bmhr n300 diane evans. objectives define the term ‘strategic hrm’ identify specific issues of...

STRATEGIC HRM AND UAE

CHALLENGESBMHR N300

Diane Evans

Objectives

Define the term ‘strategic hrm’ Identify specific issues of shrm Apply hr strategies to a case study

HR Management Challenges

Globalization of BusinessOutsourcing and increased competition

The threat of terrorism

Economic and Technological ChangesOccupational Shifts

Workforce Availability and Quality Concerns

Technological Shifts and the Internet

© 2007 Thomson/South-Western. All rights reserved. 1–3

Co-operation of HR with Operating Managers

HR UnitDevelops legal, effective

interviewing techniquesTrains managers in

conducting selection interviews

Conducts interviews and testing

Sends top three applicants to managers for final review

Checks referencesDoes final selection and

hiring for certain job classifications

ManagersAdvise HR of job openingsDecide whether to do own

final interviewingReceive interview training

from HR unitDo final interviewing and

hiring where appropriateReview reference

information Provide feedback to HR unit

on hiring/rejection decisions


FIGURE 1.2 Changing Roles of HR Management

1–5© 2007 Thomson/South-Western. All rights reserved.

FIGURE 1.3 Strategic HR Management Process


Nature of strategic HR management

Cost Leadership Competition on the basis

of low price and high quality of product or service

Relies on “building” employees to fit specialized needs

Requires a longer HR planning horizon approach

Differentiation Competition on the basis of

either offering distinctively different products or services or establishing an exclusive image for quality products and services

Relies on hiring needed skills.

Needs a shorter planning time frame in order to be responsive to dynamic environments


Relationship of Organizational and HR Strategies

Nature of Strategic HR Management (cont’d)

Customer Service and Quality Products Linked to HR StrategiesHigh quality products and services are the results of

HR-enhancements to organizational performance. Organizational Culture and Organizational

EffectivenessOrganizational culture—the shared values and beliefs

in an organization○ Strategy and culture must be compatible and aligned for

the organization to be effective.○ Culture affects recruitment and retention of employees.


Human Resource Planning Human Resource (HR) Planning

The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.


FIGURE 1.4 HR Planning Process


Scanning the External Environment

Environmental ScanningThe process of studying the environment of

the organization to pinpoint opportunities and threats.

Environmental Changes Impacting HRGovernmental influencesEconomic conditionsGeographic and competition issuesWorkforce composition


Assessing the Internal Workforce

Jobs and Skills Audit What jobs exist now?How many individuals are performing each

job?What are the reporting relationships of jobs?How essential is each job?What jobs will be needed to implement

future organizational strategies?What are the characteristics of anticipated

jobs?


Assessing the Internal Workforce (cont’d) Organizational Capabilities Inventory

HR databases—sources of information about employees’ knowledge, skills, and abilities (KSAs)

Uses of KSA inventories○ Recruiting○ Selection○ HR development○ Capabilities of future workforce


Forecasting HR Supply and Demand Forecasting

The use of information from the past and present to identify expected future conditions.

Forecasting PeriodsShort-range: six months to one yearIntermediate-range: up to five yearsLong-range: more than five years


HR Forecasting


Factors Affecting External HR Supply

Net migration for an area

Individuals entering and leaving the workforce

Individuals graduating from schools and colleges

Changing workforce composition and patterns

Economic forecasts

Technological developments and shifts

Actions of competing employers

Government regulations and pressures

Other circumstances affecting the workforce


Forecasting HR Supply and Demand (cont’d) Forecasting Internal HR

SupplyEffects of promotions, lateral

moves, and terminations Succession Planning

Long-term plan to replace key employees.

Managing an expatriate workforce


Measuring HR Effectiveness (cont’d) Measures of Strategic HR Effectiveness (cont’d)

Return on Investment (ROI)○ A calculation showing the value of expenditures for HR

activities and how long it will take for the activities to pay for themselves.

Economic Value Added (EVA)○ A firm’s net operating profit after the cost of capital (the

benchmark for minimum return) is deducted.HR and the Balanced Scorecard

○ Financial ○ Internal business processes○ Customer○ Learning and growth


Measuring HR Effectiveness (cont’d) HR Measurement and Benchmarking

Benchmarking○ Comparing specific measures of performance against

data on those measures in other organizations.

HR AuditA formal research effort that evaluates the current

state of HR management in an organization.Audit areas:

○ Staffing○ Compensation○ Health and Safety


UAE HR Management Challenges Global perspective and influence Reliance on expatriate workers for

skills/knowledge needed Public v private employment Cultural development – Arab/Islam v

Western/secular

Apply SHRM to a case study

Al Ain Water

bmhr n300 diane evans. objectives define the term ‘strategic hrm’ identify specific issues of...

Documents

results of hr

cooperation of hr

hr planning process110

hr unitdo final interviewing

organizational performance

relationship of organizational

different products

high quality of product