Challenges for survival
Low cost leader of a difference Not only in offering products of difference but……. Being able to tap the company’s special skills or core competencies and rapidly respond to customer’s needs and competitor’s moves.
Consolidate corporate-wide technologies and production skills This performance advantage is achieved by:
Marshalling resources that support the business strategy and implementing the chosen strategy, efficiently and effectively.
HR as a source of competitive advantage
Distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. Contrast to the traditional emphasis on transferable resources such as equipment. Competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation.
So… What is Strategic HR
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 and flexibility ‘. Means accepting the HR function as a strategic partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel.
Whereas strategic HR recognizes HR’s partnership role in the strategizing process, the term HR Strategies refers to specific HR courses of action the company plans to pursue to achieve it’s aims. Ex. Having Tendulkar in team meetings, against asking him to adopt his strategies in the game
HR managers become strategic partners in business operations playing prospective roles rather than being passive administrators reacting to the requirements of other business functions. Strategic HR managers need a change in their mindset from seeing themselves as relationship managers to resource managers knowing how to utilize the full potential of their human resources.
HR converts Business Strategy to HR priorities
In business setting, whether corporate, functional, business unit or product line a strategy exists either explicitly in the formal process or document or implicitly through a shared agenda on priorities. As strategic partners, HR professionals should identify the HR practices that make the strategy happen. The process of identifying these HR priorities is called organizational diagnosis, a process through which an organization is audited to determine its strengths and weaknesses.
Business strategies into HR practices
This helps a business in three ways. First, the business can adapt to change because the time from the conception to the execution of a strategy is shortened. Second, the business can better meet customer demands because its customer service strategies have been translated into specific policies and practices. Third, the business can achieve financial performance through its more effective execution of strategy
A strategic perspective of HRM requires simultaneous consideration of both external (business strategy) and internal (consistency) requirement that leads to superior performance of the firm.
Steps to achieve performance advantage
Marshalling all resources that support the business strategy and implementing the chosen strategy, efficiently and effectively. Utilizing the full potential of the human resources to the firm’s advantage. Leveraging other resources such as physical assets and capital to complement and augment the human resources based advantage.
Manage plus men Man should develop into men Resources 4 M most important MEN
Importance of HRM
Cost plus profit Multiple responsibility (cell operation) Work culture Empowerment Continuous improvement ( Kaizen) Total change in working style culture and approach ( West Bengal) Personnel dept to HR dept
Simple to challenging
2 ADM Acquisition Development Motivation Maintenance
Finding, developing, and retaining best talents
Estimate Recruitment Socialization
Training ( skills, attitude ) MDP ( knowledge, conceptual ) Career development ( long term individual and career needs and planning)
Unique to individuals Satisfaction Performance appraisal Behavioral assessment Structural techniques Problem handling To stimulate employees
Providing working conditions that employee believe are necessary to maintain commitment to the organization
ASTD’s suggestion on HRM areas
Organization and development Training and development Organization and Job design Human resource planning Selection and staffing Personal research and information system Compensation / benefits Employee assistance Union / labor relationship
ASTD’s suggestion on HRM areas Meant to gain 3 major objectives 1. Quality of work life Autonomy, recognition, belonging, progress and development 2. Productivity Capital investment, innovation, learning, motivation 3. Readiness for change
H R Planning
The process of deciding what positions the firm will have to fill and how to fill them. To ensure that right kind of people available for the right job at the right time Fortune 55 CEOs- 85% HR Planning is critical Infosys, TCS example
The HRM Challenges today
Based on 1. Organizational objective 2. Environmental Influences But the Strategy today is based on, How you provide VALUE to customer So have to watch every step in people planning
Employee recruited Competent employees Competent employees who have adopted to the organization’s culture Competent employees who desire to exert high efforts Competent employees who are committed to the organization and satisfied with the jobs
Human resource Planning
Competent employees who have adopted to the organization’s culture
Competent employees who have adopted to the organization’s culture Career development
Competent employees with up to date skills and knowledge
Competent employees with up to date skills and knowledge Performance appraisal
Competent employees who desire to exert high efforts
Competent employees who desire to exert high efforts Compensation and benefits
Disciplining The problem employee
Safe and Healthy Working conditions
Satisfactory union relationships
Competent employees who are committed to the organization and satisfied with the jobs
Competent employees who are committed to the organization and satisfied with the jobs Compensation and benefits Disciplining the problem employees Safe and healthful working conditions Competent employees who are committed to the organization and satisfied with jobs
Competent employees who are committed to the organization and satisfied with jobs To maintain Effective HRM which is high productivity, Low turn over, Low absence, High Job satisfaction Changing conditions require on going research and concern over future and challenges