Lecture-2 SHRM -New Approach to HRM1[1]
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Transcript of Lecture-2 SHRM -New Approach to HRM1[1]
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1.1. THE CONCEPT OF SHRMTHE CONCEPT OF SHRM
2.2. HENDRY AND PETTIGRE`S TYPOLOGYHENDRY AND PETTIGRE`S TYPOLOGY
3.3. SHRMSHRM--A NEW APPROACHA NEW APPROACH
4.4. STRATEGIC FITSTRATEGIC FIT
5.5. STRATEGIC INTEGRATIONSTRATEGIC INTEGRATION
6.6. THE REQUIREMENTS OF SHRMTHE REQUIREMENTS OF SHRM
MBAMBA--SHRMSHRM
SHRM: NEW APPROACH TO HRMSHRM: NEW APPROACH TO HRM
LECTURELECTURE--22
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THE CONCEPT OF SHRMTHE CONCEPT OF SHRM
SHRM is an approach to making decisions on the
intentions of the organisation concerning people
essential components of the organisation`s business
strategy.
It is about the relationship between HRM and strategic
management in the organisation.
SHRM deals with `those HR activities used to support
the firms competitive strategy (Wright & Snell, 1989).
The Means of aligning the management of Human
Resources with the strategic content of the business
(Walker, 1992)
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HENDRY & PETTIGRE`S TYPOLOGYHENDRY & PETTIGRE`S TYPOLOGY
According to Hendry and Pettigrew (1986), SHRM has
four meanings:
1. The use of planning
2. A coherent approach to the designed management ofpersonnel systems based on an employment policy
and manpower strategy and often underpinned by a
philosophy.
3. Matching HRM activities and policies
4. Seeing the people of the organisation as a strategic
resource for the achievement of competitive
advantage.
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THE MAIN FEATURES OF SHMTHE MAIN FEATURES OF SHM
According to Dyer and Holder (1988):
Organisational level
Focus-strategies are business driven and focus on
organisational effectiveness, thus in this perspectivepeople are viewed as resources.
Framework: incorporate a full complement of HR goals
and activities.
Roles: strategy-making generally is the responsibilityof line managers, with personnel playing a suppotive
role.
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SHRMSHRM--NEW APPROACHNEW APPROACH
SHRM means Strategic Fit
SHRM means Strategic integration
SHRM means competitive advantage
SHRM means long term consequences
SHRM means deployment of committed,
dedicated and retainable workforce.
SHRM means distinctive capabilities
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STRATEGIC INTEGRATIONSTRATEGIC INTEGRATION
HR strategies should be integrated with
corporate or business strategies.
Strategic integration is necessary to provide
congruence between business and humanresource strategy so that the latter supports
the accomplishment of the former and indeed
helps to define it.
The aim is to provide strategic fit and
consistency between the policy goals of HRM
and the business.
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MODELS FOR SHRMMODELS FOR SHRM
THE HIGH COMMITMENT MANAGEMENT MODEL
THE HIGH PERFORMANCE MANAGEMENT MODEL
THE HIGH INVOLVEMENT MODEL
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THE HIGH COMMITMENT MANAGEMENT MODELTHE HIGH COMMITMENT MANAGEMENT MODEL
The approaches to achieving high commitment as
described by Beer et al (1984) and Walton (1985) are:
The development of career ladders and emphasis on
trainability and commitment as highly valued
characteristics of employees at all levels in the org.
High level of functional flexibility
The reduction of hierarchies
Mutual interest
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THE HIGH PERFORMANCE MANAGEMENT MODELTHE HIGH PERFORMANCE MANAGEMENT MODEL
HPMM aims to make an impact on the performance through itspeople in such areas as productivity, quality levels of customer
service, growth profits.
Careful and extensive systems for recruitment, selection and
training Clear job design
High-level participation processes
Monitoring attitudes
Performance appraisal
Promotion and compensation schemes
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THE HIGH INVOLVEMENT MODELTHE HIGH INVOLVEMENT MODEL
Treating employees as partners in the
enterprise.
Dialogue
Mutual understanding
Framework for managing and developing
people
Shared vision and corporate culture
Unified voice In matters
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THE REQUIREMENTS OF SHRMTHE REQUIREMENTS OF SHRM
Strong visionary, and often charismatic leadership
from the top.
Well articulated missions and values
Aclear expressed business strategy, which had been
implemented successfully.
A positive focus on well understood critical success
factors.
The organisation offers a closely related range of
products or services to customers.