Strategic Approach To HRM

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STRATEGIC APPROACH TO HRM

(WHAT IT IS,WHAT IT INVOLVES AND


WHAT IT IMPLIES)
PRESENTED BY: CHEBET REGINA D61/64645/2011
HANIM ANYANZWA D61/62215/2010

LECTURERS: DR. NYONJE R


DR. OCHORO
INTRODUCTION
 Strategic human resource management
(SHRM) is a strategic approach to manage
human resources of an organisation. Compared
with technical HRM, SHRM is considered a
relatively ‘new’ concept, despite its continuous
development over the past two decades. its
basic function involves designing and
implementing a set of internally consistent
policies and practices that ensure the human
capital of a firm contributes to the achievement
of its business objectives (Schuler & MacMillan
1984, Baird & Meshoulam 1988, Jackson &
Schuler 1995).
Introduction

 Armstrong (2003) defines Strategic Human Resource


Management as an approach to making decisions on
an organization concerning the employment
relationship and the organisation’s recruitment,
training and development, performance
management, reward and employee relations
strategies and practices.

 Dessler (2003) defines SHRM as a linking of Human
Resource Management with strategies, goals and
objectives in order to improve business performance
and develop organisational culture that foster
innovation and flexibility.
Introduction

 The traditional HRM function, or technical HRM


activities, covers a wide range of employment
practices, including recruitment, selection,
performance appraisal, training and
development and the administration of
compensation and benefits. By combining the
HRM function with business strategy, SHRM
reflects a more flexible arrangement and
utilisation of human resources to achieve the
organisational goals, and accordingly helps
organisations gain a competitive advantage.
Introduction

 Since the strategy of a firm is a reflection of


its response to the competitive external
changes, a human capital pool with a broad
array of skills that are compatible with the
corporate strategy, is a catalyst for fulfilling
the strategic goals through promoting
behavioural utility among employees.
Theoretical approaches to SHRM

 Strategic approach to managing people is an essential


foundation for developing progressive related practices.
Strategic HRM is about what organisation intends to do
in the longer term to develop intergraded personnel and
development practices which enables the business to
achieve its goals.

 The strategic approach addresses issues and needs


relating to changes in structure and culture,
organizational effectiveness and performance matching
human resource to future requirement and development
of distinctive capabilities and intellectual capital, and the
management of change.
Universal approach

 This model suggests that there is one best


way of achieving HR effectiveness. In other
words it is based on the premise that one
model of labor management – a high
commitment model – is related to high
organisational performance in all context,
irrespective of the particular competitive
strategy of the organisation
High commitment approach
 The high commitment model goes beyond performance
alone to embrace workforce commitment and
identification with the organisation’s values and goals.

Wood and Albenese, (1995), identified the main feature


of high commitment management as

 The development of career ladder and emphasis on


trainability and commitment as high valued
characteristics of employees at all levels in the
organisation.
 A high level of functional flexibility with abandonment of
potentially rigid job descriptions.
 A high involvement of employees in the management of
quality.
Involvement management approach
 This approach involves treating employees as
partners in the enterprise, whose interest are
respected and who have a voice in matters that
concerns them.
Armstrong (2009), identifies that the aim is to create
a climate in which a continuing dialogue between
managers and the members of the team takes place
in order to define expectations and share
information on the organisation’s mission, values
and objectives.
 None of these models however should be thought of
as mutually exclusive as organisational context are
different hence require an approach which is based
on situation or context.
Formulating HR strategies

This phase involves generation and development


of strategies that enhance;
 Productivity
 Profitability
 Competitiveness
 Efficiency
 Effectiveness
 Organisational image
 Control on resource utilisation especially human
resource
Formulating HR
strategies................contd
The effect would be;
 Increase of labour
 Increase of expenditure in terms of salaries/wages or
generally compensation.
 Training of personnel with a view to manage the changes of
increment or expansion.
 Relationships are created.
 Increased job responsibility in terms of supervision,
management counselling.
 Labor welfare
 Health and safety
 Infrastructure e.g. housing social issues/unethical practices
Implementing HR strategies
 There are key pillars that strategists need to
consider before implementing strategies in
an organisation without which can lead to
collapse of organisation, programmes in
progress or even waste resources.
Implementing HR Strategies
The following are the key pillars;
 The strategic plan of organisation
 Sustainability
 Expertise availability
 Available resources
 Leadership
 Timing
 Environment consideration
Strategy Control
 Control is a process that aims at maintaining a
status quo of an event till the main goal is achieved.
It aims at avoiding deviations, side trading etc and
maintaining standards.
 This process from a HR context aims at making sure
that the strategy implemented moves according to
the laid down Plans, Programmes and Procedures
so as to achieve the intended purpose (HR purpose).
These are two main variables used in the control
process
 Monitoring
 Evaluation
Monitoring

 The methodology is a supervisory and


overseeing approach. The manager
supervises the activities or strategy with an
aim of maintaining standards and avoiding
deviations.
Evaluation
 Quantitative is statistical, numerical and mathematical
in nature. It compares performance against established
standards and expectation.
 Control is displayed through indicators. These indicators
will be viewed through the results of strategy
performance.

 For example, performance of a strategy may take the


following forms. If is successful, it means goals have
been achieved, time observed, resources utilized
effectively/efficiently, clients are satisfied, growth and
investment returns are high.
 If it is failure, indicators like non achievement, returns
are low, poor customer satisfaction, high staff turnover,
organisational collapse, among others.
Conclusion

 Developing an effective HR system that is


compatible with organisational strategy is critical
for the functioning and success of a firm in the
competitive business arena. Indeed, the increasing
complexity of contemporary corporate life has
elevated the importance of shedding traditional
beliefs that were the concerns of personnel
managers, and to shape newer mindsets, proactive
attitudes and professional identities, orientations
that have placed greater emphasis on the utilisation
of human resources.
References

 Armstrong, M., Strategy Human Resource Management, a guide to action


(2009) “2nd Edition”
 Beardwell, I., Holden, L., Claydon, I. Human Resource Management; 1994
”4th edition’ Pearson Edu. Ltd, England, Harlow.
 Bjorkman, I., & Fan, X. (2002). Human resource management and the
performance of western firms in China. International Journal of Human
Resource Management, 13(6), 853-864.
 Chan, L.L.M., Shaffer, M.A., & Snape, E. (2004). In search of sustained
competitive advantage: The impact of organisational culture, competitive
strategy and human resource management practices on firm performance.
International Journal of Human Resource Management, 15(1), 17-35.
 Chris Hendry; A strategic Approach to employment; butterworth –
Heinemann Linacre House, Jordan Hill, Oxford.
 Dessler, G. Humana Resource Management, 2003, 9th edition, Pearson
Education, Singapore, Pte Ltd.
Reference.......contd’
 Guest, D., Pesonnel and HRM; can you tell the difference; personnel management.
 Jackson, S.E., & Schuler, R.S. (1995). Understanding human resource management in
the context of organisations and their environment. In J.T. Spence, J.M. Darley & D.J.
Foss (Eds.), Annual review of psychology (Vol. 46, 237-264). PaloAlto, CA: Annual
Reviews, Inc.
 Millmore, M., Lewis, P., Sauders, M. , Thornhill, A. And Morrow, T. Strategic Human
Resource Management 2007, Pearson Edu. Ltd; Edinburgh Gate, Harlow.

 Quinn; J.B, starategy for change in H. Mintzberg and J.B; Quinn (eds); The sytategy
oricess, concepts, context, cases; Englewood cliffs NJ: prentice Hall International
 Schuler, R.S., & MacMillan, I.C. (1984). Gaining competitive advantage through
human resource management practices. Human Resource Management, 23(3), 241-
256.
 Sission;K., Personnel Management; 1989, Blackwell publishers, UK.

 Torrington,D., Hall, L. , Taylor,S., Human resource Management, 2005; Prentice Hall,


Europe
 Wright, P.M., & McMahan, G.C. (1992). Theoretical perspectives for strategic human
resource management. Journal of Management, 18(2), 295-320.

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