LECTURE 2_ APPROACHES TO STRATEGIC HRM-1-1 (2).pptx

Approaches to shrm

1. APPROACHES TO SHRM

2. Approaches to Strategic HRM Strategic HRM adopts an overall resource based philosophy which has three models namely: High performance management High involvement management High commitment management 

3. 1. High performance management This model involves the development of a number of interrelated processes which together make an impact on the performance of a firm through its people in such areas as productivity, quality levels, customer’s service, growth in profits and increased shareholder value. This can be achieved by enhancing the skills of the employees through effective leadership and bench marking to create a sense of momentum and direction.

4. Cont. It is also helped by the following supporting systems. Decentralized decision making – this is made by the manager by increasing innovation and constantly making sure that the employees are close to the customers which improves the product offering. Development of people capability – this can be established by having teams at all levels with particular emphasis on self management. The team capabilities can support performance improvement and increase the organizational potential. Performance processes aligned to organizational objectives – this ensures the building up of trust, enthusiasm and commitment to the direction taken by the organization. Fair treatment of those people who lead the organization as it changes and engagement with the needs of the community outside the organization – this is an important component of trust and commitment.

5. 2. High commitment management This model goes beyond performance and embraces work force commitment and identification with the organizational values and goals. It is described as a form of management which is aimed at eliciting a commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual within the organization.

6. Cont. The following actions should be taken to create a high commitment organization: Development of career ladders and emphasis on training ability and commitment as highly valued characteristic. High level of functional flexibility with the abandonment of potentially rigid job description. Reduction of hierarchical and the ending of status differentials Heavy reliance on teams for disseminating information which ensures that the information reaches the affected personnel. A policy of no compulsory lay-offs or redundancy on permanent employment with possible use of temporary workers to cushion fluctuations which arise as a result of demand for labour . New forms of assessment and payment system more specifically merit pay and profit sharing.

7. 3. High involvement management This approach involves treating employees as partners in the enterprise whose interests are respected and have a voice, on matters that concern them. The aim is to create a climate in which a continuing dialogue between managers and the members of their teams takes place to define expectations and share information in the organization’s missions, values and objectives.  It establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that organizational objective is achieved.

8. Cont. The following high involvement work practices have been identified: Online work teams Offline employee involvement Activities and problem solving groups Job rotation Suggestion programmes Decentralization of quality efforts

9. Resource Capability Approach It regards the employee as a bundle of tangible and intangible resources which is required for market competition (competitive advantage). It is concerned with the actions, processes and related behavioural efforts required to attain a competitive advantage. A resource capability approach is concerned with the acquisition, development and retention of human or intellectual capital. It focuses on how added value can be obtained by treating people as strategic assets in aspects in the sense that they perform activities that create advantage in particular markets. Wealth is created through an intellectual pool that results from high investments in human resources.

10. THE END