Strategic HRM

INTRODUCTION

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Strategic HRM

Good HRM = Good Financial Results

Financial Results

HR

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The Topics

What is Strategic HRM?What are the forces creating a need for

Strategic HRM?How can Strategic HRM use data and

metrics to design and evaluate its processes?

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Strategic HRM is Vital

Because an organization must have people who are involved in the development of the business strategy, understand it, are committed to it, and can make a contribution to its success

What is Strategic HRM?

It is how an organization uses its people to help form and execute its

business strategy

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Steps in the Strategic HRM Process

New Business Strategy

SWOT AnalysisAssess HR CapacityDevelop Core

CompetenciesTest and Evaluate Initiate HR Practices

HR Must be a Key Player in this Process.

Design New Organization

Assess new core competencies

Recruit

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Standardization Processes

ISO – Int’l Standards Organization

HACCP - Hazard Analysis and Critical Control Points

CE Mark – conformance certification for EEZone marketing

GMP – Good Manufacturing Practice

HR Implications:Organizational

StructureRecruitment/SelectionTraining and

DevelopmentPerformance

EvaluationReward

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What is ISO? (International Organization for

Standards)

Assure Product Consistency

Develop Quality System

Do Gap AnalysisQuality Manual Process ControlDocumentation

Changes:Management

ResponsibilityAttention to DetailGet it Right the First

TimeDecrease Inspection

and Testing

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What are the HRM Changes?

CulturalOrganizationalRecruitment and SelectionTraining and DevelopmentPerformance ManagementReward System

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What is a CE Mark (“Conformite Europene”)

EU Requirements for Product Safety

Steps: Disclosure Minimize VariationsCompatibilityQuality Performance

Required ChangesTight Internal Control

of ProductionProduction Quality

AssuranceProduct Quality

AssuranceLoss Prevention

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What are the HRM Implications?

OrganizationalRecruitment and

SelectionTraining and

DevelopmentPerformance

ManagementReward System

New Commitment to Invest in People

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What is HACCP? (Hazard Analysis And Critical

Control Points)

Produce Safe Food

Steps: Describe ProductCritical Points/FlowCritical Limits and

RisksMonitoringCorrect/Verify

Resulting Changes:Prevention vs. TestingDocumentationGet Right First TimeLess Recalls/Customer

SatisfactionHigher Productivity

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What are the HRM Implications?

How would jobs change?New commitment to people issuesHow would you measure?

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Case Example - Export/WTO

Enhance Productivity - Machines, Production Management, Lower Costs.

What are HRM Implications?

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Case Example - New Strategies

Production Management

Flexibility - Quick to change/Quick to market

E-Commerce? Industrial Integration

What are the HRM Challenges?

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Global Competitiveness

HRM Challenges:Convert to TeamsDelegationEmpowermentNew SelectionNew TrainingNew Rewards

HRM ChallengesNew Job DesignNew Accounting/MISNew Performance

Evaluation and Accountabilities

New “Authorities”All Must Be Linked

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New Strategies - Strategic Partner

Contract PackingNo more “A to Z” Joint Ventures for

New ProductsMergersVenture CapitalPublic OwnershipLicensing

Information Technology

E-commerceNew Niche Marketing Industrial Integration

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What are the HRM issues?

New OrganizationNew CultureCompetenciesDispute ResolutionSelectionTraining/DevelopmentCareer PathsRewards

How would you manage this change?

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What About Measurement?

We have designed and pursued a new business strategy.

We have instituted new HRM changes and interventions

How and why do we use data and metrics to both design and evaluate such HR practices?

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Protocols for Measurement - The Balanced Score Card

Financial Customers

Employees Business Development

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Points for Measurement

Convert “soft” to hard

Establish BaselinesMake causal

connection

Apply Balanced Scorecard

Connect to business strategy

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Factors Affecting HRM?

Legal EnvironmentDemand, Supply, Education of Human

ResourcesEconomic Conditions of Area