Strategic HRM

COURSE CODE: HRM616

Ref: SHRM Charles Greer

 What is strategy?
What is strategy?
Is it a plan?
Does it refer to how we will obtain the ends we
seek? Is it a position taken?
Just as military forces might take the high ground
prior to engaging the enemy,
might a business take the position of low-cost
provider?
does strategy refer to perspective, to the view one
takes of matters, and to the purposes, directions,
decisions and actions stemming from this view?
Does strategy refer to a pattern in our decisions and
actions?
does repeatedly copying a competitors new product
offerings signal a "me too" strategy?
Ref: SHRM Charles Greer
 Strategy is
Strategy is all these
it is perspective, position, plan, and pattern.
Strategy is the bridge between policy or high-order goals on
the one hand and tactics or concrete actions on the other.
Strategy and tactics together straddle the gap between ends
and means.
strategy is a term that refers to a complex web of thoughts,
ideas, insights, experiences, goals, expertise, memories,
perceptions, and expectations that provides general guidance
for specific actions in pursuit of particular ends.
Strategy is at once the course we chart, the journey we
imagine and, at the same time, it is the course we steer, the
trip we actually make. Even when we are embarking on a
voyage of discovery, with no particular destination in mind, the
voyage has a purpose, an outcome, an end to be kept in
Ref: SHRM Charles Greer
view.
 Meaning
Strategy is a term that comes from the
Greek strategia, meaning "generalship."
In the military, strategy often refers to
maneuvering troops into position before
the enemy is actually engaged

Ref: SHRM Charles Greer

 definitions in use
Some of the definitions in use include the
following:
Strategy is that which top management does that is
of great importance to the organization.
Strategy refers to basic directional decisions, that is,
to purposes and missions.
Strategy consists of the important actions necessary
to realize these directions.
Strategy answers the question: What should the
organization be doing?
Strategy answers the question: What are the ends
we seek and how should we achieve them?

Ref: SHRM Charles Greer

 What is strategic
management?
A continuous, iterative process aimed at
keeping an organization as a whole
appropriately matched to its environment
(Samuel C. Certo and J. Paul Peter, Strategic Management)
Keeping the business in tune with
management and marketing forces both
outside and inside the firm

Ref: SHRM Charles Greer

 Competitive strategy
Competitive strategy leads to competitive
advantage
Generates supernormal ROI
Offers services of value
Uses cost effective technology
Avoids erosion of competitive advantage by
exploiting and developing a technological base

Ref: SHRM Charles Greer

Stages in Strategic management
Strategic analysis
Environmental analysis
Establish organizational direction
Strategy formulation
Strategy implementation
Strategic control

Ref: SHRM Charles Greer

 Strategy & HRM ? NEED FOR STRATEGIC HRM

Physical assets are viewed as investments

Can
superior technology
Superior facility
Superior product
Bring about and more importantly sustain competitive
advantage?
Physical facilities can be duplicated, cloned or
reverse engineered and they no longer provide
competitive advantage
Ref: SHRM Charles Greer
 Strategy & HRM ? NEED FOR STRATEGIC HRM

Cost of employees as variable cost of production.

No formal recognition of human resource as a key
resource
No recognition of firms contribution to training
Cost of recruitment, training and replacement
ROI for investments in human resources
maintainable advantage usually from outstanding
depth in selected human skills, logistics
capabilities, knowledge bases
Ref: SHRM Charles Greer
 HRM Changing times?

Views of employees as cost center is changing

Selection process
Induction and training process
Education
Retention - negative impact of employee turn over
Compensation
Innovation and learning cost of un recorded knowledge

Ref: SHRM Charles Greer

 strategic HRM
HRM is a strategic tool only if it contributes
to the bottom line. The question is; Does it?
Forecasts of shifts in skill needs from manual
to cerebral
Human Resources needs to looked at from an
Investment perspective.

Ref: SHRM Charles Greer

 Strategic analysis HRM
To be competitive, organizations in many
industries must have highly skilled.
Knowledgeable workers. They must also have a
relatively stable labour force since employee
turnover works directly against obtaining the kind
of coordination and organizational learning that
leads to fast response and high-quality products
and services
- Edward Lawler
Ref: SHRM Charles Greer
 Human resources
Investment considerations
Management values
Risk return on investments
Economic rationale for investment in
training
Utility theory
Outsourcing as an alternative to investment in
Human resources

Ref: SHRM Charles Greer

 Human resources
Investment considerations
Management values Values, Philosophies of
management / senior managers.
Risk return on Cost center
investments HR cost center
Replaceable resource
Economic rationale for Investment
investment in training HR value adder
Critical resource
Utility theory KEY personnel

Outsourcing as an Enhances human capital/

prevents depletion
alternative to
investment in Human BPL, Govt,Vs Infosys, Vs
resources Reliance, TCS
Education, training, reward,
promotion.

Ref: SHRM Charles Greer

 Human resources
Investment considerations
Management The employers do not own the
values resource in which they have
Risk return on invested.
investments Returns must be great enough
Economic rationale for to overcome the risks
Cash outlays to maintain no
investment in training layoff policy, the benefits are
Utility theory not easily quantified
Outsourcing as an Incur costs in short run for long
alternative to term strategic benefit.
Flexible committed work force
investment in Human
resources Better organizational culture
Reliance communication

Bond money

Ref: SHRM Charles Greer

 Human resources
Investment considerations
Management values Human capital theory
Empr Not to bear the cost of Gen
Risk return on training as the employees transfer skills
developed at employers expense.
investments General training
Economic rationale for OJT, Tuition fee reimbursement
Recoup cost of general training
investment in training [loyalty, flexibility]
Utility theory Specific training
Outsourcing as an Employee related
Cost of mobility, relocation,
alternative to residence, children's education and
investment in Human other psychological issues,
resources new salary lower/ greater
LAY OFF

Ref: SHRM Charles Greer

 Human resources
Investment considerations
Management values Utility of each HR
Risk return on activity [attempts to determine
investments economic value of human resource
programs activities and procedures]
Economic rationale for
Recruitment process
investment in training Employee with higher
Utility theory
productivity
Outsourcing as an
Performance appraisal
alternative to
investment in Human Return on output
resources Return on sales
Advt, training, special roles,

Ref: SHRM Charles Greer

 Human resources
Investment considerations
Management
Where world class capabilities and
values strategic advantage cannot be
Risk return on developed.
The resources devoted to perform
investments the service internally is greater
than those needed when outsourced
Economic rationale for Excessive dependence on suppliers
investment in training can be avoided.
Salary, executive search, HRIS,
Utility theory Benefits administration etc are
Outsourcing as an outsourced
Key areas viz., performance
alternative to appraisal, employee relations and
investment in Human labour relations are retained by
resources companies.

Ref: SHRM Charles Greer

 Investments in training and
development
Investments in employability
Who moved my cheese?/ Jack Welch
the building was still standing , but the people were gone.

Employers have responsibility to ensure they are getting the best

results from each employee before terminating them. (the
employer will have to coach, counsel and train the employee and
also take advantage of the same.
Current practices
OJT
MDP
Prevention of skill obsolescence M,NC, CNC/ soft wares domain / telecommunication

Reduction of career plateauing narayan murthy / VRS, golden hand shake/

Ref: SHRM Charles Greer

 Investment practices for improved retention
Organizational cultures emphasizing interpersonal
relationship values
Effective selection procedures
Compensation and benefits
Job enrichment and job satisfaction
Practices providing work life balance
Organizational direction creating confidence in
the future
Retention of technical employee
Other practices in facilitating retention
Opportunities for training, growth, new learning, liberal
transfer policies
Ref: SHRM Charles Greer
 Investments in job-secure work forces
Recognition of the costs of downsizing and lay offs
Bumping less senior employees
Reduced productivity

Cost of training the incumbent, wage supplement

Costs relating to termination of employees

Separation payments, higher rates for unemployment
compensation, Depletion of the firms investment in training
employees.
Administrative costs
Human resource processing activities, Clerical expenses, cost
of conducting medical examination of laid off employees,
increased supervisory obligations for managers of reassigned
employees.
Intangible costs
Morale, disruption of efficiencies in work processes,
Accidents, Depletion of goodwill, irregular age distribution

Ref: SHRM Charles Greer

 Investments in job-secure work forces

Avoiding business cycle-based layoffs

Alternatives to layoffs
When down turn is of short duration
Block / shut off inflow of personnel into the organization
attrition brings down the cost
Redeployment of current employees
Curtailment of sub contractors and reallocate the work to
permanent employees
Sharing of economic loss wipro
Fewer work days
Employment guarantees
The work effort and job security relationship
The less secure the greater is the flexibility and productivity

Ref: SHRM Charles Greer

 Ethical implications of employment
practices
Job security
Performance pressures
Compensation
Work environment

Ref: SHRM Charles Greer

 Non-traditional investment
approaches
Investment in (disabled) Differently-abled
employees
Investments in employee health
Countercyclical hiring technical personnel .

Ref: SHRM Charles Greer

 Exercise = Identify the type of investment

Employment security
Self-managed teams and decentralization of decision-
making
Extensive training and development
Continuous improvement HR programs
Reduced status distinctions and barriers
Sharing of financial and performance information
Trust between management and employees at all
organizational levels
Communication in global markets
Efficient and effective use of new information technologies

Ref: SHRM Charles Greer

 ECC recognises that people are the real source of competitive advantage.
It is through people that ECC delivers total customer satisfaction. An
extensive and rigorous recruitment process ensures quality induction.
L&T's Graduate Engineer Trainee recruitment process covers India's major
engineering colleges and institutions. Programmes, plant visits and
comprehensive information-sharing facilitate induction.
The basic principles of ECC's Human Resources policies include
Recruitment based solely on merit by following well-defined and
systematic selection procedures without discrimination
Sustain motivated and quality work force through appropriate and fair
performance evaluation, reward and recognition systems
Identify training needs within the Organisation and design and implement
those need based training programmes resulting in continuous
upgradation of knowledge, skills and attitudes of the employees
Maintain a quality Human Resource Management System to meet the
international standards as per ISO 9001. Plan, design, train, equip and
motivate the department staff to meet this standard of expectation.
ECC's Work Culture
Work culture emphasises:
Freedom to experiment
Continuous learning and training
Transparency
Quality in all aspects of work
Rewards based on performance and potential

Ref: SHRM Charles Greer

Stages in Strategic management
Strategic analysis
Environmental analysis
human resource environment
human resource legal environment
Establish organizational direction
Strategy formulation
Human resource planning
Strategy implementation
Work force utilisation and employment practices
Reward and development system
Strategic control
Performance impact of human resource practices
Human resource evaluation
Ref: SHRM Charles Greer
 The human resource
environment
Global changes
WTO, GATT, EU, G&, G10 etc.
Boardersand barriers
E-commerce, M-commerce
Emerging markets, new markets.
Technology
Demography
Culture
Etc.
The imperative >>HR focus

Ref: SHRM Charles Greer

 The human resource environment
-General environment
Technology and organisational structure
Worker values and attitudinal trends
Management trends
Demographic trends
Trends in utilisation of human resources
International developments

Ref: SHRM Charles Greer

 The human resource environment
-General environment
Technology and Influence of technology
organisational structure HRIS
Redeployment of HR staff to
Worker values and operating units
attitudinal trends New organisational structures
(Short / accountability)
Management trends Unbounded corporations
Virtual corporations /
Demographic trends networked organisations
Trends in utilisation of Cellular organisations/guilds
Respondent organisations/
human resources supply niche components
International Stimulus for entrepreneurial
business
developments
Ref: SHRM Charles Greer
 The human resource environment
-General environment
Technology and Ethical/moral issues
(older generation blaming

organisational structure younger generation)

Time spent on work/ leisure
Worker values and Work enjoyment / satisfaction /appeals
attitudinal trends Loyalty of employees
Location near / far
Management trends Age
Younger no loyalty and expect
Demographic trends none
New employee Perception before
Trends in utilisation of joining and after joining the job
(extrinsic to intrinsic)
human resources (image, induction and orientation,
International socialization process)
Emphasis on core values, cultures,
developments family, social service)

Ref: SHRM Charles Greer

 The human resource environment
-General environment
Technology and Management of diversity
organisational structure Work teams
Virtual teams
Worker values and Human resource outsourcing
attitudinal trends Open book management
Management trends TQM
Demographic trends Integrated manufacturing
Reengineering
Trends in utilisation of Management of professionals
human resources Managing of aftermath of Mrg
International & Aqui
developments
Ref: SHRM Charles Greer
 The human resource environment
-General environment
Technology and Aging work force (HMT)
organisational structure Baby boom-US, China
Worker values and
Labour Shortages
attitudinal trends
Management trends Racial diversity
Demographic trends Occupational
Trends in utilisation of distribution for women
human resources Dual career couples
International
developments
Ref: SHRM Charles Greer
 The human resource environment
-General environment
Technology and Telecommuting /
organisational structure working from home
Worker values and Relocation from work
attitudinal trends
Growing use of
Management trends
Demographic trends temporary and
Trends in utilisation of contingent workers
human resources Employee leasing
International
developments
Ref: SHRM Charles Greer
 The human resource environment
-General environment
Technology and NAFTA
organisational structure EU
Worker values and
GATT
attitudinal trends
Management trends WTO
Demographic trends G7
Trends in utilisation of
human resources
International
developments
Ref: SHRM Charles Greer
 The human resource environment
-Legal environment
An overview of Industrial Relations Climate
Emerging trends and paradigm shifts towards
Employee Relations
Employee Relations Policy
Implications of:
Employment Related Legislations
Payment Related Legislations
Social Security Related Legislations
Welfare Related Legislations

Ref: SHRM Charles Greer

 The human resource environment
-Legal environment
Equal employment opportunity for women.
Age, gender discrimination, promiscuous gender based harassment.
Promiscuity, Dealing with incidences, pregnancy discrimination,
Disability discrimination, Religious discrimination, Reservations
and protection, health care benefits, family and medical leave.
Employee relations
Negligent hiring, immigration, Employment at will, Drug testing,
Safety
Labour relations and collective bargaining.
Emerging issues
Strategic impact of the legal environment

Ref: SHRM Charles Greer

 Labour Legislations in India
The Apprentices Act, 1961
The Bonded Labour System (Abolition)
Act, 1976
The Child Labour (Prohibition &
Regulation) Act, 1986
The Children (Pledging of Labour) Act,
1933
The Contract Labour (Regulation &
Abolition) Act, 1970
The Employees Provident Funds and
Misc. Provisions Act,1952
The Employees State Insurance Act,
1948
The Employers Liability Act, 1938
The Employment Exchange (Compulsory
Notification of Vacancies) Act, 1959
The Equal Remuneration Act, 1976
The Factories Act, 1948
The Workmen's Compensation Act, 1923
The Weekly Holidays Act, 1942
Ref: SHRM Charles Greer
The Industrial Disputes Act
The Industrial Employment (Standing
Orders) Act,1946
The Inter-state Migrant Workmen
(Regulation of Employment and
Conditions of Service) Act, 1979
The Labour Laws (Exemption from
Furnishing Returns & Maintaining
Registers by Certain Establishments)
Act, 1988
The Maternity Benefit Act, 1961
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Mines Act,1952
The Payment of Gratuity Act, 1972
The Payment of Wages Act, 1936
The Sales Promotion Employees
(Conditions of Service) Act, 1976
The Shops and Establishments Act, 1953
The Trade Union Act, 1926
 Labour legislations
Theterm `labour legislation is used to
cover all the laws which have been
enacted to deal with employment and
non-employment wages, working
conditions, industrial relations, social
security and welfare of persons
employed in industries.

Ref: SHRM Charles Greer

 Need for labour legislation in India:
Organized industry in a planned economy calls for the
spirit of co-operation and mutual dependence for
attaining the common purpose of greater, better and
cheaper production. Since this has not been happening
voluntarily, the need for State intervention.
The need for labour legislation may be summarized as
under:
Necessary for the health, safety, and welfare of workers;
Necessary to protect workers against oppressive terms as
individual worker is economically weak and has little
bargaining power;
To encourage and facilitate the workers in the
organization;
To deal with industrial disputes;
To enforce social insurance and labour welfare schemes.
In India, labour legislation is treated as an arm of the
State for the regulation of working and living conditions
of workers.
Ref: SHRM Charles Greer
 Principles of labour legislation
Social Justice:
Social Equity
Standards in terms of living, position in
society etc. of the working population.
National Economy
International Uniformity

Ref: SHRM Charles Greer

 Principles of labour legislation
Social Justice:
Social Equity
Standards in terms of living,
position in society etc. of
the working population.
National Economy
International Uniformity
Ref: SHRM Charles Greer
The essence of democracy
is ensuring social justice to
all sections of the
community.
This demands the
protection of those who
cannot protect themselves.
In modern industrial set-up,
workers, left to themselves,
are unable to protect their
interest.
Therefore, the State has to
intervene to help them by
granting them freedom of
association, the power of
collective bargaining and by
providing for mediation or
arbitration in the case of
industrial conflict.
 Principles of labour legislation
Social Justice: Legislation based on this
Social Equity principle provides for
achievement of definite
Standards in terms of living,
standards.
position in society etc. of
EQUAL REMUNERATION
the working population.
ACT
National Economy
Specific provisions of
International Uniformity law such as in
factories act
Work timings
Work environment
Dangerous machines act

Ref: SHRM Charles Greer

 Principles of labour legislation
Social Justice: These standards for the
Social Equity working class can be
achieved by bringing
Standards in terms of living,
about changes in the Law
position in society etc. of
of our land.
the working population.
Power to change the
National Economy Law is exercised by the
International Uniformity government.
Existing laws may be
amended to meet the
changed standards.
ESI
EPF
Minimum wages

Ref: SHRM Charles Greer

 Principles of labour legislation
Social Justice:
Social Equity
Standards in terms of living,
position in society etc. of
the working population.
National Economy
International Uniformity
Ref: SHRM Charles Greer
Measures have to be
provided through
legislation to:
Ensure normal growth
of industry for the
benefit of the nation as
a whole
Satisfy the physical and
intellectual needs of the
citizens
Ensure the growth of
industrial efficiency such
as to adjust the wage
system with a view to
increase the productivity
and prosperity of the
workers
 Principles of labour legislation
Social Justice:
Social Equity
Standards in terms of living,
position in society etc. of
the working population.
National Economy
International Uniformity
Ref: SHRM Charles Greer
ILO Since its inception,
securing minimum
standards (for the working
population worldwide) on
a uniform basis in respect of
all labour matters has been
the main objective of ILO.
o To this end, conventions
are passed at the
conferences of ILO.
As a member of the ILO,
adopting these conventions
would require appropriate
legislation to be brought
about.
The influence of
international labour
conventions has been
significant in shaping the
course of labour legislation
in India.
 Legal environment
- Bench mark
Obey the Law. Law is societys codification of right and wrong;
Play by the rules
It is important to perform in a manner consistent with
expectations of government and the law.
It is important to comply with various national and supra-national
laws and regulations.
It is important to be a law-abiding corporate citizen.
It is important that a successful firm be defines as one that fulfils
its legal obligations.
It is important to provide goods and services that at least meet the
minimal legal requirements.

Ref: SHRM Charles Greer

 Strategy formulation
What are the purpose(s) and objective(s) of
the organization?
Where is the organization presently going?
What critical environmental factors does the
organization currently face?
What can be done to achieve organizational
objectives more effectively in the future?

Ref: SHRM Charles Greer

 Strategy formulation process
Development of organizational philosophy and
mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning
Managed/logical incremental planning

A strategy is the pattern or plan that integrates

Ref: SHRM an Greer
Charles organisations major goals, policies,
and action sequences into a cohesive whole
Competitive strategy in Business
Units
Periodic forward scanning
Analysis based on longer time frame
Communication about goals and resource allocation
Framework for short-term plan evaluation and
integration
Decisional criteria framework for short term decision
making
PLANNING IN SBUS
Base strategy will be integrated with functional specializations to
exploit the opportunity seen by the strategy and achieve the goals .
Low cost leadership, differentiation, niche

Ref: SHRM Charles Greer

 Value Chain Analysis
Primary activities Secondary Activity
Inbound logistics Procurement
Operations Human Resource
Outbound logistics Management
Marketing and Technology
sales Development
Service Infrastructure

Ref: SHRM Charles Greer

Steps in Value Chain Analysis
Value chain analysis can be broken down into a
three sequential steps:
1. Break down a market/organisation into its key
activities under each of the major headings in the
model (primary activities / secondary activities)
2. Assess the potential for adding value via cost
advantage or differentiation, or identify current
activities where a business appears to be at a
competitive disadvantage;
3. Determine strategies built around focusing on
activities where competitive advantage can be
sustained

Ref: SHRM Charles Greer

 HR strategy ?
'a human resource system that is tailored to the
demands of the business strategy'
-Miles and Snow 1984
'the pattern of planned human resource activities
intended to enable an organization to achieve its
goals'
- Wright and McMahan 1992
the pattern planned human resource deployments and
activities intended to enable an organisation to
achieve its goals
Ref: SHRM Charles Greer
 SHRM concern
SHRM concern is to ensure
HR management is fully integrated with the
strategy and strategic needs of the firm
HR policies cohere across policy areas and
areas of hierarchy
HR practices are adjusted and used by line
manages and employees as part of their
everyday work

Ref: SHRM Charles Greer

 Strategic HRM (IMPORTANCE)

Needs investment ROI

Cost of investment
Reduction in total Labour cost
Efficiency in operation
Optimal use of human resources
A source of competitive advantage
Technical skills (pace of technological change)
Knowledge and capabilities
Management of critical and Difficult HR areas
Management of change (Resistance to change)
Lack of trust
Antagonistic labour
Motivational problems
Management relations
Economic turbulence
Within the country (turbulence)
Globalisation
Dramatically changing demographics
Differences in workforce values
Strategic human resource management and HRP are considered important
to manage uncertainties; HR is integrated with strategy; Integrating and
aligning HR function with strategy
Ref: SHRM Charles Greer
 Benefits of SHRM
1. Identifying and analysing external opportunities and
threats that may be crucial to the company's success.
2. Provides a clear business strategy and vision for the
future.
3. To supply competitive intelligence that may be useful in
the strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are
addressed systematically.
7. To supply information regarding the company's internal
strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough competency

Ref: SHRM Charles Greer

 Theoretical frame work of SHRM

Firm strategy Institutional /

Political forces

Resource dependence
Resource institutional
based view
of the firm HRM Practices
Behavioral
Cybernetics
approach
Agency/transaction costs
Firm level outcomes
HR Capital pool HR behaviors (performance,
satisfaction,
(Skills, abilities) absenteeism etc)
Ref: SHRM Charles Greer
 Theoretical frame work of SHRM
Strategy driven
Resource based view
Competitive advantage based on unique allocation of resources {selection
/Compensation package} (TCS)
Behavioral view
Control and influence the behaviors of individuals (Infosys)
Cybernetics systems
Adoption or abandonment of practices based on feedback on contributions to
strategy (Bosch MICO)
Agency/transactions cost view
Use of control systems, performance evaluation and reward systems etc
(In the absence of performance evaluation strategy may not be pursued)

Non-Strategy driven
Resource dependence and power theories
Power and politics= legislation, unionization, control of resources, expectations of
social responsibility.
Institutional theory
In appropriate performance evaluation dimensions (inertia / rational decision
making.appraisal

Ref: SHRM Charles Greer

 International strategy
Multinational, global and transnational
strategies
Strategic alliances
Sustainable global competitive advantage
Globally competent managers
Location of production facilities

Ref: SHRM Charles Greer

Human resource contributions
to strategy
Environmental scanning and competitive
advantage
Implementation of resource reallocation
decisions Slide >

Lead time for dealing with labour shortages.

..

Ref: SHRM Charles Greer

Industry matrix < Back

Ref: SHRM Charles Greer

 Other issues
Strategy driven role behaviors and practices
Innovation cooperation, group oriented, long term appraisal system, generalized skill development, broad career path,
compensation approaches accentuating internal equity flexible compensation packages including stock ownership
quality enhancement- employment security guarantees. Extensive training programs, participative decision making (process
orientation)
cost reduction performance evaluation system emphasizing results in the short term. Virtually no training programs, very
specialized jobs, narrow specialized career jobs,Procedure for continual tracking of wage rates in the labour market.
Strategic human resource activity typology
Relational : transactional $ High : low strategic value Slide >
Classifying human resource types
Jeffrey sonnenfeld and Maury peiperl Slide
Miles and snow: Defenders, prospectors, analyzers and reactors
Network organization and strategy
Integration of strategy and human resource planning
Evolution of strategy and human resource planning integration.
Evolution of linkages between Strategic business planning and HRM
Administrative linkage, one way HR is involved in implementation, two way- involved HRM and strategic business plans, integrated
Determinants of integration
Conditions under which determinants may not be appropriate.

Ref: SHRM Charles Greer

 HUMAN RESOURCE ACTIVITY TYPOLOGY

High Performance enhancement

Consulting
Staffingplanning
Employee relations
Benefits of planning Labour negotiations
Retirement planning Executive compensation

Compliance Employee development

Management development
Recruitment interviewing

Strategic value of
< IMPORTANT TO EXECUTIVES >
activity
Payroll
Benefitsadministration
Recruitment information
Retirement administration
Employee records
processing
Relocation administration Employee assistance programs
Recruitment information processing

Low < IMPORTANT TO EMPLOYEES >

Back Transactional TypeofCharles

Ref: SHRM HR activity
Greer Relationship
Classifying human resource types * BACK

Ref: SHRM Charles Greer

Benefits of integrating HRP with Strategic
planning
Generates more solutions to complex
organizational problems
Ensures consideration of human resources in
organizational goal setting process
Ensures consideration of human resources in
assessment of organizational abilities to
accomplish goals and implement strategies
Reciprocal integration prevents strategy
formulation based on personal
rigidities/preferences
Facilitates concurrent consideration of strategic
plans and managerial succession.
Ref: SHRM Charles Greer
Strategic components of HRM
relevant to internal fit
Management awareness
Management of the function
Portfolio of programs
Personnel skills
Information technology
Awareness of the environment

Ref: SHRM Charles Greer

 HR Practitioners Role
The HR managers have keen role in the effective planning and
implementation of the policies and decisions that in tune with the business
changes.
They should act as strategic partners and be proactive in their role than mere
reactive, passive spectators.
The HR managers should understand how far their decisions contribute to
business surplus incorporating human competency and performance to the
organisation.
Strategic HR managers need a change in their outlook from seeing themselves as
relationship managers to strategic resource managers.
Kossek (1987, 1989) argues that major HRM innovations occur when senior
management takes the lead and adoption of innovative SHRM practices is dependent on
the nature of relationship of the HR Department with the CEO and the line managers.
Legge (1978) commenting on the actions of the personnel practitioner in the innovation
process suggests that adoption of an innovation by an organization depends largely on
HR practitioners' credibility with information and resource providers.
HR Department and HR managers in these innovative organizations play a
strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of
the organization.
A crucial aspect concerning SHRM is the concepts of fit and flexibility. The
degree of fit determines the human resource system's integration with
organization strategy. It is the role of HR Managers to ensure this fit in between
Human Resource System with the Organization Strategy.

Ref: SHRM Charles Greer

 Requirements for SHR-Managers

Information management skills

Planning skills
Management skills
Integration skills
Change management skills

Ref: SHRM Charles Greer

 Human resource planning
Strategic role of HRP
Over view of HRP
Managerial issues in planning
Selecting forecasting technique
Forecasting the supply of human resources
Forecasting the demand for human
resources
Ref: SHRM Charles Greer
 Human resource planning
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply of
human resources
Forecasting the demand
for human resources
Ref: SHRM Charles Greer
Developmental planning
for strategic leadership
Assessment of strategic
alternatives
Adding value
Contribution to strategic
human resource
management
Strategic salary planning.
 Human resource planning
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply of
human resources
Forecasting the demand
for human resources
Ref: SHRM Charles Greer
Steps in HRP
Interfacing strategic planning and
scanning the environment
Taking an inventory of the companies
current human resources.
Forecasting the demand for human
resources
Forecasting the supply of human resources
both from within the organization and
from the external labor market
Comparing the forecast of demand and
supply
Planning the actions needed to deal with
anticipated shortages or overages
Feeding back such information into the
strategic management process
 Human resource planning
Strategic role of HRP Planning in a context
Over view of HRP of change
Managerial issues in Responsibility for
planning
human resource
Selecting forecasting
planning
technique
Failure to plan for
Forecasting the supply of
human resources human resources
Forecasting the demand
for human resources
Ref: SHRM Charles Greer
 Human resource planning
Strategic role of HRP Personal implications
Over view of HRP Changing receptivity
Managerial issues in towards planning
planning
Stricter legislations for
Selecting forecasting lay off etc
technique
Other issues
Forecasting the supply of
human resources Mind set of work force
Forecasting the demand and related actions.
for human resources
Ref: SHRM Charles Greer
 Human resource planning
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply of
human resources
Forecasting the demand
for human resources
Ref: SHRM Charles Greer
Purpose of planning
Organisational
characteristics
Industry characteristics
Environmental turbulence
Other consideration
Technique of forecasting
Cost
Accuracy
 Human resource planning
Strategic role of HRP Replacement charts Mgr posi

Over view of HRP Human resurce inventories

Managerial issues in Succession planning
planning Markov analysis .
Renewal models
Selecting forecasting age cohorts, internal mobilization

technique Computer simulation

Forecasting the supply of Regression analysis
human resources Trend extrapolation
Utilisation of supply
Forecasting the demand forecasting techniques
for human resources
Ref: SHRM Charles Greer
 Human resource planning
Strategic role of HRP
Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply of
human resources
Forecasting the demand
for human resources
Ref: SHRM Charles Greer
Heuristics,Rule of
thumb and the Delphi
technique
Operations research
and management
science technique
Regression analysis
Utilisation of demand
forecasting technique
Trend extrapolation
 Markov analysis back

Distri Job 1 27 .66 .11 .09 .03

.09 .02
bution
of Job 2 41 .15 .60 .08 .06
.10 .01
emplo
yees Job 3 55 .03 .08 .55 .13
.11 .10
in
time Job 4 64 .00 .09 .18 .54
.16 .03
Job 5 73 .00 .08 .10 .17
020 .45
260 26 44 55 57
37 41
Job 1 Job 2 Job 3 Job 4 Job 5 exit

Ref: SHRM Charles Greer

 Strategy formulation process
Development of organizational philosophy and
mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning
Managed/logical incremental planning

A strategy is the pattern or plan that integrates

Ref: SHRM an Greer
Charles organisations major goals, policies,
and action sequences into a cohesive whole
 Strategy implementation
work force utilization and employment practices

Efficientutilization of human resources

Dealing with employee shortages
Selection of employees
Dealing with employee surpluses

Ref: SHRM Charles Greer

 Strategy implementation
work force utilization and employment practices

Efficientutilization of Cross training and flexibility in

assigning work
human resources Using work teams
Dealing with Requirements for effective
teams
employee shortages Forming
Selection of Storming
Norming
employees performing
Dealing with Operating on a non union basis

employee surpluses

Ref: SHRM Charles Greer

 Strategy implementation
work force utilization and employment practices

Efficientutilization of Strategic recruiting

human resources Special recruiting for
Dealing with minorities and women
employee shortages workers
Selection of Flexible retirement as
employees a source of labour
Dealing with Managing vendors of
employee surpluses outsourced functions

Ref: SHRM Charles Greer

 Strategy implementation
work force utilization and employment practices

Efficientutilization of Managing vendors of

human resources outsourced functions
Making the outsourcing
Dealing with decision
Selecting and negotiating
employee shortages with outsourcing vendors
Selection of Managing the outsourcing
transactions
employees Managing vendor
Dealing with relationships
Monitoring and evaluating
employee surpluses vendor performance

Ref: SHRM Charles Greer

 Strategy implementation
work force utilization and employment practices

Efficientutilization of Reliability and validity

Predictive validity
human resources
Concurrent validity
Dealing with Content validity
employee shortages Job analysis
Selection of KSA

employees Interviews
Dealing with Behavioural interviews
employee surpluses
Testing
Assessment centres
Ref: SHRM Charles Greer
 Strategy implementation
work force utilization and employment practices

Efficientutilization of Redeployment and

human resources retraining
Dealing with Early retirement

employee shortages Retreat from

Selection of employment security
policy
employees
Downsizing and
Dealing with
layoffs
employee surpluses Termination strategies

Ref: SHRM Charles Greer

 Strategy implementation
work force utilization and employment practices

Efficientutilization of Downsizing and layoffs

Findings
human resources Co are not well prepared
6 months to 1 year co indicators
Dealing with do not improve profits, ROI,
Stock prices, expense ratios
employee shortages Survivors syndrome
Myth of job security exploded
Selection of (Who moved my cheese)
Sustained improvement can be
employees brought about only with
improvements in productivity,
quality and effectiveness and
Dealing with integrate reductions in head count
with planned changes in the way
employee surpluses
the work is designed.
Downsizing in not a one time
quick fix solution to enhance
competitiveness. is a part of
continuous improvement.
Ref: SHRM Charles Greer
 Strategy implementation
work force utilization and employment practices

Efficientutilization of Downsizing and layoffs

Guide lines for conduct of layoffs
human resources Give early warnings /
announcements of layoffs
Dealing with Soften the impact with

employee shortages
compensation and benefits
Utilise the services of
outplacement firms
Selection of Supply retraining services
employees Provide equitable and decent
treatment to laid off employees
Dealing with Ensure supportive treatment of
survivors
employee surpluses Maintain a cooperative approach
with unions
Uphold obligation to the
community
Ref: SHRM Charles Greer
 Special implementation
challenges
Career path for technical professionals
Dual career couples
Strategy implementation system Reward
and development systems
Strategically oriented performance management
system
Strategically oriented compensation systems

Employee development

Ref: SHRM Charles Greer

 Strategy implementation system
Reward and development systems

Strategically oriented Performance measurement

approaches
performance MBO
management system Graphic scale rating
Narratives
Strategically oriented BARS
compensation systems Behavioral observation scales
360 degree feedback
Employee Performance evaluation of
development executives
Effectiveness of performance
measurement.

YOU GET WHAT YOU MEASURE, YOU MEASURE WHAT YOU VALUE, YOU
Ref: SHRM Charles Greer
CAN NOT CONTROL WHAT YOU CANNOT MEASURE.
 Strategy implementation system
Reward and development systems

Strategically oriented Traditional

performance
management system
Strategically oriented
compensation systems
compensation systems
Job analysis > job evaluation >
salary/wage hierarchy
Point system
Factor comparison system

Hybrid system
Employee Internal equity
> Wage surveys to establish
development external equity.

Ref: SHRM Charles Greer

 Strategy implementation system
Reward and development systems

Strategically oriented Traditional compensation

performance systems
Inadequacies
management system Wage for know-how not

given
Strategically oriented Compensated for specific

compensation systems job only

Impact of collective
Employee bargaining on wage
structures.
development Does not work well with

managers and
professionals

Ref: SHRM Charles Greer

 Strategy implementation system
Reward and development systems

Strategically oriented Skillbased pay

performance Broad banding
management system Team based pay
Strategically oriented
Variable compensation
compensation systems
Executive
Employee
compensation
development

Ref: SHRM Charles Greer

 Strategy implementation system
Reward and development systems

Strategically oriented Training programs

performance Training methods
Apprenticeships
management system Management development
Strategically oriented Management development
compensation systems for international assignments
Product life cycle and
Employee managerial fit
development PLC, Evolutionary stage >
Steady state
Development Vs selection

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance practices
Limitations of individual practices
Evolution of practices
Systems of high performance human resource
practices
Individual best practices Vs systems of practices
Universal practices Vs contingency perspectives

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance Seven management
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
practices that enhance
performance Jefrey Pfeffer
1. Employment security
2. Selective hiring of new personnel
3. Self managed teams and
decentralization of decision
making as basic principle of org
design
4. Comparatively high compensation
on organizational performance
5. Extensive training
6. Reduced status distinctions and
barriers
7. Extensive sharing of financial and
performance information.

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Ref: SHRM Charles Greer
Compensation
High compensation linked to organisational
performance
Incentive based compensation
Profit sharing
Team based compensation
Diversity
Employment
Countercyclical hiring,
downsizing, early retirement
programs, employment security,
human resource outsourcing.
Industrial relations
Decertification of union
bargaining agent
Positive labour relations
Strikes, lockouts
Internal labour market
 The performance impact of
human resource practices
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Ref: SHRM Charles Greer
motivation
Decentralized decision
making
Self managed teams
Open book management
Reduced status differentials or
symbolic egalitarianism
Performance management
Staffing
Cognitive tests, staffing
selectivity, CEO succession
insider outsider, yield analysis
of recruiting sources
Training
 The performance impact of
human resource practices
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Each practice has a
different kind of impact on
individual workers if
possible to address at
individual levels the same
may be done.
Results of studies that
give positive or negative
indication can not be
taken as absolute

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance HR practices are path
practices dependant. They consist
Limitations of individual of policies that are
practices
developed over time and
Evolution of practices
cannot be simply
Systems of high performance
human resource practices
purchased in the market
Individual best practices Vs
by competitors.
systems of practices
Universal practices Vs
contingency perspectives

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance
practices
Limitations of individual
practices
Evolution of practices
Systems of high performance
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Ref: SHRM Charles Greer
Has positive impact
Commitment oriented systems
Decentralized decision making, general
training, Highly skilled employees,
High wages - bonuses
Human capital enhancement
Comprehensive training, BARS,
Technical and problem solving skills,
selective staffing
Human resource administrative system
Hourly pay, individual equity,
individual incentive, result based
performance appraisal
Motivation and commitment system
Receptiveness to new training,
compensation contingent on firms
performance, extent of status
differentials
Skills and organizational structures
Attitude survey, access to grievance
procedures, formal job anasysis, info
sharing
 The performance impact of
human resource practices
Individual high performance Mxed evidence and
practices response
Limitations of individual Some individual practices
practices have had positive impact
Evolution of practices Systems of practices have
Systems of high performance both
human resource practices Adoption
Individual best practices Vs Implementation
systems of practices fit
Universal practices Vs
contingency perspectives

Ref: SHRM Charles Greer

 The performance impact of
human resource practices
Individual high performance Have their own
practices applicability
Limitations of individual Evidence for success of
practices both
Evolution of practices Greater evidence for
Systems of high performance contingency
human resource practices
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives

Ref: SHRM Charles Greer

 Human Resource Evaluation
Overview of evaluation
Approaches to evaluation
Prevalence of evaluation
Evaluating strategic contributions of
traditional areas
Evaluating strategic contributions in
emerging areas
Ref: SHRM Charles Greer
Human Resource Evaluation
Overview of evaluation Scope of evaluation
Approaches to evaluation Strategic impact
Prevalence of evaluation Level of analysis
Evaluating strategic Criteria
contributions of traditional Level of constituents
areas Ethical dimensiona
Evaluating strategic
contributions in emerging
areas

Ref: SHRM Charles Greer

Human Resource Evaluation
Overview of evaluation Audit approaches
Approaches to evaluation Analytical approaches
Prevalence of evaluation Quantitative and
Evaluating strategic qualitative measures
contributions of traditional Balance scorecard
areas perspective
Evaluating strategic Benchmarking
contributions in emerging Industry influences
areas

Ref: SHRM Charles Greer

Human Resource Evaluation
Overview of evaluation Little
Approaches to evaluation Results not revealed
Prevalence of evaluation
Evaluating strategic
contributions of traditional
areas
Evaluating strategic
contributions in emerging
areas

Ref: SHRM Charles Greer

Human Resource Evaluation
Overview of evaluation HRP
Approaches to evaluation Staffing
Prevalence of evaluation Training
Evaluating strategic Performance evaluation
contributions of systems
traditional areas Compensation systems
Evaluating strategic Utility analysis
contributions in emerging labour and employee
areas relations

Ref: SHRM Charles Greer

Human Resource Evaluation
Overview of evaluation Equal employment
Approaches to evaluation opportunity and
management of diversity
Prevalence of evaluation
Quality readiness
Evaluating strategic
contributions of traditional
areas
Evaluating strategic
contributions in emerging
areas

Ref: SHRM Charles Greer

 Thank you
Issues to be taken into consideration

Ref: SHRM Charles Greer