Professional Documents
Culture Documents
PRESENTED BY:
CHANIMA BHATTCHARYA SHRASTA SAXENA SUNIL KUMAR
Time to strategies?
HR has long since been considered as a support function. Has that definition changed over time? Is it becoming more strategic in nature? Only Supportive ? oR Strategic !!
Second, HR facilitates the growth of engagement capital both of which have a huge impact on franchise valuation.
TODAYS SCENARIO
Today's HR professionals contribute to creating engagement capital, or building engagement over time, to improve employee effort, retention, and key business outcomes. As we balance short-term improvements with engagement drivers that sustain engagement over time, there is a greater alignment of the HR function to an organization's strategic needs
Strategy A strategy is a course of action. The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
-Formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors the company needs to achieve its strategic aims.
Basic Model of How to Align HR Strategy and Actions with Business Strategy
Internal factors : organization structure organization culture organization competencies organization internal policies organization processes, etc. External factors: market scenario competitors government policies technological advancements, etc."
STARTEGY MAP
Graphical tool that summarizes the chain of activities that contribute to the companys success, and shows employees the big picture of how their performance contributes to achieving the companys overall strategic goals.
HR SCORECARD
A process for managing employee performance and for aligning all employees with key objectives, by assigning financial and non financial goals, monitoring and assessing performance, and quickly taking corrective action.
DIGITAL DASHBOARD
Presents the manager with desktop graphs and charts, so he or she gets a picture of where the company has been and where its going. In terms of each activity in the strategy map.
Models
Control based: the way in which management attempts to monitor and control employee role performance
Control-Based Model
Management structure + HR practice
Starting point:
Marxs
High level of labour productivity & Profitability
Control-Based Model
Burawoy:
From Despotic regime To Hegemonic regime Despotic refers to coercive manager Hegemonic refers to industrial citizenship[the collective rights and duties legislatively granted to employees]
Bamberger & Meshoulam:
Process-based control : focus is on efficiency and cost containment Outcome-based control: focus is on actual results
Resource-Based Model
Based on nature of the rewardeffort exchange Selznick: work organizations each possess distinctive competence that enables them to outperform their competitors Barney: The resource-based perspective emphasizes the strategic importance of exploiting internal strengths and neutralizing internal weaknesses Its all about making competitive advantage, for that Exploitation of resource & capability should be done Four characteristics of resources and capabilities value, rarity, inimitability and non-substitutability are important in sustaining competitive advantage
Integrative Model
Bamberger and Meshoulam integrated the two models arguing none of them were sufficient enough to give a appropriate flow to the HR strategy, so they took two main dimensions: Acquisition & development: make-or-buy aspect of HR strategy. organizations can lean more towards making their workers(high investment in training) or more towards buying their workers from the external labour market. .
Locus of control: Degree to which HR strategy focuses upon monitoring the employees. Whether process-based is forged with the psychological contract or not to make it outcomebased
Commitment : focusing on the internal development of employees competencies and outcome control This typically refers to knowledge work. In such workplaces, managers must rely on employees to cope with the uncertainties inherent in the labour process and can thus only monitor and evaluate the outcomes of work Here, employees may effectively control themselves
Traditional: focusing on the external recruitment of competencies and behavioral or processbased controls prevalent in firms with a highly routinized transformation process, low-cost priority and stable competitive environment. You are here to work, not to think!
Collaborative: Involves the organization subcontracting work to external independent experts (for example consultants or contractors), giving extensive autonomy and evaluating their performance primarily in terms of the end results.
Paternalistic: offers learning opportunities and internal promotion to employees for their compliance with process-based control mechanisms
According to Journal of Management and Marketing Research, the conceptual framework for studying the relationship between the strategic human resource management practices of small and medium sized businesses and their performance as corporate partners, as industry and competitive conditions change.
Like any other organization, the sophistication of their human resource management practices can lead to operational inefficiencies that can affect their ability to meet their obligations to corporate buyers.
OPERATING EXCELLANCE
Growth Industry
SHRM APPROACH
Matured Industry
Innovative leader, aggressively adopting strategic human resource management practices to enable it meet the needs of partners in fast growing industries
Matured leader relying on the technical human resources management capabilities that have proven beneficial in meting partner needs. May be anticipating a competitive need to shift focus to serving the needs of companies in a fast moving industry and thus a need to adopt strategic human resource management practices
Flexible leader whose human resource management practices is focused on meeting the current needs of its big business partner
Laggard, reliant on technical human resource management practices. Has limited resources to be competitive in serving the needs of companies in a growing industry
Fragmented Industry
Declining Industry
Management commitment is also critical to the success of the SHRM practices of a SME.