lecture-2 shrm -new approach to hrm1

7/31/2019 Lecture-2 SHRM -New Approach to HRM1

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1. THE CONCEPT OF SHRM

2. HENDRY AND PETTIGRE`S TYPOLOGY

3. SHRM-A NEW APPROACH

4. STRATEGIC FIT

5. STRATEGIC INTEGRATION

6. THE REQUIREMENTS OF SHRM

SHRM


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THE CONCEPT OF SHRM

SHRM is an approach to making decisions on theintentions of the organisation concerning peopleessential components of the organisation`s businessstrategy.

It is about the relationship between HRM and strategicmanagement in the organisation.

SHRM deals with `those HR activities used to supportthe firms competitive strategy (Wright & Snell, 1989).

The Means of aligning the management of HumanResources with the strategic content of the business(Walker, 1992)


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HENDRY & PETTIGRE`S TYPOLOGY

According to Hendry and Pettigrew (1986), SHRM hasfour meanings:

1. The use of planning

2. A coherent approach to the designed management ofpersonnel systems based on an employment policyand manpower strategy and often underpinned by aphilosophy.

3. Matching HRM activities and policies

4. Seeing the people of the organisation as a strategicresource for the achievement of competitiveadvantage.


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THE MAIN FEATURES OF SHM

According to Dyer and Holder (1988):

Organisational level

Focus-strategies are business driven and focus onorganisational effectiveness, thus in this perspectivepeople are viewed as resources.

Framework: incorporate a full complement of HR goalsand activities.

Roles: strategy-making generally is the responsibilityof line managers, with personnel playing a suppotiverole.


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SHRM-NEW APPROACH

SHRM means Strategic Fit

SHRM means Strategic integration

SHRM means competitive advantage

SHRM means long term consequences

SHRM means deployment of committed,dedicated and retainable workforce.

SHRM means distinctive capabilities


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STRAEGIC FIT

A `fir` organisation possesses the capabilities tosuccessfully implement its strategy. These capabilitiesinclude:

Coordination

Commitment

Competence (technical, management & leadership)

Communication

Creativity Capacity management-allocating resources to fit the

strategy.


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STRATEGIC INTEGRATION

HR strategies should be integrated withcorporate or business strategies.

Strategic integration is necessary to provide

congruence between business and humanresource strategy so that the latter supportsthe accomplishment of the former and indeedhelps to define it.

The aim is to provide strategic fit andconsistency between the policy goals of HRMand the business.


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MODELS FOR SHRM

THE HIGH COMMITMENT MANAGEMENT MODEL

THE HIGH PERFORMANCE MANAGEMENT MODEL

THE HIGH INVOLVEMENT MODEL


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THE HIGH COMMITMENT MANAGEMENT MODEL

The approaches to achieving high commitment asdescribed by Beer et al (1984) and Walton (1985) are:

The development of career ladders and emphasis ontrainability and commitment as highly valued

characteristics of employees at all levels in the org.

High level of functional flexibility

The reduction of hierarchies

Mutual interest


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THE HIGH PERFORMANCE MANAGEMENT MODEL

HPMM aims to make an impact on the performance through itspeople in such areas as productivity, quality levels of customerservice, growth profits.

Careful and extensive systems for recruitment, selection and

training Clear job design

High-level participation processes

Monitoring attitudes

Performance appraisal

Promotion and compensation schemes


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THE HIGH INVOLVEMENT MODEL

Treating employees as partners in theenterprise.

Dialogue

Mutual understanding Framework for managing and developing

people

Shared vision and corporate culture Unified voice In matters


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THE REQUIREMENTS OF SHRM

Strong visionary, and often charismatic leadershipfrom the top.

Well articulated missions and values

A clear expressed business strategy, which had beenimplemented successfully.

A positive focus on well understood critical successfactors.

The organisation offers a closely related range ofproducts or services to customers.

lecture-2 shrm -new approach to hrm1

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