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StrategicHumanResourceManagementLesson1:IntroductiontoStrategicHRM

KeyVocabulary/Concepts

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Becomefamiliarwiththefollowingwordsbeforethislesson’scasestudy

StrategicHRM

HRM=HumanResourceManagement“StrategicHRMisanapproachthatdefineshowtheorganization’sgoalswillbeachievedthroughpeople bymeansofHRstrategiesandintegratedHRpoliciesandpractices.”*

Performance appraisalSystem ofreviewandevaluationofindividualorteamperformance.

HRprofessionals Individuals whodealwithhumanresourcematters.

StakeholdersApersonorgroupthathasaninvestment,share,orinterestinsomething.

LinemanagersIndividuals directlyinvolvedinaccomplishingtheprimarygoalsofanorganization.

DavidUlrichThehuman resourcemanagementguruwhohasinfluencedHRMthinking.

Takeaway Akeyfact,point,orideatoberemembered.

*Source:MichaelArmstrong“StrategicHumanResourceManagement”

Teacher instructions: Quickly review the key vocabulary with your student and answer any questions.

CaseStudy:NewHumanResourceManagementSystemProject

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Doyouthinkthisprojectissuccessful?Whyorwhynot?Q1

Youarethedirectorofhumanresourcesforoneoftheworld’sbiggestchainsoffastfoodrestaurants,ABCCorporation.OneofABCCorporation’sHRissueswasalackofcapableregionalmanagers.

Twoyearsago,youwereassignedasthe leaderofataskforcewhosegoalwastocreateasystemthathelpstraincurrentmanagersand identifiesemployeeswhocanbecomefutureregionalmanagers.

Afterspeakingwithconsultingfirms,thetaskforcedecidedtoimplementanewcompany-wideperformancemanagementandappraisalsystem.

Thetaskforcehasdeliveredthefollowingresults:• Successfullyconvincedkeymanagementteammemberstosupport the

project.• Theprojectwascompletedonemonthearlierthanscheduled.• Morethan95%ofemployeesnowunderstandtheimportanceofthe

newsystem.

Teacherinstructions:- Askyourstudenttosummarizethecasestudy.

- Askthediscussionquestion.

- Sampleanswer:“It’snotyetsuccessfulbecauseitisn’tclearwhethertheprojectwillhaveapositiveimpactonthebusiness.”

CaseStudy(continued)

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Whatwerethenewsystem’sissues?Whatcouldhavebeendonedifferently?Q2

ABCCorporationisfamousforoperationalexcellencyinofferinglow-pricedfoods,sothenewevaluationsystemputemphasisoncostreduction.Asaresult,managersandfuturemanagersbeganworkinghardertofindsolutions thatcouldreducecostandexpense.

However,astheeconomyimproved,people’sdemandshaveshiftedfromlow-pricedgoodstohigh-qualitygoods.Theshifthasnegativelyimpactedthecompany.Saleshavedecreasedandthecompanyhasstartedto losemoney.

ThenewHRMsystemactuallyworsenedthesituation,duetothefollowingissues:• Thesystemwasrigidandcouldn’tadaptquicklyinresponseto

achangeinmarketconditions.• Thesystemfocusedmanagers’attentiononcostreduction,not

customers.Thesystemwasalsotimeconsuming,furtherreducingtheamountoftimespentwithcustomers.

Teacher instructions:- Ask your student to

summarize the case study.

- Ask the discussion question.

- Sample answer: “The system was rigid and took too long to respond to market changes. The system should be designed to respond to changes in the market and the company’s business goals, not to follow the company’s on-going initiative (e.g. cost reduction).”

Discussion:TheRoleofHRProfessionals

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HRguruDavidUlrichbelievesHRprofessionals shouldplayastrategicrole(asoutlinedinthechartbelow), ratherthanfocusingonmoretraditionaladministrativework.

*Source:DavidUlrich “HumanResourceChampions”

StrategicPartnerAligningHRandbusinessstrategy

ChangeAgentManagingtransformationandchange

AdministrativeExpertReengineeringorganizationprocesses

EmployeeChampionListeningandresponding toemployees

DoyouagreeordisagreewithDavidUlrich’sbeliefsabout theroleofHRprofessionals inacompetitiveorganization?Whyorwhynot?Q

HRRolesinBuildingaCompetitiveOrganization(ByDavidUlrich)*

Teacher instructions:- Ask your student to read the

information on this slide.- Ask the discussion question.

TakeawaysFromThisLesson

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ü StrategicHRMisanapproachthatdefineshowanorganization’sgoalswillbeachievedthroughpeople.

ü ThegoalofHRprofessionalsshouldbetocontributetoanorganization’sbusinesssuccess.

ü UnderStrategicHRM,fourimportantrolesforHRprofessionalsare:“StrategicPartner”,“AdministrativeExpert”,“EmployeeChampion”,and“ChangeAgent.”

Teacher instructions:- Review the takeaways with your student.

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EndofLessonWeHopeYouEnjoyedIt!