Human Resources ManagementStrategic aspects

Marzena Fryczyńska, Phd

1

1. Explain why strategic planning is important to all managers.2. Define strategic human resource management.3. Describe SHRM models.4. Explain linkage between strategy and HR strategy.5. Give an example of strategic human resource management

in practice.6. Briefly describe three important strategic human resource

management tools.

Learning outcomes

Business plan: table of contents

G.Dessler, 2011

Achieving strategic fit

• The “Fit” Point of View (Porter)– All of the firm’s activities must be tailored to or fit the

chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies.

• Leveraging (Hamel and Prahalad) – “Stretch” in leveraging resources—supplementing what

you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.

G.Dessler, 2011

Type of strategy at each company level

G.Dessler, 2011

Strategic Human Resources Management (SHRM)

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„The pattern of planned human resources deployments and activities intended to enable the firm to achieve its goals” Wright, Mc Mahan, 1992

„Formulating and executing human resources policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims” Dessler, 2011

Model for SHRM

7M. Armstrong, 2001

HIGH-COMMITMENT MANAGMENT MODELTo enhancing mutual commitment by self – regulating and mutual trustIt requires trainability, flexibility, reduction of hierarchies, emphasis on group-work

HIGH-PERFORMANCE MANAGMENT MODEL To make an impact on the performance of the firm through its people in such areas as productivity, quality, levels of customer service, growth, profitsIt requires rigorous HR processes

HIGH-INVOLVMENT MODELTo gain mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved It requires partnership, communication and dialogue between managers and subordinates

Linking company and HR strategies

8

G.Dessler, 2011

G.Dessler, 2011

Vertical and horizontal fit of HR strategy

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Business strategy

HR strategyOrganization HRD

Employee relationsResourcing

Performance management

Rewarding

Vertical fit

Horizontal fit Bundling process

M. Armstrong, 2001

Aligning HR strategy to business strategy

10G.Dessler, 2011

Southwest Airlines’ Activity System

G.Dessler, 2011

Three important strategic HR tools

HR ScorecardStrategy Map Digital Dashboard

A process for managing employee performance

and for aligning allemployees with key

objectives, by assigning financial and nonfinancial

goals, monitoring andassessing performance,

and quickly taking corrective action.

A graphical tool that summarizes the chain of activities that contribute to a company's success,

and so shows employees the "big picture" of how

their performancecontributes to achieving the company's overall

strategic goals.

An information technology tool that

presents the manager with desktop graphs and

charts, so he or she gets a picture of where the

company has been and where it's going, in terms

of each activity in the strategy map.

Strategy Map –Southwest Airlines

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„Graphical tool that summarizes the chain of activities contribute to a company’s success and so shows employees the „big picture” of how their performance contributes to achieving the company’s overall strategic goals”

G.Dessler, 2011G.Dessler, 2011

HR Scorecard

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„HR Scorecard – a process for managing employee performance and for aligning all employees with key objectives, by assigning financial and nonfinancial goals, monitoring and assessing performance and quickly taking corrective action”

„a picture is worth a thousands words”

G.Dessler, 2011

Key terms

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Strategic planning Strategic fitVertical fitHorizontal fitStrategic human resources managementSHRM modelsStrategy mapHR ScorecardDigital dashboard