S Strategic Human Resource Management

La Carmela De Boracay
H April 17-18, 2012

R
Director IV VICTORIA F. ESBER
Civil Service Commission
M (Presenter)
S
STRATEGIC
H HUMAN
R RESOURCE
M MANAGEMENT
 “A company is
known by the
people it keeps.”
- Unknown
 “Section 1. Every official and employee of the government is an
asset or resource to be valued, developed and utilized in the
S delivery of basic services to the public. Hence, the development
and retention of a highly competent and professional workforce
in the public service shall be the main concern of every

H department or agency.

Every department or agency shall therefore establish a

continuing program for career and personnel development for all
R agency personnel at all levels, and shall create an environment
or work climate conducive to the development of personnel
skills, talents and values for better public service”
M - Section I, Rule VIII - Rules Implementing
Book V of E.O. No. 292 and Other Pertinent
Civil Service Laws
 HUMAN RESOURCE MANAGEMENT
(Definition)

 Activities
designed to provide
S for and coordinate the human
resource of an organization
H
 Core management activity that
R deals with any aspect of an
organization that affects
employees, such as hiring and
M firing, pay, benefits, training, etc.
 HUMAN RESOURCE FUNCTIONS
(Definition)

S  Variety of tasks HR Managers

perform that significantly influence
all areas of an organization
H
 HR planning, recruitment and
selection, HR development,
R compensation and benefits, safety
and health, employee and labor
M relations, HR research
 Strategy is an integrated set of
S choices that positions a firm in an
industry to earn superior returns
H over the long run
- Harvard Business School

R Strategy is defined as all things

necessary for the successful
M functioning of an organization as
an adaptive mechanism
STRATEGIC HRM

 Linking of HR with strategic goals

and objectives in order to improve
business performance and develop
organizational culture that fosters
innovation, flexibility, and
competitive advantage

 Accepting and involving the HR

function as a strategic partner in the
formulation and implementation of
the company’s strategies
3 Aspects of Linking/Integration

1. The linking of HR
policies and practices
with the strategic
management process of
the organization

2. The internalization of
the importance of HR on
the part of line
managers
3. The integration of the
workforce into the
organization to foster
commitment or an
‘identity of interest’
with the strategic
goals
 STRATEGIC HRM

S  Aligns HR functions to core business

objectives

Involves more than just the administration

H 
of HR programs/ activities

Designed to help organization best meet

R 
the needs of employees while promoting
organization’s goals

M  Is the proactive management of people

Hierarchy of HRM Accountability
Alignment
with
Strategic Goals
of
the Organization

Effective HRM
Programs

Efficient HR Processes

Legal Compliance
Steps to Ensure Strategic Alignment:

 Fullyintegrate HRM into the business

planning process
 Focus on organizational activities that
assist in agency decision-making
 Measure HRM outcomes

 Aim for a collaborative working

environment between HR &
Management
3 KEY FEATURES OF SHRM

1. Explicit linkage between HR

policy and practices and
overall organizational
strategic aims and the
organizational environment
2. Some organizing schema
linking individual HR
interventions so that they
are mutually supportive
3 KEY FEATURES OF SHRM

3. Muchof the
responsibility for the
management of human
resources is devolved
down the line
 SHRM HELPS ORGANIZATION TO:

 Incorporate Human Resource

S plans into the “mainstream of
organizational strategy and
management”
H
 Instill belief on the importance of
people in achieving the overall
R corporate plan
 Ensure that HR people learn to think
M and act strategically when carrying
out their duties and responsibilities
 SHRM HELPS ORGANIZATION TO:

 Design performance incentive plans

S with the intention to continuously
motivate employees and thus
improve customer service
H
 Identify right training programs to
enhance/develop skills in line with
R core business activities

M  Engage, motivate and retain talented

employees
 ADVANTAGES OF SHRM:

 Enhancement of organization’s
S economic performance

H  Increasein employee and

organizational productivity
R  Increasein survival rate as
a corporate entity
M
 ADVANTAGES OF SHRM:

S  Lower labor turnover

 Increase in customer
H satisfaction

R  HRfunction does not

become redundant due to
M value-adding quality
 STRATEGIC ALIGNMENT:

Organization Strategy
S External and Internal Environment
Changes/Issues, Mission, Vision,
Values, Objectives and Strategies
H
Alignment
R Human resource Issues
Human Resource Strategies
M Implementation:
Management of HR
HR Programs and Activities
Evaluation of Results
Strategic Outcome

INTERNAL PROCESS

SHRM/Learning & Growth

Finance
 opif logframe
MISSION
IMPACT
OUTCOME

MAJOR FINAL
PROCESS
OUTPUT
SHRM/LEARNING
& GROWTH
INPUT
FINANCE
 MISSION What benefits will our work have on
our citizens or constituents?

How must we look to our stakeholders to

attract resources and authorization for our
mission?

How do we improve our processes to

PROCESS
better deliver our mission/mandate?

SHRM/LEARNING
To support our process improvement,
& GROWTH how do we equip our organization with
the necessary competencies, values and
tools?
FINANCE How should we manage & allocate
our resources for maximum social
impact?
 CSC shall be Asia’s leading center for excellence in strategic
human resource and organizational development

STAKEHOLDERS
Recognized as a Center for Excellence

Gawing High-performing, competent, and credible civil servants

lingkod-bayani
ang bawat
PROCESSES

kawani. Provide excellent HR processes Ensure effective and efficient

performance of quasi-judicial functions
PEOPLE

Enhance the competency of our workforce

•Love of God &
country
FINANCE

•Excellence Ensure efficient management of financial resources

•Integrity
PARTNERS

Cultivate partnerships with local and

international institutions
Exercise #1 Process Review

 State your agency’s vision and mission.

 Identify at least three (3) core processes
and their corresponding Major Final
Outputs (MFO) which should be
improved to better deliver your agency’s
mandate.
 How may these processes be improved?
 STRATEGIC OUTCOME

PROCESS IMPROVEMENT

SHRM/LEARNING & GROWTH

To support our process improvement, how do we
equip our unit with the necessary competencies,
values and technologies?
SHRM/Learning & Growth
Human Capital Leadership Culture Alignment Teamwork Information Capital
Portfolio Portfolio

HUMAN CAPITAL ORGANIZATION CAPITAL INFORMATION

CAPITAL
 Asset Objective
Eliminate the gaps between available and required
Human Capital
competencies in the workforce.
Leadership: Build a cadre of leaders at all levels required to
mobilize the organization towards its strategy.
Culture: Develop the awareness and internalization of the
Organization mission, vision and core values needed to execute strategy.
Capital Alignment: Ensure the alignment of goals and incentives
with the strategy at all levels of the organization.
Teamwork: Ensure the sharing of knowledge and staff
assets with strategic potential.

Information Provide the full portfolio of IT applications required of the

Capital strategy.
 SHRM/LEARNING & GROWTH
How do we equip our unit with the needed
competencies, values & technologies to
support our process improvement?
Strategic Shift
Objectives
from to
Human
Capital
Organization
Capital (LCAT)
Information
Capital
 HUMAN RESOURCE ISSUES (DEFINITION)

 Gaps between the current situation and the

desired situation
S
 Opportunities for people to contribute more
H effectively to the achievement of business
strategies
R
 1st step in formulating HR strategies and
M aligning HR actions with business priorities
 STEPS IN DEFINING
ISSUES

2. Define issues as gaps,

1. Assess changes questions or problems to
S In the internal and be resolved through
external environment action
H
R
3. Select the issues most 4. Address
M important to the these issues
organization in strategies
 TWO APPROACHES FOR ENVIRONMENTAL
ASSESSMENT

FUTURE VISION
Desired Future Situation
S Where We Want To Be

H
Futures Change
R Analysis GAPS Analysis
M
TODAY
Current Situation:
Where We Are Today
 SOURCES OF CHANGES
PRODUCING ISSUES

Internal Other External

S Environment Organization Environment
Functional Customers Demographics
H Effectiveness
Processes Competitors Legal
R Resources Vendors/Suppliers Political

M Organization Business Partners Social

Employees and Labor Organization Technology

Managers
International
Economy
 HUMAN RESOURCE ISSUES DERIVING
FROM BUSINESS CHANGES

S Improving Business Performance

H • Maintaining low costs and strong

cash flows
R • Improving product and service quality

M • Effectively introducing new technology

• Building superior capabilities

• Maintaining high employee commitment

 HUMAN RESOURCE ISSUES DERIVING
FROM BUSINESS CHANGES

S Managing Growth and Change

• Meeting changing staffing needs

H
• Making a merger or acquisition work
R
• Effective restructuring
M • Becoming more global as an
organization
 HUMAN RESOURCE ISSUES DERIVING FROM
SOCIAL AND DEMOGRAPHIC CHANGES

Work Force Changes

S • Overcoming a shortage of entry-level talent

H • Overcoming skills shortfalls

• Managing work force diversity
R
• Adapting to an aging work force
M • Adapting to women as a majority in the work force

• Accommodating disabled workers

 HUMAN RESOURCE ISSUES DERIVING FROM
SOCIAL AND DEMOGRAPHIC CHANGES

Work Attitudes and Expectations

S
• Responding to changing career
H expectations
• Responding to job security concerns
R
• Establishing preferred labor relations
M
 HUMAN RESOURCE ISSUES DERIVING FROM
SOCIAL AND DEMOGRAPHIC CHANGES

S Health and Family Care

• Containing health care costs

H
• Containing substance abuse
R • Coping with AIDS
M • Responding to family care needs
• Redefining retirement benefits
SHRM/LEARNING & GROWTH

How do we equip our unit with the needed

competencies, values & technologies to
support our process improvement?
Strategic Shift
Objectives
from To
Human Inadequate technical Highly competent Re-train , re-tool
Capital competencies and committed personnel to meet
(assessment, personnel job competency
program requirements
development and
implementation)
Organization
Capital (LCAT)
SHRM/LEARNING & GROWTH

How do we equip our unit with the needed

competencies, values & technologies to
support our process improvement?
Strategic Shift
Objectives
from To
Information “Disconnected” HR Integrated HR Ensure
Capital databases databases interconnectivity
of databases
Non-systematic Organized
records records
management management
 SHRM/LEARNING & GROWTH
How do we equip our unit with the needed competencies,
values & technologies to support our process improvement?
Strategic Shift
Objectives
from to
Organization Capital Compartmentalized office Restructuring of HRDO to Evolve into a Civil Service
(LCAT) structure composed of an institute operating Institute (CSI)
divisions through centers providing
services on a larger scale
Human Inadequate technical Re-tooling/Upskilling of Develop a highly competent
Capital competencies (research, staff competencies and and committed technical
training design and matching of competencies HRDO personnel
program development and with job requirements
implementation) of staff
vis-a-vis job requirements

Information Capital Insufficient learning Development of knowledge Enhance and improve

materials products knowledge products

Information system on HRD Design and develop an

No consolidated data on matters, i.e. information system for
HRD matters Trainers/Experts, training efficient and effective
programs conducted by data/report generation
government agencies
 Exercise #2 Identifying HR Issues

 Based on the core processes in

Exercise 1, accomplish the table below:
Strategic Shift
From To
(where we are today) (where we want to be) Objectives
Human Capital

Org Capital (LCAT)

Info. Capital
HR STRATEGIES (DEFINITION)

 A directional plan of action for managing

change

 Provides an organization perspective of

actions necessary to gain and sustain
competitive advantage through the
management of HR

 A focus on priorities in managing people in a

changing environment
 WHY HUMAN RESOURCE STRATEGY?

S • Defines opportunities and barriers for

achievement of organization objectives

H • Prompts new thinking about issues;

orients and educates participants and
provides a wider perspective
R • Tests management commitment for
actions; creates a process for
M allocating resources to specific
programs and activities
 WHY HUMAN RESOURCE STRATEGY?

S • Develops a sense of urgency and

commitment to action

H • Establishes selected long-term courses

of action considered high priority over
the next two or three years
R • Provides a strategic focus for the
organization and developing
M management talents
 CHARACTERISTICS OF THE STRATEGIES

S 1. Provide on overall direction

2. Involve multiple programs or
H activities
3. Involve multiple functions
R
4. May extend
M
 HR STRATEGIES (DEFINITION)

 Management responses to emerging

S issues
H  Means of aligning the management of
HR with the strategic context of the
R organization
 Intensefocus on issues derived from
M environmental assessment
 EXAMPLES OF HR STRATEGIES

• Plan future staffing by examining

S utilization of current staff and
projected changes in the work load
H
• Utilize management education as a
R vehicle for promoting change
• Educate managers and employees
M about “Aspirations” and give them the
skills, programs, and policies support
to operate in the new environment
 EXAMPLES OF HR STRATEGIES

S • Expand the employee incentive

program and employee’s sense
H of ownership
R • Focus recruitment efforts in
M scarce skills areas
Exercise #3 HR Strategies

 Select a Discussion Leader, Recorder,

Timekeeper, and Reporter.
 As a group, identify HR Strategies (Policies,
Programs, Processes, Projects) based on
Exercises 1&2.
 Describe 1. how the HR strategy is linked with
the agency’s strategy; 2. how HR unit/dept.
will support agency’s strategic goal.
 ALIGNING EMPLOYEE
EXPECTATION WITH HR
STRATEGIES

Step Employee Management Level

Questions Asked
S
Recognition of the need for Why should we Communicate Vision

H change change?
 External conditions

 Customer needs

R  Company challenges

Understanding of required What is the plan? Communication vision,

strategy, and implementation
M changes  Desired end state

 What will be different

plans

 Transition steps and

goals
 Experimentation
 ALIGNING EMPLOYEE EXPECTATION
WITH HR STRATEGIES

Step Employee Management Level

S Questions Asked

Evaluation and How will it affect me? Discuss the need, plan, and
H acceptance  Benefits/advantages effects
 Negatives/disadvantages

R  Latitude/choices Strong leadership

Action What do you expect of me? Change structure, work

M  New relationships design, staffing and
 Teamwork and cooperation
development, performance
system/rewards
 New activities/tasks

 New learning/education

 New focus in performance

 ALIGNING EMPLOYEE
EXPECTATION WITH HR
STRATEGIES

Step Employee Management Level

S Questions Asked

Feedback How is the change Communicate actions,

H progressing activities, results
 What is going on

R  How am I doing

M
 ALIGNING
EXPECTATIONS WITH
STRATEGIES

S Communicate Strategic Direction - - - - - - - - - - - - - -

H - - - - - - Translate Strategies into Performance Objectives - - -

--
R
- - - - - - - - - - - - - - - - - - -Reshape the culture - - - - - -
M --
Recognition of the Evaluation and
need for change Feedback
acceptance
Understanding of
required changes Action
Thank you . . .