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Aarhus School of Business Summer University

Aarhus University, Aarhus, Denmark

Course Title: Strategic Human Resource Management (SHRM)

Faculty: Professor Debi S. Saini, Management Development Institute, Gurgaon-122007 (INDIA);

E-mail: debisaini@mdi.ac.in; debissaini@gmail.com

Duration of the Course Delivery: 16 July– 05 August, 2014

Aim of the course:

Research reveals that lack of people management skills is one of the key reasons of managerial failures in

the present chaotic business world. A large number of general management books published after the

best-selling one, In Search of Excellence by Tom Peters and Bob Waterman (1982) testifies this fact.

Most companies do claim that their people are their greatest asset. In actuality, however, some only (e.g.,

Google, IBM, Southwest Airlines, Carlsberg, and British American Tobacco), genuinely practice this

mantra through creation of people-centric ambiance. Companies that truly value their human resource

(HR) are able to build employer brand, hire & retain competent employees, and promote employee

engagement. Eventually, this approach helps produce the requisite people behaviors, attitudes, and mental

models that are necessitated by high performance work systems and company’s business strategy.

In this context, this course has been designed with the aim of analyzing strategic HR models; new HR

themes and interventions; as also related measures, targets and plans of action. The course also helps

explain why some companies almost always adopt just hard, cost-reduction, and instrumentalist people

policies; and in the process remain only short-termist in their approach. It underscores that even several

low-cost strategy companies have been following soft HR interventions for competitive advantage.

Main issues:

Concretely speaking, three broad sets of issues are focused on in the course: articulating the strategic

HRM context that helps identify issues in building people-first culture, discussing emerging HR focus

areas that help promote sustainable competitive advantage, and aligning the selected HR interventions

with business strategy; all these help shape the desired HR architecture.

Specifically, the course will focus on discussing and analyzing the following areas of strategic HRM:

Building a framework of high performance work system (HPWS) in view of SHRM literature &

chaotic competition;

HR strategy models and using soft & hard strategic HR interventions;

Building employee recruitment, selection & talent acquisition strategies;

Leading change & flexibility through appropriate HR & IR strategies, including trade union

substitution policies;

Building engagement through employee involvement, diversity & nurturing organizational culture

that puts primacy on employee-first values;

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Dynamics of building a learning organization & managing knowledge;

Strategic HR issues in managing local and global businesses;

Building transformational leadership competencies—the essence of Strategic HRM

Aligning HR interventions with business strategy.

Teaching methodology

Learning of the course contents will involve focusing on analyzing the relevant concepts; as also

organizational problems and the need for taking decisions to resolve them. It will be facilitated through

lectures, video presentations, case discussions, exercises, problem-solving discussions, role plays and one

home assignment (Project described below). The usual class session will begin by discussing the relevant

theoretical concepts by the faculty, followed by case analysis presentation by the group concerned, and

then discussion on the case as also reviewing the learning of the day. Case discussions will aim at solving

people-management problems and deriving the relevant HR concepts through that process. The above

devices are aimed to promote learning by involving the class. The participants will undertake some

exercises in the class to help them develop specific people-management competencies. Also, the

participants will be encouraged to contribute to class learning by raising queries and replying to those

raised by others.

Learning outcome

On completion of the course, the participants are expected to have attained the following knowledge and

abilities:

Knowledge of the linkages between HR issues & contextual business realities through the eye of

HR strategy models;

Knowledge of the factors that facilitate employee engagement, and hiring & retaining talent;

Ability to understand how to confront adversarialism and promote employee cooperation through

strategic industrial relations and psychological contract;

Ability to understand the dynamics of labour flexibility & effecting strategic change;

Knowledge of strategic HR themes, including building of a learning organization;

Knowledge of the use of strategic HR interventions in domestic & global business realities;

Ability to understand the nuances of transformational leadership & how to develop the same; &

Ability to develop the requisite strategic HR interventions, & align them with business strategy.

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PERFORMANCE EVALUATION:

Assessment Components:

1. Case presentation & discussion by groups & class participation 20 %

2. HRM strategy essay work: 20 %

3. End-Term Exams: 60 %

The class will be divided into eight groups for preparing and discussing issues involved in the exercises,

caselets and full cases scheduled for discussion on the scheduled day. The assessment of one’s

contribution, however, will be done on individual basis.

I intend to keep the sessions interactive. Therefore, for the class to work well and for the student to benefit

from it, each student must be prepared to engage actively and contribute to each class session. Students

are expected to make quality contribution to the collective learning process of the class as a whole

through case discussion and/or otherwise making comments/observations on the issue/s being discussed.

This would require prior reading by the student concerned of the cases and the study material. The

following are some of the criteria that I consider as quality contribution:

Is the comment a mere repetition of facts from the case, or does it hint at some relevant

angularities and provides an analysis of some of the issues and their broader implications?

Does the comment reflect mere symptom/s of the problems involved or is an attempt to take the

analysis towards seeing the big picture and understanding of the causal root/s of the issues?

Is the comment presented in a clear, compelling manner or is it repetitive or contradictory?

Does the comment reflect creativity and out-of-box thinking in understanding the dimensions of

the issues?

Does the behaviour of the student as a class participant reflect good listening skills?

How significantly does the student’s overall participation contribute to the learning atmosphere as

well as actual learning of the class as a whole?

Is the student’s observation/comment linked to the comments of others on the issues being

examined so as to be in the flow?

Does the comment reflect verbosity and long narration of a simple/obvious point?

Each individual student will write an essay mainly focusing on any company of her or his choice that

has adopted some of the themes of strategic HRM being discussed in this course and the results the

practice of these themes have led to. In doing so, the student should bring out clearly references to the

literature that has been developed on these SHRM themes and how the company concerned is applying

these themes (practices) in its peculiar context. S/he should support her/his formulations with the help of

the working of those practices in few other companies as well, though the main focus shall on the

company that is the main focus of the essay. The information about the practice of the relevant themes

may be obtained from the internet, company websites, management journals, business books, magazines

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and newspapers. The essay should identify the interventions chosen by the main organization being

focused on, and how these interventions have been linked to, or integrated with, the company’s business

strategy. You may choose a company from private-sector or public sector. While the essay contents are

being developed, the student must also link her/his formulations with the conceptual learning gained from

the course.

The project essay will be due to be submitted by each student in soft as well a hard copy on or before

2nd August, 2014 (1. p.m.) and shall have a length of between 2000 to 3000 words, double spaced

(References and appendices can be separate). It should be concise and crisp and bring in all relevant

issues. The essay should reflect the student’s diagnostic, analytical and application skills.

The project essay summary will be presented by each student on the last day of course teaching as

scheduled on 5th

August, 2014.

SESSIONS PLAN

Date Subject Topic & Issues References Assignements/ Case Qs/

Exercices, etc.

Course begins

Day 1

Wednesday:

9.0-12.50

Context and nature of strategic

HRM:

Linking Globalization and the

changed work paradigm

New business challenges, as

also new people manage -ment

issues

HR’s response to new

challenges—Concept of

strategic HRM including

New industrial relations (IR)

as its part

Challenges of Strategic

HRM/HRD

Shifts in today’s HRM

Evolution of SHRM

Critique of strategic HRM

Readings:

Holbeche (2009),

Chs 1 & 2

Storey, Wright &

Ulrich(2009), Ch.

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Saini & Khan

(2000) pp. 13-34

Longenecker

(2007)

Day 2

Thursday

9.0-12.50

Strategic management, HRM

strategy, and HRM strategy models:

Organization Strategy development and

implementation: Vision/

mission/ objectives /goals/

values

Readings:

Beardwell, et al.

(2004) Ch. 2

Holbeche (2009),

Ch. 3

Presentation of analysis of:

Case: JetBlue Airways—

Starting from Scratch

(HBP)

Group 1

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Rational vs. emergent strategy

Business Strategy and HRM

Strategy Interface

HRM strategy models of

Tichy, Devanna et al., Beer et

al., and Others

Broad theoretical approaches

to HR strategy: best practice;

best fit; & resource-based view

approaches

Overview of Strategic themes

in SHRM

Questions:

1. 1. Analyze how the values, vision

and beliefs of the top management

led to formation of the

organizational culture of JetBlue.

2. 2. Which HR strategy model is

reflected in the HR systems and

approach of JetBlue?

3. 3. Why is JetBlue management so

particular about being a non-union

company?

4. 4. Analyze the leadership of Ann

Rhoades as a charismatic HR

professional?

5. 5. Which factors led to the success

of this airline; and what lessons you

can learn from this case?

Day 3

Friday:

9.0-12.50

Recruitment and selection

strategies:

Contemporary issues in

recruitment & selection

The hiring process

Values in the hiring process

Strategic recruitment—

Linking hiring to desired

culture & talent retention, &

employer of choice

Gen X & Gen Y profiles

Issues in retention &

turnover

Retention strategies

Readings:

Holbeche (2009),

Ch. 6

Stein, S. (2007),

Ch. 5

Group 2 to do

Presentation of analysis of:

Two Caselets:

A. McDonald’s

Questions:

1. 1. Describe how McDonald’s has

aligned its business, human

resource, and staffing strategies?

2. 2. What are some possible talent-

related threats that could eat away

its competitive advantage? Would

higher turnover or a tight labour

market in which it is difficult to

find talent be a problem?

3. 3. What would you recommend the

company to do so as to maintain its

competitive advantage over the next

five years?

B. Starbuck’s Staffing strategy

Questions:

1) 1. How can Starbucks use staffing

to pursue its growth strategy and

maintain its competitive advantage?

2) 2. What kind of staffing strategy

would you recommend Starbuck’s

to pursue to help it continue to hire

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the right people?

Exercise: Check Your

Values—The death of a

salesman

Week-end

Day 4

Monday: 9.0-

12.50

Changing paradigm in employee

relations:

Traditional issues in

management of industrial

relations (IR)

Frames of reference in, or

Perspectives of, IR: Pluralist,

Unitarist & Radical

frameworks

Generic changes in IR at

global level and their causal

roots

From pluralist IR to neo-

pluralism and neo-unitarist IR strategies

Readings:

Saini & Khan

(2000), Chs. 1,

pp.13-34, 2, 3

Hollinshead,

Nicolls, &

Tailby, (2003),

Ch.10 (pp.

372-392 only).

Presentation of analysis of:

Case: People Management

Fiasco at Honda Motor Cycles

and Scooters India Ltd. (HMSI

(Harvard Business publishing)

General discussion with

all groups

Key Questions:

1. Who all are the IR actors

in this case?

2. What do you think were

the gains of the workers

in this case? What are the

sources of their strength

that led to these gains?

3. If “IR is a game of

power,” how much power

was enjoyed by each of

the 3 main IR actors?

4. What do you think were

the principal causes of the

trouble that HSMI faced?

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Day 5

Tuesday:

9.0-12.50

Strategies for developing

cooperative employee relations:

New IR dynamics

Union-substitution strategies

Re-orienting managers &

union leaders for cooperation

as opposed to adversarialism

Managing Employee Relations

through New Psychological

contract

Building Psychological

contract:

Readings:

Guest (1987)

Cross et al.

(2003)

Case: People Management

Fiasco at HMSI

(Harvard Business publishing)

contd…

Group 3 to present analysis of

the following five Qs.

Key Questions:

5. What HR strategy &

business strategy was

followed by HMSI before

the fiasco?

6. If you were HMSI’s

CEO, what HR strategy

would you have followed

before the pre-fiasco?

7. What are the key

challenges before HMSI

in the post-July 25

scenario?

8. What people-mgt.

strategies should HMSI

adopt in the short run as

well as long run?

9. What lessons in people

mgt. and IR do you learn

from this case?

Day 6

Wednesday:

9.0-12.50

Strategic approach to building an

engaging/ exciting organization

Balancing employee &

business needs

Concept of engagement &

Gallop’s model

Factors that contribute to

employee engagement.

Key practices used by some

companies in promoting

engagement & excitement?

Readings:

Walton (1985)

Storey, Wright

&

Ulrich(2009),

Ch.18

Presentation of analysis of:

Case : Renn Zaphiropoulos

(Harvard Business publishing)

Group 4

1. List the interventions

used by Versatec Inc. for

employee engagement.

2. What importance was attributed to

communication in Renn’s mgt.

philosoph?

3. Is Renn a transformational leader?

Which of his competencies are

most critical?

4. Analyse the following statement of

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Renn:

“Very few orders are given here

and virtually no punishment. We

don’t like phonies; we throw

them out after they have been

here a very short period of time.

We like the brutal truth….You

will find very little ‘Fix it, Renn

is coming.’… Effort does not

count. Results count.”

5. What lessons in people

management do you learn from

this case?

Day 7

Thursday

9.0-12.50

Managing diversity (DM):

Proactive diversity management (DM) as a HRM

strategy

Concept and approaches to

DM

Building & implementing a

diversity strategy agenda

Readings:

Saini (2007)

Thomas

(2004)

Exercise: Diversity

Learning Sheet Exercise:

Pre- and

Post-DM sessions

Day 8

Friday:

9.0-12.50

Developing a learning organization

(LO) and benchmarking of HR

practices:

Learning and knowledge-

creation culture

Nature of learning

organization

Peter Senge’s model of

Learning Organization &

Garvin’s building blocks

Issues in creating a learning

organization

Managing knowledge workers

and HR’s role

Readings:

Holbeche

(2009), Ch. 17

Garvin (1993)

Senge (1990)

Presentation of analysis of:

Case: Children’s Hospitals

and Clinics--A. (HB Publishing)

Group 5

Questions:

6. 1. What should Morath say in meeting

with Mathews parents (Answeri this

question through a role play)

7. 2. How do you assess Julie Morath’s

Patient Safety Initiative & blameless

reporting as part of learning

organization?

8. 3. What barriers did Julie Morath face

towards openly discussing medical

errors, and did she overcome them?

9. 4. What challenges does Julie Morath

face now in opertionalizing her vision

of Children’s as a learning

organization?

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10. 5. What lessons in learning

organization do you learn from this

case?

Week-end

Day 9

Monday:

9.0-12.50

Employee involvement (EI)

strategies as opposed to collectivist

“employees’ participation in

management”:

The Concept of EI &

Employee participation (EP)

The logic of the changing

paradigm and its relevance in

the new business environment

Company newsletter; team

briefing; team working

Attitude surveys; suggestion

schemes; quality circles; and

TQM

EI: Rhetoric & realities

Readings:

Torrington et al.

(2008), Ch. 21

(pp. 510-519

only)

Hollinshead,

Nicolls, & Tailby,

(2003), Ch.10

(pp. 372-392

only).

Presentation of analysis of:

Case: Labour-Mgt.

Partnership: How to make it

Work & Its analysis by 3

Analysts

(Complimentary: Debi Saini)

Group 6

Questions:

1. What was the CEO’s

strategy in going for the

change?

2. What are the strong points

& limitations of the three

analysts?

3. If you come to know that

analyst 3 is an HR Chief

of a large company, what

comment would you make

on his analysis?

4. With which analyst you

agree more and why?

5. What are the merits of

studying a case through

the methodology of

evaluating the analysts?

Day 10

Tuesday:

9.0-12.50

People issues in managing

organizational flexibility & leading

culture change:

Flexible organization––The

flexible firm model of

Atkinson

Flexibility as per hard and

soft HRM strategy models

Soft flexibility through Work-

–Life balance

HR issues in promoting and

Readings:

Holbeche (2009),

Ch. 15

Torrington et al.

(2008), Ch. 5

Presentation of analysis of:

Case: Dynamics of Change

at NDPL (Complimentary by Debi Saini)

Group 7

Questions:

1. What factors contributed

to the Co.’s turnaround?

2. What role was played by

HR strategy in promoting

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managing culture change

Leadership development issues for building capacity to

adapt to change needs.

change?

3. What should the CEO now

do to march towards the

co. vision?

4. What lessons in Strategic

HRM do you learn from

this case?

Day 11

Wednesday:

9.0-12.50

Understanding & developing

Transformational Leadership—The

essence of strategic HRM:

Readings:

Saini & Khan

Ch. 18 by Udai

Pareek)

Film Analysis

& an Exercise

Thursday & Friday (day 12 and 13): Project Finalization Days

Week-end

Day 14

Monday:

9.0-12.50

Strategic HRM issues in global

business management:

Internationalization

strategies of companies

Approach of staffing in global

organizations

Management of cross-cultural

issues

Building global mindset and

developing global leaders

Readings:

Holbeche (2009),

Chs. 13 & 14

Dalton (2005)

Storey, Wright &

Ulrich(2009), Ch.

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Presentation of analysis of:

Case: HCM Beverage Co. (Harvard Business publishing)

Group 8

Key Qs.:

1. What challenges does

Johnson face presently?

2. Is he fit for the Job of a

global manager or should

he go back to US—why?

3. If he stays, what should

be his transformational

change agenda?

4. How should the raise in

wages issue be decided?

5. What lessons do you

learn from this case?

Day 14 Aligning HRM strategy with Readings:

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Monday:

14.15-15.45

p.m.

business strategy:

Developing HR strategy; &

aligning it to business

Identifying critical success

factors for comptt. advantage

Identifying desired culture &

behaviours

Identifying HR interventions

& aligning them to culture

Holbeche (2009),

Ch. 5

Ulrich &

Brockbank

(2005), Ch. 7

Miller et al.

(2002)

Fragos (2002

Presentation of the exercise

solution:

Exercise: Building and

aligning HR Strategy: HCM

Beverage Co.

(Read Ch. 7 of Ulrich &

Brockbank [2005], and do this

alignment exercise in a similar

manner as done in this chapter)

All Groups to come after

preparing this case for the

purpose of building the HR

strategy and aligning that

with the company’s

business strategy. Any one

group will be asked to

present.

Day 15 Tuesday:

9.00 a.m. to

1.00 pm.

Embodying organizational culture & capabilities in organizational members

through discussing cases of HRM strategy: reviewing the learning from the

course through presentation of the project summary by each student

individually.

Examination Preparation

LIST OF LITERATURE (COMPULSORY)

Essential Text:

Holbeche, L. (2009), Aligning Human Resources and Business Strategy, Butterworth Heinemann

(to be possessed by each student). Desired Readings from Journals & Book Chapters:

Beardwell, I., Holden, L. and Claydon, T. (2004), Human Resource Management (4th edition),

London: Prentice Hall, Chapter 2.

Cross, R., Baker, W., and parker, A. (2003), “What Creates Energy in Organizations,” MIT Sloan Management Review, 44 (4), pp. 51-56.

Dalton, Catherine (2005), “Human Resource Management in Global Environment: Key for Personal and Organizational Success: An Interview with Eliza Hermann,” Business Horizon, Vol. 48, pp. 193-198.

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Fragos, C. (2002), “Aligning Human Capital with Business strategy: Perspectives from Thought Leaders,” http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&sqi=2&ved=0CEUQFjAD&url=http%3A%2F%2Fwww.exinfm.com%2Fworkshop_files%2FAligning%2520Human%2520Capital.pdf&ei=LcOQUdnYDILqrQfz9oHgBQ&usg=AFQjCNFVn26JvPN1G38VxegfjU5YQMhsTQ&bvm=bv.46340616,d.bmk downloaded on 13 May., 2014.

Garvin, David (1993), “Building a Learning Organization,” Harvard Business Review, Vol. 71, No. 4 (July–August): 78–91.

Guest, D. (1987), “Human Resource Management and Industrial Relations,” Journal of Management Studies, 24 (50), pp. 503-21.

Hollinshead, G., Nicolls, P. and Tailby, S. (2003), Employee Relations, 2nd ed., London: Prentice Hall, Chapter 10 (pp. 372-392 only).

Longenecker, C., Neubert, M., Fink, L. (2007), “Causes and Consequences of Managerial Failure in Rapidly Changing Organizations,” Business Horizons, Vo. 50, pp.145-155.

Saini, D. (2007), “Manpower Diversity for Business Success: Some Emerging Perspectives,”

Manpower Journal, Vol. XLII, , No. 2, pp. 1-22.

Saini, D. & Khan, S. (eds.) (2000) Human Resource Management: Perspectives for the New Era,

New Delhi: Response Books, a Division of Sage Publishers, New Delhi. Chs. 1 (pp. 13-34), 2, 3.

Senge, Peter (1990), “The Leader’s New Work: Building Learning Organizations,” MIT Sloan Management Review, 32 (1) pp. 7-22.

Stein, S. (2007), Make Your Workplace Great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, Chapter 5.

Storey, J., Wright, P. and Ulrich, D. (eds.) (2009), The Routledge Companion to Strategic Human Resource Management, London: Routledge, Chapters 9, 18, and 24.

Thomas, D. (2004), “Diversity as Strategy,” Harvard Business Review, Vol. 82 (Sep. 2004), pp. 98-108.

Torrington, D., Hall, L. and Taylor, S. (2008) Human Resource Management, 7th

edition, Prentice

Hall, London. Chapters 5 and 21 (pp. 510-518 only).

Ulrich, D. and Brockbank, W. (2005), The HR Value Proposition, Boston: Harvard Business

School Press, Chapter 7.

Walton, Richard (1985), From Control to commitment in the Workplace, Harvard Business Review, March-April, 63 (2) pp. 76-84.

List of Literature (Optional)

Amabile, T. and Cramer, S. (2012) Rotman Magazine winter, Vol. 28, pp. 28-33. Atkinson, J. (1984), “Manpower strategies for flexible organizations.” Personnel Management, 16

(8) pp. 28–31.

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Barney, J. (1991), “Firm resources and sustained competitive advantage,” Journal of Management, 17 (1), pp. 99-120.

Cohen, Dan S. (2005), ”Creat Short-term Wins: Re-inforcing the Change Effort,” Excerpted from The Heart of Change Fieldguide: Tools and Tactics for Leading Change in Your Organization, Digital (22 pp.) Harvard Business School Publishing popular articles (2005-09-16).

Cooke, F. and Saini, D. (2010), “Diversity management in India: A study of organizations in different ownership forms and industrial sectors,” Human Resource Management, 49 (3), pp. 377-400.

Crowne, K. (2008), “What Leads to Cultural Intelligence?”, Business Horizons, 51 pp. 391-399.

Forster, Nick (2005), Maximum Performance: A Practical Guide to Leading and Managing People at Work, Cheltenham: Edward Elgar, pp. 379-395.

Graham, Ginger (2002), “If You Want Honesty, break Some Rules,” Harvard Business Review,” April, pp. 41-47.

Gupta, A. (1986), “Matching Managers to Strategies,” Human Resource Management, 25 (2), pp. 215-234.

Miller, D., Eisenstat, Foote, N. (2002), “Strategy from the Inside Out: Building Capability-creating Organizations,” California Management Review, 44 (3), pp. 37-54.

Seligman, Martin (2011), “Building Resilience,” Harvard Business Review, April, pp. 100-106.

Prentice, W.C. H (1984), “Understanding Leadership,” Harvard Business Review,

September/October, Vol. 39 No. 5, Pp. 143.

Stein, S. (2007), Make Your Workplace great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, chapters 9, 12.

Storey, J., Wright, P. and Ulrich, D. (eds.) (2009), The Routledge Companion to Strategic Human Resource Management, London: Routledge. Chapters 13 and 30.

Cases: The following 5 full cases are to be procured for each student from Harvard Business Publishing (HBP) online:

JetBlue Airways—Starting from Scratch

People Management Fiasco at Honda Motor Cycles and Scooters India Ltd.

Renn Zaphiropoulos

Children’s Hospitals and Clinics—A

HCM Beverage Co Other cases/caselets to be discussed in the class will be provided by Dr Debi Saini as complementary.