Topic 25 : Strategic HRM

By Zhu Wenzhong

Copyright 2002 by Harcourt, Inc. All rights reserved.

LEARNING GOALS

Define strategic HRM. Explain the difference between the soft and hard side of HRM Explain the implications of a strategic approach to HRM State the advantages and disadvantages of strategic HRM State the definition of a flexible workforce and suggest its advantages.

Copyright 2002 by Harcourt, Inc. All rights reserved.

Definition of strategic HRM

Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organization on the future direction it wants to take. It is concerned with longer-term people issues and macroconcerns about structure, quality, culture, values, commitment and matching resources to future need. Strategic HRM refers to the management of human resources as an important asset which has strategic value and role for the business. Strategic HRM should not only focus on both the soft side of HRM and the hard side of HRM, but especially the hard side.
Copyright 2002 by Harcourt, Inc. All rights reserved.

Soft side and hard side of HRM

Soft side: Motivation Culture building Support for employees Employee and individual relations Hard side: Analyzing current needs for employees Predicating future demand Predicating future supply Predicating labor turnover

Copyright 2002 by Harcourt, Inc. All rights reserved.

Soft side and hard side of HRM Mainly concerned with the
Soft side of HRM

way in which people are managed, such as how to

motivate workers, how to develop an organizational culture, how to support or train employees etc.

Copyright 2002 by Harcourt, Inc. All rights reserved.

Soft side and hard side of HRM

Soft side of HRM Concerned about qualifying the number and types of employees that a business need,deciding whether they are available and planning how to get them through predicating the demand and supply of workforce for the future.

Hard side of HRM

Copyright 2002 by Harcourt, Inc. All rights reserved.

The implications of strategic HRM

The implications: Integration into overall corporate strategic planning Developing an organizational culture Motivating, training and support Coordination with other functions Developing a flexible workforce
PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.

Advantages and disadvantages of Strategic HRM

Advantages:

Help gain a competitive edge Help solve HRM problems Make the efficient use of employees and reduce costs Help anticipate and plan for changes Benefit long term

Disadvantages: Difficulty in predicating the people behavior Problems with predicating external events affecting HR planning Needing constantly monitoring Leading to industrial relation problems

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce

Definition: A workforce that can respond quickly in quantity and type to changes in demand a business may face.

PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce

The organization of a flexible

workforce
Periphery Workers Core workers

PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce Full-time employees who

Core workers

have specific skills and job security

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce

Part-time or temporary
Core workers

workers who available whenever needed

Periphery workers

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce

Examples of flexible workforce practices: Part-time Temporary Bank time Job sharing

PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.

The flexible workforce

Major advantages of a flexible workforce: Employee benefiting from flexible working hours More employee opportunities of training and being multi-skilled Reducing business costs and increasing productivity Reacting quickly to changes in the workforce
PhotoDisc

Copyright 2002 by Harcourt, Inc. All rights reserved.