The Strategic Role of Human Resource Management

DR. SANTRUPT MISRA, Director, Group HR, Aditya Birla Group RAJEEV DUBEY, President Group HR, Corporate Services, and Aftermarket Sector Mahindra & Mahindra LEENA NAIR, ED - HR, HUL & VP HR, Unilever South Asia and Global Diversity & Inclusion Leader
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ANURANJITA KUMAR, Country HR Officer, Citibank N.A

Strategic Human Resource Management has 4 meanings :

the use of planning a coherent approach to the design and management of HR systems matching HR policies and activities to some explicit business strategy seeing the people of the organisation as a strategic resource for the achievement of competitive advantage

Prof. S. Pattnaik, XIMB

Linking SHRM to Business strategy

Vision

Business Strategy Organizational Strategy Human Strategy: Capability

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Prof. S. Pattnaik, XIMB

Linking Corporate and HR Strategy

External environment

Formulate Business Strategy

Internal Strengths & Weaknesses

Identify Employee Competencies and Behaviors that HR must deliver to achieve the strategy Formulate HR Policies & Activities that will lead to these Employee Competencies and Behaviors
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Strategic Planning 3 levels

Corporate Strategy

Business Strategy

Business Strategy Functional Strategies

Business Strategy

Prof. S. Pattnaik, XIMB

Some Organisational Strategies

Company General Electric Wal-Mart 3M Strategic Principle Be number one or number two in every industry in which we compete, or get out Low prices, every day Foster innovation

Prof. S. Pattnaik, XIMB

Business Strategy = Overall Cost Leadership

Common Organizational Characteristics Intense supervision of labor Tight cost control requiring frequent, detailed control reports Low-cost distribution system Structured organization and responsibilities Products designed for ease in manufacture
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HR Strategies Detailed work planning Emphasis on technical qualifications and skills Emphasis on job-specific training Emphasis on job-based pay Use of performance appraisal as a control device
Prof. S. Pattnaik, XIMB

Business Strategy = Differentiation

Common Organizational Characteristics Strong marketing abilities Product engineering Corporate reputation for quality or technological leadership Amenities to attract highly skilled labor, scientists, or creative people.
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HR Strategies Emphasis on innovation and flexibility Broad job classes Loose work planning External recruitment Broad based training Emphasis on individualbased pay

Prof. S. Pattnaik, XIMB

HRs evolving role as Strategic Partner

Corporate strategy HR operations Corporate strategy HR operations Corporate strategy HR function
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HR Involvement in Mergers

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Prof. S. Pattnaik, XIMB

HRD CULTURE - O C T A P A C E
O Openness C Collaboration T Trust A Authenticity P Proactivity A Autonomy C Confrontation E Experimentation
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Things to Remember as we move through the course

HR management: the responsibility of every manager HR practices today must address several basic issues including Contributing to strategic success Improving competitiveness Globalizing Technology and internet-based advances

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Prof. S. Pattnaik, XIMB