PRESENTATION ON Align on Strategic Human Resource Management and Human Resource Planning

Abdullah al Mamun Tusher

Roll : 13DH070
PGDHRM Evening 1 Bangladesh Institute of Management

Strategy,
Strategy : Strategy has two fundamental meanings. First, it is forward looking. It is about deciding where you want to go and how you mean to get there. It is concerned with both ends and means. In this sense a strategy is a declaration of intent: This is what we want to do and this is how we intend to do it. Strategies define longer-term goals, but they also cover how those goals will be attained. They guide purposeful action to deliver the required result. A good strategy is one that works, one that in Abells (1993) phrase enables organizations to adapt by mastering the present and preempting the future. The second meaning of strategy is conveyed by the concept of strategic fit. The focus is upon the organization and the world around it. To maximize competitive advantage a firm must match its capabilities and resources to the opportunities available in the external environment. As Hofer and Schendel (1986) conclude, A critical aspect of top managements work today involves matching organizational competences (internal resources and skills) with the opportunities and risks created by environmental change in ways that will be both effective and efficient over the time such resources will be deployed. The concept of strategy is based on a number of associated concepts: compet- itive advantage, resource-based strategy, distinctive capabilities, strategic intent, strategic capability, strategic management, strategic goals and strategic plans. Strategy A strategy is a course of action. The companys long-tem plan for how it will balance its internal strengths and weaknesses

HRM,
Human Resource Management? HR is multidisciplinary: It applies the disciplines of Economics (wages, markets, resources), Psychology (motivation, satisfaction), Sociology (organization structure, culture) and Law (min. wage, labor contracts, EEOC) HR is embedded within the work of all managers, and most individual contributors due to the need of managing people (subordinates, peers and superiors) as well as teams to get things done.

Human Resource Management is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and family concerns ---Gary Dessler

SHRM
SHRM is concerned with the role human resource management systems play in firm performance, particularly focusing on the alignment of human resources as a means of gaining competitive advantage. Organizations are becoming aware that successful human resource policies and practices may increase performance in different areas such as productivity, quality and financial performance. Wright and McMahan define Strategic HRM as the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals. Strategic HRM is an approach that defines how the organizations goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Strategic Human Resource Management refers to the linking of human resource management with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility.

Staff Recruitment, Selection and Retention Staff Welfare and Occupational Health Remuneration, Total Reward and Fair Employment

Performance Management

HR Strategy

Workforce Planning

Leadership, Involvement and Change Management

Learning and Development

Equality and Diversity

HRP
HR Planning

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

Linking Employers Strategy to Plans

Figure 5.2 Linking the Companys Strategic Plan to the HR Plan

SHRM & HRM

HRM vs Strategic HRM HRM is Human Resources Management which is a strategic approach to the management of employees. HRM involves the process of employing people, developing their skills/capacities, and utilizing their services. But today, HRM has come across many changes, and the latest one is the Strategic HRM which is the most powerful idea currently. Strategic HRM can be termed as a branch of HRM. In HRM, traditional methods are followed. Traditional methods means the selection or recruitment process and imparting training. This HRM process did not have any specific rules for different areas like recruitment, training, and utilizing the services. This is what makes the Strategic HRM different from HRM. In Strategic HRM, there are specific rules specified for specialized fields. In HRM, there are no separate people for different areas whereas in Strategic HRM there are different people who are skilled in specific areas. It is not that the same persons will handle recruitment, training, and employee appraisal. As the term itself denotes, Strategic HRM deals with strategic aspects of HRM. Unlike HRM, Strategic HRM mainly focuses on the programs with long-term objectives. Though HRM and Strategic HRM focus on increasing employee productivity, Strategic HRM uses many strategic methods. Unlike the traditional HRM, Strategic HRM uses more sophisticated methods for improving overall employee motivation and productivity. Unlike the traditional HRM, Strategic HRM uses more systematic tools. While the traditional HRM focuses mainly on employee relations, Startegic HRM focuses on partnerships with internal and external customers. When HRM has only short-term goals,

Strategic Management

Linking Corporate and HR Strategies

HRS Strategic Roles

HR professionals should be part of the firms strategic planning executive team. Identify the human issues that are vital to business strategy. Help establish and execute strategy. Provide alternative insights.

Are centrally involved in creating responsive and market-driven organizations.

Conceptualize and execute organizational change.

Strategy, HRM, SHRM, HRP

HRM needs to achieve the following strategic goals in order for the company to gain and sustain competitive advantage: to invest in people through the introduction and encouragement of learning processes designed to increase capability and align skills to organizational needs, to ensure that the organization identifies the knowledge required to meet its goals and satisfy its customers and takes steps to acquire amd develop its intellectual capital, to define the behaviours required for organizational success and ensure that these behaviours are encouraged, valued and rewarded, to encourage people to engage wholeheartedly in the work they do for the organization, to gain the commitment of people to the organizations mission and values. To achieve these goals it is necessary to understand the linkage between HRM and business strategy.

Strategic Management

Strategy, HRM, SHRM, HRP

Think Functionally, Act Strategically

Strategy, HRM, SHRM, HRP

Implementing Strategic Human resource management: Strategic human resource management is relatively a new concept both in the field of human resource management and in the field of strategic management. The concept is based mainly on the human resource, which is considered as human capital in achieving the long-term objective(s) of the company. Hence human resource management is a major force in driving organizational performance. Hence the management development process, appraisal process, reward process should be related to the organizational long-term and short-term goals. Chase Manhattan Bank targeted on the use of management development program to support the companys first formal strategic planning process. The program involved all the senior officials, chairman in strongly reinforcing the importance of new strategic planning process. This had become a successful key in turning around the troubled bank to success between 1975 and 1980. General Motors Company has an equally strong tradition of management development tradition. Thus there should be greater emphasis in carefully developing managers. Many companies have been very strategic in developing managers. The appraisal system should also be effective at the strategic level for the evaluation of executive talent. The reward system should encourage set of desired strategic behaviors from managers. Hence every organization must develop its own strategic position in terms of human resources.

Nature OF STRATEGIC HRM

Strategic HRM supplies a perspective on the way in which critical issues or success factors related to people can be addressed, and strategic decisions are made that have a major and longterm impact on the behaviour and success of the organization. It is not just concerned with mirroring current condi- tions or past practices (Smith, 1982). As a means of developing integrated HR strategies, strategic HRM is facilitated to the extent to which the following seven principles set out by Ondrack and Nininger (1984) are followed:
1. There is an overall purpose and the human resource dimensions of that purpose are evident. 2. A process of developing strategy within the organization exists and is understood, and there is explicit consideration of human resource dimensions. 3. Effective linkages exist on a continuing basis to ensure the integration of human resource considerations with the organizational decision-making process. 4. The office of the chief executive provides the challenge for integrating human resource considerations to meet the needs of the business. 5. The organization of all levels establishes responsibility and accounta- bility for human resource management. 6. Initiatives in the management of human resources are relevant to the needs of the business. 7. It includes the responsibility to identify and interact in the social, political, technological and