SHRM- MODULE III

ORGANIZATIONAL HR STRATEGIES
Strategy is defined as the direction and scope of an organisation over the longer term ideally,
which matches its resources to its changing environment, and in particular, to its markets,
customers and clients to meet stakeholder expectations
(Johnson and Scholes)
Strategic HRM addresses organisation wide process issues including (1)organizational
development, (2)culture management, (3)knowledge management, and (4)developing a
climate of high commitment and trust.
I. Organizational Development

Strategies for organizational development are concerned with the planning and
implementation of programmes designed to enhance the effectiveness with which an
organisation functions. This may involve strategies
-for developing organizational structure
-for improving organizational processes
-for organizational transformation
Organizational development strategies are concerned with process as well as structure or
systems. They address how things are done as well as what is done.
Process refers to the ways in which people act and interact. It is about the roles they play on a
continuing basis to deal with events and with situations involving other people and to adapt to
changing circumstances.
Strategies For organizational transformation-
- Organizational transformation strategies are concerned with the development of
programmes that will ensure that the company responds strategically to new
demands and continue to function effectively in the dynamic environment in which it
operates.
- Strategic plans for organizational transformation may involve radical changes to the
structure, culture and processes of the organization- the way it looks at the world.
- Four strategies for transformational change have been identified by Beckard: Page-139
1. A change in what drives the organization-E.g. Change from being production driven
to being market driven
2. A fundamental change in the relationship between or among organizational parts-
E.g. decentralization
3. A major change in the ways of doing work-E.g. computerization
4. A basic, cultural change in norms, values or research systems-E.g. customer focused
culture
- Steps required to transform an organisation(Kotter, 1995): Page 141
1. Establishing a sense of urgency
-market and competitive realities, identifying and discussing crises, potential crises,
or major opportunities
2. Forming a powerful guiding coalition
-assembling a group with enough power to lead the change effort
3. Creating a vision
-create a vision and develop strategies
4. Communicating the vision
5. Empowering others to act on the vision
- Encouraging risk-taking and non-traditional ideas, activities and actions
6. Planning for and creating short-term wins
7. consolidating improvements and producing still more change
- change systems, structures and policies, promoting and developing employees,
reinvigorating new projects
8. Institutionalizing new approaches

II. Strategies for culture change. Page-142

Organizational culture is defined as
The commonly held beliefs, attitudes and values that exist in an organization
- Strategies for managing culture change centre on the achievement of longer term
objectives either for changing the culture in specified ways- moving from a present
state to a future desired state in order to improve organizational effectiveness or
- For preserving and even reinforcing some or as much as possible of the existing
culture of an organization.
- Steps (Approaches to managing culture) Page144-146
1. Analysis of existing culture
-Questionnaire, surveys, discussions
2. Cultural change programmes
- Performance, commitment, quality, team work
3. Culture support and reinforcement
- Aim to preserve what is good and functional about the present culture

III. Strategies for knowledge management. Page-147

Knowledge Management means:
Any process or practice of creating, acquiring, sharing and using knowledge,
wherever it resides, to enhance learning and performance in organizations'
- Aim to capture an organizations collective expertise and distribute it to wherever it can
achieve the biggest payoff
- This is in accordance with the resource based view of the firm which suggests that the
source of competitive advantage lies within the firm, not in how it positions itself in
the market.
- It focuses on the development of firm-specific knowledge and skills that are the result of
organizational learning process.
- The purpose of knowledge management is to transfer knowledge from those who have
it to those who need it in order to improve organizational effectiveness.
- Knowledge management is concerned with both stock and flows of knowledge, stocks
include expertise and encoded knowledge in computer systems. Flows represent the ways
in which knowledge is transferred from people to people or from people to knowledge
database.
Approaches to the development of knowledge management. Page 149
1. The codification strategy-
Knowledge is carefully codified and stored in databases where it can be accessed and
used easily by anyone in the organization. Knowledge is extracted from the person
who developed it, made independent of that person and re-used for various purposes.
2. The personalization strategy-
Knowledge is closely tied to the person who developed it and is shared mainly
through direct person-to-person contacts.
These are the two approaches.

III. Commitment Strategy. Page-152

-The feeling of commitment refers to feelings of attachment and loyalty to the organization and
willingness to contribute to organizational objectives.
-a commitment strategy will be concerned with the development of communication , education
and training programmes, initiatives to increase involvement and ownership and introduction of
performance and reward management processes.
-tactics for raising commitment
1. Encouraging employee participation
2. Provide employees with greater autonomy
3. Indicating that the efforts of employees are respected and valued
4. Training employees and making other investments.

IV. Strategies for developing a climate of trust

Refer Page-155


ORGANIZATIONAL HR STRATEGIES IN ACTION. Page-156

Leadership
-

Apart from structured training for managers, develop policies, procedures and
processes in order to ensure that they recruit properly, can manage diversity and equality
and take active steps to eliminate harassment of people.
Culture management
- The management of culture was clearly important in installing the centrality of service
quality within minds of both management and staff.
- Removal of blame culture has been essential in encouraging employees to apply their
creativity in problem solving, together with development of a coaching rather than
controlling role on part of managers

Reward
- Developments to the reward system were often perceived as having the capacity to make
a rapid and significant impact.

Developing performing culture
Learning Environment
Pay Benefits



THE CHARACTERISTICS OF HR STRATEGY Page-182
The development and continuous improvement of the human resources strategy for the
society
The need to attract, maintain and retain the right people
Clearly articulated values, clear objectives, clear strategy and clear understanding of
resource allocation required.
The focus is on organizational excellence
Define what the strategy means in terms of its implications for the organization as well as
its employees

THE OVERALL CONTENT OF HR STRATEGY. Page-189
No standard model or framework for HR strategies
Each organization tackled strategic HRM in its own way, although while the detail might
vary, certain themes stand out, particularly those associated with culture change
Convergence on the objectives of strategies- to modify values, behaviours and attitudes
INTERGRATING THE BUSINESS AND HR STRATEGIES.
Refer - Page-197