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STRATEGIC HUMAN RESOURCE
MANAGEMENT
Human Resource Management
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Major Domains of Human Resource Management
• Organizational Design– HR planning
– Organization and job design and analysis
• Staffing – Recruiting– Hiring
• Employee training and development
Major Domains of Human Resource Management
• Performance appraisal and management – MBO– Productivity enhancement– Rater training
• Rewards, Benefits, and compliance– Direct and Indirect– Pay for performance– Enhancing Productivity and Quality of Worklife– Employment relations– Complaint/disciplinary procedures– Health and safety
HISTORY OF HRM
• Scientific Management (1911-1920)– Record keeping
• Industrial Psychology (1920-1930)– Test development
• Human Relations Era (1930-1960)– File maintenance: Screening; collecting personal data– Company picnic
• Government Accountability (1964- )– Personnel departments--compliance
• QWL (1970s - )• Strategic HRM (1990s-)
STATUS OF HRM
• Cost Factor
• Advocacy Factor
• Constraint Factor
• Bottom line Factor
Trends EnhancingImportance of HRM
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MEETING THE DEMANDS
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TRADITIONAL VS. STRATEGIC HRM
TRADITIONAL HRM– Isolated Parts
– Reactive
– Short-term Orientation
– Faddish
– Goal: Narrow
– Put out the fire
STRATEGIC HRM– Consistent Network
– Proactive
– Future Oriented
– Research/measurement
– Goal: CA
– Evaluation
Discrepancies Between Academic Research Findings and HRM Practices:
Recruiting
• Research Findings– Use of Yield Ratios
• HRM Practice
– Less than 15% use yield ratios
– Less than 28% know how
Discrepancies Between Academic Research Findings and HRM Practices:
Staffing
• Research Findings– IQ is the best predictor of
performance
– Integrity tests are useful
– Realistic Job Previews
– Weighted Application Blanks
– Structured, behavioral, or situational interviews
• HRM Practice
– Emphasize conscientiousness and values
– Overly concerned w/faking; AI
– Less than 20 % use RJP in high turnover jobs
– Less than 35% know what a WAB is; less than 5% use
– 40% use structured interviews
– Less than 50% use behavioral interviews
Discrepancies Between Academic Research Findings and HRM Practices:
Performance Appraisal
• Research Findings– No Traits
– Train Raters– Accountable for
appraisals
• HRM Practice
– More than 70% use traits
– Less than 30% train raters
– Less than 35% of managers are evaluated on appraisals given
SHRM PROCESS
1 Determine Goals/Mission/Vision
2 Determine Strategy
3 Determine Desired Competencies/Behaviors
4 Determine Fundamental HRM Choices that will encourage the desired behaviors
5 Design Detailed HRM Policies/Practices
IN SUM…
• To remain competitive, HR must contribute to competitive advantage
• This requires a shift to SHRM
• HR must justify its existence by demonstrating bottom line results.
Valley National Bank
• Identify competitive advantage of accounting department
• Reach consensus on top three issues• Discuss why issues must be resolved• Identify benefits/drawbacks of each
recommendation• Reach consensus on recommendations• Reach consensus on assessment questions
