Strategic Human Resource

Manangement
BY: Dr Anchal Pathak
ASSISTANT PROFESSOR
IMS UNISON UNIVERSITY
What is Strategy?
• It is a plan of actions designed to achieve a long term or overall aim of
an organization.
• A strategy should be :-
Unified :- Ties all enterprise together.
Comprehensive :- Covers all major aspects of enterprise.
Integrated :- All parts of the plan are compatible with each other and fit
together
SHRM
SHRM is part of strategic planning
• Strategic Plan : The Company’s plan for how it will match its internal
strengths and weaknesses with its external opportunities and threats
to maintain a competitive advantage.
• Essence is to ask “ Where are we now as a business, where we want
to be, and how should we get there.”
• Then formulates specific strategies (Human resources and other) to
take the company from where it is now to where he or she wants it to
be.
• Strategy : The company’s long term plan for how it will balance its
internal strengths and weaknesses with its external opportunities and
threats to maintain a competitive advantage.
Definition
By strategy we mean future – oriented plan for interacting with the
competitive environment to achieve organizational goals. Strategy is a
framework for managerial decisions. It reflects a firms awareness of how,
when and where it should compete and for purpose it should compete.

STRATEGIC MANAGEMENT- it refers to the process of crafting strategies,

their implementation and evaluation of their effectiveness.

SHRM- It refers to the process of developing practices, programmes and

policies that help achieve organizational objectives.
Continued…
• SHRM means formulating and executing human resource policies and
practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
• Four Roles of HR Executives:
• Defining the organizational architecture- mix of structure, systems,
rewards, process, people, styles, skills and shared values.
• Accountable for conducting an organizational audit.
• To take the lead in proposing, crafting and debating best practices
that can help implement strategies.
• HR must take stock of its own work and set clear priorities.
 Phase 1 Scan
the
Environment

Phase 2
Phase 5
Identify
Monitor &
Sources of
Evaluate HR
Competitive
Strategies
Advantage

Phase 4 Phase 3
Implement HR Identify HR
Strategies Strategies
Strategic Management Process
1.Scan the Environment- Analysis of environment provides inputs for
decision-making in business, environment comprises internal and
external forces which impact the organization.
External-
• Legal
• Economic
• Technological
• Political
• Cultural
Internal-
• Business Processes
• SWOT Analysis
• Organizational culture
• Organizational structure
• Industrial relations
• HR department is ideally placed in collecting information about rivals-
their direction, their strategies, their strengths and their weaknesses.
• With the help of Resumes.
• Help in constructing organizational charts.
Identify Sources of Competitive Advantages-
• It stems from diverse sources which includes- quality, prices, brand
positioning, timely delivery and customer service. These sources of
competitive advantage reflect the core capabilities of an organization.
• For instance , innovating new products and services is likely to be
underpinned by competencies such as creativity, problem solving,
change orientation and knowledge sharing.
• Example- An organization which has business strategy focused on
increasing market share through excellence in customer services,
seeks HR Strategies that enhance skills of sales force in
communication, empathy and problem solving.
 Identify HRM Strategies-
Devolved Informal Learning Empowered Informal Learning

Indirect Developing awareness of Creating a Learning

Interventions
learning opportunities. Environment

Learning as Socialization Engineering

Developing formal training , Creating and controlling
Direct Learning and development communities of practice and
Interventions
Interventions. social networks.

Human Capital Social Capital

Learning as Socialization
• Traditional Approach to the development of human resources.

• Highly structured training courses, coaching sessions, and education

where primary responsibility vests with HR Manager.

• The aim of this is to ensure that the employees conform to the values
and beliefs of the organization and the ability to meet performance
targets.
Devolved Informal Learning
• Indirect Interventions where the role of HR Manager is Secondary.

• Help to develop awareness about learning opportunities and career

development.

• HR Manager can be involved in the development of organizational

Knowledge and learning processes that rely on formal teams,
Knowledge sharing activities and problem solving projects.
Engineering
• It comprises of OD techniques seek to develop social capital.

• Social capital consists of knowledge derived from relationships

network within and outside the organization.

• It is about the development of the communities.

Empowered Informal Learning-
• Primary responsibility for HRM held by line managers in partnership
with employees.

• More concerned with building learning infrastructure for successful

devolved informal learning.

• This type of learning is important in all types and sizes of organization

for the organizational change.
IMPLEMENTING HR STRATEGIES
• HR strategies are implemented through HR policies, plans & Practices.
• A policy is an expression of intent an organizations commitment to
HRM.
• Plans Specify the courses of action along with the time frame to carry
out plans.
• HR Practices represents a set of interventions and activities. It can be
training course, coaching sessions and change projects, while
activities include offering advice on training needs, analyzing
questionnaires and giving presentations to management teams.
MONITOR & EVALUATION
• Establishing performance targets, standards and tolerance limits for
the objectives, strategies and implementation of plans.

• Measuring the performance in relations to the targets at given time

and taking corrective action.

• Analyze deviations from acceptable tolerance limits.

• Execute modifications where necessary and feasible.