S2 HRM PGP.pptx human resources management

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1. Strategic Human Resource Management Anubha Dadhich (PhD-IIT/D) Course Instructor

2. SHRM: Important Goals To Optimize Cost To Deliver Maximum Value to company’s business units To realign HR Leaders as strategic partners Business Leaders 18-12-2024 2

3. Strategic Human Resource Management Types of Strategy Corporate: What Business are we in ? Business (competitive): How will we compete? Functional: How do we support the Business competitive strategy? 18-12-2024 3

4. Core Areas of Corporate Strategy Strategic Analysis Strategic Formulation Strategic Implementation 18-12-2024 4

5. Strategy Management Process 18-12-2024 5

6. The strategic planning process begins with four critical questions: Where are we now? (Assess the current situation.) Where do we want to be? (Envision and articulate a desired future.) How do we get there? (Formulate and implement a strategy and strategic objectives.) How will we know if we are on track toward our intended destination? (Establish a mechanism to evaluate progress.)

7. Environmental Scanning 18-12-2024 7

8. Environmental scanning Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats that could influence future decisions. It is closely related to a  SWOT analysis  and should be used as part of the strategic planning process. 

9. Strategy Map A strategy map is a visual summary of what a company plans to do to improve its business, gain more customers and improve its financial outlook. Many companies find strategy maps valuable because they include intangible factors like culture in the strategic analysis. A strategy map provides multiple perspectives when evaluating a company and helps in the strategy's effective execution . 18-12-2024 9

10. Benefits Set clear financial and customer goals. Visualize the connections between various ideas and show how those ideas could lead to specific results. Identify the necessary parts of the organization that will support new undertakings and changes including any necessary training and business process changes Communicate the company's goals and show how they will be achieved. Provide a starting point for each division and see how they fit into the overall strategy. 18-12-2024 10

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12. Continue….. A Strategy Map is a diagram that describes how a company or organization can create value by linking strategic objectives in a cause-and-effect relationship Based on the four Balanced Scorecard Perspectives: Financial, Customer, Internal Processes and Learning & Growth. The key element of the Strategy Map is That it is linked to ‘scorecards’ that monitor progress towards the Strategic Objectives. The ‘scorecards will include metrics, targets for the metrics and strategic initiatives to drive performance towards achieving the metrics. 12/18/2024 12

13. Balance Score Card A balanced scorecard is a performance metric used to identify, improve, and control a business's various functions and resulting outcomes. The concept of BSCs was first introduced in 1992 by David Norton and Robert Kaplan , who took previous metric performance measures and adapted them to include nonfinancial information. BSCs were originally developed for for-profit companies but were later adapted for use by nonprofits and government agencies. The balanced scorecard involves measuring four main aspects of a business : Learning and growth, business processes, customers, and finance. BSCs allow companies to pool information in a single report, to provide information on service and quality in addition to financial performance, and to help improve efficiencies. 18-12-2024 13

14. Continue…. The balanced scorecard model reinforces good behavior in an organization by isolating four separate areas that need to be analyzed. Four areas are as follows Finance Customers Internal business processes Learning and growth 18-12-2024 14

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16. Continue… Financial : data, such as sales, expenditures, and income, are used to understand financial performance. These financial metrics may include dollar amounts, financial ratios, budget variances, or income targets. Customer perspectives are collected to gauge customer satisfaction with the quality, price, and availability of products or services. Customers provide feedback about their satisfaction with current products. 18-12-2024 16

17. Continue.. Internal business processes   are evaluated by investigating how well products are manufactured. Operational management is analyzed to track any gaps, delays, bottlenecks, shortages, or waste. Learning and growth   are analyzed through the investigation of training and knowledge resources. H ow well information is captured and how effectively employees use that information to convert it to a  competitive advantage  within the industry. 18-12-2024 17