STRATEGIC

HUMAN RESOURCE
MANAGEMENT

SIBM

Strategic
Strategic Human
Human Resource
Resource
Management
Management
Involves
Involvesdevelopment
developmentof
ofconsistent,
consistent,aligned
alignedcollection
collectionof
of
practices,
practices,programs,
programs,and
andpolicies
policiesto
tofacilitate
facilitateachievement
achievement
of
ofstrategic
strategicobjectives
objectives
Requires
Requiresabandoning
abandoningmindset
mindsetand
andpractices
practicesof
ofpersonnel
personnel
management,
management,and
andfocusing
focusingon
onstrategic
strategicissues,
issues,rather
ratherthan
than
solely
solelyon
onoperational
operationalissues
issues
Integration
Integrationof
ofall
allHR
HRprograms
programswithin
withinlarger
largerframework,
framework,
facilitating
facilitatingmission
missionand
andobjectives
objectives
Writing
Writingdown
downstrategy
strategyfacilitates
facilitatesinvolvement
involvementand
andbuy-in
buy-in
of
ofsenior
seniorexecutives
executivesand
andother
otheremployees
employees
12

Exhibit
Exhibit4-1
4-1(Ulrich,
(Ulrich,1997)
1997)

Possible
Possible Roles
Roles Assumed
Assumed by
by HR
HR
Function
Function

13

HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Human
Human capital
capital steward
steward

Creates
Createsan
anenvironment
environmentand
andculture
cultureininwhich
whichemployees
employees
voluntarily
voluntarilycontribute
contributeskills,
skills,ideas,
ideas,and
andenergy
energy
Human
Humancapital
capitalisisnot
notowned
ownedby
byorganization
organization

Knowledge
Knowledge facilitator
facilitator

Procures
Procuresnecessary
necessaryemployee
employeeknowledge
knowledgeand
andskill
skillsets
setsthat
that
allow
allowinformation
informationtotobe
beacquired,
acquired,developed,
developed,and
and
disseminated
disseminated
Provides
Providesaacompetitive
competitiveadvantage
advantage
Must
Mustbe
bepart
partofofstrategically
strategicallydesigned
designedemployee
employee
development
developmentplan
plan
14

HR
HR Roles
Roles in
in Knowledge-Based
Knowledge-Based
Economy
Economy
Relationship
Relationship builder
builder
Develops
Developsstructure,
structure,work
workpractices,
practices,and
andculture
culturethat
that
allow
allowindividuals
individualstotowork
worktogether
together
Develops
Developsnetworks
networksthat
thatfocus
focuson
onstrategic
strategic
objectives
objectives

Rapid
Rapid deployment
deployment specialist
specialist
Creates
Createsfluid
fluidand
andadaptable
adaptablestructure
structureand
andsystems
systems
Global,
Global,knowledge-based
knowledge-basedeconomy
economymandates
mandates
flexibility
flexibilityand
andculture
culturethat
thatembraces
embraceschange
change
15

SHRM
SHRM Critical
Critical Competencies
Competencies
HRs
HRssuccess
success as
as true
true strategic
strategic business
business partner
partner
dependent
dependent on
on five
five specific
specific competencies:
competencies:

Strategic
Strategiccontribution
contribution--development
developmentofofstrategy
strategy
Business
Businessknowledge
knowledge--understanding
understandingnuts
nutsand
andbolts
boltsofof
organization
organization
Personal
Personalcredibility
credibility--measurable
measurablevalue
valuedemonstrated
demonstratedinin
programs
programsand
andpolicies
policies
HR
HRdelivery
delivery--serving
servinginternal
internalcustomers
customersthrough
througheffective
effective
and
andefficient
efficientprograms
programs
HR
HRtechnology
technology--using
usingtechnology
technologytotoimprove
improveorganizations
organizations
management
managementofofpeople
people
16

Exhibit
Exhibit4-5
4-5

Traditional
Traditional HR
HR Versus
Versus Strategic
Strategic HR
HR

17

Barriers
Barriers to
to Strategic
Strategic HR
HR
Short-term
Short-termmentality/focus
mentality/focus on
on current
current performance
performance
Inability
Inability of
of HR
HR to
to think
think strategically
strategically
Lack
Lack of
of appreciation
appreciation for
for what
what HR
HRcan
can contribute
contribute
Failure
Failure to
to understand
understand line
line managers
managersrole
role as
as an
an HR
HR
manager
manager
Difficulty
Difficulty in
in quantifying
quantifying many
many HR
HR outcomes
outcomes
Perception
Perception of
of human
human assets
assets as
as higher-risk
higher-risk
investments
investments
Incentives
Incentives for
for changes
changes that
that might
might arise
arise
18

Exhibit
Exhibit4-8
4-8

Model
Model of
of Strategic
Strategic HR
HR Management
Management

19