ASSIGNMENT-3
STRATEGIC HUMAN RESOURCE
MANAGEMENT
SUBMITTED TO SUBMITTED BY
Prof. Sesha Bhattar Seshadri NAME - KARISHMA
CLASS - MBA 4TH
ROLL NO - 1811717
UNIT-1
Strategic Human Resource Management:
Definition:
The Strategic Human Resource Management is concerned with the development of HR
strategies intended to direct the employees’ efforts towards the business goals.
“Strategic human resource management is an approach to making decisions on the intentions
and plans of the organization concerning the employment relationship and the organization’s
recruitment, training, development, performance management, and the organization’s
strategies, policies, and practices.” – Armstrong
Scope of Strategic Human Resource Management (SHRM)
The range of activities and themes encompassed by SHRM is complex and goes beyond the
responsibilities of personnel or HR managers into all aspects of managing people and focuses
on ‘management decisions and behaviours used, consciously or unconsciously to control,
influence and motivate those who work for the organisation; in other words its human
resource’.
The social and economic context of SHRM, including factors in the internal (corporate)
and external environment that influence the development and implementation of HR
strategies;
The co-relation between SHRM and business performance, emphasising the
measurement of performance;
Management style and the development of new forms of organisation; and
The relationship between SHRM and the development of organisational capability,
particularly knowledge management.
Process of Strategic Human Resource Management
1. Scanning the Environment: The process begins with the scanning of the
environment, i.e. both the external and internal factors of the organization. The external
environment encompasses the political, legal, technological, economic, social and cultural
forces that have a great impact on the functioning of the business. The internal factors include
the organizational culture, hierarchy, business processes, SWOT analysis, industrial relations,
etc. that play a crucial role in performing the business operations.
The role of the HR department is to collect all the information about the immediate
competitors – their strategies, vision, mission, strengths, and weaknesses. This can be done
through the resumes being sent by the candidates working with the other rivalry firm.
Through these, HR professionals can identify the workforce, work culture, skills of the staff,
compensation levels, reasons for exit and other relevant information about the competing
firm.
2. Identify Sources of Competitive Advantage: The next step in the strategic human
resource management process is to identify the parameters of competitive advantage that
could stem from diverse sources as product quality, price, customer service, brand
positioning, delivery, etc.
The HR department can help in gaining the competitive advantage by conducting the efficient
training programmes designed to enrich the skills of the staff.
3. Identify HRM Strategies: There are major four strategies undertaken by an
organization to enrich the employees capabilities:
a) Learning as Socialization: This strategy includes the techniques as training courses,
coaching sessions, education programmes to ensure that the employees abide by the rules,
value and beliefs of an organization and are able to meet the performance targets.
b) Devolved Informal Learning: This strategy helps in making the employees aware of the
learning opportunities and the career development.
c) Engineering: This strategy focuses on creating and developing communities of practice
and social networks within and outside the organization.
d) Empowered Informal Learning: Through this strategy, the HR department focuses on
developing the learning environment such as knowledge about the new processes, designing
of new work areas and the provision of shared spaces.
4. Implementing HR Strategies: Once the strategy has been decided the next step is to
put it into the action. The HR strategy can be implemented by considering the HR policies,
plans, actions and practices.
5. Monitor and Evaluation: The final step in the strategic human resource management
process is to compare the performance of the HR strategy against the pre-established
standards.
At this stage, certain activities are performed to evaluate the outcomes of the strategic
decision: establishing the performance targets and tolerance levels, analysing the deviations,
executing the modifications.
Traditional HR V/S Strategic HR
Point of Traditional HR Strategic HR
distinction
1) Focus 1) Employee relations 1) Partnerships with
2) Role of HR 2) Transactional internal and external
change, follower customers
and respondent 2) Transformational
3) Slow, reactive change leader and
3) Initiatives fragmented initiator.
4) Time horizon 4) Short term 3) Fast proactive and
5) Control 5) Bureaucratic roles, integrated
policies procedures 4) Short, medium and
6) Tight division of long (as required)
labour, 5) Organic flexible
6) Job design
independence whatever is necessary
7) Key investments
specialization to succeed
8) Accountability
7) Capital products, 6) Broad flexible cross
9) Responsibility for
8) Cost centre training teams
HR
9) Staff specialists. 7) People knowledge
8) Investment centre
9) Line managers
UNIT-2
A)STRATEGIC STAFFING
Strategic staffing refers to a strategy of hiring smaller core numbers of permanent employees
and using temporary employees for other, more specialized position. Lack of staff in certain
job categories can lead to a decreased performance on the company level so in order to avoid
these kinds of situations HR directors and managers need to plan ahead to meet future
staffing need. It is a process which defines and addresses the staffing implications of strategic
and operational plans.
Advantages of strategic staffing
The use of strategic staffing allows companies:
- To improve staff utilization
- To address critical HR concerns in a systematized and integrated way
- To recruit, develop and place the talent required to meet future company needs
B) STRATEGIC APPRAISAL
Strategy is best understood as the art and science of developing and using the political,
economic, socio-psychological, and military powers of the state in accordance with policy
guidance to create effects that protect or advance the state’s interests in the strategic
environment. The strategic environment is the realm in which the national leadership
interacts with other states or actors and the possibilities of the future to advance the well-
being of the state. It is inclusive, consisting of the facts, context, conditions, relationships,
trends, issues, threats, opportunities, and interactions that influence the success of the state
in relation to the physical world, other states and actors, chance, and the possible futures—
all effects or other factors that potentially affect the well-being of the state and the way the
state pursues its well-being. As a self-organizing complex system , the strategic
environment is a dynamic environment that reacts to input but not necessarily in a direct
cause and effect manner. Strategy is how the state exerts purposeful influence over this
environment. Thus, strategy is a disciplined thought process that seeks to apply a degree of
rationality and linearity to an environment that may or may not be either, so that effective
planning can be accomplished. Strategy does this by identifying strategic ends , ways and
means that when accomplished lead to favourable effects in regard to the state’s well-
being. It explains to planners what must be accomplished and establishes the boundaries of
how it is to be accomplished and the resources to be made available. However, to
formulate a proper strategy, the strategist must first determine the state’s interests and the
factors in the environment that potentially affect those interests. Only from such a strategic
appraisal can the strategist derive the key strategic factors and determine the right
calculation of ends, ways, and means.
C)STRATEGIC EXECUTIVE APPRAISAL
1. Management by Objectives (MBO)
Management by objectives is the appraisal method where managers and employees
together identify, plan, organize, and communicate goals. After setting clear goals,
managers and subordinates periodically discuss the progress made to control and debate
on the feasibility.
2. 360-Degree Feedback
Once-in-a-year performance appraisals are lackadaisical and don’t work. Workers need on
going communication with team leaders and managers. A continuous process, like 360-
degree feedback, can help employees stay motivated. This is one of the most widely used
appraisal methods.
3. Assessment Centre Method
The assessment centre method tests employees in a social-related situation. This concept
was introduced way back in 1930 by the German Army but it has been polished and
tailored to fit today’s environment. Employees are asked to take part in situation exercises
like in-basket exercises, work groups, simulations, and role-playing exercises that ensure
success in a role.
4. Assessment Centre Method
The assessment centre method tests employees in a social-related situation. This concept
was introduced way back in 1930 by the German Army but it has been polished and
tailored to fit today’s environment. Employees are asked to take part in situation exercises
like in-basket exercises, work groups, simulations, and role-playing exercises that ensure
success in a role.
5. Psychological Appraisals
Psychological appraisals come in handy to determine the hidden potential of employees.
This method focuses on analyzing an employee’s future performance rather than their past
work.
UNIT- 3
Behavioural issues in strategic implementation
It is vital to bear in mind that organizational change is not an intellectual process concerned
with the design of ever-more-complex and elegant organization structures. It is to do with the
human side of enterprise and is essentially about changing people’s attitudes, feelings and –
above all else – their behaviour. The behavioural of the employees affect the success of the
organization. Strategic implementation requires support, discipline, motivation and hard work
from all manager and employees.
1. Influence Tactics: The organizational leaders have to successfully implement the
strategies and achieve the objectives. Therefore the leader has to change the behaviour
of superiors, peers or subordinates. For this they must develop and communicate the
vision of the future and motivate organizational members to move into that direction.
2. Power: it is the potential ability to influence the behaviour of others. Leaders often
use their power to influence others and implement strategy. Formal authority that
comes through leaders position in the organization (He cannot use the power to
influence customers and government officials) the leaders have to exercise something
more than that of the formal authority (Expertise, charisma, reward power,
information power, legitimate power, coercive power).
3. Empowerment as a way of Influencing Behaviour: The top executives have to
empower lower level employees. Training, self-managed work groups eliminating
whole levels of management in organization and aggressive use of automation are
some of the ways to empower people at various places.
4. Political Implications of Power: Organization politics ius defined as those set of
activities engaged in by people in order to acquire, enhance and employ power and
other resources to achieve preferred outcomes in organizational setting characterized
by uncertainties. Organization must try to manage political behaviour while
implementing strategies. They should;
5. Leadership Style and Culture Change: Culture is the set of values, beliefs,
behaviours that help its members understand what the organization stands for, how it
does things and what it considers important. Firm culture must be appropriate and
support their firm. The culture should have some value in it. To change the corporate
culture involves persuading people to abandon many of their existing beliefs and
values, and the behaviours that stem from them, and to adopt new ones. The first
difficulty that arises in practice is to identify the principal characteristics of the
existing culture. The process of understanding and gaining insight into the existing
culture can be aided by using one of the standard and properly validated inventories or
questionnaires that a number of consultants have developed to measure characteristics
of corporate culture.
6. Values and Culture: Value is something that has worth and importance to an
individual. People should have shared values. This value keeps the every once from
the top management down to factory persons on the factory floor pulling in the same
direction.
7. Ethics and Strategy: Ethics are contemporary standards and a principle or conducts
that govern the action and behaviour of individuals within the organization. In order
that the business systems function successfully the organization has to avoid certain
unethical practices and the organization has to bounds by legal laws and government
rules and regulations.
8. Managing Resistance to Change: To change is almost always unavoidable, but its
strength can be minimized by careful advance. Top management tends to see change
in its strategic context. Rank-and-file employees are most likely to be aware of its
impact on important aspects of their working lives. Some resistance planning, which
involves thinking about such issues as: Who will be affected by the proposed changes,
both directly and indirectly? From their point of view, what aspects of their working
lives will be affected? Who should communicate information about change, when and
by what means? What management style is to be used?
9. Managing Conflict: Conflict is a process in which an effort is purposefully made by
one person or unit to block another that results in frustrating the attainment of the
others goals or the furthering of his interests. The organization has to resolve the
conflicts.
UNIT-4
Strategic Staffing
Strategic staffing is a kind of staffing strategy wherein an organization creates a sustainable
plan to address any staffing concerns.
When you do strategic staffing, you try to look at a company’s staffing patterns in the past
and from there determine the right number of employees that you need to hire — both
permanent and temporary.
Steps in Strategic Staffing
1. Identification. Identify the positions needed. Know what positions are crucial and
temporary. Decide whether a position should be added, removed or combined. Also, you
have to take into consideration the company’s financial capabilities and work around it.
2. Recruiting. After identifying the positions needed, you start to scout for the right people
who will fill in those positions. Again, the company’s budget would play a role in the
recruitment process. Depending on the money available, you can target qualified prospects or
go for underdeveloped but potential talents.
3. Development. Once you’ve made your choice, you need to start training them. Whether
they are experienced or novices, they have to undergo training to align themselves with the
mission and vision of the company.
4. Retention. After going through the process of looking for them, hiring them and training
them, you have to be up to the challenge of retaining them. You have to take care of the
talents that you have developed. It would also be a waste of resources if there will be a high
staff turnover.
There are four primary approaches that multinational companies:
1. Ethnocentric staffing: The ethnocentric staffing approach heavily focuses on the norms
and practices of the parent company where upper management positions are typically held by
corporate personnel from the home country. These managers are considered parent company
nationals, or PCNs. Japanese and Korean firms follow this approach quite often.
2. Polycentric staffing: The polycentric staffing approach heavily focuses on the norms and
practices of the host company where upper management positions are typically held by
corporate personnel from the local country. These managers are considered host country
nationals, or HCNs. European firms often follow this approach.
3. Geocentric staffing: The geocentric staffing approach does not focus on one nationality
over the other. Instead, upper level management positions are held by the most qualified
employees selected form a global pool of candidates. These managers are considered third
country nationals, or TCNs The most qualified candidates are selected, but no single
nationality is stressed.
4. Egocentric staffing: The egocentric staffing approach, a more recently identified
approach, is where upper level management positions are held by employees from a
particular region (North American region, European Region, Asian region, etc.). This
approach is similar to the polycentric approach, but it reflects a specific region rather than a
specific country. For instance, a U.S. company in Mexico may consider hiring an employee
from Canada to fill a management role.
International recruitment and selection process
Whenever a position opens, hiring teams should follow this process:
1. Decide which staffing approach is most suitable for this particular case: Use this
policy to determine whether the regiocentric, ethnocentric or polycentric approach suits best.
Discuss the budget with finance to make sure you’re able to apply the chosen approach and
whether another one could work equally well with lower costs. If there’s no particular reason
to use any of them, then the [geocentric approach] should prevail.
2. Determine the recruitment methods that work for this approach: For example, if
you decided on the polycentric approach, then consider local job boards and locally-based
recruiters in the host country.
3. Allocate your budget: To make sure you can coordinate recruitment activities, look
into your budget. For example, if you’ve chosen the ethnocentric approach, you’ll need to
factor in relocation costs for your new hire. Also, you may decide you need to meet
candidates from the host country in-person so pay attention to travel expenses. Work with to
determine the available resources.
4. Evaluate candidates: When it comes to resume and phone screening, we evaluate all
candidates the same way. You could also use video interviews for remote candidates. Each
role will demand a different skillset, but to make sure our employees can work well together,
look for people who:
Are self-motivated and can work independently .
Can communicate well even through cultural and language barriers.
Have a global mind set.
Are tech-savvy.
Also, depending on the approach you’ll use, make sure to discuss if a
candidate is legally permitted to work in the country where the open position is. If it’s
agreed upon, discuss immigration procedures.
5. Close the hire and discuss paperwork: Once a candidate accepts a job offer, ask HR
how to proceed with any legal procedures regarding visas, immigration policies or taxes. Be
in close collaboration with the new hire until everything is resolved
