SHRM

Strategic HRM
PGDM
Ref: SHRM Charles Greer
What is strategy?
What
is strategy?
Is it a plan?
Does it refer to how we will obtain the ends we
seek? Is it a position taken?

Just as military forces might take the high ground
prior to engaging the enemy,
might a business take the position of low-cost
provider?
does strategy refer to perspective, to the view one
takes of matters, and to the purposes, directions,
decisions and actions stemming from this view?
Does strategy refer to a pattern in our decisions and
actions?
does repeatedly copying a competitors new product
offerings signal a "me too" strategy?
Strategy is
Strategy is all these

it is perspective, position, plan, and pattern.
Strategy is the bridge between policy or high-order goals on
the one hand and tactics or concrete actions on the other.
Strategy and tactics together straddle the gap between ends
and means.
strategy is a term that refers to a complex web of thoughts,
ideas, insights, experiences, goals, expertise, memories,
perceptions, and expectations that provides general guidance
for specific actions in pursuit of particular ends.
Strategy is at once the course we chart, the journey we
imagine and, at the same time, it is the course we steer, the
trip we actually make. Even when we are embarking on a
voyage of discovery, with no particular destination in mind, the
voyage has a purpose, an outcome, an end to be kept in
view.
Meaning
Strategy
is a term that comes from the

Greek strategia, meaning "generalship."
In the military, strategy often refers to
maneuvering troops into position before
the enemy is actually engaged
definitions in use
Some
of the definitions in use include the

following:
Strategy is that which top management does that is
of great importance to the organization.

Strategy refers to basic directional decisions, that is,
to purposes and missions.
Strategy consists of the important actions necessary
to realize these directions.
Strategy answers the question: What should the
organization be doing?
Strategy answers the question: What are the ends
we seek and how should we achieve them?
What is strategic
management?
A continuous,
iterative process aimed at

keeping an organization as a whole
appropriately matched to its environment
(Samuel C. Certo and J. Paul Peter, Strategic Management)
Keeping
the business in tune with

management and marketing forces both
outside and inside the firm
Competitive strategy
Competitive
strategy leads to competitive
advantage
Generates supernormal ROI
Offers services of value
Uses cost effective technology
Avoids erosion of competitive advantage by
exploiting and developing a technological base

Stages in Strategic management

Strategic
analysis
Environmental analysis
Establish organizational direction
Strategy
formulation
Strategy implementation
Strategic control
Strategy & HRM ?

Physical
NEED FOR STRATEGIC HRM
assets are viewed as investments
Can
superior technology
Superior facility
Superior product
Bring about and more importantly sustain competitive

advantage?
Physical
facilities can be duplicated, cloned or

reverse engineered and they no longer provide
competitive advantage
Strategy & HRM ?

Cost
NEED FOR STRATEGIC HRM
of employees as variable cost of production.
No formal recognition of human resource as a key
resource
No recognition of firms contribution to training
Cost of recruitment, training and replacement
ROI for investments in human resources
maintainable advantage usually from outstanding

depth in selected human skills, logistics
capabilities, knowledge bases
HRM
Changing times?
Views
of employees as cost center is changing

Selection process
Induction and training process
Education
Retention - negative impact of employee turn over
Compensation
Innovation and learning cost of un recorded knowledge
strategic HRM
HRM
is a strategic tool only if it contributes

to the bottom line. The question is; Does it?
Forecasts of shifts in skill needs from manual
to cerebral
Human Resources needs to looked at from an
Investment perspective.
Strategic analysis HRM

To be competitive, organizations in many
industries must have highly skilled.
Knowledgeable workers. They must also have a
relatively stable labour force since employee
turnover works directly against obtaining the kind
of coordination and organizational learning that
leads to fast response and high-quality products
and services
- Edward Lawler
Human resources
Investment considerations
Management
values
Risk return on investments
Economic rationale for investment in
training
Utility theory
Outsourcing as an alternative to investment in
Human resources
Human resources
Management
values
Risk return on
investments
Economic rationale for
investment in training
Utility theory
Outsourcing as an
alternative to
investment in Human
resources
Values, Philosophies of
management / senior managers.
Cost center
HR cost center
Replaceable resource
Investment
HR value adder
Critical resource
KEY personnel
Enhances human capital/
prevents depletion
BPL, Govt,Vs Infosys, Vs

Reliance, TCS
Education, training, reward,
promotion.
Human resources
Management
values
Risk return on
investments
Utility theory
Outsourcing as an
alternative to
investment in Human
resources
The employers do not own the

resource in which they have
invested.
Returns must be great enough
to overcome the risks
Cash outlays to maintain no
layoff policy, the benefits are
not easily quantified
Incur costs in short run for long
term strategic benefit.
Flexible committed work force
Better organizational culture
Reliance communication
Bond money
Human resources
Management
values
Risk return on
investments
Utility theory
Outsourcing as an
alternative to
investment in Human
resources
Human capital theory
General training
Empr Not to bear the cost of Gen

training as the employees transfer skills
developed at employers expense.
OJT, Tuition fee reimbursement

Recoup cost of general training
[loyalty, flexibility]
Specific training
Employee related
Cost of mobility, relocation,

residence, children's education and
other psychological issues,
new salary lower/ greater
LAY OFF
Human resources
Management
values
Risk return on
investments
Utility theory
Outsourcing as an
alternative to
investment in Human
resources
Utility
of each HR
activity [attempts to determine
economic value of human resource
programs activities and procedures]
Recruitment process
Employee with higher

productivity
Performance appraisal
Return on output
Return on sales
Advt, training, special roles,
Human resources
Management
values
Risk return on
investments
Utility theory
Outsourcing as an
alternative to
investment in Human
resources
Where world class capabilities and

strategic advantage cannot be
developed.
The resources devoted to perform
the service internally is greater
than those needed when outsourced
Excessive dependence on suppliers
can be avoided.
Salary, executive search, HRIS,
Benefits administration etc are
outsourced
Key areas viz., performance
appraisal, employee relations and
labour relations are retained by
companies.
Investments in training and

development
Investments in employability
Who moved my cheese?/ Jack Welch
the building was still standing , but the people were gone.
Employers have responsibility to ensure they are getting the best
results from each employee before terminating them. (the

employer will have to coach, counsel and train the employee and
also take advantage of the same.
Current practices
OJT
MDP
Prevention of skill obsolescence
Reduction of career plateauing
M,NC, CNC/ soft wares domain / telecommunication
narayan murthy / VRS, golden hand shake/
Investment practices for improved retention

Organizational
cultures emphasizing interpersonal

relationship values
Effective selection procedures
Compensation and benefits
Job enrichment and job satisfaction
Practices providing work life balance
Organizational direction creating confidence in
the future
Retention of technical employee
Other practices in facilitating retention
Opportunities for training, growth, new learning, liberal
transfer policies
Investments in job-secure work forces
Recognition of the costs of downsizing and lay offs

Bumping less senior employees
Reduced productivity
Cost of training the incumbent, wage supplement
Costs relating to termination of employees
Separation payments, higher rates for unemployment
compensation, Depletion of the firms investment in training
employees.
Administrative costs
Human resource processing activities, Clerical expenses, cost
of conducting medical examination of laid off employees,
increased supervisory obligations for managers of reassigned
employees.
Intangible costs
Morale, disruption of efficiencies in work processes,
Accidents, Depletion of goodwill, irregular age distribution
Investments in job-secure work forces
Avoiding business cycle-based layoffs

Alternatives to layoffs
When down turn is of short duration
Block / shut off inflow of personnel into the organization
attrition brings down the cost
Redeployment of current employees
Curtailment of sub contractors and reallocate the work to
permanent employees
Sharing of economic loss wipro
Fewer work days
Employment
guarantees
The work effort and job security relationship
The less secure the greater is the flexibility and productivity
Ethical implications of employment

practices
Job
security
Performance pressures
Compensation
Work environment
Non-traditional investment
approaches
Investment
in (disabled) Differently-abled
employees
Investments in employee health
Countercyclical hiring technical personnel .
Exercise
= Identify the type of investment
Employment security
Self-managed teams and decentralization of decisionmaking
Extensive training and development
Continuous improvement HR programs
Reduced status distinctions and barriers
Sharing of financial and performance information
Trust between management and employees at all
organizational levels
Communication in global markets
Efficient and effective use of new information technologies
ECC recognises that people are the real source of competitive advantage.
It is through people that ECC delivers total customer satisfaction. An
extensive and rigorous recruitment process ensures quality induction.
L&T's Graduate Engineer Trainee recruitment process covers India's major
engineering colleges and institutions. Programmes, plant visits and
comprehensive information-sharing facilitate induction.
The basic principles of ECC's Human Resources policies include
Recruitment based solely on merit by following well-defined and
systematic selection procedures without discrimination
Sustain motivated and quality work force through appropriate and fair
performance evaluation, reward and recognition systems
Identify training needs within the Organisation and design and implement
those need based training programmes resulting in continuous
upgradation of knowledge, skills and attitudes of the employees
Maintain a quality Human Resource Management System to meet the
international standards as per ISO 9001. Plan, design, train, equip and
motivate the department staff to meet this standard of expectation.
ECC's Work Culture
Work culture emphasises:
Freedom to experiment
Continuous learning and training
Transparency
Quality in all aspects of work
Rewards based on performance and potential
Stages in Strategic management

Strategic analysis
Environmental analysis
human resource environment

human resource legal environment
Establish organizational direction
Strategy formulation
Human resource planning
Work force utilisation and employment practices
Reward and development system
Strategic control
Performance impact of human resource practices
Human resource evaluation
The human resource

environment
Global
changes
WTO, GATT, EU, G&, G10 etc.
Boarders
and barriers
E-commerce, M-commerce
Emerging markets, new markets.
Technology
Demography
Culture
Etc.
The imperative >>HR focus

The human resource environment

-General environment
Technology
and organisational structure

Worker values and attitudinal trends
Management trends
Demographic trends
Trends in utilisation of human resources
International developments

Technology and
organisational structure
Worker values and
attitudinal trends
Management trends
Demographic trends
Trends in utilisation of
human resources
International
developments
Influence of technology
HRIS
Redeployment of HR staff to
operating units
New organisational structures
(Short / accountability)
Unbounded corporations
Virtual corporations /
networked organisations
Cellular organisations/guilds
Respondent organisations/
supply niche components
Stimulus for entrepreneurial

business

Technology and
Worker values and
attitudinal trends
Management trends
Demographic trends
human resources
International
developments
Ethical/moral issues
(older generation blaming
younger generation)
Time spent on work/ leisure
Work enjoyment / satisfaction /appeals
Loyalty of employees
Location near / far
Age
Younger no loyalty and expect
none
New employee Perception before
joining and after joining the job
(extrinsic to intrinsic)
(image, induction and orientation,
socialization process)
Emphasis on core values, cultures,
family, social service)

Technology and
Worker values and
attitudinal trends
Management trends
Demographic trends
human resources
International
developments
Management of diversity
Work teams
Virtual teams
Human resource outsourcing
Open book management
TQM
Integrated manufacturing
Reengineering
Management of professionals
Managing of aftermath of Mrg
& Aqui

Technology and
Worker values and
attitudinal trends
Management trends
Demographic trends
human resources
International
developments
Aging
work force (HMT)

Baby boom-US, China
Labour Shortages
Racial diversity
Occupational
distribution for women
Dual career couples

Technology and
Worker values and
attitudinal trends
Management trends
Demographic trends
human resources
International
developments
Telecommuting
/
working from home
Relocation from work
Growing use of
temporary and
contingent workers
Employee leasing

Technology and
Worker values and
attitudinal trends
Management trends
Demographic trends
human resources
International
developments
NAFTA
EU
GATT
WTO
G7

-Legal environment
An
overview of Industrial Relations Climate

Emerging trends and paradigm shifts towards
Employee Relations
Employee Relations Policy
Implications of:
Employment Related Legislations

Payment Related Legislations
Social Security Related Legislations
Welfare Related Legislations

-Legal environment
Equal employment opportunity for women.

Age, gender discrimination, promiscuous gender based harassment.
Promiscuity, Dealing with incidences, pregnancy discrimination,

Disability discrimination, Religious discrimination, Reservations
and protection, health care benefits, family and medical leave.
Employee relations
Negligent hiring, immigration, Employment at will, Drug testing,
Safety
Labour relations and collective bargaining.

Emerging issues
Strategic impact of the legal environment
Labour Legislations in India
The Apprentices Act, 1961

The Bonded Labour System (Abolition)
Act, 1976
The Child Labour (Prohibition &

Regulation) Act, 1986
The Children (Pledging of Labour) Act,
1933
The Contract Labour (Regulation &
Abolition) Act, 1970
The Employees Provident Funds and
Misc. Provisions Act,1952
The Employees State Insurance Act,
1948
The Employers Liability Act, 1938

The Employment Exchange (Compulsory
Notification of Vacancies) Act, 1959
The Equal Remuneration Act, 1976
The Factories Act, 1948

The Workmen's Compensation Act, 1923
The Weekly Holidays Act, 1942
The Industrial Disputes Act

The Industrial Employment (Standing
Orders) Act,1946
The Inter-state Migrant Workmen
(Regulation of Employment and
Conditions of Service) Act, 1979
The Labour Laws (Exemption from
Furnishing Returns & Maintaining
Registers by Certain Establishments)
Act, 1988
The Maternity Benefit Act, 1961
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Mines Act,1952
The Payment of Gratuity Act, 1972
The Payment of Wages Act, 1936
The Sales Promotion Employees
(Conditions of Service) Act, 1976
The Shops and Establishments Act, 1953
The Trade Union Act, 1926
Labour legislations
The
term `labour legislation is used to

cover all the laws which have been
enacted to deal with employment and
non-employment wages, working
conditions, industrial relations, social
security and welfare of persons
employed in industries.
Need for labour legislation in India:
Organized industry in a planned economy calls for the

spirit of co-operation and mutual dependence for
attaining the common purpose of greater, better and
cheaper production. Since this has not been happening
voluntarily, the need for State intervention.
The need for labour legislation may be summarized as
under:
Necessary for the health, safety, and welfare of workers;
Necessary to protect workers against oppressive terms as
individual worker is economically weak and has little

bargaining power;
To encourage and facilitate the workers in the
organization;
To deal with industrial disputes;
To enforce social insurance and labour welfare schemes.
In India, labour legislation is treated as an arm of the

State for the regulation of working and living conditions
of workers.
Principles of labour legislation

Social
Justice:
Social Equity
Standards in terms of living, position in
society etc. of the working population.
National Economy
International Uniformity
Social Justice:
Social Equity
Standards in terms of living,
position in society etc. of
the working population.
National Economy
The essence of democracy
is ensuring social justice to

all sections of the
community.
This demands the
protection of those who
cannot protect themselves.
In modern industrial set-up,
workers, left to themselves,
are unable to protect their
interest.
Therefore, the State has to
intervene to help them by
granting them freedom of
association, the power of
collective bargaining and by
providing for mediation or
arbitration in the case of
industrial conflict.
Social Justice:
Social Equity
National Economy
Legislation based on this

principle provides for
achievement of definite
standards.
EQUAL REMUNERATION
ACT
Specific provisions of
law such as in
factories act
Work timings
Work environment
Dangerous machines act
Social Justice:
Social Equity
National Economy
These standards for the

working class can be
achieved by bringing
about changes in the Law
of our land.
Power to change the
Law is exercised by the

government.
Existing laws may be
amended to meet the
changed standards.
ESI
EPF
Minimum wages
Social Justice:
Social Equity
National Economy
Measures have to be
provided through
legislation to:
Ensure normal growth
of industry for the
benefit of the nation as
a whole
Satisfy the physical and
intellectual needs of the
citizens
Ensure the growth of
industrial efficiency such
as to adjust the wage
system with a view to
increase the productivity
and prosperity of the
workers
Social Justice:
Social Equity
National Economy
ILO Since its inception,

securing minimum
standards (for the working
population worldwide) on
a uniform basis in respect of
all labour matters has been
the main objective of ILO.
o To this end, conventions
are passed at the
conferences of ILO.
As a member of the ILO,
adopting these conventions

would require appropriate
legislation to be brought
about.
The influence of
international labour
conventions has been
significant in shaping the
course of labour legislation
in India.
Legal environment
- Bench mark
Obey the Law. Law is societys codification of right and wrong;

Play by the rules
It is important to perform in a manner consistent with
expectations of government and the law.
It is important to comply with various national and supra-national
laws and regulations.
It is important to be a law-abiding corporate citizen.
It is important that a successful firm be defines as one that fulfils
its legal obligations.
It is important to provide goods and services that at least meet the
minimal legal requirements.
Strategy formulation
What
are the purpose(s) and objective(s) of

the organization?
Where is the organization presently going?
What critical environmental factors does the
organization currently face?
What can be done to achieve organizational
objectives more effectively in the future?
Strategy formulation process

Development
of organizational philosophy and

mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning

Managed/logical incremental planning
A strategy is the pattern or plan that

integrates
an Greer
organisations major goals, policies,
Ref: SHRM
Charles
and action sequences into a cohesive whole
Competitive strategy in Business

Units
Periodic
forward scanning
Analysis based on longer time frame
Communication about goals and resource allocation
Framework for short-term plan evaluation and
integration
Decisional criteria framework for short term decision
making
PLANNING IN SBUS
Base strategy will be integrated with functional specializations to
exploit the opportunity seen by the strategy and achieve the goals .
Low cost leadership, differentiation, niche

Value Chain Analysis

Primary
activities
Secondary
Activity
Inbound logistics
Procurement
Operations
Human Resource
Outbound logistics
Management
Technology
Development
Infrastructure
Marketing and
sales
Service
Steps in Value Chain Analysis
Value chain analysis can be broken down into a

three sequential steps:
Break down a market/organisation into its key
activities under each of the major headings in the
model (primary activities / secondary activities)
2. Assess the potential for adding value via cost
advantage or differentiation, or identify current
activities where a business appears to be at a
competitive disadvantage;
3. Determine strategies built around focusing on
activities where competitive advantage can be
sustained
1.
HR strategy ?
'a human resource system that is tailored to the
demands of the business strategy'
-Miles and Snow 1984
'the pattern of planned human resource activities

intended to enable an organization to achieve its
goals'
- Wright and McMahan 1992
the pattern planned human resource deployments and

activities intended to enable an organisation to
achieve its goals
SHRM concern
SHRM concern is to ensure
HR management is fully integrated with the
strategy and strategic needs of the firm

HR policies cohere across policy areas and
areas of hierarchy
HR practices are adjusted and used by line
manages and employees as part of their
everyday work
Strategic HRM
Needs investment ROI
Technical skills (pace of technological change)

Knowledge and capabilities
Management of critical and Difficult HR areas
Cost of investment
Reduction in total Labour cost
Efficiency in operation
Optimal use of human resources
A source of competitive advantage
(IMPORTANCE)
Management of change (Resistance to change)

Lack of trust
Antagonistic labour
Motivational problems
Management relations
Economic turbulence
Within the country (turbulence)

Globalisation
Dramatically changing demographics
Differences in workforce values
Strategic human resource management and HRP are considered important

to manage uncertainties; HR is integrated with strategy; Integrating and
aligning HR function with strategy
Benefits of SHRM
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Identifying and analysing external opportunities and

threats that may be crucial to the company's success.
Provides a clear business strategy and vision for the
future.
To supply competitive intelligence that may be useful in
the strategic planning process.
To recruit, retain and motivate people.
To develop and retain of highly competent people.
To ensure that people development issues are
addressed systematically.
To supply information regarding the company's internal
strengths and weaknesses.
To meet the expectations of the customers effectively.
To ensure high productivity.
To ensure business surplus thorough competency
Theoretical frame work of SHRM
Institutional /
Political forces
Firm strategy
Resource
based view
of the firm
Resource dependence
institutional
HRM Practices
Cybernetics
Agency/transaction costs
HR Capital pool
(Skills, abilities)
HR behaviors
Behavioral
approach
Firm level outcomes
(performance,
satisfaction,
absenteeism etc)
Theoretical frame work of SHRM

Strategy driven
Resource based view
Competitive advantage based on unique allocation of resources {selection

/Compensation package} (TCS)
Behavioral view
Control and influence the behaviors of individuals (Infosys)
Cybernetics systems
Adoption or abandonment of practices based on feedback on contributions to

strategy (Bosch MICO)
Agency/transactions cost view
Use of control systems, performance evaluation and reward systems etc

(In the absence of performance evaluation strategy may not be pursued)
Non-Strategy
driven
Resource dependence and power theories

Power and politics= legislation, unionization, control of resources, expectations of
social responsibility.
Institutional theory
In appropriate performance evaluation dimensions (inertia / rational decision
making.appraisal
International strategy
Multinational,
global and transnational
strategies
Strategic alliances
Sustainable global competitive advantage
Globally competent managers
Location of production facilities
Human resource contributions

to strategy
Environmental
scanning and competitive
advantage
Implementation of resource reallocation
decisions
Slide >
Lead time for dealing with labour shortages.
..
Industry matrix
< Back
Other issues
Strategy driven role behaviors and practices
Strategic human resource activity typology
Innovation cooperation, group oriented, long term appraisal system, generalized skill development, broad career path,
compensation approaches accentuating internal equity flexible compensation packages including stock ownership
quality enhancement- employment security guarantees. Extensive training programs, participative decision making (process
orientation)
cost reduction performance evaluation system emphasizing results in the short term. Virtually no training programs, very
specialized jobs, narrow specialized career jobs,Procedure for continual tracking of wage rates in the labour market.
Relational : transactional $ High : low strategic value
Classifying human resource types
Slide >
Jeffrey sonnenfeld and Maury peiperl Slide

Miles and snow: Defenders, prospectors, analyzers and reactors
Network organization and strategy

Integration of strategy and human resource planning
Evolution of strategy and human resource planning integration.
Evolution of linkages between Strategic business planning and HRM

Administrative linkage, one way HR is involved in implementation, two way- involved HRM and strategic business plans, integrated
Determinants of integration
Conditions under which determinants may not be appropriate.
HUMAN RESOURCE ACTIVITY TYPOLOGY

High
Performance
enhancement
Consulting
Staffing
planning
Benefits of planning
Retirement planning
Compliance
Employee
relations
Labour negotiations
Executive compensation
Employee development
Management development
Recruitment interviewing
Strategic value of
activity
< IMPORTANT TO EXECUTIVES >

Payroll
Benefits
administration
Retirement administration
Employee records
Relocation administration
Recruitment information processing
Low
Back
Recruitment
information
processing
Employee assistance programs
< IMPORTANT TO EMPLOYEES >
Transactional
TypeofCharles
HR activity
Ref: SHRM
Greer
Relationship
Classifying human resource types *
BACK
Benefits of integrating HRP with Strategic

planning
Generates
more solutions to complex

organizational problems
Ensures consideration of human resources in
organizational goal setting process
Ensures consideration of human resources in
assessment of organizational abilities to
accomplish goals and implement strategies
Reciprocal integration prevents strategy
formulation based on personal
rigidities/preferences
Facilitates concurrent consideration of strategic
plans and managerial succession.
Strategic components of HRM

relevant to internal fit
Management
awareness
Management of the function
Portfolio of programs
Personnel skills
Information technology
Awareness of the environment
HR Practitioners Role
The HR managers have keen role in the effective planning and

implementation of the policies and decisions that in tune with the business
changes.
They should act as strategic partners and be proactive in their role than mere
reactive, passive spectators.

The HR managers should understand how far their decisions contribute to
business surplus incorporating human competency and performance to the
organisation.
Strategic HR managers need a change in their outlook from seeing themselves as
relationship managers to strategic resource managers.
Kossek (1987, 1989) argues that major HRM innovations occur when senior
management takes the lead and adoption of innovative SHRM practices is dependent on
the nature of relationship of the HR Department with the CEO and the line managers.
Legge (1978) commenting on the actions of the personnel practitioner in the innovation
process suggests that adoption of an innovation by an organization depends largely on
HR practitioners' credibility with information and resource providers.
HR Department and HR managers in these innovative organizations play a
strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of
the organization.
A crucial aspect concerning SHRM is the concepts of fit and flexibility. The
degree of fit determines the human resource system's integration with
organization strategy. It is the role of HR Managers to ensure this fit in between
Human Resource System with the Organization Strategy.
Requirements for SHR-Managers

Information
management skills
Planning skills
Management skills
Integration skills
Change management skills

Strategic
role of HRP
Over view of HRP
Managerial issues in planning
Selecting forecasting technique
Forecasting the supply of human resources
Forecasting the demand for human
resources
Strategic role of HRP

Over view of HRP
Managerial issues in
planning
Selecting forecasting
technique
Forecasting the supply of
human resources
Forecasting the demand
for human resources
Developmental planning
for strategic leadership
Assessment of strategic
alternatives
Adding value
Contribution to strategic
human resource
management
Strategic salary planning.

Over view of HRP
planning
technique
human resources
for human resources
Steps
in HRP
Interfacing strategic planning and

scanning the environment
Taking an inventory of the companies
current human resources.
Forecasting the demand for human
resources
Forecasting the supply of human resources
both from within the organization and
from the external labor market
Comparing the forecast of demand and
supply
Planning the actions needed to deal with
anticipated shortages or overages
Feeding back such information into the
strategic management process

Over view of HRP
planning
technique
human resources
for human resources
Planning
in a context
of change
Responsibility for
human resource
planning
Failure to plan for
human resources

Over view of HRP
planning
technique
human resources
for human resources
Personal
implications
Changing receptivity
towards planning
Stricter legislations for
lay off etc

Other
issues
Mind set of work force
and related actions.

Over view of HRP
planning
technique
human resources
for human resources
Purpose of planning
Organisational
characteristics
Industry characteristics
Environmental turbulence
Other consideration
Technique of forecasting
Cost
Accuracy

Over view of HRP
planning
technique
human resources
for human resources
Replacement charts
Human resurce inventories
Succession planning
Markov analysis .
Renewal models
Mgr posi
age cohorts, internal mobilization
Computer simulation
Regression analysis
Trend extrapolation
Utilisation of supply
forecasting techniques

Over view of HRP
planning
technique
human resources
for human resources
Heuristics,
Rule of
thumb and the Delphi
technique
Operations research
and management
science technique
Regression analysis
Utilisation of demand
forecasting technique
Trend extrapolation
Markov analysis
Distri
bution
of
emplo
yees
in
time
Job 1 27
Job 2
Job 3
Job 4
Job 5
.66
41 .15
55 .03
64 .00
73 .00
260 26
.11
.60
.08
.09
.08
44
.09
.08
.55
.18
.10
55
.09
.10
.11
.16
020
37
Job 1 Job 2 Job 3 Job 4 Job 5 exit
.03
.06
.13
.54
.17
57
back
.02
.01
.10
.03
.45
41
Strategy formulation process

Development
of organizational philosophy and

mission statement
Environmental scanning
Analysis of SWOT
Formulation of strategic objectives
Generation of alterative strategy
Evaluation and selection of strategies
Informal / incremental strategic planning

Managed/logical incremental planning
A strategy is the pattern or plan that

integrates
an Greer
organisations major goals, policies,
Ref: SHRM
Charles
and action sequences into a cohesive whole
work force utilization and employment practices
Efficient
utilization of human resources

Dealing with employee shortages
Selection of employees
Dealing with employee surpluses
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Cross training and flexibility in

assigning work
Using work teams
Requirements for effective
teams
Forming
Storming
Norming
performing
Operating on a non union basis
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Strategic
recruiting
Special recruiting for
minorities and women
workers
Flexible retirement as
a source of labour
Managing vendors of
outsourced functions
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Managing vendors of
outsourced functions
Making the outsourcing
decision
Selecting and negotiating
with outsourcing vendors
Managing the outsourcing
transactions
Managing vendor
relationships
Monitoring and evaluating
vendor performance
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Reliability and validity

Predictive validity
Concurrent validity
Content validity
Job analysis
KSA
Interviews
Behavioural interviews
Testing
Assessment centres
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Redeployment
and
retraining
Early retirement
Retreat from
employment security
policy
Downsizing and
layoffs
Termination strategies
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Downsizing and layoffs
Findings
Co are not well prepared

6 months to 1 year co indicators
do not improve profits, ROI,
Stock prices, expense ratios
Survivors syndrome
Myth of job security exploded
(Who moved my cheese)
Sustained improvement can be
brought about only with
improvements in productivity,
quality and effectiveness and
integrate reductions in head count
with planned changes in the way
the work is designed.
Downsizing in not a one time
quick fix solution to enhance
competitiveness. is a part of
continuous improvement.
Efficient
utilization of
human resources
Dealing with
employee shortages
Selection of
employees
Dealing with
employee surpluses
Downsizing and layoffs
Guide lines for conduct of layoffs
Give early warnings /

announcements of layoffs
Soften the impact with
compensation and benefits
Utilise the services of
outplacement firms
Supply retraining services
Provide equitable and decent
treatment to laid off employees
Ensure supportive treatment of
survivors
Maintain a cooperative approach
with unions
Uphold obligation to the
community
Special implementation
challenges
Career
path for technical professionals

Dual career couples
Strategy implementation system Reward
and development systems
Strategically oriented performance management
system
Strategically oriented compensation systems
Employee development
Strategy implementation system

Reward and development systems
Strategically
oriented
performance
management system
Strategically oriented
compensation systems
Employee
development
Performance measurement
approaches
MBO
Graphic scale rating
Narratives
BARS
Behavioral observation scales
360 degree feedback
Performance evaluation of
executives
Effectiveness of performance
measurement.
YOU GET WHAT YOU MEASURE, YOU MEASURE WHAT YOU VALUE, YOU
CAN NOT CONTROL WHAT YOU CANNOT MEASURE.

Strategically
oriented
performance
management system
Employee
development
Traditional
Job analysis > job evaluation >
salary/wage hierarchy
Point system
Factor comparison system
Hybrid system
Internal equity
> Wage surveys to establish
external equity.

Strategically
oriented
performance
management system
Employee
development
Traditional compensation
systems
Inadequacies
Wage for know-how not
given
Compensated for specific
job only
Impact of collective
bargaining on wage
structures.
Does not work well with
managers and
professionals

Strategically
oriented
performance
management system
Employee
development
Skill
based pay
Broad banding
Team based pay
Variable compensation
Executive
compensation

Strategically
oriented
performance
management system
Employee
development
Training programs
Training methods
Apprenticeships
for international assignments
Product life cycle and
managerial fit
PLC, Evolutionary stage >
Steady state
Development Vs selection
The performance impact of

human resource practices
Individual
high performance practices

Limitations of individual practices
Evolution of practices
Systems of high performance human resource
practices
Individual best practices Vs systems of practices
Universal practices Vs contingency perspectives

Individual high performance

practices
Limitations of individual
practices
Systems of high performance
Individual best practices Vs
systems of practices
Universal practices Vs
contingency perspectives
Seven management
practices that enhance
performance Jefrey Pfeffer
1.
2.
3.
4.
5.
6.
7.
Employment security
Selective hiring of new personnel
Self managed teams and
decentralization of decision
making as basic principle of org
design
Comparatively high compensation
on organizational performance
Extensive training
Reduced status distinctions and
barriers
Extensive sharing of financial and
performance information.


practices
practices
Compensation
Diversity
Employment
Countercyclical hiring,
downsizing, early retirement
programs, employment security,
human resource outsourcing.
Industrial relations
High compensation linked to organisational

performance
Incentive based compensation
Profit sharing
Team based compensation
Decertification of union
bargaining agent
Positive labour relations
Strikes, lockouts
Internal labour market


practices
practices
motivation
Performance management
Staffing
Decentralized decision
making
Self managed teams
Open book management
Reduced status differentials or
symbolic egalitarianism
Cognitive tests, staffing

selectivity, CEO succession
insider outsider, yield analysis
of recruiting sources
Training


practices
practices
Each practice has a

different kind of impact on
individual workers if
possible to address at
individual levels the same
may be done.
Results of studies that
give positive or negative
indication can not be
taken as absolute


practices
practices
HR practices are path

dependant. They consist
of policies that are
developed over time and
cannot be simply
purchased in the market
by competitors.


practices
practices
Has positive impact

Commitment oriented systems
Human capital enhancement
Hourly pay, individual equity,

individual incentive, result based
performance appraisal
Motivation and commitment system
Comprehensive training, BARS,

Technical and problem solving skills,
selective staffing
Human resource administrative system
Decentralized decision making, general

training, Highly skilled employees,
High wages - bonuses
Receptiveness to new training,

compensation contingent on firms
performance, extent of status
differentials
Skills and organizational structures
Attitude survey, access to grievance

procedures, formal job anasysis, info
sharing


practices
practices
Mxed evidence and

response
Some individual practices
have had positive impact

Systems of practices have
both
Adoption
Implementation
fit


practices
practices
Have their own

applicability
Evidence for success of
both
Greater evidence for
contingency
Human Resource Evaluation

Overview
of evaluation
Approaches to evaluation
Prevalence of evaluation
Evaluating strategic contributions of
traditional areas
Evaluating strategic contributions in
emerging areas
Overview of evaluation
Evaluating strategic
contributions of traditional
areas
contributions in emerging
areas
Scope of evaluation
Strategic impact
Level of analysis
Criteria
Level of constituents
Ethical dimensiona
areas
areas
Audit approaches
Analytical approaches
Quantitative and
qualitative measures
Balance scorecard
perspective
Benchmarking
Industry influences
areas
areas
Little
Results not revealed
contributions of
traditional areas
areas
HRP
Staffing
Training
Performance evaluation
systems
Compensation systems
Utility analysis
labour and employee
relations
areas
areas
Equal employment
opportunity and
management of diversity
Quality readiness
Thank you
Issues
to be taken into consideration

SHRM

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Strategic HRM

Ref: SHRM Charles Greer

seek? Is it a position taken?

Strategy is all these

is a term that comes from the

Ref: SHRM Charles Greer

of the definitions in use include the

of great importance to the organization.

iterative process aimed at

the business in tune with

Ref: SHRM Charles Greer

strategy leads to competitive

exploiting and developing a technological base

Stages in Strategic management

Ref: SHRM Charles Greer

Strategy & HRM ?

NEED FOR STRATEGIC HRM

assets are viewed as investments

Bring about and more importantly sustain competitive

facilities can be duplicated, cloned or

Strategy & HRM ?

NEED FOR STRATEGIC HRM

of employees as variable cost of production.

No formal recognition of human resource as a key

maintainable advantage usually from outstanding

of employees as cost center is changing

is a strategic tool only if it contributes

Ref: SHRM Charles Greer

Strategic analysis HRM

Ref: SHRM Charles Greer

BPL, Govt,Vs Infosys, Vs

The employers do not own the

Ref: SHRM Charles Greer

Human capital theory

Empr Not to bear the cost of Gen

OJT, Tuition fee reimbursement

Cost of mobility, relocation,

Ref: SHRM Charles Greer

Employee with higher

Advt, training, special roles,

Ref: SHRM Charles Greer

Where world class capabilities and

Ref: SHRM Charles Greer

Investments in training and

Employers have responsibility to ensure they are getting the best

results from each employee before terminating them. (the

M,NC, CNC/ soft wares domain / telecommunication

narayan murthy / VRS, golden hand shake/

Ref: SHRM Charles Greer

Investment practices for improved retention

cultures emphasizing interpersonal

Ref: SHRM Charles Greer

Investments in job-secure work forces

Recognition of the costs of downsizing and lay offs

Ref: SHRM Charles Greer

Investments in job-secure work forces

Avoiding business cycle-based layoffs

Ethical implications of employment

Ref: SHRM Charles Greer

Ref: SHRM Charles Greer

= Identify the type of investment

Ref: SHRM Charles Greer