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Strategic HRM defined (Source: Michael Armstrong)
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Seven steps to being strategic
Practice
Make evidence-
convincing based
business management
Act as
Case for
change
innovation
See the big agent
Appreciate picture
how HR
can add
Understand
value
the
Aware of business
business
context
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Strategic Priorities
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Measuring a Firms Strategic Alignment
Financial People
Customer Processes
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Balanced Scorecard at Starbucks
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What do HR Professionals do?
https://www.youtube.com/watch?v=9ZLbSk1Te68
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A Human Resource Management
Department
Human
Resource
Management
Organisational
Labour
Change and
Communications Relations
Training and
Career Payroll
Development 8
HR Management functions
Recruitment
Selection
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HR Management functions
Training:
Development:
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HR Management functions
Compensation:
What the organization gives its employees in return for their service and
contribution to the productivity of the institution.
Includes both direct and indirect financial compensation as non-economic
compensation (i.e. flexible hours, parking spot, etc.)
Work Regulations:
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Cycle of HRM
Planning People
Requirements
Managing
Developing
Peoples
People
Performance
Training &
Development 12
PAC Resources, Inc.
q PAC sells its own products and has a small customer base scattered
throughout the United States and Asia, but this generates only a
small percentage of PACs revenue. Eighty-three percent of PACs
sales come from building original specialty components for one
(troubled) manufacturer.
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q PAC instituted a hiring freeze, and marketing and sales budgets
were directed to increasing the companys customer base.
q With a history that has known only growth and strong revenue, it will
be a major cultural change for PAC to respond to the eroding
economy and a possible decline in sales.
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The Human Resources Department
q Patricia Harris was HR director at PAC for eight years before
she was fired in 2007
Her management stylewhen she managed at allwas divisive.
There was little cooperation across functional areas. Certainly
things couldnt get worse
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PACs SWOT analysis
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Your task
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Human Resource Development
q PAC has been a strong supporter of q Stephens established communities
employee development of practice
q Two years ago, Culbertson restructured the q PAC supports retirement savings by matching
compensation system by broad-banding 14 salary employee contributions to their pension plan at
grade levels into a far simpler system of 5 levels 50% of the employee contributions
outcry from some employees who claimed it was
nothing but the loss of promotion levels and a q Paid time off is available as paid vacation time and
manipulation of the system (salary compression). sick leave.
there are managers who have abused the system,
using the higher salary ranges to reward their favored q Stephens lobbied hard to get McNamara and
few regardless of performance or longevity. Dukakis to agree to tuition reimbursement for work-
related college courses.
q The merit bonus plan had been Harriss baby. She
thought it was a good way to link compensation to q Some employees work flexible schedules, and
actual results, and it was a key compensation some telecommute a few days a week if it is
element in the early years, when Dukakis wanted appropriate to the job.
to encourage innovation and creativity. It may have
been effective early on, but Culbertson now sees it q With the bonus system in place, annual base
as an expensive giveaway that creates employee salary adjustments have been kept low, generally
anxiety. at a 2 to 2.5% increase. Culbertson suspects a
salary freeze is in the offing
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