05 06 Tutor Resource Strategic Hrm Ch 2

8/16/2019 05 06 Tutor Resource Strategic Hrm Ch 2

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STRATEGIC HUMAN RESOURCE MANAGEMENT

Michael Armstrong

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‘Strategy is

prolem solving in

unstructured

situations.!

Lester Dignam

"There is a gap

etween the

rhetoric and the

reality of

S#R$.!Lynda Grattan

"Strategy consists

of illusions in the

oard room.!

John Purce

"Strategy is

emergent andfle%ile.!

!ean "yson

"Strategy is a

pattern in astream of

activities.!

Henry Mint#berg

"Strategy is often

fragmentary,

evolutionary andlargely intuitive.!

James $uinn

THE CLOUDY NATURE O STRATEGY



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SO !HAT IS STRATEGIC HUMAN

RESOURCE MANAGEMENT"

&s it aout long'range strategic planning(

&s it aout day'to'day strategic management(

)r is it aout oth(



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Strategic #R$ is the process of

defining how the organi*ation!s goals

will e achieved through people ymeans of #R strategies and

integrated #R policies and practices.

STRATEGIC HRM DEINED



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MODEL O STRATEGIC HRM

Strategic #R$

Strategic management +

strategic role of #R

#R strategies +

overall/specific

Strategic choice

Strategic analysis



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SO !HAT IS THE STRATEGIC

ROLE O HR S#ECIALISTS"



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"$y crediility depends on

running an e%tremely

efficient and cost'effective

administrative machine&f & don!t get that right, and

consistently, then you can

forget aout any ig ideas.!

HR Director

"The -& thinks that we will all

e strategic usiness

partners, and we!re not, you

know. e have to deal withday'to'day #R issues that

arise in the usiness.!

!tudent %ractitioner

"0ive me a reak1 &t!s so demeaning.

#ow many people in marketing or

finance have to say they are a

partner in the usiness( hy do we

have to think that we!re not an

intimate part of the usiness, 2ustlike sales, manufacturing and

engineering( & detest and loathe the

term and & won!t use it.!

"im Mier, !tandard &hartered 'ank

"The term worries me to death. #R has to e

an integral and fundamental part of

developing the strategy of the usiness. &

don!t even like the term "close to the

usiness! ecause, like "usiness partner!, it

implies we are working alongside our linemanagement colleagues ut on a separate

track, rather than people management eing

an integral part of the usiness.!

Ae( )ison, '"

$IE!S ON THE STRATEGIC %USINESS #ARTNER CONCE#T



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Formulate integrated

#R strategies

ork with line

managers to

support the

achievement oftheir usiness

goals

-ontriute to the

development of

usiness strategies

HR&s STRATEGIC ROLES



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Aware ofusiness

conte%t

3nderstand

the

usiness

Appreciatehow #R

can add

value

See the ig

picture

Act as

change

agent

$ake

convincing

usinesscase

for

innovation

ractice

evidence'

ased

management

SE$EN STE#S TO %EING STRATEGIC



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SO !HAT A%OUT HR STRATEGY"



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O'erall(4 performance4 engagement4 "the ig idea!

4 human capitaladvantage4 #R$ process

advantage4 etc

S)eci*ic(

4 organi*ation

development4 corporate social

responsiility

4 resourcing4 talent management4 learning and

development4 employee reward4 employee

relations4 employee

well'eing

HR STRATEGY AREAS



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E+AM#LES O O$ERALL HR STRATEGIES

A strong focus on the

overall effectiveness

of the organi*ation, its

direction and how it5s

performing. There is

commitment to, elief

in, and respect forindividuals. *e+

orest &ounci

The only #R strategy

you really need is the

tangile e%pression ofvalues and the

implementation of

values. )est )ater

Stimulate changes

on a road front

aimed at achievingcompetitive

advantage through

people. Pikington

-%tronics

$aintain

competitive

advantage y

continuing to

attract very high

calire people.'oots

e want 0S6 to e a

place where the est

people do their est

work. Ga(o!mith.ine

Staff who are en2oying

themselves, are eing

supported and

developed, and who

feel fulfilled and

respected at work, will

provide the est

service to customers.

Lands’ /nd



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%ALANCED SCORECARD IN AN INTERNATIONAL CHARITY

Organi,ational e**ecti'eness

)ers)ecti'e(4 programme development

4 programme delivery4 process development and

management4 cost'effectiveness

Sta-ehol.er )ers)ecti'e(

4 impact on clients4 relationships with key funding

agencies and supporters4 development of rand4 influence

inancial )ers)ecti'e(4 income growth4 enlistment and retention of

supporters4 cost/income ratio

#eo)le )ers)ecti'e(

4 leadership ehaviour 4 talent management4 learning and development4 employee satisfaction +

a "great place to work!



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4 -lear line of sight etween strategic aims of the -orporation and its staff

4 $anagement sets goals for success and monitors performance

4 7eadership from the top and at all levels of management

4 Focus on promoting engagement and commitment

4 erformance management processes aligned to -orporation o2ectives

4 -apacities of people enhanced y comprehensive learning and

development programmes

4 eople valued and rewarded according to their contriution

HIGH/#ERORMANCE STRATEGY(

COR#ORATION O LONDON



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4 Achieve strategic integration + match #R

policies and practices to the usiness

strategy

4 lan coherent approaches to thedevelopment of #R processes so that

they are interrelated and mutually

supporting

4 Focus on the needs to achieve fle%iility,responsiveness, 8uality and cost'

effectiveness in the delivery of #R

services

DECLARATION O STRATEGIC INTENT( CARE

DELI$ERY CHARITY



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4 Aligned to corporate goals

4 Set out clear aims

4 Supported y usiness case4 Take account of individual as well as

usiness needs

4 -ontain realistic and achievale

plans for implementation

CRITERIA OR HR STRATEGIES



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STRATEGIC HRM TOOL0IT



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9. Analysis

:. ;iagnosis

<. -onclusions and

recommendations

=. Action planning

CONDUCTING A STRATEGIC RE$IE!

&nvolve senior

management and

line managers

&nvolve employees

and their

representatives



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#ossi1le HR strategic o12ecti'es Im)ortance3 E**ecti'eness3

Support the achievement of organi*ational goals

$eet needs of employees

;evelop a high'performance culture

Ensure that the organi*ation is seen as "a great place to work!

&ncrease engagement and commitment

Recruit and retain talented people

;evelop talented people

Reward people according to their contriution

rovide employees with a voice

rovide a good working environment

)ther >specify?

@ Scale 9B C high B C low

HR STRATEGY GOALS( HO! DO THEY RATE"



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STRATEGIC HRM GA# ANALYSIS











STRATEGIC HRM GA# ANALYSIS

!hat are the c4rrent an. .esire. SHRM characteristics in 5o4r organi,ation"

9 : < = D

Effective high'performance work

system in place

Go attempt made to encourage

high performance

&ntegrated talent management

programmes are operating

effectively

Talent management is hapha*ard

or ineffective

Sophisticated techni8ues are

used to recruit employees

A traditional approach is adopted

with regard to sourcing recruits

and selecting applicants

Focus on using lended learning

and development processes

Reliance on the delivery of

traditional training courses

Employees given a voice on all

matters that concern them

)nly lip service is paid to

employee participation and

involvement

#igh'8uality #R practices oor'8uality #R practices

A total reward approach is used

effectively

Reward programmes limited to

financial rewards

$ark on the scale H for current, ) for desired + eg

+O








#ossi1le reso4rcing goals Im)ortance3 E**ecti'eness3

$atch people resources to usiness re8uirements

Avoid une%pected deficits or surpluses of staff

Attract and recruit high'8uality candidates

$inimi*e recruitment costs

$a%imi*e "recruitment intensity!, ie high numers of applicants

per vacancy

&ncrease "predictive validity!, ie the e%tent to which predictions ofsuitaility at the point of recruitment are achieved

&ncrease retention rates

Reduce cost of laour turnover

@ Scale 9B C high, B C low

ANALYSIS O RESOURCING GOALS

This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition,as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic

Resources.











Talent management goals &mportance@ Effectiveness@

;efine what is meant y talent in terms of competenciesand potential

Ensure that talent is treated as a key corporate resource

;evelop a pool of talent that will provide a guaranteedsupply of highly 8ualified people

rovide for management succession

Rely primarily on growth from within, while recogni*ingthe need to ring in fresh lood from time to time

&dentify those with talent and potential

&nstitute programmes to develop talent

-reate a compelling employee value proposition

;evelop the organi*ation as an employer of choice


ANALYSIS O TALENT MANAGEMENT GOALS


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7earning and development goals &mportance@ Effectiveness@

-reate human capital advantage y ensuring that theorgani*ation has more skilled and competent peoplethan its competitors

E%tend the skills ase of the organi*ation

&mprove individual, team and organi*ationalperformance

Attract and retain high'8uality people y offering themlearning and development opportunities

&mprove organi*ational fle%iility y multi'skilling

rovide additional non'financial reward to people inthe form of growth and career opportunities

Reduce the length of learning curves to minimi*elearning costs

Ensure that talented people are developed to achievetheir ma%imum potential

rovide line managers with the skills re8uired to leadand develop their people


ANALYSIS O LEARNING AND DE$ELO#MENT GOALS


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Reward management goals &mportance@ Effectiveness@

Reinforce the achievement of organi*ational goals

&mprove individual, team and organi*ationalperformance

Recruit and retain high'calire staff

Facilitate staff moility

Achieve strong relationship etween pay andperformance

Reinforce organi*ational values

$otivate and engage employees

-ost effective

ell'communicated and understood y employees

$anaged effectively y line managers


ANALYSIS O RE!ARD MANAGEMENT GOALS


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Employee relations goals &mportance@ Effectiveness@

Iuild stale and cooperative relationships with employeesand, where present, their trade unions

)perate on a partnership asis with trade unions

Achieve engagement through employee involvement andcommunication processes

$inimi*e conflict with employees and their unions

Adopt a high'commitment approach to develop mutuality

$aintain argaining structures and negotiating proceduresthat enale agreements to e reached smoothly


ANALYSIS O EM#LOYEE RELATIONS GOALS


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Summary of #Rstrategy Iusiness case Timing Responsiility for

9.

:.

<.

=.

D.

.

#RIORITI6ATION O HR STRATEGIES


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STRATEGIC HRM GUIDELINES

4 Ie clear on what has to e achieved

and why4 Ensure that what you do fits the

usiness strategy, culture and

circumstances of the organi*ation4 Aim for continuous improvement +

evolution not revolution4 ;on!t follow fashion + do your own

thing4 6eep it simple + over'comple%ity is a

common reason for failure4 ;on!t rush + it takes longer than you

think4 Assess resource re8uirements and

costs4 $anage change + involve,

communicate and train


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05 06 Tutor Resource Strategic Hrm Ch 2

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