INTRODUCTION TO SHRM

It is a fairly new field, which has emerged out of the

parent discipline of human resource management. Much
of the early or so called traditional HRM literature treated
the notion of strategy superficially, rather as a purely
operational matter, the results of which cascade down
throughout the organization. There was a kind of unsaid
division of territory between people-centered values of
HR and harder business values where corporate strategies
really belonged. HR practitioners felt uncomfortable in
the war cabinet like atmosphere where corporate
strategies were formulated.
 DEFINING SHRM
Strategic human resource management can be defined
as the linking of human resources with strategic goals
and objectives in order to improve business
performance and develop organizational culture that
foster innovation, flexibility and competitive advantage.

In an organisation, SHRM means accepting and involving

the HR function as a strategic partner in the formulation
and implementation of the company's strategies
through HR activities such as recruiting, selecting,
training and rewarding personnel.
 CREATING A STRATEGY-
ORIENTED HR SYSTEM
The HR The HR System Employee
Function Behaviors
High Performance
HR Work System Employee
professionals (HPWS) competencies,
with strategic consisting of values,
management strategically motivation, and
competencies aligned HR behaviors
policies, required
practices and by the company’s
activities strategic plan
 KEY FEATURES OF STRATEGIC
HUMAN RESOURCE MANAGEMENT
 There isan explicit linkage between HR policy and
practices and overall organizational strategic aims and
the organizational environment

 There issome organizing schema linking individual HR

interventions so that they are mutually supportive

 Muchof the responsibility for the management of

human resources is devolved down the line
 OBJECTIVES OF SHRM
 Assess how well human resources management is linked to
agency mission accomplishment

 Explore the role played by the HR staff in agency strategic

planning

 Determine how the HR service providers work with line

managers to carry out agency strategic goals

 Identify best practices aligning HRM with the agency strategic

plan and goals
 TRENDS IN STRATEGIC HUMAN
RESOURCE MANAGEMENT
 Internationalization of market integration
 Increased competition, which may not be local or even
national through free market ideology
 Rapid technological change
 New concepts of line and general management
 Constantly changing ownership and resultant corporate
climates
 Cross-cultural issues
 The economic gravity shifting from 'developed' to
'developing' countries
 SHRM MODEL INTEGRATING STRATEGY & HR
Stakeholder
Interests

-Shareholders HRM Policy

-Employee groups Choices
-Govt. community HR Long-Term
-Employee Outcomes Consequences
influence
-Human Commitment -Individual
Situational Factors Well-being
resource Competence
flow Congruence -Org.
-Workforce Effectiveness
-Reward Cost
characteristics -Societal
systems Effectiveness
-B’s strategy well-being
-Work
-Management
systems
philosophy
-Labour market
-Unions
-Technology
-Laws &
societal values
 SHRM: as strategic business
contributor
 Enhancing Organizational Performance
 Involvement in strategic planning
 Decision making on mergers, acquisitions and downsizing
 Redesigning org and work processes
 Ensuring financial accountability for HR results

 Expanding Human Capital

 Attracting and retaining human resources
 Developing human resource capabilities
 Identifying and rewarding performance
SHRM: as strategic business contributor
 Delivering Cost-Effective Compliance System
 Ensuring legal compliance
 Demonstrating administrative efficiency
SHRM: aligning HR strategy & actions
with business strategy
Formulate Business Strategy
“What are the strategic goals of the business?”

Identify workforce requirements

“What employee competencies and behaviors must HR deliver
to enable the business to reach its goal?”

Formulate HR Strategic Policies and Activities

“Which HR strategies and practices will enable HR to produce
those employee competencies and behaviors?”

Develop Detailed HR Scorecard Measures

“How can HR measure whether it is executing well for the
business, in terms of producing the required workforce
competencies and behaviors?”
 PRIMARY ROLES OF SENIOR HR
EXECUTIVES
 STRATEGIC PARTNER – To align HR & business strategy

 CHANGE AGENT – To manage transformation & change

 ADMINISTRATIVE EXPERT – To re-engineer organizational

processes

 EMPLOYEE CHAMPION – To manage employee contribution

& commitment
ALIGNMENT OF ORGANIZATIONAL AND HR
STRATEGIES
Organizational Strategic Focus HR Strategy HR Activities
Strategy
•Differentiation • Growth • Shorter HR • External
• Innovation planning horizon Staffing
• Hiring the HR • Training &
capabilities Development for
needed broad
• Broader, more competencies
flexible jobs & •Job Related
employees Programs
•Career Related
Programs
BARRIERS FOR ALIGNMENT
 Shorter HR planning horizon
 Lack of technical knowledge
 Lack of strategic perspective
 Difficulty in quantifying the cost and benefits of HR
 Resistance of employees
 Limited training & development
 CONCLUSION
Today’s business environment is highly competitive and
challenging. Gone are the days of HR being a support
function. Organizations, in the past, only looked at the
sales, marketing and R&D functions to foster the growth of
the company.
Business decisions today are often based on an integrated
view of functions across HR, strategy, marketing, finance
and operations. This integration demands deeper and
faster peer interaction. All these are increasingly making
demands on the C-suite leaders to embrace and equip
themselves for the next leadership levels across the board.
THANK YOU
