STRATEGIC HRM :STRATEGIC HRM DANH NGUYEN NGUYEN, PhD. RODERIC J. MURRAY, MA.


Management Challenges :Management Challenges Competitive Challenges: Globalization. Technology. Change Management. Development of Human Capital. Market responsiveness. Cost containment.


Definition :Definition SHRM = Strategic Human Resource Management A pattern of planned Human resource deployments and activities intended to enable an organization to achieve its goals.


Variables to Be Considered in Strategic HRM implementation :Organizational Structure Types of Information Task Design Reward Systems Selection, Training, and Development of People Product Market Strategy Performance Variables to Be Considered in Strategic HRM implementation


HRM Implementation :Human Resource Needs Skills Behaviors Culture Strategic Choice Human Resource Capabilities Skills Abilities Knowledge HR Practices Recruitment Job Analysis Training Job Design Performance Selection Management Development Labor Pay Structure Relations Incentives Employee Benefits Relations Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Firm Performance Productivity Quality Profitability Emergent Strategies HRM Implementation


Strategic HRM Implementation :Human Resource Needs Skills Behaviors Culture Strategic Choice Human Resource Capabilities Skills Abilities Knowledge HR Practices Recruitment Job Analysis Training Job Design Performance Selection Management Development Labor Pay Structure Relations Incentives Employee Benefits Relations Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Firm Performance Productivity Quality Profitability Emergent Strategies Strategic HRM Implementation Goals External Analysis Opportunities threats Internal Analysis Strengths weaknesses Mission Strategy Evaluation


The 5-P Model :The 5-P Model ORGANIZATIONAL STRATEGY STRATEGIC BUSINESS NEEDS INTERNAL CHARACTERISTICS EXTERNAL CHARACTERISTICS STRATEGIC HRM ACTIVITIES


How HR Practices Support High-Performance Work Systems :How HR Practices Support High-Performance Work Systems Teams are used to perform work. Employees participate in the selection process. Employees receive formal performance feedback and are actively involved in the performance-improving process. Ongoing training is emphasized and rewarded. Employees’ rewards and compensation relate to the company’s financial performance. Equipment and work processes are structured to encourage maximum flexibility and interaction among employees. Employees participate in planning changes in equipment, layout, and work methods. Work design allows employees to use a variety of skills. Employees understand how their jobs contribute to the finished product or service. Source: J.A. Neal and C.L.Tromley. “From Incremental Change to Retrofit: Creating High Performance Work System”, Academy of Management Executive 9, 1995. M.A. Huselid. “Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance”, Academy of Management Journal, 38, 1995.


Examples of How HR Practices Can Help Companies Meet the Competitive Challenges :Examples of How HR Practices Can Help Companies Meet the Competitive Challenges Global Challenge Stakeholder Challenge High-Performance Work System Challenge


Human Capital Management :Human Capital Management Organizational Design Workforce restructuring/Competitive sourcing Leading/recommending change Workforce Planning Blended workforce/Competitive sourcing Evolving Mission/Changing technology Projected turnover Strategic Recruitment Skill mix Diversity Workforce Development Skill/Competency development Leadership development/Succession Planning Retention Performance based pay Incentives


Human Capital Management :Human Capital Management


4 Areas of Challenge in Strategic Human Capital Management :4 Areas of Challenge in Strategic Human Capital Management Strategic HR/HC planning and organizational alignment. Leadership continuity and succession planning. Acquiring and developing staff whose size, skills, and deployment meets needs. Creating results oriented organizational culture.


Human Capital Standards for Success - I :Human Capital Standards for Success - I Strategic Alignment: Human capital strategy is aligned with mission, goals, and organizational objectives and integrated into its strategic plans, performance plans, and budgets. Source: U.S. Office of Personnel Management, “Human Capital Assessment and Accountability Framework.”


Human Capital Standards for Success - II :Leadership and Knowledge Management: Leaders and managers effectively manage people, ensure continuity of leadership, and sustain a learning environment that drives continuous improvement in performance. Human Capital Standards for Success - II


Slide 15:Performance Culture: Agency has diverse, results-oriented, high performance workforce, and has a performance management system that effectively differentiates between high and low performance, and links individual/team/unit performance to organizational goals and desired results. Human Capital Standards for Success - III


Slide 16:Talent: Agency has closed most mission-critical skills, knowledge, and competency gaps/deficiencies, and has made meaningful progress toward closing all. Human Capital Standards for Success - IV


!!! Talent: Recruiting and Staffing :!!! Talent: Recruiting and Staffing Establish relationships with universities. Use Career Intern/Development Program. Do mid-level hiring. Streamline – reengineer process. Use automation wisely.


Slide 18:Accountability: Human capital decisions are guided by a data-driven results-oriented planning and accountability system. Human Capital Standards for Success - V


Performance Culture :Performance Culture Pay-For-Performance. Pay Banding/System. Tie to agency performance. Begin with Senior Executives.


Using HR Resources :Using HR Resources


Using HR Resources :Using HR Resources


Rules of Engagement :Rules of Engagement Engagement Opportunity Growth/Development Advancement Interaction Quality of Life Physical environment Work/Life circumstance Leadership Credibility Trust Relationship Co-workers Managers Customers Work Activities Impact Challenge/Interest Status/Pride Total Compensation Pay/Financial recognition Financial benefits Culture and Purpose Sense of purpose Organizational values & behaviors Engagement is how much employees want to and actually do improve a company’s results. Best employers engage their employees Source: Hewitt Associates


Slide 23:Factors Influencing Engagement Source: Hewitt Associates


Human Resources Competency Model :Human Resources Competency Model Business Mastery Business acumen Customer orientation External relation HR Mastery Staffing Performance appraisal Reward system Communication Organization design Change Mastery Interpersonal skill & influence Problem solving skills Reward system Innovativeness and creativity Personal Credibility Trust Build personal relationships Live the values Courage


Slide 25:Task: You are the new HR manager in a company in Vietnam. You need to recruit 50 people and 2 expatriates. What do you do to find out what kind of people you should target?


Slide 26:End of session