StrategicHumanResourceManagement1ObjectivesCompareandcontrastthestrategicviewofhumanresourcemanagementandthetraditionalviewofhumanresourcemanagement.Explaintheroleofstrategichumanresourcemanagementinthestrategicmanagementprocess.Givenaparticularstrategy,recommendthefunctionalhumanresourcepracticesthatneedtobechosen.DescribetheessentialelementsofSHRMExplainhowanorganization'sstrategicplanisintegratedwiththemajorhumanresourcemanagementfunctions.2HRMRoleChangeTheHRfunctionhashistoricallybeenreactiveandsubservienttotheotherbusinessfunctions.RolehaschangedrecentlyduetoenvironmentalchangeanduncertaintyNeedtomaintainaneffectivealignmentwiththeenvironmentwhilemanaginginternalinterdependencies.3HRMRoleChangeIncreasingly,competitivenessisviewedasbeingdependentonhumancapitalandthushumanresources.Competitiveadvantageincompaniesisitsworkers--itiswhatoftendistinguishescompanieswithsimilartechnology.HRMhascometobeseenasdirectlyrelatedtotheabilityofthefirmtocopewithorganizationalandenvironmentcontingencies.Recently,therehasbeenareorientationtoanintegrative,proactive,andstrategicwayoflookingatanorganization'semployees.4HRMRoleChangeHistorically,topmanagementandsubordinatelinemanagersdelegatedpersonnelmatterstothepersonneldepartment.Primaryfunctionsincluded:Humanresourceplanning;RecruitingstaffJobanalysisperformancereviewsystemsWage,salary,andbenefitsadministrationEmployeetrainingPersonnelrecordkeeping5CharacteristicsofPastApproachHR/Personnelfunctionwasphysicallyandpsychologyseparatedfromtherealworkoftheorganization.Personneldepts.grewinarelativelyuncoordinated,piecemealfashion.HR/Personnellackedanintegrative,proactive,and,aboveall,strategicorientation.6Figure2.1TraditionalandStrategicViewsofHRM

(a)Personnel-TheTraditionalView7CharacteristicsofCurrentApproach1)ThesystematicintegrationofseparateHRMfunctions2)HumanresourcesarenowviewedfromageneralmanagementperspectiveratherfromtheperspectiveofafunctionalareaandmanagementnowsharesresponsibilityforHR.3)TheinclusionofHRconsiderationsindecisionsaffectingcorporatestrategiesandstructures.4)StrategicmanagementandstrategichumanresourcemanagementintegratetheseparateHRMfunctions.8Figure2.1TraditionalandStrategicViewsofHRM

(b)HRM--TheStrategicView9Table2.1TheoreticalPerspectivesonSHRM10CompetitiveAdvantageThroughHumanResourcesBasicthesis:EffectiveutilizationofHRcanassistorganizationsinachievingcompetitiveadvantage.Competitiveadvantage:a.Referstotheabilityofanorganizationtoformulatestrategiestoexploitprofitableopportunities(i.e.,maximizingitsreturnoninvestment).b.Perceivedcustomervaluecancreatecompetitiveadvantage.11CompetitiveAdvantageThroughHumanResourcesC.Offeringaproductorservicethatisuniquecancreatecompetitiveadvantages.4sources:1.Financialoreconomiccapitalcapability.2.Physicalcapitalcapability.3.Humancapitalcapability:Compositionofworkforce4.Organizationalcapability:Thefirm’sabilitytomanagepeopleD.Keyissuefororganizationsistoachievealignmentamongtheirvariousfunctionsandbeflexibleinrespondingtotheirenvironment.12StrategicHRMHRMasacompetitiveadvantageinvolvesstrategichumanresourcemanagement.1)RepresentsanefforttolinkHRMactivitiestoafirm'sbusinessstrategy.2)BasedonagrowingrecognitionforHRmanagerstoassumeabroaderroleintheoverallorganizationalstrategy.3)RecognitionthattheHRfunctionshouldbe"planned,organized,andevaluatedonthebasisofitscontributiontothebusiness."4)SHRMisbasedontherecognitionthatHRMactivitiesareorganizationalinscope.13StrategicHRM5)RecognitionthatHRMissuesneedtobeconsideredintheformulationandtheimplementationoforganizationalstrategy.6)RecognitionthatHRMpracticewillinfluencetheorganization'sperformance.7)TherecognitionofHRattheexecutiveorstrategiclevelinadditiontothefirmandoperationallevels.9)Emphasizeslonger-termplanningthroughtheexaminationofasetofenvironmental,publicpolicy,industrystructureandorganizationalframeworks.14IntegratingHRintoStrategicPlanningTheStrategicPlanningProcess:UluruEnergyMission,Goals,andValuesStatementsEnvironmentalThreatsandOpportunitiesOrganizationalStrengthsandWeaknessesGoalsandObjectivesFormulationofStrategiesHowToStrategicallyIntegrateHRM:SomeIdeasandExamples15EssentialElementsofSHRM1.InternallytransformingHRstaffandstructure2.Enhancingadministrativeefficiency3.IntegratingHRintothestrategicplanningprocess4.LinkingHRpracticestobusinessstrategyandoneanother.5.Developingapartnershipwithlinemanagement6.Focusingonthebottom-lineimpactofHRandmeasuringthatimpact.16DevelopingPartnershipLearnaboutthefirm’’sbusinessRespondtoandbeawareofthefirm’’sneedsanddirectionShiftawayfromtraditionalHRMfunctionsMovetowardsupportive,collaborativerelationshipswithlinemanagersDemonstratehowHRiscriticaltobusinesssuccess17MeasuringHRMCustomerReactionsHRImpactDollarValueofHRProgramsBenchmarkingHRPractices18Table2.7SixmeasuresofHRServiceDelivery19ReviewWhyisManagingHumanResourcesSoImporta