Jeffrey A. Mello 4e - Chapter 4 - The Evolving or Strategic Role of Human Resource Management

Strategic Human Resource ManagementStrategic Human Resource Management • Involves development of consistent, aligned collection of practices, programs, & policies to facilitate achievem

THE EVOLVING/ STRATEGIC ROLE OF HUMAN

RESOURCE MANAGEMENT

Strategic Human Resource Management

Strategic Human Resource Management

• Involves development of consistent, aligned

collection of practices, programs, & policies to facilitate achievement of strategic objectives

• Requires abandoning mindset & practices of

“personnel management” & focusing on strategic issues rather than operational issues

• Integration of all HR programs within larger

framework, facilitating mission & objectives

• Writing down strategy facilitates involvement &

buy-in of senior executives & other employees

• Involves development of consistent, aligned

collection of practices, programs, & policies to facilitate achievement of strategic objectives

• Requires abandoning mindset & practices of

“personnel management” & focusing on strategic issues rather than operational issues

• Integration of all HR programs within larger

framework, facilitating mission & objectives

• Writing down strategy facilitates involvement &

buy-in of senior executives & other employees

HR Roles in Knowledge-Based Economy

HR Roles in Knowledge-Based Economy

• Human capital steward

– Creates an environment & culture in which employees

voluntarily contribute skills, ideas, & energy

– Human capital is not “owned” by organization

• Knowledge facilitator

– Procures necessary employee knowledge & skill sets that allow information to be acquired, developed, & disseminated – Provides a competitive advantage

– Must be part of strategically designed employee

development plan

• Human capital steward

– Creates an environment & culture in which employees

voluntarily contribute skills, ideas, & energy

– Human capital is not “owned” by organization

• Knowledge facilitator

– Procures necessary employee knowledge & skill sets that

allow information to be acquired, developed, & disseminated

– Provides a competitive advantage

– Must be part of strategically designed employee

development plan

HR Roles in Knowledge-Based Economy

HR Roles in Knowledge-Based Economy

• Relationship builder

– Develops structure, work practices, & culture that

allow individuals to work together

– Develops networks that focus on strategic

objectives

• Rapid deployment specialist

– Creates fluid & adaptable structure & systems

– Global, knowledge-based economy mandates

flexibility & culture that embraces change

• Relationship builder

– Develops structure, work practices, & culture that

allow individuals to work together

– Develops networks that focus on strategic

objectives

• Rapid deployment specialist

– Creates fluid & adaptable structure & systems

– Global, knowledge-based economy mandates

flexibility & culture that embraces change

SHRM Critical Competencies

SHRM Critical Competencies

• HR’s success as true strategic business partner

dependent on five specific competencies:

– Strategic contribution - development of strategy

– Business knowledge - understanding nuts & bolts of

organization

– Personal credibility - measurable value demonstrated in programs & policies

– HR delivery - serving internal customers through effective & efficient programs

– HR technology - using technology to improve organization’s management of people

• HR’s success as true strategic business partner

dependent on five specific competencies:

– Strategic contribution - development of strategy

– Business knowledge - understanding nuts & bolts of

organization

– Personal credibility - measurable value demonstrated in

programs & policies

– HR delivery - serving internal customers through effective &

efficient programs

– HR technology - using technology to improve organization’s

management of people

Barriers to Strategic HR Barriers to Strategic HR

• Strategic contribution

• Business knowledge

• Personal credibility

• HR delivery

• HR technology

• Strategic contribution

• Business knowledge

• Personal credibility

• HR delivery

• HR technology

Reading 4.1 Distinctive Human Resources Are Firms’ Core Competencies

Reading 4.1 Distinctive Human Resources Are Firms’ Core Competencies

No one set of best practices, and there should be a substantial fit between HR practices and business strategies

People management practices are the drivers to create

distinctive competencies and business strategies

Pairs of firms in various divergent industries are examined, with each pair employing different HR strategies based

upon different corporate strategies Despite competing in the same industry using different approaches, each

organization was successful because its HR practices were well suited to its overall strategy

No one set of best practices, and there should be a substantial fit between HR practices and business strategies

People management practices are the drivers to create

distinctive competencies and business strategies

Pairs of firms in various divergent industries are examined, with each pair employing different HR strategies based

upon different corporate strategies Despite competing in the same industry using different approaches, each

organization was successful because its HR practices were well suited to its overall strategy

Reading 4.1

Distinctive Human Resources Are Firms’ Core Competencies

Reading 4.1

Distinctive Human Resources Are Firms’ Core Competencies

• Professional Sports - San Francisco 49ers and Oakland Raiders

• Retailing - Sears and Nordstrom

• Professional Services - Boston Consulting Group (BCG) and McKinsey & Company

• Business Schools - Harvard and Wharton (University of Pennsylvania)

• Financial Services - Chubb and AIG

• Shipping - Federal Express (Fed Ex) and United Parcel Service (UPS)

• Food and Beverages - Coke and Pepsi

• Professional Sports - San Francisco 49ers and Oakland

Raiders

• Retailing - Sears and Nordstrom

• Professional Services - Boston Consulting Group (BCG)

and McKinsey & Company

• Business Schools - Harvard and Wharton (University of

Pennsylvania)

• Financial Services - Chubb and AIG

• Shipping - Federal Express (Fed Ex) and United Parcel

Service (UPS)

• Food and Beverages - Coke and Pepsi

Reading 4.1 Distinctive Human Resources Are Firms’ Core

Competencies

Reading 4.1 Distinctive Human Resources Are Firms’ Core

Competencies

• “Flexibility” dimension associated with

“prospectors”

• “Established markets” category linked to

classifications like “defenders”

• Employment practices are difficult to

change & transfer

• Core competencies should drive business

strategy & not vice versa

• “Flexibility” dimension associated with

“prospectors”

• “Established markets” category linked to

classifications like “defenders”

• Employment practices are difficult to

change & transfer

• Core competencies should drive business

strategy & not vice versa

Reading 4.2

Employee Engagement and Commitment

Reading 4.2

Employee Engagement and Commitment

• Critical competitive advantage can be gained from having engaged employees Engagement and enhanced

commitment result in both higher levels of productivity and lower levels of employee turnover

• Engagement is defined differently by different

organizations but the common themes center around

employee satisfaction with their work, pride in the

employer, employee belief in what they do is important and employee sense of being appreciated by the employer

• Critical competitive advantage can be gained from having

engaged employees Engagement and enhanced

commitment result in both higher levels of productivity and lower levels of employee turnover

• Engagement is defined differently by different

organizations but the common themes center around

employee satisfaction with their work, pride in the

employer, employee belief in what they do is important and employee sense of being appreciated by the employer

Reading 4.2

Employee Engagement and Commitment

Reading 4.2

Employee Engagement and Commitment Employers usually attempt to measure engagement using the following criteria:

• Pride in employer

• Satisfaction with employer

• Job satisfaction

• Opportunity to perform well at challenging work

• Recognition and positive feedback for one’s contributions

• Personal support from one’s supervisor

• Effort above and beyond the minimum

• Understanding the link between one’s job and the organization’s mission

• Prospects for future growth with one’s employer

• Intention to stay with one’s employer

Employers usually attempt to measure engagement using the following criteria:

• Pride in employer

• Satisfaction with employer

• Job satisfaction

• Opportunity to perform well at challenging work

• Recognition and positive feedback for one’s contributions

• Personal support from one’s supervisor

• Effort above and beyond the minimum

• Understanding the link between one’s job and the organization’s mission

• Prospects for future growth with one’s employer

• Intention to stay with one’s employer

Reading 4.2

Employee Engagement and Commitment

Reading 4.2

Employee Engagement and Commitment

Engagement can be enhanced by various HR

practices related to

– Job and task design

– Recruiting

– Selection

– Training and Development

– Compensation

– Performance Management

Engagement can be enhanced by various HR

practices related to

– Job and task design

– Recruiting

– Selection

– Training and Development

– Compensation

– Performance Management