STRATEGIC HUMAN RESOURCE MANAGEMENT

INTRODUCTION TO STRATEGIC HUMAN RESOURCE MANAGEMENT

1. STRATEGIC HUMAN RESOURCE MANAGEMENT UNIT - 1

2. OVERVIEW INTRODUCTION OF STRATEGY, STRATEGIC MANAGEMENT & STRATEGIC HRM STRATEGIC ROLE OF HRM STRATEGY FORMULATION IMPLEMENTATION OF HR POLICIES – HR PLANNING HR STRATEGIES TO INCREASE FIRM’S PERFORMANCE

3. WHAT IS “ STRATEGY ” ? STRATEGY IS A UNIFIED COURSE OF ACTION TO ACHIEVE THE ORGANISATIONAL GOAL

4. WHAT IS “ STRATEGIC MANAGEMENT ” ? The set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational objectives. – John & Richard

5. WHAT IS “ STRATEGIC HUMAN RESOURCE MANAGEMENT ” ? STRATEGIC HUMAN RESOURCE MANAGEMENT can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. Strategic Human Resource Management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole .

6. STRATEGIC HUMAN RESOURCE EXAMPLES FROM TWO TOP COMPANIES GOOGLE This company is well known for its innovation and strength when it comes to Strategic HRM. They know their people are what makes them great. The company boasts tons of employee perks and amazing facilities . This includes a seven-acre sports complex, multiple wellness centers, roller hockey rinks, horseshoe pits, and subsidized massages for all. Google understands that if employees have the right incentives and are given optimal positions, the company gets and retains top talent . Knowing that HR can make or break a company means that senior management ensures it is tightly integrated so it not only protects its employees as a high-end investment but does everything possible to make sure they have happy employees that are productive for the company. CADBURY Cadbury knows what it’s doing when it comes to HR. They believe not only in the importance of their employees but their families, too, putting their people above all else . This is reflected by their success as the second-largest confectioner in the world. Cadbury was founded in 1824 and created a worker village along with R&D factories . The village is perfect in offering staff and their families a place to not only work but to live. Their people are their main priority and they have built a positive work atmosphere that allows for life and work balance. They support their employees to the fullest and in return, they have a loyal and dedicated workforce. HR has integrated its policies and plans perfectly with the company’s strategic plans. They go hand in hand to meet the company’s long term goals.

7. STRATEGIC ROLE OF HRM

8. STRATEGIC ROLE HR Participates in business decisions HR translates corporate strategy into human resource strategy HR helps managers create value HR helps employees satisfy customers’ needs INFORMATIONAL AND PROBLEM SOLVING ROLE HR provides information and expertise on best practices in other companies HR collects, disseminates, and otherwise makes available important information to aid in strategic planning and daily work activities and decisions HR diagnoses and recommends solutions to problems arising in employment relations STRATEGIC ROLE OF HRM (Contd.)

9. STRATEGIC FUNCTIONAL ROLE HR helps select employees to fit both strategy and culture HR assists in designing and implementing performance planning and appraisal systems HR assists in designing and implementing motivation and reward systems HR assists in designing benefits to complement strategy HR assists in designing and implementing development and career management systems HR helps enable all executives to perform critical, strategic HR functions STRATEGIC ROLE OF HRM (Contd.)

10. ADMINISTRATIVE ROLE HR assists in designing and improving personnel administrative systems. HR does much of the necessary administrative work involved in employment , legal compliance and record keeping. STRATEGIC ROLE OF HRM (Contd.)

11. STRATEGY FORMULATION Strategies are formulated at three levels : Corporate level Business unit level Functional level

12. CORPORATE LEVEL This is formulated by the TOP MANAGEMENT of an organization  . The corporate-level strategy is to continuously innovate in all its businesses with the right technology, relentlessly cut costs and focus on the overseas markets. The major questions that need to be answered at this stage are- What kinds of business should the company be engaged in? What are the goals and expectations for each business? How should resources be allocated to reach these goals? In formulating corporate-level strategies, the company should decide where it wants to be-in 10 or 15 years hence in at least eight areas-market standing, innovation, productivity, physical and financial resources, profitability, managerial performance and development, worker performance and attitudes, and social responsibility. STRATEGY FORMULATION(Contd.)

13. BUSINESS UNIT LEVEL While the major question at the corporate-level is, “In what industries or businesses should we be operating?,” the appropriate question at the business unit level is, “How should we compete in the chosen industry or business?” A business unit is an organizational subsystem that has a market, a set of competitors, and a goal distinct from those of the other subsystems in the group. The concept of the strategic business unit (SBO) was pioneered by General Electric (GE). At GE, there are over 200 strategic business units, each having its own strategies consistent with the organization’s corporate-level strategy . STRATEGY FORMULATION(Contd.)

14. FUNCTIONAL LEVEL Each business unit will consist of several departments, such as manufacturing, sales, finance, and HRD. Functional-level strategies identify the basic courses of action that each of the departments must pursue in order to help the business unit to attain its goals. In formulating functional level strategies, managers must be aware that the different functions are interrelated. A change in one department will invariably affect the way other departments operate. Hence , the strategy of one functional area cannot be viewed in isolation. Rather, the extent to which all functional strategies are integrated determines the effectiveness of the unit’s business strategy. STRATEGY FORMULATION(Contd.)

15. SHRM PLANNING

16. DOCUMENTING THE STRATEGIC HR PLAN Once the strategies for HR in your organization have been developed they should be documented in an HR plan. This is a brief document that states the key assumptions and the resulting strategies along with who has responsibility for the strategies and the timelines for implementation.

17. IMPLEMENTING THE STRATEGIC HR PLAN

18. PLANNING & IMPLEMENTING HR POLICIES STAFFING Staffing includes the development of a strategic plan to determine how many people you might need to hire. Based on strategic plan HRM performs the hiring process to recruit and select the right people for the right job. BASIC WORKPLACE POLICIES Development of Policies help to reach the strategic plans goals is the job of SHRM. Communicating of these policies on safety, security, scheduling, vacation times, and flextime schedules should be developed by the HR department.HR manager work closely with supervisors in organization to develop these policies.

19. COMPENSATION & BENEFITS Plans in addition to paychecks, health benefits & other perks. Implementing all strategies as per the plans. RETENTION Assessment of employees & strategies on how to retain best employees is a task that HR manager oversee. Other managers will also provide input. PLANNING & IMPLEMENTING HR POLICIES

20. TRAINING & DEVELOPING Helping new employees develop skills needed for their jobs and helping current employees grow their skills are also tasks for that HRM department is responsible. Determination of training needs and development and implementation of training programs are important tasks in any organization. REGULATORY ISSUES AND WORKER SAFETY Keeping up to date on new regulation relating to employment. Health care and other issues is generally a responsibility that falls on the HRM. PLANNING & IMPLEMENTING HR POLICIES

21. HR STRATEGIES TO INCREASE FIRM’S PERFORMANCE Make Clear Goals and Expectations Empower Employees to Do Their Best Work Hold Team Members Accountable to Goals Reward High Performance Foster a Fun, Positive Work Environment Increase Job Satisfaction Consider Remote Working Options Use the Right Technologies