HRM obj & challenges. SHRM

8/7/2019 HRM obj & challenges. SHRM

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Def. ContDef. Cont

HRM functional definition Is a set of interrelated functions and processes whose

goal is to attract, socialize, motivate, maintain, andretain an organizations employees (Belcourt et al.,2002)

HRM goal-based definition aims to improve the productive contribution of

individuals while simultaneously attempting to attainother societal and individual employee objectives(Schwind et al., 2002)


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HRM serves 3 primary constituencies:

The organization

Society

Individual employees


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HRM OrganizationalHRM Organizational

ObjectivesObjectives Primary objective of HRM is to contribute to

organizational effectiveness

HRM is not an end in itself

Its role is to help the organization achieve its primaryobjectives

E.g., through selection, training, managing H&S

Influenced by many factors

Industry characteristics, organizations product orservice, organizations competitive strategy, etc.


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HRM Societal Obj

ectiv

esHRM So

cietal Obj

ectiv

es

HRM must be socially responsible

Meet the needs and challenges of society

Narrowly - legal compliance

Broadly - concern with human rights, socialresponsibility, etc.

Can be challenging when social concernsconflict with organizational goals


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HRM Employee

Objec

tive

sHRM Employee

Objec

tive

s Assist employees in achieving personal goals

Short-term performance goals and long-term career

goals

Can be challenging to balance individual and

organizational goals

E.g., when training results in employees developing

skills that are attractive to other organizations


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TheT

he

HRMHRM Profe

ssionalProfe

ssional Major competencies:

Business mastery

Strategy, financial realities, customer orientation

Mastery of HRM tools

Staffing, training, compensation, etc.

Change masteryPersonal credibility


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Strategic

HRMStrate

gic

HRM


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Common Misconceptions aboutCommon Misconceptions about

HRHR HR is primarily an administrative function

HR has little strategic importance and doesnot represent a potential source of anorganizations competitive advantage

HR is a cost centre its activities add toan organizations expenses/costs but not torevenue generation


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Overcoming theseOvercoming these

MisconceptionsMisconceptions HR can and indeed should play a key role in

an organizations strategy

There is increasing evidence that HR activities areassociated with various indicators oforganizational performance (e.g., ROI,profitability, stock prices)

$ put toward HR systems and activities should beviewed as investment rather than simply cost


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What is Strate

gic

HRM?What is Strate

gic

HRM?Strategic HRM

Integration of HRM systems to theoverall mission, strategy, and success ofthe firm, while meeting the needs ofemployees and other stakeholders

The intentional use of HR systems to helpan organization gain competitiveadvantage


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Guiding Logi

cofSHRM

Guiding Logi

cofSHRM

HRM practices must develop employees skills,

knowledge, and motivation such that employees

behave in ways that are instrumental to theimplementation of a particular strategy (Bowen &Ostroff, 2004)

Contingency Perspective Effectiveness of HRM system depends on contextual

factors such as industry type, firm size, etc.


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Steps in Strat

egic

HRMSteps in Strat

egic

HRM1. Environmental Analysis

2. Organizational Mission and Goals Analysis

3. Analysis of Organizational Strengths and Culture

4. Analysis of Organizational Strategies

5. Choice and Implementation of HR Strategies

6. Review and Evaluation of HR Strategies


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Aligning HR and OrganizationalAligning HR and Organizational

StrategyStrategy Use Porters strategies for illustration

Cost Leadership

Tight cost control, production efficiency, products

designed for ease of manufacture, intense supervisionof labour

Differentiation

Emphasis on marketing, product engineering, R&D,quality, technological innovation

Focus

Combination of cost leadership and differentiation

directed a market segment


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Example ofAligning HRExample ofAligning HR

and Organizational Strategyand Organizational Strategy Cost Leadership

Tight cost control

Production efficiency

Products designed for

ease of manufacture

Intense supervision of

labour

HRStrategies

Clear job descriptions

Detailed work planning

Emphasis on technical

skills

Job-specific training

Job-based pay

Performance

evaluations for control


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Example ofAligning HRExample ofAligning HR

and Organizational Strategyand Organizational Strategy Differentiation

Emphasis on marketing

Product engineering

R&D

Focus on quality

Technological

innovation

Highly skilled labour

HRStrategies

Emphasis on innovation and

flexibility

Broad job classes

Loose work planning

Focus on recruitment,

careful selection

Team-based training Individual (skill)-based pay

Performance evaluations for

development


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Outcom

es o

fStrat

egic

HRMOutcom

es o

fStrat

egic

HRM When you align HR with organizational

strategy, youll see growth in commitment,

improved financial results, and find yourself

better able to attract and retain the right

people.

HRM obj & challenges. SHRM

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