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

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Presentation on theme: "THE EVOLVING STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT Mello, J. A. (2001): Strategic Human Resource Management, Cengage Learning, India Edition."— Presentation transcript:

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

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

3 Lecture Overview Barriers to SHRM Outcome of SHRM

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

5 MODEL OF STRATEGIC HR MANAGEMENT Source: Mello, 2011

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

7  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 2Administrative 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 CHANGING ROLES ASSUMED OF HR PROFESSIONAL

8 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) CHANGING ROLES ASSUMED OF HR PROFESSIONAL

9  Strategic perspective focus more on strategic contribution of employees than performing traditional HR functions  What HR delivers not important what it does 1Strategic Partner  Partner in strategy development  Identify areas where change is needed to execute strategy 2Administrative 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 CHANGING ROLES ASSUMED OF HR PROFESSIONAL

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

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

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

13 TRADITIONAL HR VERSUS STRATEGIC HR

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

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

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

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

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

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

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

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

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

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?

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

25 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) Problems and Challenges of SHRM

26 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 Outcome of Strategic HR Mello, 2011, p.167


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