THE EVOLVING/ STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT Strategic Strategic Human Human Resource Resource Management Management •• Involves Involvesdevelopment developmentofofconsistent, consistent,aligned alignedcollection collectionofofpractices, practices,programs, programs, &&policies policiestotofacilitate facilitateachievement achievementofofstrategic strategicobjectives objectives •• Requires Requiresabandoning abandoningmindset mindset&&practices practicesofof“personnel “personnelmanagement” management”&& focusing focusingon onstrategic strategicissues issuesrather ratherthan thanoperational operationalissues issues •• Integration Integrationofofall allHR HRprograms programswithin withinlarger largerframework, framework,facilitating facilitatingmission mission &&objectives objectives •• Writing Writingdown downstrategy strategyfacilitates facilitatesinvolvement involvement&&buy-in buy-inofofsenior seniorexecutives executives&& other otheremployees employees HR HR Roles Roles in in Knowledge-Based Knowledge-Based Economy Economy •• Human Humancapital capitalsteward steward –– Creates Createsan anenvironment environment&&culture cultureininwhich whichemployees employees voluntarily voluntarilycontribute contributeskills, skills,ideas, ideas,&&energy energy –– Human Humancapital capitalisisnot not“owned” “owned”by byorganization organization •• Knowledge Knowledgefacilitator facilitator –– Procures Procuresnecessary necessaryemployee employeeknowledge knowledge&&skill skillsets setsthat that allow allowinformation informationtotobe beacquired, acquired,developed, developed,&&disseminated disseminated –– Provides Providesaacompetitive competitiveadvantage advantage –– Must Mustbe bepart partofofstrategically strategicallydesigned designedemployee employee development developmentplan plan HR HR Roles Roles in in Knowledge-Based Knowledge-Based Economy Economy •• Relationship Relationship builder builder –– Develops Developsstructure, structure,work workpractices, practices,&&culture culturethat that allow allowindividuals individualstotowork worktogether together –– Develops Developsnetworks networksthat thatfocus focuson onstrategic strategic objectives objectives •• Rapid Rapid deployment deployment specialist specialist –– Creates Createsfluid fluid&&adaptable adaptablestructure structure&&systems systems –– Global, Global,knowledge-based knowledge-basedeconomy economymandates mandates flexibility flexibility&&culture culturethat thatembraces embraceschange change SHRM SHRM Critical Critical Competencies Competencies •• HR’s HR’ssuccess successasastrue truestrategic strategicbusiness businesspartner partnerdependent dependenton onfive fivespecific specific competencies: competencies: –– Strategic Strategiccontribution contribution development developmentofofstrategy strategy –– Business Businessknowledge knowledge understanding understandingnuts nuts&&bolts boltsofof organization organization –– Personal Personalcredibility credibility measurable measurablevalue valuedemonstrated demonstratedinin programs programs&&policies policies –– HR HRdelivery delivery serving servinginternal internalcustomers customersthrough througheffective effective&& efficient efficientprograms programs –– HR HRtechnology technology using usingtechnology technologytotoimprove improveorganization’s organization’s management managementofofpeople people Barriers Barriers to to Strategic Strategic HR HR •• Strategic Strategic contribution contribution •• Business Business knowledge knowledge •• Personal Personal credibility credibility •• HR HR delivery delivery •• HR HR technology technology Reading Reading4.1 4.1 Distinctive DistinctiveHuman HumanResources ResourcesAre AreFirms’ Firms’Core Core Competencies Competencies No Noone oneset setof ofbest bestpractices, practices,and andthere thereshould shouldbe beaasubstantial substantial fit fitbetween betweenHR HRpractices practicesand andbusiness businessstrategies strategies People Peoplemanagement managementpractices practicesare arethe thedrivers driversto tocreate create distinctive distinctivecompetencies competenciesand andbusiness businessstrategies strategies Pairs Pairsof offirms firmsin invarious variousdivergent divergentindustries industriesare areexamined, examined, with witheach eachpair pairemploying employingdifferent differentHR HRstrategies strategiesbased based upon upondifferent differentcorporate corporatestrategies strategies Despite Despitecompeting competingin in the thesame sameindustry industryusing usingdifferent differentapproaches, approaches,each each organization organizationwas wassuccessful successfulbecause becauseits itsHR HRpractices practiceswere were well wellsuited suitedto toits itsoverall overallstrategy strategy Reading Reading4.1 4.1 Distinctive DistinctiveHuman HumanResources ResourcesAre AreFirms’ Firms’Core Core Competencies Competencies •• Professional ProfessionalSports Sports San SanFrancisco Francisco49ers 49ersand andOakland Oakland Raiders Raiders •• Retailing Retailing Sears Searsand andNordstrom Nordstrom •• Professional ProfessionalServices Services Boston BostonConsulting ConsultingGroup Group(BCG) (BCG) and andMcKinsey McKinsey& &Company Company •• Business BusinessSchools Schools Harvard Harvardand andWharton Wharton(University (Universityof of Pennsylvania) Pennsylvania) •• Financial FinancialServices Services Chubb Chubband andAIG AIG •• Shipping Shipping Federal FederalExpress Express(Fed (FedEx) Ex)and andUnited UnitedParcel Parcel Service Service(UPS) (UPS) •• Food Foodand andBeverages Beverages Coke Cokeand andPepsi Pepsi Reading Reading 4.1 4.1 Distinctive Distinctive Human Human Resources Resources Are Are Firms’ Firms’ Core Core Competencies Competencies •• ““Flexibility” Flexibility” dimension dimension associated associated with with “prospectors” “prospectors” •• ““Established Established markets” markets” category category linked linked to to classifications classifications like like “defenders” “defenders” •• Employment Employment practices practices are are difficult difficult to to change change & & transfer transfer •• Core Core competencies competencies should should drive drive business business strategy strategy & & not not vice vice versa versa Reading Reading4.2 4.2 Employee Employee Engagement Engagement and and Commitment Commitment •• Critical Criticalcompetitive competitiveadvantage advantagecan canbe begained gainedfrom fromhaving having engaged engagedemployees employees Engagement Engagementand andenhanced enhanced commitment commitmentresult resultin inboth bothhigher higherlevels levelsof ofproductivity productivity and andlower lowerlevels levelsof ofemployee employeeturnover turnover •• Engagement Engagementisisdefined defineddifferently differentlyby bydifferent different organizations organizationsbut butthe thecommon commonthemes themescenter centeraround around employee employeesatisfaction satisfactionwith withtheir theirwork, work,pride pridein inthe the employer, employer,employee employeebelief beliefin inwhat whatthey theydo doisisimportant important and andemployee employeesense senseof ofbeing beingappreciated appreciatedby bythe theemployer employer Reading Reading4.2 4.2 Employee Employee Engagement Engagement and and Commitment Commitment Employers Employersusually usuallyattempt attempttotomeasure measureengagement engagementusing usingthe thefollowing followingcriteria: criteria: ••Pride Prideininemployer employer ••Satisfaction Satisfactionwith withemployer employer ••Job Jobsatisfaction satisfaction ••Opportunity Opportunitytotoperform performwell wellatatchallenging challengingwork work ••Recognition Recognitionand andpositive positivefeedback feedbackfor forone’s one’scontributions contributions ••Personal Personalsupport supportfrom fromone’s one’ssupervisor supervisor ••Effort Effortabove aboveand andbeyond beyondthe theminimum minimum ••Understanding Understandingthe thelink linkbetween betweenone’s one’sjob joband andthe theorganization’s organization’smission mission ••Prospects Prospectsfor forfuture futuregrowth growthwith withone’s one’semployer employer ••Intention Intentiontotostay staywith withone’s one’semployer employer Reading Reading 4.2 4.2 Employee Employee Engagement Engagement and and Commitment Commitment Engagement Engagementcan canbe beenhanced enhancedby byvarious variousHR HRpractices practicesrelated relatedtoto –– Job Joband andtask taskdesign design –– Recruiting Recruiting –– Selection Selection –– Training Trainingand andDevelopment Development –– Compensation Compensation –– Performance PerformanceManagement Management ... Reading4.1 4. 1 Distinctive DistinctiveHuman HumanResources ResourcesAre AreFirms’ Firms’Core Core Competencies Competencies •• Professional ProfessionalSports Sports San SanFrancisco Francisco49ers... Reading4.1 4. 1 Distinctive DistinctiveHuman HumanResources ResourcesAre AreFirms’ Firms’Core Core Competencies Competencies No Noone oneset setof ofbest bestpractices, practices,and andthere thereshould.. .Strategic Strategic Human Human Resource Resource Management Management •• Involves Involvesdevelopment developmentofofconsistent, consistent,aligned alignedcollection collectionofofpractices,