Lecture 5

Strategic HRM

• Traditional and Strategic HR.• Formulating and Implementing Strategies.• Challenges in implementing strategies.• Types of HR Strategies.• Schools of Strategy development.

Case 1 Presentation

Achieving horizontal and Vertical Integration

Vertical Integration

1. Integration with the culture of the organization.

2. Fit with the business strategy.

Horizontal Integration

Conducting a Strategic Review

HR issues emerging from the strategic review

• Transformation of organization• Major cultural changes• May deviate from core activities• More emphasis on managerial skills• Need for new skills• Retaining existing employees

Steps to address the issues

• Communication initiatives by chief executive.

• Focus on transparency.

• Mutual Communication.

• Appropriate trainings.

Implementing HR Strategies

Barriers in Implementation process

• Accept initiatives in their comfort zone only.

• Change is viewed as a Threat.

• Difference in perceptions.

• Status Quo.

• Complex procedures.

Contd..

• Inadequate assessment of the environmental and cultural factors.

• When only top management implement process.

• Lack of supporting processes.

How to address these barriers?

Final Project Details

Improving Business Performance through Strategic HRM

A commitment Strategy

Control Strategy

High Performance work systems

Outcomes of Research

Year of Research Methodology Strategy

1990, 1992, 1994 30 US Mills High commitment strategy and Control Strategy

1995 968 US firms High Performance work systems

1998 623 UK firms High Performance work systems

1998 2000 Workplaces, 28,000 employees

Workplace employee relations

2000 12 companies Integration of HR Practices