Human Resource Strategy

1
Human Resource Strategy

• Lecture 1
• Definitions and the changing role of the HR
  Specialist

2
Human Resource Strategy

• First and Second waves of SHRM Theory and
  Practice (Mabey, Salaman, Storey (1999)
• The Changing Role of Personnel Given the growing
  emphasis on people issues in many
  organisations, there seems to be a key role for
  human resources in building the organisations
  capability to cope with ongoing change.
• HR practitioners and line managers need to move
  from traditional roles but emerging roles are
  still being developed
• The perception of HR in the organisation is
  essential

3
Traditional Emerging Roles

• Traditional Emerging
• Reactive Proactive
• Employee advocate Business Partner
• Task focus Task and policies
• Operational issues Strategic issues
• Qualitative measures Quantitative measures
• Stability Constant change
• How? (Tactical) Why? ( Strategic)
• Functional integrity Multi-functional
• People as expenses People as assets

4
Stages in the Development of HR Strategy

• 1930-1950 The Welfare Model
• 1950-1970 Clerk of Works
• 1970-1985 The IR expert
• 1985-1995 The Personnel Professional
• 1995-Present The Internal Consultant
• Each stages bring more strategic responsibility

5
The Elements of HR Strategy

• Centralisation/Decenralisation
• Growth/Reduction of HR Function
• Work Pressures on HR Department
• Outsourcing of HR Functions
• Representation on Board of Directors
• HR Influence at Board Level
• Devolved Responsibilities to Line

6
The Elements of HR Strategy

• Extent to which there is a lack of consistency
  because of devolved responsibility
• Credibility of HR Professionals
• Human Resource Approach (Reactive / Proactive)
• Time Management Policy and Practice

7
People as Assets

• Changing terminology used to describe personnel
  functions Human Resource, Strategic HRM or
  Business Partners.
• The term resource stems from attempts by
  managers and academics to understand the basis of
  competitive advantage in organisations
• Under a resource perspective, three basic types
  of resource can provide a competitive advantage
• Physical Resources Organisational Capital
• Human Capital Resources- Skills, Competencies,
  experience and intelligence

8
The HR Practitioner Gains Professional Status

• HR Professionals are now acting as change
  agents and developing new organisational
  cultures
• Now operate as business partners with senior
  managers, linking business and organisational
  strategies
• Influential figures in the field of HR
• Anne Minto, HR DirectorSmiths Industries

9
The HR Specialist

• Anne Watts, Equal Opps Director at Northern Bank
• Clive Morton, Director of Learning and Human
  Resources Northern Ireland Electricity
• Bob Mason, HR Director of British Telecom
• Stephanie Monk, HR Director at Granada Group
• What Makes SHRM more strategic than HRM?
• Wide range of definitions offered

10
What is HR Strategy

• HR Strategy is the intention of the organisation
  both explicit and covert, toward the management
  of its employees, expressed through philosophies,
  policies and practices Tyson (1995)
• Hard HRM reflects a contingency approach based
  on the assessment of the best way to manage
  people in order to achieve business goals in the
  light of contextual factors.
• Soft HRM focuses on a high commitment-high-perfo
  rmance approach to the management of people

11
HR Strategy

• The concept of integration is of vital
  importance, see Guest (1987,1989)
• Some researchers (Huselid, Schuler and Jackson
  (1997) have argues that HRM focuses on building a
  companys performance, while strategic HRM
  creates competitive advantage HR systems which
  cannot replicated.

12
Fit with Business Strategy

• Fombrun, Titchy and Devanna (1984) argued that it
  was important that what was important was the
  right external fit between the external business
  strategy and HRM
• Delaney and Huselid (1996) found a stastically
  significant link between bundles of HR policies
  and Business Performance
• Is the HR Specialist a member of the top
  management team

13
The Importance of the MD/CEO

• If an HR Strategy is to be fully implemented it
  requires the full support of the organisations
  most senior strategic decision maker.
• HR Directors must prove themselves, the
  relationship with line manager is vital
• The new era of professionalism