Tool Kit SHRM

19

Strategic human resourcemanagement toolkit

The purpose of the toolkit is to provide the basis for conducting a strategicreview of human resource management practices in order to develop andimplement strategic human resource management. The individual tools canserve as checklists to analyse different aspects of HR strategy. They can also beused to involve people in the formulation of strategy by prompting discus-sions in workshops and focus groups. The kit consists of the following tools:

l Tool 1: Overall business analysis and HR implications;l Tool 2: Analysis of competitive strategy and its implications;l Tool 3: Analysis of business strategies and their implications;l Tool 4: Analysis of fit between type of organization and HR strategy;l Tool 5: ‘Best-practice’ analysis;l Tool 6: Overall analysis of HR strategic goals;l Tool 7: Overall strategic HRM gap analysis;l Tool 8: Integration of business and HR strategies;l Tool 9: Bundling of HR activities;l Tool 10: Analysis of high-performance goals;l Tool 11: High-performance work system gap analysis;l Tool 12: Analysis of engagement and commitment levels – survey;l Tool 13: Analysis of employee engagement goals;

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l Tool 14: Employee engagement gap analysis;l Tool 15: Analysis of resourcing goals;l Tool 16: Resourcing gap analysis;l Tool 17: Analysis of talent management goals;l Tool 18: Talent management gap analysis;l Tool 19: Analysis of learning and development goals;l Tool 20: Gap analysis of learning and development activities;l Tool 21: Analysis of reward management goals;l Tool 22: Gap analysis of reward management activities;l Tool 23: Analysis of employee relations goals;l Tool 24: Gap analysis of employee relations activities.

206 l The strategic HR toolkit

Business Matters Human Resource Implications

What business arewe in?

What sort of peopledo we need in thebusiness?

Where are we going? What sort oforganization do weneed to get there?

What are ourstrengths,weaknesses,opportunities andthreats?

To what extent arethese strengths andweaknesses relatedto our HR capability?

What opportunitieshave we got todevelop and engageour people?

What are the threatswith regard to skillsshortages andretention of keypeople?

What are the mainstrategic issuesfacing the business?

To what extent dothese issues involveHR considerations?

What are the driversof performance inthe business?

What contributionshould our peoplemake to driveperformance?

Tool 1 Overall business analysis and HR implications

Strategic human resource management toolkit l 207

Strategy HR Area Possible Actions Proposed Actions

Achievecompetitiveadvantagethroughinnovation

Resourcing Recruit and retain high-qualitypeople with innovative skills and agood track record in innovation.

Learning and development

Develop strategic capability andprovide encouragement andfacilities for enhancing innovativeskills and enhancing the intellectualcapital of the organization.

Reward Provide financial incentives andrewards and recognition forsuccessful innovations.

Achievecompetitiveadvantagethroughquality

Resourcing Use sophisticated selectionprocedures to recruit people who arelikely to deliver quality and highlevels of customer service.


Encourage the development of alearning organization, develop andimplement knowledge managementprocesses, and support total qualityand customer care initiatives withfocused training.

Reward Link rewards to qualityperformance and the achievement ofhigh standards of customer service.

Achievecompetitiveadvantagethroughcostleadership

Resourcing Develop core and peripheryemployment structures; recruitpeople who are likely to add value;if unavoidable, plan and managedownsizing humanely.


Provide training designed toimprove productivity; inauguratejust-in-time training that is closelylinked to immediate business needsand can generate measurableimprovements in cost-effectiveness.

Reward Develop performance managementprocesses that enable both financialand non-financial rewards to berelated to competence and skills;ensure that pay levels arecompetitive.

Tool 2 Analysis of competitive strategy and its implications


Business Strategy HR Implications

Performance Resourcing Learning andDevelopment

Reward

MarketDevelopment

ProductDevelopment

NewTechnology

Diversification

Merger,Acquisition

Tool 3 Analysis of business strategies and their implications


Miles and SnowClassification

Implications for HR Strategy

Performance Resourcing Learning andDevelopment

Reward

Prospectors, whichoperate in anenvironmentcharacterized byrapid andunpredictablechanges.

Defenders, whichoperate in a morestable and predictableenvironment thanprospectors andengage in more long-term planning.

Analysers, which are acombination of theprospector anddefender types. Theyoperate in stableenvironments likedefenders and also inmarkets where newproducts areconstantly requiredlike prospectors.

Reactors, which areunstableorganizations existingin what they believeto be anunpredictableenvironment. Theylack consistent, well-articulated strategiesand do not undertakelong-range planning.

Tool 4 Analysis of fit between type of organization and HR strategy


Pfeffer’s List ofSeven ‘Best Practices’

‘Best Practice’Adopted bySimilarOrganizations

Extent to which‘Best Practice’Exists in OwnOrganization

Extent to which‘Best Practice’Should or Can BeAdopted in Contextof OwnOrganization

1. Employmentsecurity

2. Selective hiring

3. Self-managed teams

4. High compensationcontingent onperformance

5. Training to providea skilled andmotivatedworkforce

6. Reduction of statusdifferentials

7. Sharing information

Tool 5 ‘Best-practice’ analysis


Possible HR Strategic Goals Importance* Effectiveness*

Support the achievement of the organization’sgoals

Meet needs of employees

Develop a high-performance culture

Create a powerful employee value proposition

Ensure that the organization is seen as a ‘greatplace to work’

Increase engagement

Recruit and retain talented people

Reward people according to their contribution

Provide employees with a voice

Improve communications

Provide a good working environment

Tool 6 Overall analysis of HR strategic goals

* Scale: 10 = high; 0 = low

Strategic HRM Area What We AreDoing

What We ShouldBe Doing

How We ShouldFill the Gap

Performance

Engagement

Organization Development

Resourcing

Talent Management

Learning and Development

Reward Management

Employee Relations

Working Environment

Tool 7 Overall strategic HRM gap analysis


Business Strategy Integrated HR Strategy

1.

2.

3.

4.

5.

6.

Tool 8 Integration of business and HR strategies

Possible Areas in whichBundling (ie Linking HRActivities) Could Take Place

Extent to which AnyBundling Has Taken Place

Any Further ActionRequired

High-performance worksystem

Performance management

Use of competencyframework

Development of joined-uptalent management processes

Development of blendedlearning processes

Development of career gradeand pay structures

Tool 9 Bundling of HR activities


Tool 10 Analysis of high-performance goals

Characteristics of the Culture Importance* Effectiveness*

People know what’s expected of them – theyunderstand their goals and accountabilities.

People feel that their job is worth doing, and thereis a strong fit between the job and theircapabilities.

Management defines what it requires in the shapeof performance improvements, sets goals forsuccess and monitors performance to ensure thatthe goals are achieved.

There is strong leadership from the top thatengenders a shared belief in the importance ofcontinuing improvement.

There is a focus on promoting positive attitudesthat result in an engaged, committed andmotivated workforce.

Performance management processes are aligned tobusiness goals to ensure that people are engagedin achieving agreed objectives and standards.

Capacities of people are developed throughlearning at all levels to support performanceimprovement and are provided with opportunitiesto make full use of their skills and abilities.

People are valued and rewarded according to theircontribution.

A pool of talent ensures a continuous supply ofhigh performers in key roles.

There is a climate of trust and teamwork, aimed atdelivering a distinctive service to the customer.

*Scale: 10 = high; 0 = low


Tool 11 High-performance work system gap analysis

Strategic HPWSArea

What We Are Doing

What We Should Be Doing

How We Should Fillthe Gap

Performance driversidentified andgovern developmentof HPWS practices.

Corporateperformance goalscascaded to allemployees.

Roles clarify andemphasizeperformance goals.

Effectiveperformancemanagement systemin place.

Rewards related toperformance andcontribution.

Learning anddevelopmentactivities focus ondeliveringperformanceimprovements.

Performanceimprovementrecognized as keyaspect of leadership.


Tool 12 Analysis of engagement and commitment levels – survey

Please circle the number that most closely matches your opinion.

StronglyAgree

Disagree StronglyAgree

Disagree

Engagement:

1. I am very satisfied with the work I do. 1 2 3 4

2. My job is interesting. 1 2 3 43. I know exactly what I am expected to do. 1 2 3 4

4. I am prepared to put myself out to do my work.

1 2 3 4

5. My job is not very challenging. 1 2 3 4

6. I am given plenty of freedom to decide how to do my work.

1 2 3 4

7. I get plenty of opportunities to learn in this job.

1 2 3 4

8. The facilities/equipment/tools providedare excellent.

1 2 3 4

9. I do not get adequate support from myboss.

1 2 3 4

10. My contribution is fully recognized. 1 2 3 4

11. The experience I am getting now will be agreat help in advancing my future career.

1 2 3 4

12. I find it difficult to keep up with thedemands of my job.

1 2 3 4

13. I have no problems in achieving a balancebetween my work and my private life.

1 2 3 4

14. I like working for my boss. 1 2 3 4

15. I get on well with my work colleagues. 1 2 3 4

Commitment:16. I think this organization is a great place in

which to work.1 2 3 4

17. I believe I have a good future in thisorganization.

1 2 3 4

18. I intend to go on working for thisorganization.

1 2 3 4

19. I am not happy about the values of thisorganization – the ways in which itconducts its business.

1 2 3 4

20. I believe that the products/servicesprovided by this organization are excellent.

1 2 3 4


Tool 13 Analysis of employee engagement goals

Engagement Goals – EnhanceEngagement by:

Importance* Effectiveness*

Providing interesting andchallenging work, responsibility(feeling that the work is importantand having control over one’s ownresources), autonomy (freedom toact), scope to use and develop skillsand abilities, the availability of theresources required to carry out thework, and opportunities foradvancement.

Establishing an enabling, supportiveand inspirational work environment.

Ensuring that leaders increaseengagement through the ways inwhich they design jobs, allocatework, delegate and provideautonomy.

Providing people with opportunitiesto grow and develop.

Enabling people to feed their ideasand views upwards and feel they aremaking a contribution.


Tool 14 Employee engagement gap analysis

EngagementActivity

What We Are Doing

What We Should BeDoing

How We Should Fillthe Gap

Job Design

PerformanceManagement

Total Reward System

LeadershipDevelopment

Skills and CareerDevelopmentOpportunities


Tool 15 Analysis of resourcing goals

Resourcing Goals Importance* Effectiveness*

Match people resources to businessrequirements.

Avoid unexpected deficits orsurpluses of staff.

Achieve human capital advantageby employing higher-quality peoplethan competitors.

Attract and recruit high-qualitycandidates.

Minimize recruitment costs.

Maximize ‘recruitment intensity’, iehigh numbers of applicants pervacancy.

Increase predictive validity, ie theextent to which predictions ofperformance and overall suitabilitymade when recruiting people areachieved.

Increase retention rates.

Reduce cost of labour turnover.

Achieve the required degree offlexibility in the use of people.



Tool 16 Resourcing gap analysis

Resourcing Activity What We AreDoing



Workforce planning based onthorough analysis of demandand supply forecasts.

Take action to align resourcingplans to strategic businessplans.

Attractive employment branddeveloped to obtain goodcandidates.

Speedy action taken to dealwith forecast surpluses ordeficits of staff.

Use of a variety of potentiallyvaluable sources of candidates.

Role analysis uses competencyframework and forms basis forstructured interviews.

Line managers trained ininterviewing techniques.

Interviews supplemented bybatteries of valid and reliabletests.

Causes of labour turnoveranalysed and action taken toreduce losses.

Costs of labour turnoverknown and used to delivermessage on the need toimprove retention rates.

Risk analysis carried out toidentify potential losses andtake preventative action.

Effectiveness of resourcingactivities regularly reviewedand corrective action taken asnecessary.


Tool 17 Analysis of talent management goals

Talent Management Goals Importance* Effectiveness*

Define what is meant by talent in termsof competencies and potential.

Ensure that talent is treated as a keycorporate resource.

Develop a pool of talent that willprovide a guaranteed supply of high-quality people to meet futurerequirements.

Provide for management succession.

Rely primarily on growth from withinwhile recognizing the need to bring infresh blood from time to time.

Identify those with talent and potential.

Institute programmes to develop talent.

Create a compelling ‘employee valueproposition’.

Develop the organization as ‘anemployer of choice’.



Tool 18 Talent management gap analysis

Talent Management Activity

What We AreDoing



Define organization’s talentrequirements.

Conduct talent audits toidentify talent.

Identify sources of talent fromwithin and outside theorganization.

Provide talented people withopportunities for careerdevelopment and growth.

Design jobs that providetalented people with theopportunity to develop theirskills and potential.

Define career paths and career‘aiming points’ or ‘destinationjobs’.

Apply systematic policies toimprove retention rates.

Create managementsuccession plans.

Recognize those with talentthrough the reward system.


Tool 19 Analysis of learning and development goals

Learning and Development Goals Importance* Effectiveness*

Create human capital advantage byensuring that the organization has moreskilled and competent people than itscompetitors.

Improve individual, team andorganizational performance.

Attract and retain high-quality people byoffering them learning and developmentopportunities.

Extend the skills base of the organization.

Improve organizational flexibility bymultiskilling.

Provide additional non-financial rewardsto people in the form of growth and careeropportunities.

Reduce the length of learning curves andthus minimize learning costs.

Ensure that talented people are developedto achieve their maximum potential.

Provide line managers with the skillsrequired to lead and develop their people.



Tool 20 Gap analysis of learning and development activities

Learning and DevelopmentActivity

What We AreDoing



Encourage organizationallearning.

Develop the business as alearning organization.

Identify learning needs.

Introduce blended learningand development programmesto meet identified needs.

Make good use of e-learning.

Introduce systematic coaching.

Develop a mentoringprogramme.

Evaluate the outcome oflearning and developmentprogrammes.


Tool 21 Analysis of reward management goals

Reward Management Goals Importance* Effectiveness*

Reinforce the achievement oforganizational goals.

Recruit and retain staff of therequired calibre.

Facilitate staff mobility.

Achieve strong relationshipbetween pay and performance.

Reinforce organizational values.

Engage and motivateemployees.

Cost-effective.

Well communicated andunderstood by employees.

Managed effectively in practiceby line managers.



Tool 22 Gap analysis of reward management activities

Reward Management Activity What We AreDoing

What WeShould BeDoing


Develop total reward processes.

Use systematic processes forvaluing roles and achievinginternal equity.

Regularly survey market rates toensure pay levels arecompetitive.

Develop and maintain gradeand pay structures that providea good framework for managinggradings and pay progression.

Reward people for theircontribution.

Develop recognitionprogrammes.

Introduce flexible benefits.

Manage general and individualpay reviews.


Tool 23 Analysis of employee relations goals

Employee Relations Goals Importance* Effectiveness*

Build stable and cooperativerelationships with employees and theirtrade unions.

Operate on a partnership basis withtrade unions.

Achieve engagement through employeeinvolvement and communicationprocesses.

Minimize conflict with employees andtheir unions.

Adopt a high-commitment approachthat develops mutuality.

Maintain bargaining structures andnegotiating procedures that enableagreements to be reached smoothly.


Tool 24 Gap analysis of employee relations activities

Employee Relations Activity What We AreDoing



Recognize unions.

Develop partnershipagreements.

Maintain effective industrialrelations procedures.

Resolve disputes.

Negotiate terms andconditions.

Communicate.

Provide employees with avoice (involvement andparticipation).

Documents

Tool Kit SHRM