Strategic Human Resource Management: What Is It and How Can HR Add Value

STRATEGIC HUMAN RESOURCE MANAGEMENT
Michael Armstrong
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice, 11th edition,
as part of their course. For more academic resources and other FREE material, please visit www.koganpage.com/resources and then click on Academic
Resources.
THE CLOUDY NATURE OF STRATEGY
‘Strategy consists
of illusions in the
‘Strategy is ‘There is a gap board room.’
problem solving in between the John Purcell
unstructured rhetoric and the
situations.’ reality of
SHRM.’
Lester Dignam
Lynda Grattan
‘Strategy is often
‘Strategy is ‘Strategy is a fragmentary,
emergent and pattern in a evolutionary and
flexible.’ stream of largely intuitive.’
Sean Tyson activities.’
James Quinn
Henry Mintzberg
Resources.
SO WHAT IS STRATEGIC HUMAN
RESOURCE MANAGEMENT?
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?
Resources.
STRATEGIC HRM DEFINED
Strategic HRM is the process of

defining how the organization’s
goals will be achieved through
people by means of HR strategies
and integrated HR policies and
practices.
Resources.
MODEL OF STRATEGIC HRM
Strategic HRM
Strategic management – HR strategies –

strategic role of HR overall/specific
Strategic choice
Strategic analysis
Resources.
SO WHAT IS THE STRATEGIC
ROLE OF HR SPECIALISTS?
Resources.
VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT
‘My credibility depends on ‘The CIP thinks that we will all

running an extremely be strategic business
efficient and cost-effective partners, and we’re not, you
administrative machine… know. We have to deal with
If I don’t get that right, and day-to-day HR issues that
consistently, then you can arise in the business.’
forget about any big Student practitioner
ideas.’
HR Director
‘Give me a break! It’s so demeaning. ‘The term worries me to death. HR has to be

How many people in marketing or an integral and fundamental part of developing
finance have to say they are a the strategy of the business. I don’t even like
partner in the business? Why do we the term ‘close to the business’ because, like
have to think that we’re not an ‘business partner’, it implies we are working
intimate part of the business, just like alongside our line management colleagues but
sales, manufacturing and on a separate track, rather than people
engineering? I detest and loathe the management being an integral part of the
term and I won’t use it.’ business.’
Tim Miller, Standard Chartered Bank Alex Wilson, BT
Resources.
HR’s STRATEGIC ROLES
Formulate integrated
HR strategies
Work with line

managers to
Contribute to the support the
development of achievement of
business strategies their business
goals
Resources.
SEVEN STEPS TO BEING STRATEGIC
Practice
Make evidence-
convincing based
business management
case
Act as for
change innovation
agent
See the big
picture
Appreciate
how HR
can add
value
Understand
the
business
Aware of
business
context
Resources.
SO WHAT ABOUT HR STRATEGY?
Resources.
HR STRATEGY AREAS
Specific:
Overall:
• organization
• performance
development
• engagement
• corporate social
• ‘the big idea’
responsibility
• human capital
• resourcing
advantage
• talent management
• HRM process
• learning and
advantage
development
• etc
• employee reward
• employee
relations
• employee
well-being
Resources.
EXAMPLES OF OVERALL HR STRATEGIES
A strong focus on the We want GSK to be a

overall effectiveness place where the best
Maintain people do their best
of the organization, its competitive
direction and how it's work. GlaxoSmithKline
advantage by
performing. There is continuing to
commitment to, belief attract very high
in, and respect for calibre people.
individuals. New Boots
Forest Council
Staff who are enjoying

themselves, are being
The only HR strategy Stimulate changes
supported and
you really need is the on a broad front
developed, and who
tangible expression of aimed at achieving
feel fulfilled and
values and the competitive
respected at work, will
implementation of advantage through
provide the best service
values. West Water people. Pilkington
to customers. Lands’
Optronics
End
Resources.
BALANCED SCORECARD IN AN INTERNATIONAL CHARITY
Organizational effectiveness
perspective:
• programme development
• programme delivery
• process development and
management
• cost-effectiveness
Stakeholder perspective:
Financial perspective:
• impact on clients
• income growth
• relationships with key funding
• enlistment and retention of
agencies and supporters
supporters
• development of brand
• cost/income ratio
• influence
People perspective:
• leadership behaviour
• talent management
• learning and development
• employee satisfaction –
a ‘great place to work’
Resources.
HIGH-PERFORMANCE STRATEGY:
CORPORATION OF LONDON
• Clear line of sight between strategic aims of the Corporation and its staff
• Management sets goals for success and monitors performance
• Leadership from the top and at all levels of management
• Focus on promoting engagement and commitment
• Performance management processes aligned to Corporation objectives
• Capacities of people enhanced by comprehensive learning and
development programmes
• People valued and rewarded according to their contribution
Resources.
DECLARATION OF STRATEGIC INTENT: CARE
DELIVERY CHARITY
• Achieve strategic integration – match HR

policies and practices to the business
strategy
• Plan coherent approaches to the
development of HR processes so that
they are interrelated and mutually
supporting
• Focus on the needs to achieve flexibility,
responsiveness, quality and cost-
effectiveness in the delivery of HR
services
Resources.
CRITERIA FOR HR STRATEGIES
• Aligned to corporate goals

• Set out clear aims
• Supported by business case
• Take account of individual as well as
business needs
• Contain realistic and achievable
plans for implementation
Resources.
STRATEGIC HRM TOOLKIT
Resources.
CONDUCTING A STRATEGIC REVIEW
1. Analysis
2. Diagnosis
Involve senior Involve employees
management and and their
line managers 3. Conclusions and representatives
recommendations
4. Action planning
Resources.
HR STRATEGY GOALS: HOW DO THEY RATE?
Possible HR strategic objectives Importance* Effectiveness*
Support the achievement of organizational goals
Meet needs of employees
Develop a high-performance culture
Ensure that the organization is seen as ‘a great place to work’
Increase engagement and commitment
Recruit and retain talented people
Develop talented people
Reward people according to their contribution
Provide employees with a voice
Provide a good working environment
Other (specify)
* Scale: 10 = high 0 = low

Resources.
STRATEGIC HRM GAP ANALYSIS
What are the current and desired SHRM characteristics in your organization?
1 2 3 4 5 6 7
Effective high-performance work No attempt made to encourage

system in place high performance
Integrated talent management Talent management is haphazard

programmes are operating or ineffective
effectively
A traditional approach is adopted

Sophisticated techniques are
with regard to sourcing recruits
used to recruit employees
and selecting applicants
Focus on using blended learning Reliance on the delivery of

and development processes traditional training courses
Reward programmes limited to

A total reward approach is used
financial rewards
effectively
Only lip service is paid to

Employees given a voice on all
employee participation and
matters that concern them
involvement
Mark on the scale: X for current, O for desired – eg:
High-quality HR practices O X Poor-quality HR practices

HR IMPLICATIONS OF CORPORATE STRATEGIES
Corporate strategy Implications for HR strategy
1.
2.
3.
4.
5.
6.
Resources.
ANALYSIS OF RESOURCING GOALS
Possible resourcing goals Importance* Effectiveness*
Match people resources to business requirements
Avoid unexpected deficits or surpluses of staff
Attract and recruit high-quality candidates
Minimize recruitment costs
Maximize ‘recruitment intensity’, ie high numbers of applicants

per vacancy
Increase ‘predictive validity’, ie the extent to which predictions of
suitability at the point of recruitment are achieved
Increase retention rates
Reduce cost of labour turnover
* Scale: 10 = high, 0 = low
Resources.
ANALYSIS OF TALENT MANAGEMENT GOALS
Talent management goals Importance* Effectiveness*
Define what is meant by talent in terms of competencies

and potential
Ensure that talent is treated as a key corporate resource
Develop a pool of talent that will provide a guaranteed

supply of highly qualified people
Provide for management succession
Rely primarily on growth from within, while recognizing

the need to bring in fresh blood from time to time
Identify those with talent and potential
Institute programmes to develop talent
Create a compelling employee value proposition
Develop the organization as an employer of choice

Resources.
ANALYSIS OF LEARNING AND DEVELOPMENT GOALS
Learning and development goals Importance* Effectiveness*
Create human capital advantage by ensuring that the
organization has more skilled and competent people
than its competitors
Extend the skills base of the organization
Improve individual, team and organizational

performance
Attract and retain high-quality people by offering them
learning and development opportunities
Improve organizational flexibility by multi-skilling
Provide additional non-financial reward to people in

the form of growth and career opportunities
Reduce the length of learning curves to minimize
learning costs
Ensure that talented people are developed to achieve
their maximum potential
Provide line managers with the skills required to lead
and develop their people
Resources.
ANALYSIS OF REWARD MANAGEMENT GOALS
Reward management goals Importance* Effectiveness*
Reinforce the achievement of organizational goals
Improve individual, team and organizational

performance
Recruit and retain high-calibre staff
Facilitate staff mobility
Achieve strong relationship between pay and

performance
Reinforce organizational values
Motivate and engage employees
Cost effective
Well-communicated and understood by employees
Managed effectively by line managers

Resources.
ANALYSIS OF EMPLOYEE RELATIONS GOALS
Employee relations goals Importance* Effectiveness*
Build stable and cooperative relationships with employees

and, where present, their trade unions
Operate on a partnership basis with trade unions
Achieve engagement through employee involvement and

communication processes
Minimize conflict with employees and their unions
Adopt a high-commitment approach to develop mutuality
Maintain bargaining structures and negotiating procedures

that enable agreements to be reached smoothly

Resources.
PRIORITIZATION OF HR STRATEGIES
Summary of HR Business case Timing Responsibility for

strategy
1.
2.
3.
4.
5.
6.
Resources.
STRATEGIC HRM GUIDELINES
• Be clear on what has to be achieved

and why
• Ensure that what you do fits the
business strategy, culture and
circumstances of the organization
• Aim for continuous improvement –
evolution not revolution
• Don’t follow fashion – do your own
thing
• Keep it simple – over-complexity is a
common reason for failure
• Don’t rush – it takes longer than you
think
• Assess resource requirements and
costs
• Manage change – involve,
communicate and train
Resources.
Michael Armstrong
email@michael-armstrong.eu
Art work by Youngs Design

Ian@youngsdesign.co.uk
Resources.

Strategic Human Resource Management: What Is It and How Can HR Add Value

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Strategic Human Resource Management: What Is It and How Can HR Add Value

Hochgeladen von

Copyright:

Verfügbare Formate

STRATEGIC HUMAN RESOURCE MANAGEMENT

Is it about long-range strategic planning?

Is it about day-to-day strategic management?

Strategic HRM is the process of

Strategic management – HR strategies –

‘My credibility depends on ‘The CIP thinks that we will all

‘Give me a break! It’s so demeaning. ‘The term worries me to death. HR has to be

Work with line

A strong focus on the We want GSK to be a

Staff who are enjoying

• Achieve strategic integration – match HR

• Aligned to corporate goals

Possible HR strategic objectives Importance* Effectiveness*

Support the achievement of organizational goals

Meet needs of employees

Develop a high-performance culture

Ensure that the organization is seen as ‘a great place to work’

Increase engagement and commitment

Recruit and retain talented people

Develop talented people

Reward people according to their contribution

Provide employees with a voice

Provide a good working environment

* Scale: 10 = high 0 = low

Effective high-performance work No attempt made to encourage

Integrated talent management Talent management is haphazard

A traditional approach is adopted

Focus on using blended learning Reliance on the delivery of

Reward programmes limited to

Only lip service is paid to

Mark on the scale: X for current, O for desired – eg:

High-quality HR practices O X Poor-quality HR practices

Corporate strategy Implications for HR strategy

Possible resourcing goals Importance* Effectiveness*

Match people resources to business requirements

Avoid unexpected deficits or surpluses of staff

Attract and recruit high-quality candidates

Minimize recruitment costs

Maximize ‘recruitment intensity’, ie high numbers of applicants

Reduce cost of labour turnover

* Scale: 10 = high, 0 = low

Talent management goals Importance* Effectiveness*

Define what is meant by talent in terms of competencies

Develop a pool of talent that will provide a guaranteed

Rely primarily on growth from within, while recognizing

Institute programmes to develop talent

Create a compelling employee value proposition

Develop the organization as an employer of choice

* Scale: 10 = high, 0 = low

Improve individual, team and organizational

Provide additional non-financial reward to people in

Reward management goals Importance* Effectiveness*

Reinforce the achievement of organizational goals

Improve individual, team and organizational

Facilitate staff mobility

Achieve strong relationship between pay and

Motivate and engage employees

Well-communicated and understood by employees

Managed effectively by line managers

* Scale: 10 = high, 0 = low

Employee relations goals Importance* Effectiveness*

Build stable and cooperative relationships with employees