Transcript STRATEGIC HR MANAGEMENT - Sphoorthy Engineering College

STRATEGIC HR MANAGEMENT
By
KSN Raju,
Manager (HR), SRTS-I
STRATEGIC HR MANAGEMENT
Definition:
Strategic Human Resource Management is
the process of linking the Human Resource
function with the strategic objectives of the
organization
in
order
to
improve
performance.
STRATEGIC HR MANAGEMENT
An organization’s human resource management
policies and practices must fit with its strategy in its
competitive environment and with the immediate
business conditions that it faces.
The implication of HR strategic choices for
Organization's performance is certainly the key
factor to gain competitive advantage.
STRATEGIC HR MANAGEMENT
HR Strategy
Environmental Influence
Business Strategy
STRATEGIC HR MANAGEMENT
Concept:
An organization’s HRM policies and practices must fit & integrate
with its strategy in its competitive environment and with the
immediate business conditions that it faces.
The concept of integration has three aspects:



The linking of HR policies and practices with the strategic
management process of the organization.
The internalization of the importance of HR on the part of line
managers.
The integration of the workforce into the organization to foster
commitment or an ‘identity of interest’ with the strategic goals.
STRATEGIC HR MANAGEMENT
Political
Forces
Economical
Forces
Cultural
Forces
Mission
&
Strategy
Organizational
Structure
Human
Resource
Mgmt.
STRATEGIC HR MANAGEMENT
CMD & BoD
F&A
Corporate Level
Strategy
Functional
Directors &
EDs
Business level
Strategy
HRM
Functional
level
Strategy
O&M
Human Resouce Management: Philosophy, policies, programmes,
practices, processes, relationships with employees, trade unions,
contractors & Govt. Agencies.
STRATEGIC HR MANAGEMENT
THREE LEVELS OF STRATEGIC HR MANAGEMENT

Corporate Level Strategy:
–

Business Level Strategy:
–

What Business are we in? Where we want to be?
How do we compete? (SWOT)
Functional Level Strategy:
–
How do we support
Competitive strategy?
the
business
level
STRATEGIC HR MANAGEMENT
REQUIEMENTS:

Basically a Top management’s job

Strong commitment at top

Dynamic/charismatic leadership

Percolates down with HR Strategies, Organization, Policies,
Programmes & Procedures.

Effective feedback
STRATEGIC HR MANAGEMENT
STEPS INVOLVED:

Assess how well Human Resources Management is linked to
Organisation’s mission accomplishment;

Explore the role played by the HR staff in Organisation’s
strategic planning;

Determine how the HR service providers work with line
managers to carry out organisation’s strategic goals; and

Identify best practices aligning HRM with the agency strategic
plan and goals.
STRATEGIC HR MANAGEMENT POWERGRID

To meet additional/changing work demand
–

Training & Development
–

Campus recruitments Vs open advertisements
Specialization Vs Generalization (Multi skill) approach
Compensation Packages & Career growth
opportunities.
–
To attract and retain best manpower against competition
from IT & other Sectors.
STRATEGIC HR MANAGEMENT POWERGRID

IT based HR systems:
–

Improved & open performance assessment
system:
–

To reduce time consumed & error in processing.
To motivate employees.
Employee welfare programmes:
–
To ensure social bondage among employees and
commitment towards organisation.
STRATEGIC HR MANAGEMENT POWERGRID

Effective Feedback system:
–
To ensure changing requirement of employees &
external environment & to be proactive in
implementation and revision of HR policies.
STRATEGIC HR MANAGEMENT