Unit 9 HR Strategies by AJ

8/9/2019 Unit 9 HR Strategies by AJ

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HRD Strategies for Long Term

Planning & Growth


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Basic Function Perform by each Manager

PLANNING

ORGANIZING

STAFFING

LEADING

CONTROLLING


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Techniques of Human Resource Management

Planning manpower needs and recruiting people

Selecting the right candidates

Orienting and training new employees

Managing wages and salaries (compensating employee) Providing incentives and benefits

Conducting job analyses (determining the nature of eachemployee's job)

Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers Building employee commitment


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Why Is Human Resource Management Important to

allManagers?

According to Perl some of the personnel mistakes which as amanager you would like to avoid.

Manager dont want to:

Hire the wrong person for the job

Experience high turnover Waste time with useless interviews

Have your company taken to court because of discriminatoryactions

Have your company cited under federal occupational safetylaws for unsafe practices

Have some employees think their salaries are unfair andinequitable relative to others in the organization

Commit any unfair labor practices


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Strategic concept

A Strategy is a way of doing something. Thinking ahead

of your competitors.

Getting the right strategy of the business ..

Implementing it effectively getting everybody in the

organization from the top to bottom ,doing things that

makes the business successful


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Strategic Role of HR

Strategic HRM is the pattern of planned human resourcedevelopments and activities intended to enable anorganization to achieve its goals.

Accepting HR functions as a strategic partner in both

formulation of companys strategy as well asimplementing those activities through HR activities.

In todays time it's HR's job to build competitiveadvantage.

Today role of HR is shifting from protector and screener

to strategic partner and change agent. Formulating a strategic plan requires identifying,analyzing, and balancing the company's externalopportunities and threats, and its internal strengths andweaknesses. HR plays a critical role in this.


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Organizational Strategies Based

On Human Resources

Today recognition of HR has been growing . Certain

conditions, where human resources contribute to a

competitive advantage for organizations are-

INNOVATION

UNUSUAL QUALITY

SPECIAL SKILLS

PRODUCTIVITY OUTATANDING SERVICES


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Organizational Strategies BasedOn

Human Resource

INNOVATIONINNOVATION

UNUSUAL

QUALITY

UNUSUAL

QUALITY

SPECIAL

SKILLS

SPECIAL

SKILLS

HUMAN

RESOURSE

HUMAN

RESOURSE

PRODUCTIVITYPRODUCTIVITY

OUTATANDING

SERVICES

OUTATANDING

SERVICES


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Productivity as an HR based strategy

The more productive an organization, the better itscompetitive advantage, because the costs of producing goods and services is lower. Better productivity does not mean more is produced; it is

fewer people (or less money or time is used toproduce the same amount.

Productivity is a measure of the quantity and quality ofthe work done. Productivity is the ratio between inputsand outputs. ( lesser the input higher the output)

Productivity leads to higher standards of performance.


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Organizations & Productivity

Productivity at the organizational level affects profitabilityand competitiveness of an organization.

None of the resources used for productivity inorganization are so closely scrutinized as a humanresources. Most of the activities undertaken in an HRsystem are designed to affect individual or organizationalproductivity Pay, appraisal systems, training, selection,

job design and complementation re activities directlyconcerned with productivity.

A useful way to measure organizational HR productivityis by considering Unit Labor cost.


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Increasing Productivity

Some basic ways to improve organizational productivity aredownsizing, re-engineering jobs, increasing computer usage.Few other ideas for productivity improvement include:

Outsourcing: Contract with someone else to perform activities

previously done by employees of organization. Making workers more efficient with capital equipment: Typically, the

more spent on equipment per worker, the greater the output perworker.

Helping workers work better: Replace outmoded (old fashioned)processes, methods, and rules. Find better ways of training people

to work more efficiently. Redesigning the Jobs: Some jobs can be redesigned to makethings faster, easier, and possibly even more rewarding toemployees .Such changes aims to improve employee productivity.


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Benefits of HRD

HRD deals with Development and Up- gradation ofHuman Capital

HRD improves capabilities of people. Employees

become innovative and enterprising-always eager totake risk and get ahead. Continuous feedback andguidance from superiors help employees growcontinually and show superior performance.

HRD improves team work.

HRD leads to greater organizational effectiveness.


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Factors that determines HR Plans

Strategy of theStrategy of the

OrganizationOrganization

Strategy of theStrategy of the


Need for HumanNeed for Human

Resources: Quality andResources: Quality and

Skill LevelsSkill Levels

Need for HumanNeed for Human

Resources: Quality andResources: Quality and

Skill LevelsSkill Levels

Available FinancialAvailable Financial

ResourcesResources

Available FinancialAvailable Financial

ResourcesResources

Competitive /Competitive /

FinancialFinancial

EnvironmentEnvironment

Competitive /Competitive /

FinancialFinancial

EnvironmentEnvironment

CurrentCurrent


SituationSituation

CurrentCurrent


SituationSituation

Culture of theCulture of the


Culture of theCulture of the


HR Plans and Policies for:HR Plans and Policies for:

RecruitingRecruitingSelectionSelection

HR developmentHR development

CompensationCompensation

PerformancePerformance

ManagementManagement

Staffing AdjustmentStaffing Adjustment

HR Plans and Policies for:HR Plans and Policies for:

RecruitingRecruitingSelectionSelection

HR developmentHR development

CompensationCompensation

PerformancePerformance

ManagementManagement

Staffing AdjustmentStaffing Adjustment


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Importance of HRStrategy

According to Strategist Michael Porter human

resource management is a key for obtaining

competitive advantage .Distinctive competenciescan be obtained through highly developed

employee skills, distinctive organizations culture,

management process and systems . competitive

advantage can be obtained with a high quality

work force.


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Strategic Planning

Development of organizational

philosophy & mission statement

Environment scanning SWOT analysis

Formulation of strategic objectives

Generation of alternatives strategies for

achieving objectives Evaluation of selection of strategy


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Strategic management

Strategic management is considered to be

a continuous activity that requires a

constant adjustment of three major

interdependent poles- the values of senior

management, the environment, and the

resources available.


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Strategic Management

The Three Traditional poles of a Strategic Plan


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Strategic Management involves four steps -

Analyze the opportunities and threats orconstraint that exists in the external

environment. Formulate strategies that will match the

organizations strengths and weaknesses withthe environment threats and opportunities.

Implement the strategies. Evaluate and control activities to ensure that the

organizations objectives are achieved


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Human Resource Activity

Typology- By Alan Speaker

This typology categorizes human resource activities in a2 x 2 matrix according to two dimensions: (1) the extentto which such activities are relational or transactionaland (2) whether they have high or low strategic value. Atone end of the transactional and relationship continuumare transactional activities that are mostly administrativeand impersonal. The performance of these activitiesdoes not require a high level of interpersonal skill, andmany of these activities can be computerized. At theother end of the continuum are activities that require high

levels of interpersonal skill, political awareness, andsensitivity. For the strategic-value dimension, at one endof the continuum are activities that have direct businessimpact on the firm's ability to implement its competitivestrategies.


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At the other end of the continuum areactivities that have a more indirect or lessstrategic impact. The model is presented

in the next slide. Although there has beenno survey of practitioners indicatingagreement as to the placement ofactivities in specific quadrants, the

strategic value of the activities may varyaccording to the specific circumstancesfaced by each firm.


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Examples of activities in the low strategicvalue/transactional quadrant include such tasks aspayroll, benefits administration, employee records, andrelocation administration. These activities do not have

immediate impact on the firm's ability to implementvarious strategies, such as those emphasizing newproduct innovation, exceptional product quality, or lowcosts. Such activities are important to employees whobecome very concerned when their paychecks are not in

the right amount or they are having difficulties withbenefits such as medical claims. These activities mustbe performed accurately, in a timely manner, and withcost efficiency.


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HUMAN RESOURCE ACTIVITYTYPOLOGY

StrategicValue of

Activity

Staffing Planning(pipeline Development)Benefits PlanningRetirement PlanningCompliance

Performance EnhancementConsultingEmployee RelationshipLabor NegotiationsExecutive CompensationEmployee developmentManagement Development

Recruitment interviews

PayrollBenefits AdministrationRetirement AdministrationEmployees Records

RelocationAdministrationRecruitment Information

Processing

Recruitment information

Processing

Employee Assistance Program

Low

Type of HRActivity

Transactional

High

Relationship


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Requirement of strategic Human Resource

Managers

Information management skills

statistics , analysis and research

Planning skills

the knowledge of planning and planning methodologiesplus statistics techniques

Management skills

- Skills and in various business functional and

environment analysis

Integration skills- Competency at managing organization interfaces

Change management skills

- the skill of anticipating the future , facilitating the

changes and developing the organizational activities


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Attraction

Development

Motivation

Retention

Human Resource Management


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THE END

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Unit 9 HR Strategies by AJ