STRATEGIC HUMAN

RESOURCE
MANAGEMENT

Basically any strategic process can be broken down into two phases

1. Strategy formulation

2. Strategy implementation

Strategic formulation is concerned with making decisions with regard to

defining the organisations vision and mission, establishing long- and shortterm objectives to achieve the organisations vision and selecting the
strategy to be used in achieving the organisations objectives.

Strategic implementation is concerned with aligning the organisation structure,

systems and processes with the chosen strategy
Strategic management is the process of formulating, implementing and
evaluating business strategies to achieve organisational objectives.

HRM is theprocessof hiring anddevelopingemployeesso that they

become
more
valuable
to
theorganization.
Strategic human resource management is to ensure that human resource
management is fully integrated into strategic planning, that HRM policies
cohere both across policy areas and across hierarchies.

SHRM can be defined as the linking of human resources with strategic

goals and objectives in order to improve business performance and
develop organisation culture that foster innovation, flexibility and
competitive advantage.

In an organisation SHRM means accepting and involving the HR function as

a strategic partner in the formulation and implementation of the companys
strategies through HR activities.

Key characteristic of SHRM is that it is integrated. (merged into everything)

SHRM is concerned with both meeting human capital requirements and

development of process capabilities that is ability to get things done
effectively.
Organisations are increasingly looking at human resources as a unique
asset that can provide sustained competitive advantage.
Strategic HRM refers to the overall direction the organization wishes to
pursue in order to achieve its goals through people
It is argued that, because intellectual capital is a major source of
competitive advantage, and in the last analysis it is people who
implement the strategic plan, top management must take these key
considerations fully into account in developing its corporate
strategies. Strategic HRM is an integral part of those strategies.

Strategic HRM, therefore, is concerned with the following:

1. Analyse the opportunities and threats existing in the external

environment.

2. Formulate strategies that will match the organisations

(internal)

strengths

and

weaknesses

with

environmental

(external) threats and opportunities. In other words, make a

SWOT analysis of organisation.

3. Implement the strategies so formulated.

4. Evaluate and control activities to ensure that organisations

objectives are duly achieved.

Benefits of SHRM
1.

Allows identification, prioritisation and exploitation of opportunities.

2. Provides an objective view of management problems.

3. Represents a framework for improved co-ordination and control of
activities.
4. Minimises the effects of adverse conditions and changes.
5. Allows major decisions to better support established objectives.
6. Allows more effective allocation of time and resources to identified
opportunities.
7. Gives a degree of discipline and formality to the management of a
business

8. Creates a framework for internal communication among personnel.

9. Helps to integrate the behaviours of individuals into a total effort.
10. Provides a basis for the clarification of individual responsibilities.
11. Gives encouragement to forward thinking.
12. Provides a co-operative, integrated and enthusiastic approach to tackling
problems and opportunities.
13. Encourages a favourable attitude towards change.

Planning and Implementing HR

Policies
Staffing

Basic Workplace Policies

Compensation and benefits

Retention

Training and development

Regulatory issues and worker safety

HR Strategies to increase firm performance

Make it applicable
Be a strategic partner
Involve people
Understand how technology can be used
Communicate what the company is doing and how its performing
Help employees to understand how they contribute to companys
performance
Show appreciation for good work and counsel employees following subpar work
Training and development
Promoting good attitude
Skills and competencies
Giving responsibilities
Show flexibility to enhance employee balance for career and personal life

hr strategies to increase firm performance

TQM

16

WHAT IS

???

Any Answers

Total Quality Management

Quality in simple definition can be defined as a measure of
excellence or a state of being free from defects & deficiencies.

Total: Made up of the whole.

Quality: Degree of excellence of a product or service provides
Management: Act/ Art, Manner of handling, controlling & directing it

TQM is defined as both philosophy and set of guiding principles that represent
the foundation of a continuously improving organization. It is application of
quantitative methods & human resources to improve all the processes within
an organization and customers.

Basic Approach
1)

A committed and involved management to provide long term topto-bottom organizational support.

2)

An unwavering focus on the customer, both internally & externally.

3)

Effective involvement & utilization of the entire work force.

4)

Continuous improvement of the business and production process.

5)

Treating suppliers & Vendors as partners.

6)

Establishing the performance measures.

Obstacles of TQM
1.

Lack of management Commitment

2.

Inability to change organizational culture

3.

Improper planning

4.

Lack of continuous training & Education

5.

Incompatible organizational structure

6.

Ineffective measurement techniques & Lack of

access to data & results.

7.

Paying inadequate attention to internal & external

customers.

8.

Inadequate use of empowerment & Teamwork

9.

Failure to continually improve.