SHF|: A New Way of |anagIng

ey elements of SHF| thInkIng

TIe InLernuI processes oI orgunIzuLIonuI cIunge ure
cuused or necessILuLed by processes oI exLernuI
envIronmenL cIunge.
Under LIese envIronmenLuI pressures munugemenL
musL deveIop new und upproprIuLe sLruLegIes Lo
deIend or udvunce corporuLe InLeresLs. So
envIronmenLuI cIuIIenge requIres sLruLegIc
response.
TIIs sLruLegIc response In Lurn requIres
orgunIzuLIonuI response.
SHRM Is represenLed us deveIopIng corporuLe
cupubIIILy Lo deIIver new orgunIzuLIonuI sLruLegIes.
ey elements of SHF| thInkIng
Powever Lhe argumenL LhaL envlronmenLal cues requlre sLraLeglc
responses and LhaL senlor managers are responslble for ldenLlfylng Lhese
cues and developlng Lhe approprlaLe responses overlooks Lwo lmporLanL
lssues
llrsL Lhe deflnlLlon of envlronmenLal cues and developmenLs as sLraLeglc
lssues ls a maLLer of [udgmenL
Secondly Lhe SP8M approach argues LhaL managers recognlzlng exLernal
LhreaL and opporLunlLles deslgn programmes of organlzaLlonal change ln
response Lo Lhese percelved needs
llnally Lhe SP8M approach assumes LhaL organlzaLlonal change ls drlven
by managers percepLlve and lnformed undersLandlng of Lhe need for and
Lhe prlnclples of organlzaLlonal change
StrategIc responses and the lInks wIth
envIronmental changes
EnvIronmenLuI & compeLILIve pressures produce LIree
Lypes oI sLruLegIc cIuIIenges
Demund rIsk : reducLIon In LIe murkeLJor un Increuse In
IeveIs oI compeLILIon. TIIs brIngs LIe rIsk oI sIurpIy
IIucLuuLIng demund or demund coIIupse. L Ieuds Lo u need
Ior IIexIbIIILy und responsIveness und Improved quuIILy.
nnovuLIon rIsk: LIe IuIIure Lo muLcI compeLILors
LecInoIogIcuI InnovuLIons. To counLer LIIs orgunIzuLIons
need Lo reLrIeve or deveIop cupucILy Lo InnovuLe.
RIsk oI IneIIIcIency: InubIIILy Lo muLcI compeLILors cosLs.
TIIs Ieuds Lo drIve Lo cuL cosLs.
EucI oI LIese envIronmenLuI cIuIIenges, Is urgued, Is meL
by un orgunIzuLIonuI response.
SHF| Fesponses
n LIe eurIy duys oI SHRM munugemenL eIIorLs
cenLered on IncreusIng IIexIbIIILy; LIey Iuve
recenLIy moved Lo IncreusIng work ouLpuL
LIrougI reengIneerIng und downsIzIng.
Types oI IIexIbIIILy:
NumerIcuI IIexIbIIILy: udjusL LIe number oI
empIoyees In response Lo vuryIng demund
uncLIonuI IIexIbIIILy: ubIIILy Lo use LIe skIIIs oI
workIorce In vuryIng wuys In response Lo demund
InuncIuI IIexIbIIILy: udjusLIng wuges Lo demund
und Lo perIormunce
Human Fesource |anagement
HRM refer to the policies, procedures and processes involved in the
management
of people in work organizations.
Sission(1990) suggests that there are Iour main Ieatures associated with HRM:
A stress on the integration oI personnel policies both with one another and
with
business planning Irom generally;
The locus oI responsibility Ior personnel management no longer resides with
specialist managers, but is now assumed by senior line management;
The Iocus shiIts Irom management-trade union relation to management-
employee
relation, Irom collectivism to individualism ;
There is a stress on commitment and the exercise oI initiative, with managers
now donning the role oI 'enabler.
HRM is viewed as strategic; it involves all managerial personnel; it regards
people as the most important single asset oI the organisation; it is proactive in
its relationship with people; it seeks to enhance company perIormance,
employee needs & societal well-being.
ew assumptions about the management of people which underpin the commitment
based HRM System:
rganisations are open systems with eIIectiveness deIined as being successIul in
achieving a Iit between its various components and between the system & its
environment. There is change oI emphasis towards linking HRM with strategic
planning and developing a culture that supports this and away Irom piecemeal
interventions in response to speciIic problems.
People are capable oI growth in terms oI skills, values and commitment iI & when the
work environment encourages this. People thereIore are social capital rather than
variable costs.
There is a long-run coincidence oI interests between all oI the various stakeholders oI
the organization. This requires a shiIt Irom a climate in which selI-interest dominates.
Power equalization is a a key Iactor in encouraging openness & collaboration among
stakeholders. This is in contrast with the old assumption that there must be managerial
control to enhance power eIIiciency.
pen communication builds trust & commitment. Instead oI adversarial
relationships there is encouragement oI mutuality oI interest between employer &
employed.
Employees will be motivated and the organization more eIIective iI they work
towards organizational goals that they accept as legitimate.
People who participate in deIining problems and solutions will become committed
to the new directions that result Irom the process oI participation. This in contrast to
hierarchical control at the top.
Strateg|c numan kesource Management
Human Resource strategy reIers to as a short term Iocus on the business needs& deIined
it as a set oI processes and activities jointly shared by human resources and line managers
to solve people related problems.
Guests(1989) suggested that SHRM is concerned with ensuring that 'human resource
management is Iully integrated into strategic planning; that HRM policies cohere both
across policy areas and across hierarchies and that HRM practices are accepted & used by
line managers as part oI their everyday work.
Schuler stated that all the activities aIIecting the behavior oI individuals in their eIIorts to
Iormulate and implement the strategic needs oI the business.
In other words, SHRM is the macro-organizational approach to viewing the role & Iunction
oI HRM in larger organization.
Thus, SHRM can be deIined as the pattern oI planned human resource deployments and
activities intended to enable an organization to achieve its goals.
These deIinitions indicate:
First, vertically, it entails the linking oI human resource practices with the
strategic management process oI the organization.
Second, horizontally, it emphasizes the co-ordination or congruence among various
human resource practices through a pattern oI planned action.
Irm SLruLegy Institutional/Political Forces
HRM Practices
HR Capital Pool HR Behavior Firm-Level utcomes
PerIormance, SatisIaction
Behavioral Approach
Resource Dependence, Institutional
Resource Based
View oI the Firm
A CCEPTUAL MDEL F THERETICAL FRAMEWRK FR STUDYIG SHRM
What Is SHF|:
SIsson(1q8q) proposes Iour IeuLures ussocIuLed wILI
SHRM:
A sLress on LIe InLegruLIon oI personuI poIIcIes boLI wILI
one unoLIer und wILI busIness pIunnIng more generuIIy;
TIe Iocus oI responsIbIIILy Ior personuI munugers no
Ionger resIdes wILI specIuIIsL munugers, buL Is now
ussumed by senIor IIne munugemenL
TIe Iocus sIIILs Irom munugemenL-Lrude unIon reIuLIons
Lo munugemenL empIoyee reIuLIons, Irom coIIecLIvIsm Lo
IndIvIduuIIsm
What Is SHF|:
Hendry und PeLLIgrew (1q86) urgue LIuL LIe sLruLegIc
uspecLs oI SHRM consIsLs oI Iour eIemenLs:
TIe use oI pIunnIng
A coIerenL upproucI Lo LIe desIgn und munugemenL oI
personneI sysLems bused on un empIoymenL poIIcy und
munpower sLruLegy, und oILen underpInned by
pIIIosopIy
MuLcIIng HRM ucLIvILIes und poIIcIes Lo some expIIcIL
sLruLegy
SeeIng LIe peopIe oI LIe orgunIzuLIon us u sLruLegIc
resource Ior ucIIevIng compeLILIve udvunLuge
What Is SHF|:
AccordIng Lo GuesL, SHRM cun be deIIned us
nLegruLIon oI reIevunL empIoyee ucLIvILIes InLo
generuI orgunIzuLIonuI sLruLegIes und poIIcIes;
IuId und udopLIve orgunIzuLIonuI sLrucLure
HIgI quuIILy sLuII und InLernuI prucLIces Lo
ucIIeve IIgI quuIILy producLs
OpLImuI empIoyee commILmenL Lo enLerprIse
gouIs und prucLIces.
Potentcl relctonshps between
orycnsctoncl strcteyy cnd HR strcteyy:
$05,7,943
14
Org. SLr.
HR SLr.
Potentcl relctonshps between
orycnsctoncl strcteyy cnd HR strcteyy:
9
15
Org. SLr.
HR SLr.
Potentcl relctonshps between
orycnsctoncl strcteyy cnd HR strcteyy:
,4:0
16
Org. SLr.
HR SLr.
Potentcl relctonshps between
orycnsctoncl strcteyy cnd HR strcteyy:
489.
17
Org. SLr.
HR SLr.
Potentcl relctonshps between
orycnsctoncl strcteyy cnd HR strcteyy:
#/7;03
18
Org. SLr.
HR SLr.
SLruLegIc PIun
EnvIronmenLuI
IucLors
EnvIronmenLuI
ScunnIng
nLernuI CupubIIILy AnuIysIs oI Humun DImensIons
CupubIIILIes In
SLrucLure
SysLem
Processes
mpIemenLuLIon Needs
SLuLemenL oI PIIIosopIy
DeIInILIon oI Core EIIecLIveness
CrILerIu
DesIgn OI Humun Resources
AcLIvILIes
SeIecLIon
PerIormunce
uppruIsuI
TruInIng &
deveIopmenL
Rewurds
Work
EnvIronmenL
DeveIop Humun Resource sLruLegy
SLubIe
EnvIronmenL
DynumIc
EnvIronmenL
STRATIGIC HLMAN RISOLRCI MANAGIMINT