Distinctive
human resources
are firms' core
competencies
SHRM is the linking of HRM with strategic goals and objectives in
order to improve business performance and develop organizational
cultures that foster innovation and flexibility.
SHRM is the pattern of planned human resource deployment and
activities intended to enable an organization to achieve its goals.
Strategic human resources management is largely about integration
and adaptation,Its concern is to ensure that,(1) human resources
(HR) management is fully integrated with the strategy and the
strategic needs of the firm; (2) HR policies cohere both across policy
areas and across hierarchies; and (3) HR practices are adjusted,
accepted,and used by line managers and employees as part of
their everyday work.
Strategic Human Resource Management
The 5-P Model
ORGANIZATIONAL STRTEGY
Initiates the process of identifying
strategic business needs and
provides specific qualities to them
STRTEGIC BUSINESS NEEDS
Expressed in mission statements or
vision statements and translate into
strategic business objectives
EXTERNAL
CHARACTERISTICS
STRATEGIC HUMAN RESOURCES
MANAGEMENT ACTIVITIES
INTERNAL
CHARACTERISTICS
Linking Strategic Business Needs & Strategic HRM Activities
Pepsi-Cola International’s strategy
Being No,1 by Creating Value through Leadership and Excellence.
The fastest growing
The most committed to customer service and attuned to customer
needs
The best operators
The best selling and marketing company
The best people-oriented company
The 5-P Model
PCI’s strategic business objectives
Committed bottling organization
Uncompromising dedication to quality
Development of talented people
Focus on growth
Quality business plans
The 5-P Model
Human Resources Policies
Expressed as shared values
(guidelines)
Human Resources Philosophy
Expressed in statements defining
business values and culture
Human Resources Programs
Articulated as Human Resources
Strategies
Human Resources Practices
For leadership,managerial,and
operational roles
Human Resources Processes
For the formulation and
implementation of other activities
Express how to treat and
value people
Establishes guidelines for action
on people-related business issues
and HR programs
Coordinates efforts to facilitate
change to address major people-
related business issues
Motivates needed role
behaviors
Defines how these activities
are carried out
The 5-P Model
STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES
1,HUMAN RESOURCES PHILOSOPHY
This is a statement of how the organization regards its human
resources,what role the resources play in the overall success of
the business,and how they are to be treated and managed.
Instead of using the terms HR philosophy or HR values to describe
how human resources are regarded,treated,and managed,some
organizations use the term culture.
The 5-P Model
A statement of the culture at PCI
LEADERSHIP IN PEOPLE
We will develop an excellent organization focused on building the business by:
Empowering people to drive the business from the closest point to the market
Developing the right skills to be the best in the business
Building career opportunities
Building teamwork:
With bottlers to ensure that we maintain strong partnerships
Among area,division,and headquarters staff to ensure that we coordinate
functional strengths to produce the best possible results
Across markets to ensure that we share the best practices throughout the
enterprise
Helping people succeed by building an environment with:
High integrity
Strong and consistent values
Continuous improvement
The 5-P Model,PHILOSOPHY
LEADERSHIP IN OUR BRANDS
We will achieve brand superiority by:
Delivering the best products in the marketplace:
The highest quality
The best tasting
The most consistent
Communicating these benefits in a high-impact,persuasive and consistent manner
LEADERSHIP IN MARKETING
We will build on our brand platforms by:
Creating new brand,channel,and package segments that build the business:
Faster off the mark
Better ideas
Quicker to create and take advantage of opportunities
The 5-P Model,A statement of the culture at PCI
LEADERSHIP IN OPERATIONS
We will build excellence in our own and bottler operations by:
Being the low-cost producer
Establishing and maintaining a strong focus on customer services and sales
management,These cornerstones will make us the best sales company
Standardizing operating systems to:
Enhance our ability to provide the highest level of customer service
Develop an ability to measure and manage key parameters of the business in a
consistent fashion
Provide a common set of practices and disciplines for the organization
The 5-P Model,A statement of the culture at PCI
2,HUMAN RESOURCES POLICIES
All of these statements provide guidelines for action on people-related
business issues and for the development of HR programs and practices based
on strategic needs,The term HR Policy,as used here,does not mean HR
Policy Manual.
The 5-P Model
HR policy can link values with a particular people-related
business need
Values,high standards of personal performance
Need,to develop communication skills that would foster such performance in
a decentralized international environment
HR policy,instant feedback,if you have a problem or an idea about any
aspect of the business,or about an individual's performance,then the
organization demands that you raise the issue appropriately and discuss it
maturely.
The 5-P Model,POLICIES
3,HUMAN RESOURCES PROGRAMS
Shaped by HR policies,HR programs represent coordinated HR efforts
specifically intended to initiate,disseminate,and sustain strategic
organizational change efforts necessitated by the strategic business needs.
The 5-P Model
Generic questions help to identify the fundamental issues for
programs
What is the nature of the corporate culture? Is it supportive of the business?
Will the organization be able to cope with future challenges in its current
form?
What kind of people and how many will be required?
Are performance levels high enough to meet demands for increased
profitability,innovation,higher productivity,better quality,and improved
customer service?
What is the level of commitment to the company?
Are there any potential constraints such as skill shortages or HR problems?
The 5-P Model,PROGRAMS
4,HUMAN RESOURCES PRACTICES
LEADERSHIP ROLES
Establishing direction
Aligning people
Motivating and inspiring individuals
Causing dramatic and useful change
e.g,FPC
Live by the basic values of the Forest Products Company
Demonstrate honesty and ethical behavior in business transactions
Show a high degree if personal integrity in dealing with others
Avoid wasting time or resources
Strive for continuous improvement in all you do
Demonstrate confidence in yourself as a leader
The 5-P Model
MANAGERIAL ROLES
Make sure that objectives are clearly understood
Level with people on what is not negotiable
Give appropriate orientation to people on new assignments
Deal effectively with performance problems
Give people the information they need to be successful
Give developmental performance feedback in a timely manner
Give people the freedom they need to do their jobs
Give co-workers the opportunity to try out their new ideas
Encourage appropriate collaboration on work assignments
Encourage people to participate when appropriate
OPERATIONAL ROLES
Content is far more specific than for the other roles
The 5-P Model,PRACTICES
5,HUMAN RESOURCES PROCESSES
This area deals with "how" all the other HR activities are identified,formulated,
and implemented.
The 5-P Model
Strategy - HR fit,
Does it really
matter?
FIT,the effectiveness of any HR practice or set of practices for
impacting firm performance depends upon the firm's strategy,or
conversely,the effectiveness of any strategy depends upon having the
right HR practices.
While some studies provided
minor support for the efficacy
of fit,overall the results were
far from conclusive
Strategy - HR fit
If the facts don't
fit the theory,fix
the facts.
Strategy - HR fit
The system architecture level
(consists of the guiding principles)
Little reason exists for thinking that
the effectiveness of such principles
might vary across strategies
The policy alternatives level (the
different techniques or practices
through which the guiding principles
can be promoted)
How fit with strategy might take on
importance
”Product" level (the immediate
product the HR practices aim to
produce)
A strong need to tie HR to strategy
exists
Practice-process level (the best-in-
class implementation and/or
technique of the principles,practices,
and product systems)
This issue of internal fit will be left for
a future research
Strategy - HR fit