Human Resources

Management
Function & Strategy

-:Prepared by

Ebtesam Abdel Aziz Mohamed

Hanaa MahmoudMostafa

: Under supervision

DR/Samah Faisel
:Learning outcomes

After reading this chapter you will be able to:

1-Explain what we mean by strategic human reso1-Explain
what we mean by strategic human resource
management
2-Describe the importance of human resource
management
3-Identify the primary external influences affecting
human resources management
4-Characterize how management practices affect
human resource management
5-Discuss the effect of labor unions on human resource
management
urce6-Out line the components &the goal of the
staffing .training .&development functions of human
resource management
7-list the components &goals of the motivation
&maintenance function
8-Outline the major activities in the employment
.training &development .compensation &benefits &
employee relations departments of human resource
management
man8-Outline the major activities in the
employment .training &development .compensation
&benefits & employee relations departments of
human resource management
agement
2-D9-Explain how human resource management
practices differ in small businesses &in international
settings

escOut lines

 1- Introduction
2-Definition of strategic human resources management
3-describe the importance of human resources management
4-why study of strategic human resources management

ribe5-Steps of strategic human resources
management process
6-types of strategies
7-strategies model &trends
8-Identify the primary external influences affecting
human resources management
9-Characterize how management practices affect
human resource management
10-Discuss the effect of labor unions on human
resource management

the importance of human resource man11-Out line the
components &the goal of the staffing .training
.&development functions of human resource
management
12-list the components &goals of the motivation
&maintenance function
13-Outline the major activities in the employment
.training &development .compensation &benefits &
employee relations departments of human resource
management
agem14-Explain how human resource management
practices differ in small businesses &in international
settings

ent INTRODUCTION:

Strategic human resources management (SHRM) is about

the formulation of HR strategies is alignment with the
overall corporate strategy to achieve the goals of the
organization. And it aims to achievingindividual
performance and organizational effectiveness

Definition of strategic

human resources management;

It means formulating and planing human resources

policies and practices that produce the employee
competencies and behaviors that company needs to
achieve its strategic aims.

OR:
is concerned with all those activities that affect the
behavior of individuals in their efforts to formulate or
implement the strategic needs of business

OR

It is the process of linking the human resources functions

with the strategic objectives of the organization in order to
improve performance

Importance of H R M
Management :
Is the process of efficiently achieving the objectives
of the organization with &through people
 Planning:
A management function focusing on setting
organizational goals &objectives
Organizing :

Management function that deals with determining

what jobs are to be done by whom where decisions
are to be made &how to group employees
Leading:
Management function concerned with directing the
work of other
Controlling :

Management function concerned with monitoring

activities to ensure .goals are met

Why study of strategic human resources management

1- Staffing the organization, designing jobs, building

teams, developing employee skill.
2- Identifying approaches to improve performance
and customer service,

3- A successful healthcare MANAGER needs to

understand human behavior, work with employees
effectively .
4-TheMANAGER also has to be aware of economic,
technological, social, and legal issues that facilitate
or constrain efforts to attain strategic objectives.
5-Healthcare MANAGER should select the right
person for the right task, to manage unmotivated
employees,, to be cited for unsafe practices, to have
poorly trained staff meet patient satisfaction
practices.
 Steps of SHRM process:
new Step1: Define the current Business:

Every company must choose the terrain on which it
willcompete, in particular, what products it will sell,
where it will sell them, and how its products or
services will differ from its competitors.

Step2: Perform External and Internal audits:

Ideally, managers begin their strategic Planning by
methodically analyzing their external and internal
situations. The strategic plan should provide a
direction for the firm that makes sense it.

Step3; Formulate new business and mission
strategies:

Based on the situation analysis, what should our new

business be, in the term of what products it will sell
where it will sell them and how its products or
services will differ from its competitor? What is our
new vision and mission?.

Step4: Translate the mission into strategic goals

Saying the mission is to make quality job one is one

thing operationalizing that mission for your managers
is another. The firms managers need strategic goals.
What exactly does that mission mean, for each
department in the term of how to boost quality?

Step5: Formulate strategies to achieve the

strategic goal:
 Again, a strategy is a course of action. It shows how
enterprise will move from the business it is in now to
the business it wants to be in (as laid out by its
vision, mission and strategic goals

Step6: Implement the strategies

Strategies implementation means translating the

strategies into actions and results by actually hiring
or firing people, building or closing plants, and
.adding or eliminating products and product lines

Step7: Evaluate performance:

Strategies dont always succeed. For example,

Procter & gamble recently announced that it was
selling its remaining food businesses. Managing
strategy is an ongoing process. Competitors enter
.new market and introduce product

Types of strategies

hu1-Corporate strategy:

Managers engage in three types of strategic planning
.at the top, a companywide level, many firms consist
of several business
A companys corporate level strategy identifies the
portfolio of businesses that together comprise the
company and the ways in which this business relate
to each other. There are several generic possibilities

A- A diversification corporate strategy:

Implies expanding by adding new product lines .

B- A vertical integration strategy:

Means expanding by, perhaps, producing its own raw
materials, or selling its products direct .
.
C- Consolidation:
Reduces the companys size .

D-Geographic expansion:
Involves going into new regions, such as taking the
business abroad

2-Competitive strategy:
A competitive strategy identifies how to build and
strengthen the businesss long term competitive
position in market place. A companies use several
:generic competitive strategy

A-Cost leadership means:
The enterprise aims to become the low cost leader in
an industry.

B-Differentiation:
In this type a firm seeks to be unique in its industry
along dimensions that are widely valued by buyers.

:C-Focusers
compete by providing a unique product or service
.customers can get no other way

3- Functional strategy:
It identifies the basic course of action that each
department will pursue in order to help the business
attain its competitive goals. The firms functional
strategy should align with its business / competitive
.strategy

Strategy types:

Strategy type What it looks Implications for human

like resources
Cost differentiation Emphasize STRUCTURE:JOBS
Provide great value &low acquiring low &DEPARTMENTS TO
cost cost materials MAXIMIZE CROSS
streamlining TRAINING knowledge
processes sharing
reducing waste DESIGN:compensation
maximizing program toreward efficiency
efficiencies cost saving
(eg.wal mart SELECT:employees with
HYUNDAI versatile skill sets
Strategy type What it looks Implications for
like human
resources
Customer Emphasize :Recruit
intimacy relationship And select job
Strong personal between candidates with
relationship consumers strong customer
between &point person service &customer
provider of personalized relationa skills to
product service service from help fortify
&customer )competitors customer
relationship
:FOCUS
Reward strategies
 on customer
attraction
satisfaction
&retention

Human resources management primary

activities:

HRMgoals are accomplished through the

function of staffing training

development motivation& maintenance&

The HUMAN RESOURCES MANAGEMENT

FUNCTIONS
STAFFING FUNCTION:

Although recruiting is frequently perceived as the

initial step in the staffing function the HR specialist
must embark on employment planning this area
alone has probably fostered the most change in
human resources department

Training &development function

Activities in HRM concerned with assisting employees

to develop up to date skills knowledge &continuing
process with the first day on the job building skills for
high performance &high morale activities .

Motivation function
HRM concerned with helping employees exert at high
energy level motivation help to:
1-employee training
2-employee development
3-career development
4-organization development

Maintenance Function

The last phase of the HRMprocess is called Maintenance

Function that activities in HRM concerned with
maintaing employees commitment &loyalty to the
organization & help to provide communication
programs:in the organization HRMprograms designed
to provide information to employees

HOW External Influences Affect HRM

The four HRM activities are highly affected by

. what occurs outside the organization
It is important to recognize these environmental influences
:-

The dynamic environment of HRM

IT has been stated that the only constant during our

lifetimes is change we must there for prepare
ourselves for events that have asignificant effect on
our lives


Laws &Regulation

Today employees who want to take several weeks of

unpaid leave to be with their newborn children
&return to their jobs without any loss of seniority
have an easier time making it a reality

Labor unions

Acts on behalf of its member to secure wages

hours&other terms &conditions of employment

Management thought

The last area of external influence is current

Management thought is the early theories of
management that promote today HRM operation
What effect does the informal work
group have on these worker
?productivity

Scientific management

Aset of principles designed to enhance worker

productivity

Hawthorne studies:

Aseries of studies that provided new insights into

group behavior&motivation

Structure of the HR department:

Responsibility for the four HRM function of staffing

training &development motivation &maintenance can
be distributed many different ways in organization
company size strategy &structure will play role in
who handles the HRM functions

EMPLOYMENT:

THE main thrust of the employment function is to

promote staffing activities working in conjunction
with position control specialists (in compensation in
benefits or in a structure of the HR department

Compensation &benefits

HRM function concerned with paying employees

&administering the benefits package

Employee relations function
Activities in HRM concerned with effective
communication among organizational member

What is the purpose of HRM communications

HRM communications programs are designed to keep

employees informed of what is happening in the
organization &knowledgeable of the policies
&procedures affecting them

top management commitment-1

effective upward communication-2
determinig what is to be communicated -3
allowing for feedback &information sources -4

1- topmanagement commitment

Before any organization can developthe organization should

implement internal organizational communication program

2-Effective upward communication

The upward flow of communication is particularly

note worthy because often the employees the ones
closest to the work may have vital information that
top management should know

3-determining what to communicate

At the extrem if every piece of information that exists

inour organizations were communicated no work
would ever get done people would be spending their
entire days on information overload

4-allowing for feedback

HR managers cannot assume that their
communication effort are achieving their goals
consequently the HR department must develop both
a means of assessing the flow of information
&methods for fostering employee feedback

5-information sources:

HRM communications should serves as conduit in

promoting effective communications throughout the
organization

IS career in HR for Me positions include

1- Assistant :provides support to other HR

professional
2-Generalist:provides service to an organization in all
four of the HR functions
3-specialist :typically concerned with only one of the
four functions

Executive :reports directly to the organization top -4

management with responsibility for all Functions
&linking HR with organizational strategy