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1. Strategic HRMStrategic HRM

2. Strategic HRMStrategic HRM
The role of SHRM is to see that human
resource issues are taken into account
when an organization develops its
business strategy – and that that strategy
then derives the development of human
resources practices within the firm

3. The Traditional HRMThe Traditional HRM
The traditional role of HR is essentially functional
and revolves around-
Human Resource planning
Recruiting of staff
Job analysis
Performance review
Wages, salary and benefits administration
Employee training
Personnel administration
Legislative compliance
Labor relations

4. Traditional HRMTraditional HRM
H R M
Staffing
Pay
Training
Etc
RESEARCH
&
DEVELOPMENT
PRODUCTION
FINANCE
MARKETING

5. Strategic HRMStrategic HRM
Strategic
Goals
Marketing Production
H R M
R & D
Finance

6. The Roles of SHRMThe Roles of SHRM
Strategic Role
Informational and Problem Solving Role
Strategic Functional Role
Administrative Role
Change Management Role

7. Strategic RoleStrategic Role
HR Participates in business decisions
HR translates corporate strategy into
human resource strategy
HR helps managers create value
HR helps employees satisfy customers’
needs

8. Informational and PS roleInformational and PS role
HR provides information and expertise on
best practices in other companies
HR collects, disseminates, and otherwise
makes available important information to
aid in strategic planning and daily work
activities and decisions
HR diagnoses and recommends solutions
to problems arising in employment
relations

9. Strategic Functional roleStrategic Functional role
 HR helps select employees to fit both strategy and
culture
 HR assists in designing and implementing
performance planning and appraisal systems
 HR assists in designing and implementing motivation
and reward systems
 HR assists in designing benefits to complement
strategy
 HR assists in designing and implementing
development and career management systems
 HR helps enable all executives to perform critical,
strategic HR functions

10. Administrative roleAdministrative role
HR assists in designing and improving
personnel administrative systems
HR does much of the necessary
administrative work involved in
employment, legal compliance and
record keeping

11. Change Management roleChange Management role
HR calls attention to the management
process and its impact on organizational
success or failure
HR helps design / redesign the organization
HR facilitates change that is consistent with
the underlying values of the company
HR facilitates wide ranging organizational
change
HR implements employee involvement and
relations systems
HR maximizes the value of work force
diversity

12. Differences between TraditionalDifferences between Traditional
and SHRMand SHRM
Strategic roles Traditional HRM Strategic HRM
Important relations Labor-management Int
and ext customers
Nature of HR initiatives Reactive and piecemeal Proactive/
integrated
Imp of corp plan Marginal Central
Speed of DM Slow Fast
Planning time horizon Short Term S/ M/ L as
needed
Informational roles
Nature of communication
process Indirect Direct
Level of communicationRestricted High
Sources of communication Mainly internal and Wide-
ranging as
hierarchical needed

13. Differences between TraditionalDifferences between Traditional
and SHRMand SHRM
Administrative roles Traditional HRM Strategic
HRM
Importance and nature carefully written
contracts unnecessary
of contracts contracts needed
usually going beyond
formal contracts
Importance of rules Clear rules essential Getting job
done
paramount
Key guide to management Policies and procedures
Whatever is needed
actions for
business success

14. Differences between TraditionalDifferences between Traditional
and SHRMand SHRM
Functional roles Traditional HRM
Strategic HRM
Selection Separated from business Integrated
with
strategy and of marginal business
strategy
importance a key task of HR
Pay Job based relatively fixed
Performance based
and flexible
Working conditions Separately negotiated In harmony
with
strategy and org
culture
Labor-Mgmt relationsCollective bargaining Individual
contracts
adversarial in nature cooperative nature
Job categories Many Few

15. Differences between TraditionalDifferences between Traditional
and SHRMand SHRM
Functional roles Traditional HRM
Strategic HRM
Job design Tightly defined Broadly
defined
division of labor focused on
team
work
T & D Specialized, with More
generalized
tightly controlled with
development
access to training of a
learning orgn
Change Management roles
HR management’s role Transactional, change
Transformational
follower change
leader
Dealing with conflict Temp control,minimize Manage
climate and

16. Differences between TraditionalDifferences between Traditional
and SHRMand SHRM
Change Management roles Traditional HRM
Strategic HRM
Nature of HR interventions Focused on procedures Wide-
ranging and
cultural
Important frames of ref Norms and traditional
Strategic values
to guide action customs and
mission

17. Key HR skillsKey HR skills
Traditional HRM Strategic HRM
Specialist Generalist
A good policy and procedure writer A good
communicator
Current focus Current and future focus
Monolingual( speaks “HR – ese”) Speaks language of
business
Management-hierarchy focused Customer focused , good
customer relations skills
Few financial/ marketing skills Understanding these aspects
of the business
Focused on the internal organization Focused on the
internal orgn
and the broader society
Factual communicator Persuader
A nationalist An internationalist

18. Reasons for slower / lesserReasons for slower / lesser
transformation to SHRMtransformation to SHRM
Non existence of a competent and persistent
SHRM champion
Political forces with competing coalitions with
different self interests may preclude adoption of
SHRM
Firms experiencing stressful business conditions
The Vicious cycle

19. Vicious cycleVicious cycle
HR dept managers not involved in the
Strategic planning process due to
sr mgmt preference and tradition
Mgmt has poor perception of
Role and competencies of HR
And its ability to contribute to
Strategic biz initiatives
Although HR not involved in
Strategy formulation, it is
Expected to implement key
Aspects of biz strategy
No perceived alignment bet
HR activities and biz
strategy
Significant problems in
Implementing strategy
Related to HR issues

20. Successful transformation toSuccessful transformation to
SHRMSHRM
Integration of HR within the strategic
planning process
Development of a partnership between HR
and other members of the organization
Linkage of HR activities to business
strategy and core cultural values of the
organization
Restructuring the HR department to
ensure success of all the above

21. IntegrationIntegration
A strategic planning process occurs in an orgn
HR managers play an important role in that
process
The strategic planning process, with significant
HR input, should establish an identifiable
strategic direction for the organization along
with appropriate goals and objectives
This planning process should also identify a set
of organizational cultural principles and values
that enhance and contribute to the
achievement of strategic goals and objectives
For full integration, HR managers must have
both process control( ability to influence the
development and selection of information used
in making a decision) and decision

22. PartnershipPartnership
To become a business partner, HR must
1. Learn the firm’s business
2. Be more responsive to and aware of the
organization’s needs and direction
3. Shift away from traditional HR functions
4. Become more involved in supportive,
collaborative relationship with managers
throughout the organization
5. Demonstrate the criticality of HR to the
success of the business

23. LinkageLinkage
Linkage of HR practices to overall
business strategy
Interrelationship among HR activities

24. Restructuring HRRestructuring HR
Decentralized service teams to focus on
defining and managing needed activities
in specific business units
Executive HR services to address the
unique needs of developing managerial
talent within the organization
Centralized HR services used to gain cost
efficiencies in the provision of basic
company wide activities e.g
compensation, professional recruiting and
HRIS data bases

25. HR Strategy
• Strategies for HR flow out of the overall business plans
/ strategy and mainly focus on individual activities of
staffing, C&B, performance management, career
panning, T& D etc
• The focus in the HR strategy is to do the individual
activities better and more efficiently to contribute
towards the organisation’s goals.

26. Strategic HR Vs HR Strategy
Strategic HR HR Strategy
• Organisation Building Organisation survival
and renewal and growth
• Core competencies Individual activities
• Holistic approach Piecemeal approach
• Focus on processes Focus on results
• Core Value of the Orgn Derivative

27. Strategic HR Vs HR Strategy
Strategic HR HR Strategy
• Emphasis on Creation Emphasis on change/
of culture,values,systems adaptation of culture,
values, systems
• Proactive / Learning Reactive / Training
• Result is the development Results are more
of organisation’s core efficient HR
competencies processes

28. Strategic HR Vs HR Strategy
Strategic HR HR Strategy
• Purpose Translate business Build a HR strategy
strategies to orgn orgn and action plan
capabilities and then focussed on making HR fn
into HR practices or dept more
effective
• Owner Line managers HR executives
• Measures Business results thro Effectiveness and effy
use of HR practices of HR practices
• Audience Mgrs who use HR for HR prof who design and
business results deliver HR practices
Emp affected by HR Line mgrs who use HR
practices practices

29. Strategic HR Vs HR Strategy
Strategic HR HR Strategy
• Audience customers who receive
benefits of effective
organisations
Investors who reap
rewards of orgn cap
• Roles Line mgr as owner Line mgr as investor
HR professional as HR professional as
facilitator creator