Strategic HRM :

Linking the People with the Strategic needs of the Business

Introduction:5-P Model connects Business

needs with Strategic HRM activities

1. Human Resource Philosophy (can be seen in business values & culture)

2. Human Resource Policies (Shared Values)

3. Human Resource programs ( HR strategies)

4. Human Resource Practices ( for leadership, managerial & operational roles)

5. Human Resources Processes ( formulation & implementation of other activities)

Case- Grand Union Grand Union - a traditional high- volume, low-margin, limited-section, discount-driven, 40,000 square foot grocery store

Decided to compete with 1,00,000 square foot stores.

Need to change the direction- from a commodity, undifferentiated business to a high quality, customer-driven business.

The culture of firm changed to listening to and serving customers, management talks about leadership, setting objectives that would relate to new way of doing business.

Human Resources Philosophy

How the resources are to be treated and managed

It is found in statement of business values

Ex. - we will develop an excellent organization focused on building the business by : empowering people to drive the business from the closet point to the market.

In the case, “Grand Union” developed a HR philosophy that said the employees was a valuable, long-term source of competitive advantage

And all efforts would be made to provide exciting jobs, promotion opportunities and retraining as needed.

Human Resource Policies:Guidelines

• Establish guidelines for action on people-related issues and HR programs.

•Flowing from the strategic business need, they may include: need to hire skilled and adaptable workers under changing environmental condition, improve productivity, need to reduce health care cost etc..

•In case it stated as “high standards of personal performance” and here need was to develop communication skills that would foster such performance in a decentralized international environment.

HR Programs• These are coordinate HR efforts which are specially made to

initiate,disseminate,and sustain strategic organizational change needed for strategic business needs.

• Its is not always necessary that these changes begin at the top level,but may begin elsewhere

• HR programs can initiated,disseminated and sustained for any type of strategic organizational change efforts,however they have several elements in common example they receive their first force from the firm’s strategic intensions and direction and secondly they involve human resources management issues like what kind of people are required and their number.

• HR strategies and HR programs are used interchangeably where HR strategies are plans and programs to address and solve fundamental strategic issues related to human resource management.

• Example in1980’s FPC had a problem of declining commodity lumber business and growth among small mills that tailor made products to meet customer demands.These small mills were more market oriented and operated at low costs.

• The result of the decision was to decentralize the operating unit of which one was FPC,were free to operate as they wished,restructuring proved to be helpful and the way business had to be conducted had to be changed from the top level to the salesperson.

• This gave rise for the need of a school who’s major objective was to develop and implement a four week HR program for top executives and later middle executives

HR Practices • Leadership Roles-This means establishing control,aligning people

motivating and inspiring and causing change

• Managerial Roles-This means roles of planning,directing,delegating,organizing and coordinating

• Operational Role-These are roles needed for deliver services and products,these are also called the “the doing roles”

• Matching Roles and Practices- HR practices can be developed to cue and reinforce role performance example a company that has defined a need to improve quality.The HR practices might provide cues for group participation in problem solving.

HR Processes• This area deals with “how”all the other HR activities are identified ,formulated and

implemented ,thus this is a significant strategic human resource management activity

• The process of involvement and participation are both very important as seen in the example of FPC where the executives were involved in organization in the planning stages which provided an opportunity to understand and buy the idea of the change .Employees at all levels call for empowerment ,ownership and participation

• Participation can be both very high to very low from the employees.it is seen that here is a need for consistency and the need arises because all these activities influence individual behavior example if they are consistent with each other ,I.e if they are not sending the same massages about what is expected and rewarded,the organization is likely to have different people doing all different things,this is hardly a situation of successful implementation of strategic business needs.

IMPLICATIONS & SUMMARY

• According to these concepts , the framework of strategic human resources management is made up of all activities affecting the behavior of individuals to formulate & implement the strategic need of business .

IMPLIMANTATIONS

1. Identification of SBN :- These needs should be systematically

analyzed for their impact on human resource management activity .

2. Participatory Processes :- It may help to make the link between

strategy & HR practices .

3. Systematic & Analytical mindset :-

First identifying needs & then designing HR activities with consistent cues & reinforcements .

4. Significant Opportunity :-

HR departments have significant opportunity to impact their organization’s efforts to successfully launch strategic initiatives .

5. Formal Study :- As practitioners do their work , HR

academics have a significant opportunity to observe organizations in transition , a real-life laboratory for learning .

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