STRATEGIC HRM: STRATEGIC HRM SUBMITTED TO PROF. RASHMI GOPINATHAN SUBMITTED BY SHWETA JHA (ROLL NO. 52) WHAT IS SHRM?: WHAT IS SHRM? Strategic human resource management has been defined as ‘the linking of human resources with strategic goals and objectives in order to improve business performance and develop innovative organizational culture that foster innovation and flexibility. HR STRATEGY OPTED BY “WHIRLPOOL”: HR STRATEGY OPTED BY “WHIRLPOOL” PowerPoint Presentation: April 25, 2006 ,Whirlpool Corporation net sales = US$3.5 billion net earnings during that period = US$118 million Analysts attributed this increase to the company's innovative products. PowerPoint Presentation: Whirlpool had come a long way from where it had been in the late 1990s . According to analysts, this was a direct result of the stagnation in its product line caused by very little attention being paid to innovation. PowerPoint Presentation: Top management’s conclusion by late 1999 - cut 10% of its international workforce and initiate restructuring of its global operations. HR Strategy used by “Whirlpool”: HR Strategy used by “Whirlpool” Efforts by “David R. Whitwam”, chairman and CEO of Whirlpool, in 2000. change in the company's corporate culture and embed innovation as a core competency. PowerPoint Presentation: Mr. Whitwam’s organizational goal - Increase sales and customer loyality within 2 years. HR strategy : to make “innovation” a “core competency” at Whirlpool. Steps taken to align the organizational goal with human resource:: Steps taken to align the organizational goal with human resource: In late 1999, HR dept started the innovation initiative by inviting ideas from all the employees. 25 best employees from the company's European arm sent to the headquarter at Italy. PowerPoint Presentation: Their assignment - brainstorm and come out with ideas regarding new products or services. "I-box" strategy. RESULT: RESULT revenues from innovative products were almost US$800 million in 2005 as compared to just US$10 million in 2001. The share price had also doubled. Between 2003 and 2005, Whirlpool's revenues had grown at an average of 9% per annum PowerPoint Presentation: As of April 2006, Whirlpool's innovation pipeline had 568 projects under development of which 195 were being scaled up for commercial launch. The company expected these new appliances to rake in another US$ 3.3 billion in annual sales once they were launched CONCLUSION: CONCLUSION HR strategies when aligned with the business goals of the organization, at whirlpool, worked as a turnaround strategy and changed the face of the company completely. Every organization can thus, rely on the HR strategies partially, if not completely, and create the magic of success. Thank You.: Thank You.