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Human Resource Management 1
Introduction
A strategy:
Indicates what an organization's key executives hope to accomplish in the long run
Is concerned with competition and aligning the resources of the firm
Good HR strategy results in a fit between organizational strategy and HRM policies and programs
Recruitment, selection, outsourcing, telecommuting, performance evaluation, compensation
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Strategic human resource management
formulating and executing HR systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims
Taking a strategic HRM approach means:
Making human resources management a top priority
Integrating HRM with the company’s strategy, mission, and goals
HRM can make significant contributions if included in the strategic planning process from the outset
The strategic management process helps determine:
What must be done to achieve priority objectives
How they will be achieved
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Strategic HRM: A Key to Success
Three levels of strategy apply to HRM activities:
Strategic (long term)
Managerial (medium term)
Operational (short term)
The HRM activities are:
Employee selection/placement
Rewards
Appraisal
Development
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Strategic HRM: A Key to Success
Strategic HRM planning leads to:
Growth
Profits
Survival
Planning also:
Expands awareness of possibilities
Identifies strengths and weaknesses
Reveals opportunities
Points to the need to evaluate the impact of internal and external forces
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Traditional HR vs. Strategic HR
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investments
Accountability
Responsibility for HR
Traditional HR
Employee Relations
Transactional change
follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies,
procedures
Tight division of labor;
independence,
specialization
Capital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and
external customers
Transformational change leader
and initiator
Fast, proactive and integrated
Short, medium and long (as
required)
Organic-flexible, whatever is
necessary to succeed
Broad, flexible, cross-training
teams
People, knowledge
Investment centre
Line managers
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Shifts in HR management in India
Emerging HR practice
Strategic role
Proactive
Key part of organizational
mission
Service focus
Process-based organization
Cross-functional teams,
teamwork most important
People as key
investments/assets
Traditional HR practice
Administrative role
Reactive
Separate, isolated from
company mission
Production focus
Functional organization
Individuals encouraged,
singled out for praise,
rewards
People as expenses
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Linking Corporate and HR Strategies
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Strategic Management Process
Environmental Scanning
Strategy Formulation
Corporate level
Business unit level
Functional level
Strategy Implementation
Strategy Evaluation
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HR Role in Strategic Management
In strategy formulation
HR manager supplies competitive intelligence that is useful
In strategy implementation
Encouraging proactive behavior
Explicit communication goals
Stimulate critical thinking
Productivity
Quality and Service
Proficient strategic management
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A Model to Organize HRM
ARDM means:
Acquiring
Rewarding
Developing
Maintaining and protecting
The goals of the ARDM model are:
Socially responsible and ethical practices
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A Model to Organize HRM
The eventual success of any HRM activity is:
The organization's employees are the best qualified
They perform jobs that suit their needs, skills, and abilities
Matching people and activities in order to accomplish goals is easier with a diagnostic approach
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Taking a Diagnostic Approach to HRM
The ARDM model has four specific steps:
Diagnosis
Prescription
Implementation
Evaluation
Managers typically diagnose a work situation by observing and identifying key factors
A prescription is then made to translate the diagnosis into action
Most human resource problems are too complex to have a single correct prescription
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Taking a Diagnostic Approach to HRM
Implementing a solution is the next step, followed by evaluation
Evaluation tells managers whether improvement in the ARDM process is needed
If an organization teaches its members to focus on ARDM plus the environment, it is likely to achieve:
Socially responsible, ethical behaviors
Competitive, high-quality products and services
The ARDM model calls for thorough, timely, and systematic review of each situation
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External Environmental Influences
HRM processes are influenced by both the internal and external environments
External influences include:
Government laws and regulations
Union procedures and requirements
Economic conditions
The labor force
HR planning must operate within:
Guidelines
Limits of available resources
Competencies Human Resource Management 15
Economic Conditions
Two economic factors affect HRM programs:
Productivity
The work sector of the organization
Productivity is:
An important part of a nation's economic condition
Representative of an organization’s overall efficiency
The output of goods and services per unit of input (resources) used in a production process
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Economic Conditions
Managers can influence productivity through sound HRM programs
Diagnosis, prescription, implementation, and evaluation
Recruitment and selection
Motivational and compensation techniques
Training and development
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Internal Environmental Influences
HRM programs are influenced by:
Strategy
Goals
Organizational culture
Nature of the task
Work groups
The leader’s style and experience
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Goals
Organizational goals differ within and among departments
Most departments have similar goals
Differences arise from the importance placed on the goals
In organizations where profits take precedence, HRM goals receive little attention
This results in effectiveness problems (absenteeism, performance decrements, high grievance rates)
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Organization Culture
A firm's organizational culture is shown by:
The way it does business
How it treats customers and employees
The autonomy or freedom that exists in the departments or offices
The degree of loyalty expressed by employees
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Organization Culture
Organization culture represents the perceptions held by the employees
There is no one "best" culture for the development of human resources
Culture can:
Impact behavior, productivity, expectations
Provide a benchmark for standards of performance
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Work Group
An employee’s experiences are largely influenced by the work group
A group is two or more people who:
Consider themselves a group
Work interdependently to accomplish a purpose
Communicate and interact with one another on a continuous basis
In many cases, work next to each other
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Leader’s Style and Experience
The experience and leadership style of the operating manager directly affects HRM activities
Orchestrating the skills, experiences, personalities, and motives of individuals
Facilitating interaction within work groups
Providing direction, encouragement, and authority to evoke desired behaviors
Reinforcing desirable behavior
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