,
• 37. Motivation Policy,
• 38. Performance Management Policy,
• 39. Training and Development Policy,
• 40. Employee Satisfaction Index Policy
• 41. Employee Exit and Separation Policy
• 42. Such policies should help HR demonstrate value creation by monitoring implementation of corporate strategy and business competitiveness.
• 43. ..Climate 1 - Slide.pptx

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44. Role of human resources in strategy implementation
HR professionals are often defensive about their comparative worth, but they do not need to apologize for not being subject matter experts; all they need is to demonstrate strategy implementation competitiveness.
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45. Role of Strategic human resources in strategy implementation
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46. How Strategic human resources contribute to overall strategy
In his book Workplace Excellence Dan Robkins wrote:
Its (HR) not just a place to go when troubles arise; Human Resources is a vital department within companies, but too often they are misunderstood and underutilized.
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47. How Strategic human resources contribute to overall strategy

• Thirty (30years ago) - 80s- the business environment talked about the personnel department which took care of everything relating to people in the workplace.
• 48. Twenty (20) years ago 90s- we realized the need for a new department handling talent and other people issues Human Resources,.

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49. How Strategic human resources contribute to overall strategy

• Human Resource Management addresses two functions HRM and HRD.
• 50. According to Richard Chang, author of The Passion Plan at Work, HRM focuses mainly on
• 51. HR Research and Information Systems
• 52. Labour Relations
• 53. Employee Assistance
• 54. Employee Compensation/Benefits.

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55. How Strategic human resources contribute to overall strategy

• Human Resource Development focuses on:
• 56. Career Development (helping individuals align their career planning)
• 57. Organizational Development (helping groups initiate and manage change)
• 58. Training and Development (design / execute)
• 59. Delivering training to ensure people are enabled to perform their jobs competently

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60. How Strategic human resources contribute to overall strategy

• HRM and HRD tend to overlap in:
• 61. Selection and Staffing
• 62. Organizational/Job Design
• 63. Human Resource Planning
• 64. Performance Management System

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65. How Strategic human resources contribute to overall strategy

• Despite the importance of HRM and HRD, HR is generally too often omitted from participation in key strategic decisions.
• 66. Reasons why HR should be part of the strategic planning process team include:

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67. How Strategic human resources contribute to overall strategy
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Selection and Staffing:

• HRD is more equipped to make accurate selection of talent for each position to develop a competitive workforce
• 68. HRD will help line managers to develop SMART performance objectives for employees
• 69. HR professionals are best placed to detect potential conflicts between what a company wants and what is truly realistic in HR terms; thus helping to ensure business plans are workable right from the start.