Copyright © 2002 by Harcourt, Inc. All rights reserved. Topic 25 : Strategic HRM By Zhu Wenzhong

Copyright © 2002 by Harcourt, Inc. All rights reserved. Define strategic HRM. Define strategic HRM. Explain the difference between the soft and hard side of HRM Explain the difference between the soft and hard side of HRM Explain the implications of a strategic approach to HRM Explain the implications of a strategic approach to HRM State the advantages and disadvantages of strategic HRM State the advantages and disadvantages of strategic HRM State the definition of a flexible workforce and suggest its advantages. State the definition of a flexible workforce and suggest its advantages. LEARNING GOALS

Copyright © 2002 by Harcourt, Inc. All rights reserved. Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organization on the future direction it wants to take. It is concerned with longer-term people issues and macro- concerns about structure, quality, culture, values, commitment and matching resources to future need. Strategic HRM refers to the management of human resources as an important asset which has strategic value and role for the business. Strategic HRM should not only focus on both the soft side of HRM and the hard side of HRM, but especially the hard side. Definition of strategic HRM

Copyright © 2002 by Harcourt, Inc. All rights reserved. Soft side and hard side of HRM Soft side: Motivation Culture building Support for employees Employee and individual relations Hard side: Analyzing current needs for employees Predicating future demand Predicating future supply Predicating labor turnover

Copyright © 2002 by Harcourt, Inc. All rights reserved. Soft side and hard side of HRM Mainly concerned with the way in which people are managed, such as how to motivate workers, how to develop an organizational culture, how to support or train employees etc. Mainly concerned with the way in which people are managed, such as how to motivate workers, how to develop an organizational culture, how to support or train employees etc. Soft side of HRM

Copyright © 2002 by Harcourt, Inc. All rights reserved. Soft side and hard side of HRM Concerned about qualifying the number and types of employees that a business need,deciding whether they are available and planning how to get them through predicating the demand and supply of workforce for the future. Concerned about qualifying the number and types of employees that a business need,deciding whether they are available and planning how to get them through predicating the demand and supply of workforce for the future. Soft side of HRM Hard side of HRM

Copyright © 2002 by Harcourt, Inc. All rights reserved. The implications of strategic HRM The implications: Integration into overall corporate strategic planning Integration into overall corporate strategic planning Developing an organizational culture Developing an organizational culture Motivating, training and support Motivating, training and support Coordination with other functions Coordination with other functions Developing a flexible workforce Developing a flexible workforce © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. Advantages and disadvantages of Strategic HRM Advantages: Help gain a competitive edge Help solve HRM problems Make the efficient use of employees and reduce costs Help anticipate and plan for changes Benefit long term Disadvantages: Difficulty in predicating the people behavior Problems with predicating external events affecting HR planning Needing constantly monitoring Leading to industrial relation problems

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce Definition: A workforce that can respond quickly in quantity and type to changes in demand a business may face. A workforce that can respond quickly in quantity and type to changes in demand a business may face. © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce The organization of a flexible workforce The organization of a flexible workforce © PhotoDisc Core workers Periphery Workers

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce Full-time employees who have specific skills and job security Full-time employees who have specific skills and job security Core workers

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce Part-time or temporary workers who available whenever needed Part-time or temporary workers who available whenever needed Core workers Periphery workers

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce Examples of flexible workforce practices: Part-time Part-time Temporary Temporary Bank time Bank time Job sharing Job sharing © PhotoDisc

Copyright © 2002 by Harcourt, Inc. All rights reserved. The flexible workforce Major advantages of a flexible workforce: Employee benefiting from flexible working hours Employee benefiting from flexible working hours More employee opportunities of training and being multi-skilled More employee opportunities of training and being multi-skilled Reducing business costs and increasing productivity Reducing business costs and increasing productivity Reacting quickly to changes in the workforce Reacting quickly to changes in the workforce © PhotoDisc