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Presented By:

CathyChirag

Manish

PrachiRattna &

Suma

STRATEGIC

HUMAN RESOURCEMANAGEMENT

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Strategic human resource management is theproactive management of people. It requiresthinking ahead, and planning ways for a company tobetter meet the needs of its employees, and for theemployees to better meet the needs of the company.

This can affect the way things are done at a businesssite, improving everything from hiring practicesand employee training programs to assessmenttechniques and discipline.

DEFINITION

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In this age of rapid technological development, theimportance of human resources still holds the key to

the development and progress of a company. Strategichuman resource management is a new approach, thathelps in aligning the skills present in the employeeswith the goals to be achieved by the company.

Strategic human resource management is theprocess of linking the human resource function

with the strategic objectives of the organizationin order to improve performance.

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STEPS FOR STRATEGIC

MANAGEMENT 1. mission and goals

2. environmental analysis3. strategic formulation

4. strategy implementation

5. strategy evaluation

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FEATURES OF SHRM

TOP MANAGEMENT

PROCESS CAPABILITIES

INTERRELATED WITH BUSINESS STRATEGIES

STRATEGY FORMULATION

STRATEGIC CAPABILITY

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DIFFERENCE IN HRM & SHRM

HRM SHRM

HRM involves the process of employingpeople, developing their skills/capacities,and utilizing their services.

Strategic HRM can be termed as a branch ofHRM.

While traditional HRM focuses mainly onemployee relations.

Strategic HRM focuses on partnerships withinternal and external customers.

When HRM has only short-term goals Strategic HRM is for long-term goals.

When HRM has staff specialists Strategic HRM has line managers.

When considering job design, there is a tightdivision of labor and independencespecialization in HRM

On the other hand, job division in StrategicHRM is flexible.

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ADVANTAGES OF SHRM

It helps analyze the opportunities and threats that arecrucial, from the point of view of the company.

It is possible to develop strategies and have a vision for thefuture.

The need for competitive intelligence, which is of utmostimportance in strategic planning, is fulfilled by means of

implementing strategic human resource management.

The attrition rate can be reduced, if strategic HRM isimplemented properly. It also performs the important task ofmotivating employees.

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Development and maintenance of competency amongemployees, is the most important benefit offered by

strategic HRM.

It helps determine the weaknesses and strengths of the

company, thereby enabling the management to takeappropriate measures.

It helps keep a check whether the expectations ofemployees are addressed properly.

Business surplus is achieved by making the employees

competent enough to deliver the goods.

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Inability of the management in communicating the

vision and mission of the company clearly to theemployees.

Interdepartmental conflict and lack of vision among thesenior management in implementing the HR policies.

The diversity of workforce that makes it difficult for themanagement to handle them accordingly.

LIMITATIONS

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The changing market scenario which in turn createspressure on the effective implementation of strategicHRM.

The resistance from institutions such as the labor unions

Conflict among the employees over the issue of authorityand the related fear of victimization.

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HIERARCHY OF STRATEGY

Another aspect of strategic management in themultidivisional business organization concerns thelevel to which strategic issues apply. Conventional

wisdom identifies different levels of strategy ahierarchy of strategy :

1. corporate

2. business

3. functional

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SHRM MODELSMATCHING MODEL

HR STRATEGY MODEL Control Based Model

Resource Based Model

Integrative Model

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MATCHING MODEL

HR systems and organizational structure shouldbe managed in a way that is congruent withorganizational strategy.

In the Devanna et al. model, HRMstrategystructure follow and feed upon one another andare influenced by environmental forces

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HR STRATEGY MODELS:

1. CONTROL BASED MODEL :

The control-based model, is grounded in the way in whichmanagement attempts to monitor and control employeerole performance.

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2. RESOURCE BASED MODEL

This second approach to developing typologies of HR strategy is groundedin the nature of the rewardeffort exchange and, more specifically, thedegree to which managers view their human resources as an asset asopposed to a variable cost.

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3. INTEGRATIVE MODEL

It focusses on two main dimensions :

Acquisition and development

Locus of control

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LATEST TREND & FORECAST

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LATEST TREND & FORECASTIN SHRM

SHRM Executive Roundtable on WorkplaceFlexibility

SHRM Workplace Forecast: The Top WorkplaceTrends According to HR Professionals

Future Insights: Top Trends According to SHRM'sHR Subject Matter Expert Panels

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SHRM 2009 Executive Roundtable on the Futureof Retirement Executive Summary

SHRM Executive Roundtable on Sustainability andHuman Resource Management Strategy: SummaryReport

SHRM Workplace Forecast Survey Report

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CONCLUSIONIdeally HR & top management work together to formulate thecompany's overall business strategy; that strategy then provides

the framework within which HR activities such as recruiting &appraising must be crafted. If it is done successfully, it shouldresult out in the employee competencies & behavior that in turnshould help the business implement its strategies & realize its

goals.

According to an expert "the human resources management systemmust be tailored to the demands of business strategy".

In order to be successful the employees should be developed insuch a manner that they can be the competitive advantage, & forthis the human resource management must be an equal partnerin both the formulation & the implementation of the corporate& competitive strategies.

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