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Align on Strategic Human Resource Management
andHuman Resource Planning
Abdullah al Mamun TusherRoll : 13DH070PGDHRM Evening 1
Bangladesh Institute of Management
PRESENTATION ON
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Strategy,
Strategy :
Strategy has two fundamental meanings. First, it is forward looking. It is about deciding where you
want to go and how you mean to get there. It is concerned with both ends and means. In this
sense a strategy is a declaration of intent: This is what we want to do and this is how we intend to
do it. Strategies define longer-term goals, but they also cover how those goals will be attained.
They guide purposeful action to deliver the required result. A good strategy is one that works, onethat in Abells (1993) phrase enables organizations to adapt by mastering the present and pre-
empting the future.
The second meaning of strategy is conveyed by the concept of strategic fit. The focus is upon the
organization and the world around it. To maximize competitive advantage a firm must match its
capabilities and resources to the opportunities available in the external environment. As Hofer and
Schendel (1986) conclude, A critical aspect of top managements work today involves matching
organizational competences (internal resources and skills) with the opportunities and risks created
by environmental change in ways that will be both effective and efficient over the time suchresources will be deployed.
The concept of strategy is based on a number of associated concepts: compet- itive advantage,
resource-based strategy, distinctive capabilities, strategic intent, strategic capability, strategic
management, strategic goals and strategic plans.
Strategy
A strategy is a course of action.
The com an s lon -tem lan for how it will balance its internal stren ths and weaknesses
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HRM,
Human Resource Management?
HR is multidisciplinary: It applies the disciplines of Economics (wages, markets, resources),Psychology (motivation, satisfaction), Sociology (organization structure, culture) and Law (min.wage, labor contracts, EEOC)
HR is embedded within the work of all managers, and most individual contributors due to the needof managing people (subordinates, peers and superiors) as well as teams to get things done.
Human Resource Management is the process of acquiring, training,
appraising, and compensating employees, and attending to their labor
relations, health and safety, and family concerns
---Gary Dessler
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SHRM
SHRM is concerned with the role human resource management systems play in firm performance,particularly focusing on the alignment of human resources as a means of gaining competitive
advantage. Organizations are becoming aware that successful human resource policies and
practices may increase performance in different areas such as productivity, quality and financial
performance.
Wright and McMahan define Strategic HRM as the pattern of planned human resource deployments
and activities intended to enable the firm to achieve its goals.
Strategic HRM is an approach that defines how the organizations goals will be achieved through
people by means of HR strategies and integrated HR policies and practices.
Strategic Human Resource Management
The linking of HRM with strategic goals and objectives in order to improve business
performance and develop organizational cultures that foster innovation and flexibility.
Formulating and executing HR systemsHR policies and activitiesthat produce the
employee competencies and behaviors the company needs to achieve its strategic aims.
Strategic Human Resource Management refers to 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.
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StaffRecruitment,Selection and
Retention
Remuneration,Total Reward
and Fair
Employment
WorkforcePlanning
Learning andDevelopment
Equality andDiversity
Leadership,Involvementand Change
Management
PerformanceManagement
Staff Welfareand
Occupational
Health
HR Strategy
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HRP
HR Planning
The recruitment and selection process is a series of hurdles
aimed at selecting the best candidate for the job.
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Linking Employers Strategy
to Plans
Figure 5.2
Linking the CompanysStrategic Plan to the HR Plan
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SHRM & HRM
HRM vs Strategic HRM
HRM is Human Resources Management which is a strategic approach to the management of
employees. HRM involves the process of employing people, developing their skills/capacities, and
utilizing their services. But today, HRM has come across many changes, and the latest one is the
Strategic HRM which is the most powerful idea currently. Strategic HRM can be termed as a
branch of HRM.
In HRM, traditional methods are followed. Traditional methods means the selection or recruitment
process and imparting training. This HRM process did not have any specific rules for different
areas like recruitment, training, and utilizing the services. This is what makes the Strategic HRM
different from HRM. In Strategic HRM, there are specific rules specified for specialized fields.
In HRM, there are no separate people for different areas whereas in Strategic HRM there are
different people who are skilled in specific areas. It is not that the same persons will handle
recruitment, training, and employee appraisal.
As the term itself denotes, Strategic HRM deals with strategic aspects of HRM. Unlike HRM,
Strategic HRM mainly focuses on the programs with long-term objectives. Though HRM and
Strategic HRM focus on increasing employee productivity, Strategic HRM uses many strategic
methods.
Unlike the traditional HRM, Strategic HRM uses more sophisticated methods for improving overall
employee motivation and productivity. Unlike the traditional HRM, Strategic HRM uses more
systematic tools.
While the traditional HRM focuses mainly on employee relations, Startegic HRM focuses on
partnerships with internal and external customers. When HRM has only short-term goals,
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Strategic Management
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Linking Corporate and HR
Strategies
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HRS Strategic Roles
HR professionals should be part of the firms strategic planning
executive team.
Identify the human issues that are vital to business strategy.
Help establish and execute strategy.
Provide alternative insights.
Are centrally involved in creating responsive and market-driven
organizations.
Conceptualize and execute organizational change.
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Strategy, HRM, SHRM, HRP
HRM needs to achieve the following strategic goals in order for the company to gain and sustain
competitive advantage:
to invest in people through the introduction and encouragement of learning processes
designed to increase capability and align skills to organizational needs,
to ensure that the organization identifies the knowledge required to meet its goals and satisfyits customers and takes steps to acquire amd develop its intellectual capital,
to define the behaviours required for organizational success and ensure that these behaviours
are encouraged, valued and rewarded,
to encourage people to engage wholeheartedly in the work they do for the organization,
to gain the commitment of people to the organizations mission and values.
To achieve these goals it is necessary to understand the linkage between HRM and business
strategy.
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Strategic Management
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Strategy, HRM, SHRM, HRP
Think Functionally, Act
Strategically
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Strategy, HRM, SHRM, HRP
Implementing Strategic Human resource management:
Strategic human resource management is relatively a new concept both in the field of human
resource management and in the field of strategic management. The concept is based mainly on
the human resource, which is considered as human capital in achieving the long-term
objective(s) of the company. Hence human resource management is a major force indriving organizational performance. Hence the management development process, appraisal
process, reward process should be related to the organizational long-term and short-term goals.
Chase Manhattan Bank targeted on the use of management development program to support the
companys first formal strategic planning process. The program involved all the senior officials,
chairman in strongly reinforcing the importance of new strategic planning process. This had
become a successful key in turning around the troubled bank to success between 1975 and 1980.
General Motors Company has an equally strong tradition of management development tradition.Thus there should be greater emphasis in carefully developing managers. Many companies have
been very strategic in developing managers. The appraisal system should also be effective at the
strategic level for the evaluation of executive talent. The reward system should encourage set of
desired strategic behaviors from managers. Hence every organization must develop its own
strategic position in terms of human resources.
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Nature OF STRATEGIC HRM
Strategic HRM supplies a perspective on the way in which critical issues or success factors
related to people can be addressed, and strategic decisions are made that have a major and long-
term impact on the behaviour and success of the organization. It is not just concerned with
mirroring current condi- tions or past practices (Smith, 1982). As a means of developing
integrated HR strategies, strategic HRM is facilitated to the extent to which the following seven
principles set out by Ondrack and Nininger (1984) are followed:
1. There is an overall purpose and the human resource dimensions of that purpose are
evident.
2. A process of developing strategy within the organization exists and is understood, and
there is explicit consideration of human resource dimensions.
3. Effective linkages exist on a continuing basis to ensure the integration of human resourceconsiderations with the organizational decision-making process.
4. The office of the chief executive provides the challenge for integrating human resource
considerations to meet the needs of the business.
5. The organization of all levels establishes responsibility and accounta- bility for human
resource management.
6. Initiatives in the management of human resources are relevant to the needs of the
business. 7. It includes the responsibility to identify and interact in the social, political, technological and