Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 25 : Strategic HRM By Zhu Wenzhong.

Copyright © 2002 by Harcourt, Inc. All rights reserved.

Topic 25 : Topic 25 :

Strategic HRMStrategic HRM

By Zhu Wenzhong By Zhu Wenzhong


• Define strategic HRM.Define strategic HRM.• Explain the difference between the soft and hard Explain the difference between the soft and hard

side of HRM side of HRM • Explain the implications of a strategic approach to Explain the implications of a strategic approach to

HRM HRM • State the advantages and disadvantages of strategic State the advantages and disadvantages of strategic

HRM HRM • State the definition of a flexible workforce and State the definition of a flexible workforce and

suggest its advantages. suggest its advantages.

LEARNING GOALSLEARNING GOALSLEARNING GOALSLEARNING GOALS


Strategic HRMStrategic HRM can be regarded as a general approach can be regarded as a general approach to the strategic management of human resources in to the strategic management of human resources in accordance with the intentions of the organization on accordance with the intentions of the organization on the future directionthe future direction it wants to take. It is concerned it wants to take. It is concerned with with longer-term people issues and macro-longer-term people issues and macro-concerns about structureconcerns about structure, quality, culture, values, , quality, culture, values, commitment and matching resources to future need.commitment and matching resources to future need.

Strategic HRMStrategic HRM refers to the management of human refers to the management of human resources as an important asset which has strategic resources as an important asset which has strategic value and role for the business. value and role for the business.

Strategic HRM should not only focus on both the soft side of HRM and the hard side of HRM, but especially the hard side.

Definition of strategic HRM Definition of strategic HRM Definition of strategic HRM Definition of strategic HRM


Soft side and hard side of HRM Soft side and hard side of HRM Soft side and hard side of HRM Soft side and hard side of HRM

Soft side:• Motivation • Culture building• Support for employees • Employee and

individual relations

Hard side:• Analyzing current needs

for employees• Predicating future

demand • Predicating future supply • Predicating labor turnover


Soft side and hard side of HRMSoft side and hard side of HRMSoft side and hard side of HRMSoft side and hard side of HRM• Mainly concerned with the Mainly concerned with the

way in which people are way in which people are managed, managed, such as how to such as how to motivate workers, how to motivate workers, how to develop an organizational develop an organizational culture, how to support or train culture, how to support or train employees etc. employees etc.

Soft side of HRMSoft side of HRM


Soft side and hard side of HRMSoft side and hard side of HRMSoft side and hard side of HRMSoft side and hard side of HRM• Concerned about qualifying Concerned about qualifying

the number and types of the number and types of employees that a business employees that a business need,deciding whether they are need,deciding whether they are available and planning how to available and planning how to get them through predicating get them through predicating the demand and supply of the demand and supply of workforce for the future. workforce for the future.

Soft side of HRM Soft side of HRM

Hard side of HRMHard side of HRM


The implications of strategic HRM The implications of strategic HRM The implications of strategic HRM The implications of strategic HRM

The implications: The implications: • Integration into overall corporate Integration into overall corporate

strategic planningstrategic planning• Developing an organizational Developing an organizational

cultureculture• Motivating, training and supportMotivating, training and support• Coordination with other functions Coordination with other functions • Developing a flexible workforceDeveloping a flexible workforce

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Advantages and disadvantages of Advantages and disadvantages of Strategic HRM Strategic HRM Advantages and disadvantages of Advantages and disadvantages of Strategic HRM Strategic HRM

Advantages:• Help gain a competitive

edge• Help solve HRM

problems • Make the efficient use of

employees and reduce costs

• Help anticipate and plan for changes

• Benefit long term

Disadvantages:• Difficulty in predicating the

people behavior• Problems with predicating

external events affecting HR planning

• Needing constantly monitoring

• Leading to industrial relation problems


The flexible workforce The flexible workforce The flexible workforce The flexible workforce

Definition: Definition: • A workforce that can respond A workforce that can respond

quickly in quantity and type to quickly in quantity and type to changes in demand a business may changes in demand a business may face. face.

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The flexible workforceThe flexible workforceThe flexible workforceThe flexible workforce

• The organization of a flexible The organization of a flexible workforceworkforce

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Core workers

Periphery Workers


The flexible workforceThe flexible workforceThe flexible workforceThe flexible workforce• Full-time employees who Full-time employees who

have specific skills and have specific skills and job security job security

Core workers Core workers



• Part-time or temporary Part-time or temporary workers who available workers who available whenever neededwhenever neededCore workers Core workers

Periphery workers Periphery workers



Examples of flexible workforce practices:

• Part-time Part-time • Temporary Temporary • Bank time Bank time • Job sharing Job sharing

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Major advantages of a flexible Major advantages of a flexible workforceworkforce: :

• Employee benefiting from flexible Employee benefiting from flexible working hours working hours

• More employee opportunities of training More employee opportunities of training and being multi-skilledand being multi-skilled

• Reducing business costs and increasing Reducing business costs and increasing productivityproductivity

• Reacting quickly to changes in the Reacting quickly to changes in the workforceworkforce

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Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 25 : Strategic HRM By Zhu Wenzhong.

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Transcript of Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 25 : Strategic HRM By Zhu Wenzhong.