Gmb 6070 session 1 - may 9th (fil eminimizer)

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ROLE OF STRATEGIC HUMAN RESOURCES MANAGEMENT (HRM) IN BUSINESS STRATEGY

GMB 6070 - Session 1

9th May ‘11

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PRESENTATION PLAN

1. Introduction2. Leveling – (Expectations, Group formations,

Assessment, Evaluation and Grading)3. Concept of Human Resource Management

Strategy4. Strategic role of Human Resource

Management5. HRM and Personnel Management6. HRM and Corporate and Business Strategy7. Role of HRM in Strategy formulation -

(planning, formulation, development and implementation effectiveness)

8. Group work and Reading Assignment

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INTRODUCTION

Map network opportunities for comparison and benchmarking

Form discussion and presentation Groups (Name for team identity and inspiration)

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LEVELING – (EXPECTATIONS, ASSESSMENT, EVALUATION AND GRADING)

1. Individual expectations2. Course work expectations

a) Attendanceb) Group work presentationsc) Individual assignmentsd) Reading Assignmentse) Case Studies

3. Assessment and Grading

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CONCEPT OF STRATEGIC HUMAN RESOURCES MANAGEMENT

Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. John Bratton

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…STRATEGIC HUMAN RESOURCES MANAGEMENT

Conceptual quotes1. ‘If a global company is

to function successfully, strategies at different levels need to inter-relate.’

2. ‘An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.’

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…CONCEPT OF STRATEGIC HUMAN RESOURCES MANAGEMENT

3. ‘The [human resources–business strategy] alignment cannot necessarily be characterized in the logical and sequential way ….. rather, the design of an HR system is a complex and interactive process.’

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…CONCEPT OF STRATEGIC HUMAN RESOURCES MANAGEMENT

• The word ‘strategy’, was derived from the Greek noun strategus, meaning ‘commander in chief’

• It was first used in the English language in 1656.

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• The development and usage of the word suggests that it is composed of stratos (army) and agein (to lead).

• In a management context, the word ‘strategy’ has now replaced the more traditional term – ‘long-term planning’ – to denote a specific pattern of decisions and actions

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…CONCEPT OF STRATEGIC HUMAN RESOURCES MANAGEMENT

Wheelen and Hunger (1995, p. 3) define strategic management as ‘that set of managerial decisions and actions that determines the long-run performance of a corporation’.

Hill and Jones (2001, p. 4) took a similar view when they defined strategy as ‘an action a company takes to attain superior performance’.

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HOW HRM LINKS INTO CORPORATE STRATEGY

1. Mission and goals2. Environmental analysis3. Strategic formulation4. Strategy implementation5. Strategy evaluation.

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…LINKING SHRM TO CORPORATE STRATEGY

Step 1 Mission and Business Goals

Management PhilosophyValues

Step 2 Environmental analysis

Internal scanExternal scan

Step 3 Strategic formulation

Strategic choicesCorporateBusinessFunctional

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…LINKING SHRM TO CORPORATE STRATEGY

Step 4 Strategy Implementation

LeadershipStructureControl systemsHuman Resources

Step 5 Strategy EvaluationOperating performanceFinancial performance

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…LINKING HRM TO CORPORATE STRATEGY

Environmental analysis

Looks at the internal organizational strengths and weak nesses and the external environment for opportunities and threatsFactors that are most important to the organization’s future are referred to as strategic factors and can be summarized by the acronym SWOT

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…LINKING HRM TO CORPORATE STRATEGY

Strategic formulation

involves senior managers evaluating the interaction between strategic factors and making strategic choices that guide managers to meet the organization's goals

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…LINKING HRM TO CORPORATE STRATEGY

Strategy implementation

is an area of activity that focuses on the techniques used by managers to implement their strategies

Strategy evaluation

is an activity that determines to what extent the actual change and performance match the desired change and performance.

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…LINKING HRM TO CORPORATE STRATEGY

Miles and Snow (1984) have identified four modes of strategic orientation:• Defenders • Prospectors • Analyzers• Reactors

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Many HR management gurus have championed the evolving and expanding strategic role of HR professionals.

But a recent report from the Conference Board of Canada seems to indicate that most HR executives feel they aren’t very involved with their companies’ strategic plans.

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In a recent survey of 155 senior-level HR executives 63% of the respondents felt that ‘HR is never, rarely or only sometimes’ a major part of their companies’ overall strategy.

The remaining 37 per cent did feel that HR plays a significant role in their companies’ strategic planning.

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According to researchers with the Conference Board, employees at companies that encourage HR participation in strategic planning have a stronger understanding of their functions within the organization. ‘

There is a strong correlation between those companies that say HR is always linked to the strategic process, and how well the companies’ employees understand where the company wants to go’, says Brian Hackett, a senior HR specialist with the board.

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…LINKING HRM TO CORPORATE STRATEGY

According to the work of management gurus such as (example Ouchi, 1981; Peters & Waterman, 1982), the importance of the effective management of people was affirmed as a source of competitive advantage.

A framework emphasizing the strategic role of the HR function (for example Beer et al., 1985; Fombrun et al., 1984) and attaching the prefix ‘strategic’ to the term ‘human resource management’.

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…LINKING HRM TO CORPORATE STRATEGY

Strategic management is considered to be a continuous activity that requires a constant adjustment of three major interdependent poles: • Values of senior management, • Environment, • Resources available

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STRATEGIC ROLE OF HRM - (PLANNING, ORGANIZING, STAFFING, LEADING, CONTROLLING)

Planning • Goals and standards• Rules and procedures• Plans and forecasting.

Organizing • Tasks• Departments• Delegating Authority and communication • Coordinating

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…STRATEGIC ROLE OF HRM - (PLANNING, ORGANIZING, STAFFING, LEADING, CONTROLLING)

Staffing • Hiring• Recruiting• Selecting• Performance standards• Compensation• Evaluating performance• Counseling• Training and developing

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…STRATEGIC ROLE OF HRM - (PLANNING, ORGANIZING, STAFFING, LEADING, CONTROLLING) Leading

• Getting the job done• Morale• Motivation

Controlling • Setting standards• Comparing actual performance to standards• Corrective action

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…STRATEGIC ROLE OF HRM - (PLANNING, ORGANIZING, STAFFING, LEADING, CONTROLLING)

Strategic Partnership• Imparting managers with soft skills• Job analyses• Labor needs• Recruit• Select candidates• Orient and train• Wages and salaries• Incentives and benefits

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HRM AND PERSONNEL MANAGEMENT Human Resource Management could be

described in two ways. 1. Strategic2. Proactive. Strategies are ongoing and they constantly work

towards managing and developing an organizations workforce.

It can be seen as Proactive arising from continuous nature of development and functions that focus on the improvement of the organization’s workforce.

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HUMAN RESOURCES MANAGEMENT

In human resource management almost everybody in Managing Position plays a part in Training and Development.

They aim is to have many different Managers in various departments with the necessary skills to handle employee issues that arise

HRM holds the view that improved performance leads to employee satisfaction.

HRM sees work groups, effective strategies for meeting challenges, and job creativity as primary motivators."

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PERSONNEL MANAGEMENT

Personnel Management can be described as reactive.

Personnel management responds to demands and concerns as they are presented.

Personnel management can include administrative tasks that are both traditional and routine.

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…PERSONNEL MANAGEMENT

"When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management.

Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization.

A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

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…PERSONNEL MANAGEMENT

From Personnel Management perspective, motivation of employees depends largely on compensation, bonuses, rewards, and the simplification of work responsibilities. i.e., employee satisfaction provides the motivation necessary to improve job performance.

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GROUP WORKG1 G2 G3Of recent times academia and HR professionals have embraced SHRM

In your opinion what is the strong business case for the strategic approach to SHRM, or is it more of self-interest by the two groups?

In your pinion are the Kenyan organizations more with HRMs or PMs

Critically evaluate your response

Discuss how the strategic HRM would carry out the duties of empowering line managers with soft skills.

Critically show how you would measure the effectiveness of soft skills in an organization

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READING ASSIGNMENT

Read Course Text – Anthony, Kacmar and Perrewe ( 2006 ) - Ch. 1 and 4

Read Michael Armstrong (2007) Strategic Human Resource Management, Kogan Chap. 1 and 2

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END Thank you

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