1. THE EVOLVING STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT Mello, J. A
THE EVOLVING STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT Mello, J. A. (2001): Strategic Human Resource Management, Cengage Learning, India Edition. 1

2. Lecture Overview Strategic HRM Model of SHRM
Changing Role of HR Professional
Ulrich Model
Lengnick Hall and Lengnick Hall Model
Society for Human Resource Management Competencies
Lepak and Snell Employment Model
Traditional Versus Strategic HR
Strategic HRM and Organizational Learning 2

3. Lecture Overview
Barriers to SHRM
Outcome of SHRM 3

4. THE EVOLVING STRATAGICROLE OF HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
“Involves development of consistent, aligned collection of practices, programs, & policies to facilitate achievement of strategic objectives” (Mello, 2011, p. 156)
Mindset & practices away from “personnel management” & focusing on strategic issues instead of operational issues
HR programs and policies are made and integrated in perspective of mission, objectives, and strategy
Writing down HR strategy facilitates involvement & convincing senior executives & other employees 4

5. MODEL OF STRATEGIC HR MANAGEMENT
Source: Mello, 2011 5

6. CHANGING ROLES OF HR PROFESSIONALS
Ulrich Model
Mello, 2011, p. 157 6

7. CHANGING ROLES ASSUMED OF HR PROFESSIONAL
Strategic perspective focus more on strategic contribution of employees than performing traditional HR functions
What HR delivers not important what it does
1 Strategic Partner
Partner in strategy development
Identify areas where change is needed to execute strategy
2 Administrative Expert
In past focus remain on traditional roles, rule making and
policy development
Need to reinvent new way to perform such traditional
activities. For example: Benefit and compensation system,
career development Plans 7

8. CHANGING ROLES ASSUMED OF HR PROFESSIONAL
3 Employee Champion
Responsible to make sure that employees are committed and motivated
Assist line managers to identify the causes of low morale and employee motivation techniques
Advocate of employees
4 Change Agent
Assist build organization capability to identify and capitalize on future opportunities
To ensure that change initiative are well define, understand, and delivered
Overcome resistance to change (change in culture) 8

9. CHANGING ROLES ASSUMED OF HR PROFESSIONAL
Strategic perspective focus more on strategic contribution of employees than performing traditional HR functions
What HR delivers not important what it does
Strategic Partner
Partner in strategy development
Identify areas where change is needed to execute strategy
Administrative Expert
In past focus remain on traditional roles, rule making and policy development
Need to reinvent new way to perform such traditional activities. For example: Benefit and compensation system, Career development Plans 9

10. HR ROLES IN KNOWLEDGE-BASED ECONOMY
Lengnick Hall and Lengnick Hall Model
1 Human Capital Steward
Create environment where employee work with commitment
2 Knowledge Facilitator
Knowledge sharing culture
Employee share information, teach and learn from colleagues
Rewarding knowledge share behavior
3 Relationship Builder
Building Team work, Cross functional teams
4 Rapid development Specialist
Organizational culture and HR system that are flexible enough to adapt to change
HR ROLES IN KNOWLEDGE-BASED ECONOMY 10

11. SHRM CRITICAL COMPETENCIES
Society for Human Resource Management (SHRM) and Global Consulting Alliance Model
Strategic Contribution - Strategy development and implementation
Business Knowledge - understanding organization functions
Personal Credibility – Values in programs & policies
HR Delivery - serving employee through effective & efficient programs
HR Technology - using technology to improve organization’s people management strategy 11

12. LEPAK & SNELL’S EMPLOYMENT MODELS
Considering Employment Perspective
Source: Mello, 2001, p 160 12

13. TRADITIONAL HR VERSUS STRATEGIC HR13

14. Strategic HR As Organizational Learning
How HR management systems can contribute to development of organizational knowledge
To attract & select individuals with knowledge
Internal labor contribute to the development of firm specific knowledge and learning
Cross-functional & inter-organizational teams can be utilized 14

15. Strategic HR As Organizational Learning
HR systems can support & enhance knowledge sharing and development by
Apprenticeship & mentoring
Cross-functional teams
Stimulate & reward information sharing
Provide free access to information
Job rotations 15

16. Knowledge Institutionalization
Walsh & Ungson’s five ‘storage bins’ in which organizational memory can reside
Individuals (assumptions, beliefs, & cause maps)
Culture (stories, myths, & symbols)
Transformations (work design, processes, & routines)
Structure (organizational design)
Ecology (physical structure & information systems)
Institutionalized knowledge tends to be firm specific, socially complex, & causally ambiguous 16

17. UNDERSTANDING HRM-PERFORMANCE LINKAGES
Systems view considers overall configuration and aggregation of HRM practices
Strategic perspective aim to create “fit” between HRM practices & organization’s competitive strategy
HRM practices are associated with organizational performance & competitive advantage 17

18. UNDERSTANDING HRM-PERFORMANCE LINKAGES
Content
Set of practices adopted
Ideally driven by strategic goals & values
No single most appropriate set of practices for particular strategic objective
Different sets of practices 18

19. UNDERSTANDING HRM-PERFORMANCE LINKAGES
Process
To create unambiguous situations and messages about appropriate
employee behavior
HRM systems should have:
Distinctiveness
Consistency
Consensus 19

20. Understanding HRM-Performance Linkages
Distinctiveness
Visibility
Degree to which practices are readily observable
Understandability
Lack of ambiguity & ease of comprehension of practice content
Legitimacy of authority
Leads individuals to confirm to performance expectations as formally sanctioned behaviors
Relevance
Situation is defined that individuals see it as relevant to important goal 20

21. UNDERSTANDING HRM-PERFORMANCE LINKAGES
Consistency
Instrumentality
Unambiguous perceived cause-effect relationship between system’s desired content-focused behaviors & associated employee consequences
Validity
HRM practices must display consistency between what they expect to do & what they actually do 21

22. UNDERSTANDING HRM-PERFORMANCE LINKAGES
Consensus
Agreement
Fairness
Composite of employees’ perceptions of whether practices adhere to dimensions of justice 22

23. Organization Culture Questionnaire
How is performance defined, measured & rewarded?
How are information & resources allocated & managed?
What is operational philosophy of organization with regard to risk- taking, leadership, & concern for overall results?
Does organization regard human resources as costs or assets? 23

24. INTERPRETING RESULTS & FORMULATING STRATEGIES
Tendency to try to identify an “ideal” culture
Not clear than any one culture will be effective for all organizations
Strategy consists of interrelated functional components that must be carefully integrated to form an effective whole:
Selection & staffing
Organizational & human resource development
Rewards 24

25. Problems and Challenges of SHRM
Performance appraisal and compensation based on current
performance
HR managers lack of ability to understand challenges and opportunities in other functional areas
Top management fail to realize the overall contribution HR can make in overall organization strategy (HR is routine and inflexible job)
Functional managers do not view themselves as HR manager (concerned with technical aspects of job)
Fail to quantify HR cost and benefits (Team building)
Strategic HR need drastic changes in way of doing job, practices, and culture etc (people tendency to resist to change) 25

26. Outcome of Strategic HR
Increased performance Customer and Employee Satisfaction
Enhanced Share Value
Management of Staffing, retention, and turnover through selection of employees
Investment perspective of human asset and cost effective utilization
Integrated HR policies and practices based on cooperate strategy
Facilitation of change
Focus on customer needs and quality
Mello, 2011, p.167 26