Strategic HRM as a Key Ingredient for Effective Organisations

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Strategic HRM as a Key Ingredient for Effective
Organisations
Prof. Shirley Zinn Nedbank HR Director 5 March
2008
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OVERVIEW

• Defining strategic HRM
• What is an effective organisationMore
  importantly, what is our vision for our
  organization wrt being effective?
• What are the links between strategic HRM and the
  effective organisation?
• Conclusions

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DEFINING SHRM - CIPD

• Strategic human resource management is a complex
  process which is constantly evolving and being
  studied and discussed by academics and
  commentators.
• Its definition and relationships with other
  aspects of business planning and strategy is not
  absolute and opinion varies between writers,
  researchers, even HR professionals themselves.
• Strategic HRM can be regarded as a general
  approach to the strategic management of human
  resources in accordance with the intentions of
  the organisation on the future direction it wants
  to take.
• It is concerned with longer-term people issues
  and macro-concerns about structure, quality,
  culture, values, commitment and matching
  resources to future need.
• CIPD book Strategic HRM the key to improved
  business performance

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Defining SHRM

• Strategic human resource management can be
  defined as the linking of human resources with
  strategic goals and objectives in order to
  improve business performance and develop
  organizational culture that foster innovation,
  flexibility and competitive advantage.
• In an organization SHRM means accepting and
  involving the HR function as a strategic partner
  in the formulation and implementation of the
  companys strategies through HR activities such
  as recruiting, selecting, training and rewarding
  personnel.
• Wiki

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BUSINESS/PEOPLE STRATEGYCIPD

• A good business strategy, one which is likely to
  succeed, is informed by people factors. One of
  the driving factors behind the evaluation and
  reporting of human capital data is the need for
  better information to feed into the business
  strategy formulation process.
• In the majority of organisations people are now
  the biggest asset. The knowledge, skills and
  abilities have to be deployed and used to the
  maximum effect if the organisation is to create
  value. The intangible value of an organisation
  which lies in the people it employs is gaining
  recognition by accountants and investors, and it
  is generally now accepted that this has
  implications for long term sustained performance.
  
• It is therefore too simplistic to say that
  strategic human resource management stems from
  the business strategy. The two must be mutually
  informative. The way in which people are managed,
  motivated and deployed, and the availability of
  skills and knowledge will all shape the business
  strategy. It is now more common to find business
  strategies which are inextricably linked with and
  incorporated into strategic HRM, defining the
  management of all resources within the
  organisation.
• Individual HR strategies may then be shaped by
  the business strategy. So for example, if the
  business strategy is about improving customer
  service this may be translated into training
  plans or performance improvement plans.

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What is an effective organisation?

• Organizational effectiveness is the concept of
  how effective an organization is in achieving the
  outcomes the organization intends to produce and
  primarily exists for.
• Organizational effectiveness relates to the
  capacity of an organization to sustain the
  people, strategies, learning, infrastructure and
  resources it needs to continue to achieve its
  mission.
• It is a long-term outcome that some capacity
  building strategies may affect, while others may
  not. There are many definitions and
  characterizations of effectiveness, taking into
  consideration elements such as organizational
  structure, culture, leadership, governance,
  strategy, human resources, etc.
• The various frameworks for measuring
  organizational effectiveness can be helpful in
  defining indicators for the success of
  capacity-building initiatives. 
• Alliance

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Organizational Effectiveness

• Organizational effectiveness relates to the
  capacity of an organization to sustain the
  people, strategies, learning, infrastructure and
  resources it needs to continue to achieve its
  mission. It is a long-term outcome that some
  capacity building strategies may affect, while
  others may not. There are many definitions and
  characterizations of effectiveness, taking into
  consideration elements such as organizational
  structure, culture, leadership, governance,
  strategy, human resources, etc. The various
  frameworks for measuring organizational
  effectiveness can be helpful in defining
  indicators for the success of capacity-building
  initiatives. 
• Alliance

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Do we have organizational effectiveness
practitioners amongst us?

• Organizational Effectiveness practitioners
  provide organizational
• optimization solutions to insure that the
  organization is thriving.
• The bottom line mission is to increase returns on
  investments by helping our organization to
  attract top performers identify, develop, and
  utilize the skills of employees and manage staff
  for optimum performance
• OD
• Retention
• Exec Coaching
• TD
• PM and D
• Adapted from AYERS CONSULTING

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DPSA VISION

• Vision of the Public Service
• Global Leader in Public Service Excellence
• Value statement Aligned to Constitution and
  Batho Pele Principles
• Promoting and maintaining high standards of
  professional ethics
• Providing service impartially, fairly, equitably,
  without bias
• Utilizing resources efficiently and effectively
• Encouraging citizens to participate in policy
  making and implementation
• Responding to peoples needs and relating to
  stakeholders with humility and care
• Rendering an accountable, transparent and
  development-oriented public administration
• Promoting sound human resource management and
  representivity service

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Integrated Model of Business Success (Tekara
)

• What drives business success? What distinguishes
  good companies from great ones?
• All five are critical, none is sufficient by
  itself, and each affects the others.
• Five Success Factors
• 1. Leadership
• Why its important Organizational results would
  be stagnant if leaders did not envision new
  possibilities, inspire a shared vision, reinforce
  a positive working culture, ,maintain a focus on
  results, and support people to execute at a high
  performance level year after year.
• Key outcomes Strong leadership leads to greater
  focus and inspiration.
• 2. Strategy
• Why its important Successful strategic planning
  enables you to picture your organizations future
  (vision) and clearly define your business purpose
  (mission) to guide your workforces decisions and
  priorities.
• Key outcomes For any organization, the ability
  to formulate strategy and to create or respond to
  change is key to sustaining direction and
  commitment.

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(Tekara)
Integrated Model of Business Success Continued

• 3. Structure
• Why its important A well designed
  organizational structure integrates not only the
  people, but also the information and technology
  of an organization. It also matches the form of
  the organization as closely as possible to its
  strategy.
• Key outcomes This factor is critical to
  sustaining high levels of clarity and
  integration.
• 4. Culture
• Why its important A strong organizational
  culture is an organizations long-term
  competitive advantage not only does it attract
  and retain the best people, but also provides an
  environment where they can do and be their best,
  contributing to bottom line results.
• Key outcomes A strong culture leads to greater
  alignment and engagement of an organizations
  greatest resource its people.
• 5. Execution
• Why its important No matter how good your
  strategy, culture and structure are, the ability
  to execute is the difference between a company
  and its competitor
• Key outcomes Efficient processes that complement
  peoples efforts - rather than impede them - lead
  to greater accountability and results.

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Who contributes to organizational effectiveness?

• Every employee contributes to organisational
  effectiveness.
• Taking into account skills, experience,
  motivation, and rank, some play a bigger role
  than othersbut, they all contribute.

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REVIEWING THE ROLE OF HR

• If you are responsible for the people in your
  organization, your continual mission is to seek
  ways of improving the return-on-investment in
  these human assets.
• You probably have many programs and systems in
  place that focus on the knowledge, skills, and
  motivation of the individual performer.
• Are you satisfied with the results? Are you
  certain that the organisation as a whole is as
  effective as it could be?
• Towers Perrin

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The Battle for HEARTS, HANDS and MINDS

• The premise is that you can build on your
  organizational effectiveness programs to get an
  even higher ROI by looking at the organization in
  a more holistic way.
• In other words, instead of just working to make
  individuals more effective, it is important also
  to work on making the overall organization more
  effective.
• Employee engagement i.e. hearts, hands and minds,
  is key to business success
• Towers Perrins  

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CONGRUENCY

• The model is a dual-process paradigm that
  requires the utilization of business and human
  characteristics to create effective alignment of
  thought and action in organizations, its leaders
  and managers.
• The two paradigms in the Williams Congruence
  Model are referred to as the Business Process
  Paradigm and the Human Process Paradigm. The
  purpose of the paradigms is to establish
  connection points for thought and action in
  business and human behaviour, which will create
  the emotional and systemic tensions necessary for
  change.
• The more connectivity between thought and action,
  the more congruence between human behaviour and
  organizational performance.
• LLOYD WILLIAMS Creating the Congruent Workplace
  2002

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ORGANISATIONS ARE PEOPLE

• The process of creating sustainable change, both
  personally and organizationally, is about the
  understanding and creation of reasoned balance
  (an equality in thought and action within the
  person) and alignment (a matching of
  organizational strategy to people success), a
  strategy that may be termed congruence building.
• This process explicitly focuses on creating a
  metanoic shifta change in thinkingthat
  establishes different outcomes for the work,
  growth, and change within organizations and among
  people. After all, organisations are people
• The Society of Human Resource Management states
  that employees spend more than 70 of their year
  at work. If that claim is true, then
  organizations and their leaders are challenged to
  create a more balanced life that is aligned with
  the long-term, sustainable needs of the
  employees, the community in which they reside,
  and the networks essential to healthy communal
  living, as well as attending to the critical
  issues of organizational success and
  sustainability.

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ORGANISATIONS ARE PEOPLE Cont.

• What blocks that movement are often the thinking
  and practice paradigms of organizations, leaders,
  and stockholders. What would the shift look like?
  How would one shift their thinking? Where could
  one explore honouring self and others? Where
  would one develop a sense of culture and society?
  What is the key to understanding these issues?
• The key is congruence buildinga new approach to
  personal, organizational, and business systems
  development. (Lloyd Williams)

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DISSONANCE!

• We continually believe that we can separate what
  we do at work from who we are in our lives at
  home. Instead we
• (1) lack clarity about who we are and what we do,
  
• (2) are unable to effectively collaborate with
  one another because the rewards of individuation
  outweigh the nuances and enlightenments of joint
  or collaborative efforts. We continually believe
  that we can separate what we do at work from who
  we are in our lives at home.
• (3) lack an awareness of the complements in our
  lives that create effective anchors for risking
  the development of change,

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DISSONANCE cont.

• (4) retreat from creativity and change,
• (5) abdicate personal and professional choice
  that creates co-dependency and systemic
  moroseness and the desire to simplify life and
  work, and
• (6) are unable to understand and embrace
  complexity which enriches and challenges us to go
  beyond the known and conscious to the unknown and
  unconscious to bridge the past, present, and
  future to be fully present in our personal and
  professional lives.
• RESULT Organizations have lost their direction,
  their connectivity to the entrepreneurship that
  created them and to their responsibility to their
  partnersthe people.

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What is the link between strategic HRM and the
effective organisation?

• CREATING A GREAT PLACE TO WORK!!
• Construct the total HR value chain and do at
  least one differentiating intervention on each!!
• HR Planning
• Attraction
• Recruitment and effective deployment of talent
  and succession planning
• Retention
• Training and Development
• Career Progression
• Remuneration and recognition
• High Performance culture
• Vision led and values driven
• Employee engagement and congruence
• Employee Relations and Wellbeing
• Transformation
• Empower employees to make decisions by effective
  delegation and to take accountability for actions
• Senior management can then focus on strategic
  aspects of business
• Nimble, more responsive organisation
• Innovation and creativity
• Culture of delivery and organisational structure
  that make this happen

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WHAT MAY WE CONCLUDE

• Develop synergistic, holistic, integrated HR
  practices
• Benchmark yourself with your role models so that
  you know how you are doing
• Measure everything you do in HR
• Requisite systems need to be in place to enable
  effective HRMIS for tracking and logging data,
  reporting and monitoring, and quality assurance
• Ensure continued re-alignment with strategic
  business plans and direction
• All this means that HR needs to raise the bar on
  itself need to focus on HRM competency and
  capability required in 2007 and beyond.
• Good is the enemy of great!! (Jim Colins)

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HR Effectiveness (CLC 2007)

• Strategic Partner (Highest impact). Examples
• Developing next generation of leaders
• Business acumen
• Understanding talent needs of the organization
• Identifying HR Metrics
• Operations Manager (Medium impact). Examples
• Assessing employee attitudes, values, culture
• Tracking trends in employee behaviours
• Keeping line updated on HR initiatives
• Emergency Responder (Low but required impact)
  Examples
• Responding to employee needs
• Quickly responding to complaints
• Enforcing HR policies and procedures
• Employee Mediator (Low but required impact)
• Managing conflicts
• Responding to organizational changes

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CONCLUSION

• ORGANISATIONS PEOPLE.
• EFFECTIVE ORGANISATIONS EFFECTIVE PEOPLE
• GREAT THINGS BEGIN WITH GREAT PEOPLE

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• THANK YOU!!