DHRM-MCMI (1)

Thaw Zin Oo
Presented by; Thaw Zin Oo

TOPIC 1 The Strategic Role of Human
Resource Management
Introduction
• The role of the HR Management dramatically changes.
• HR was the service for managers and the organization
• Take care about the social environment in the organization
• Take the full responsibility in the area of the people
management.
• The key success factor for the modern and innovative
organization.
• New HR policies and practices
• HR strategy with the overall business strategy.

Introduction
• HR Strategy is a tough strategic mission for Human Resources.
• identify the key challenges in the business strategy and has to
prepare the HR plan for the development of the human capital in
the organization
• HR- identify opportunities for the improvement
• HR - has to be centered about employees and the performance
of employees.
• The strategic role of HR Management is about predicting
and forecasting the future development
• Design proper analysis of threats coming from the market
and competitors

Introduction
• HR has to strategically invest into the learning and
development
• hugely invest into the leadership development as the new
generation of managers is able to beat the competition
• selection of talents from the external sources and internal
talent pools.
• less focused on the service delivery. More focused on the
delivery of HR solutions.

Introduction
• to be skilled in the planning of activities.
• to skilled in the financial planning.
• to be experts in the change management.
• Modern organizations gain the competitive advantage.
• 21st century HR , significant

What HRM is & how it related to the
management process
• The management function concerned with getting, training
motivating and keeping competent employees
• The quality of an organization is to a large degree
determined by the quality of the people it employees
• Depends on finding the employees with the skills to
successfully perform the tasks required to attain the
company's strategic goals.
• Decisions and methods are critical to ensuring that the
organization hires and keeps the right personnel.
(Construction, Bakery, Hotel, ….)

What HRM is & how it related to
the management process
HRM activities may even be outsourced to companies such as-
1) (Daksh eServices is an Indian outsourcing company which
offers a range of web enabled customer care services.)
2) Ma Foi Consulting Solutions offers managed payroll services
and social benefits administration to clients.

What HRM is & how it related to
the management process
The key components of an organization’s HRM process
"eight“ activities
1) Planning
2) Recruitment
3) Selection
4) Orientation
5) Training
6) Performance Management
7) Compensation & Benefits
8) Career

What is HRM
• Integrated use by an organization of system, policies
• Management practices to recruit, develop and retain
employees who help org. goals.
• HRM – employee satisfaction, improving performance and
productivity.
• Responsibility of leaders and mgr, with their staff day to
day operation.

What is the importance of Human
resource?
• An effective HRM system allows organizations to address
human resource issues strategically.
• Helps the workforce deliver high quality health services,
despite internal and external challenges to the organization
• Helps attract and retain competent employees,
• HR adapting to organizations change and facilitates the use
of technology to determine how and where work is done.
• Expensive 70-80% of an organization’s budget

How HRM is related to the Management Process
• With a strong and equitable HRM system, employees
• Receive compensation that reflects their level of responsibility
• Feel more motivated and understand how their how their work related
to the organization’s mission and vales
• Are more satisfied with their jobs
• With a strong and equitable HRM system, organizations
• Are better equipped to achieve their goals.
• Increase the level of employee performance
• Save costs through the improved efficiency and productivity of
workers.

How HRM is related to the Management Process
Improve their ability to manage change
1. acting as a strategic partner with senior managers and leaders by
aligning HR strategies and practices with overall organizational
strategies;
2. acting as an administrative expert for recruiting and hiring staff,
evaluating employee performance, staff development and training,
rewarding, supervising and delivering other HR processes that
contribute to an organization's smooth operations;
3. representing and supporting employees;
4. acting as a change agent to prepare employees and implement
processes for change within an organization.

Various HR Process
1. Human resource planning (Recruitment, Selecting,
Hiring, Training, Induction, Orientation, Evaluation,
Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations

1.2 How managers can use HR concepts and techniques;
and illustrate the HR management responsibilities of line
and staff (HR) managers.
1. Selective Hiring – Not only the right technical person for the
job, but also considering personal characteristics of the
potential employee.
2. Teams – Encourage team-building, self- managed teams, self-
esteem, impetus to take ownership of their projects.
3. Performance-related Pay – employees to work more
productively, more job satisfaction for the employee , better
results for the goods or services the company provides its
customers.

1.2 How managers can use HR concepts and techniques;
and illustrate the HR management responsibilities of line
and staff (HR) managers.
1. Reduce Status Differences - an age-old problem, and
modern human resource management strives to reduce the
barriers between managers and workers.
2. Extensive Employee Training - extensive training of all
employees improves the workers' performance, attitude
and productivity.

Role of line and staff (HR) managers-

HR Responsibilities
• Employee Engagement
• Performance Appraisal
• Disciplining Employees

1.3 HR's role in formulating and executing
company strategy
HR’s role hold a key position –
• Labor Laws,
• employee Surveys,
• Market trends on Talent,
• Work force focus within and
• outside the organization,
• Potential pool of candidates that could be utilized for strategic gains,
• all this and more could be vital information for strategy formulation

1.3 HR's role in formulating and executing
company strategy
1. HR’s role in formulating Strategy –
Strategy Formulation
• Preceded by environmental scanning
• Helps in identifying, analyzing and balancing company's external
opportunities and threats
• Internal strengths and weaknesses.
• HR plays a very important role here
Formulating Plans
• Requires competitive intelligence
• HR management can supply useful information.
• Details regarding competitors' incentive plans, information about
pending legislations like labor laws and opinion survey data from
employees that provide information about customer complaints

2. HR's Role in Implementing Strategy:
1. Disruption of social and political structures.
2. Failure to match individuals' aptitude with
implementation tasks.
3. Inadequate top management support for
implementation activities.

Contemporary Strategic HR Issues:
• Employment Employability –
– HR upgraded of skill and knowledge
• Careers:
– Lifelong employment
• HR Diversity:
– Emerging issue with job reservations in Government Sector
• Training and Development:
– Need have increased and are going to increase further also.

Designing a Strategy Facilitation Process
1) it understands the business and takes its part in the strategy
formulation process;
2) spreads the strategic word throughout the organization
3) takes an active role in the implementation of it
4) generates the necessary competencies for the accomplishment
of the strategy.

Proactive HR Strategies for long term
planning and growth
• Change Management: Manage change properly and become an
effective change agent rather than being a victim of change itself.
• Values: Adopt proactive HRD measures, which encourage values of
openness, trust, autonomy, proactivity and experimentation.
• Maximize productivity and efficiency: Through qualitative growth
of people with capabilities and potentialities to grow and develop
thrive to maximize productivity and efficiency of the organization.
• Activities directed to competence building: HRD activities need to
be geared up and directed at improving personal competence and
productive potentialities of manpower resources.

Translating Strategy into HR Policy and
Practice New HR Policies and Practices
• Enriching work involved providing employees with more challenge
and responsibility through flexible assignments and team-based
work.
• New training and benefits programs promoted personal growth,
which meant helping employees take personal responsibility for
their own improvement and personal development.
• Providing commensurate returns involved tying employee's
rewards to organization-wide results and providing nonmonetary
rewards (such as more challenging jobs).
• Improved selection, orientation, and dismissal procedures also
helped Einstein build a more dedicated, resilient, accountable, and
generative workforce.

Topic 2 Strategic HRM and the HR Scorecards
Types of Strategies –
1. Corporates Strategy
2. Competitive strategy
3. Functional Strategy

Corporates Strategy
• A diversification corporate strategy implies that the firm
will expand by adding new product lines.
• A vertical integration strategy means the firm expands by,
perhaps, producing its own raw materials, or selling its
products direct.
• Consolidation–reducing the company's size
• Geographic expansion–for instance, taking the business
abroad

Competitive Strategy
• Cost leadership means the enterprise aims to become the
low-cost leader in an industry.
• Differentiation. a firm seeks to be unique in its industry
along dimensions that are widely valued by buyers.
• Focusers carve out a market niche, and compete by
providing a product or service customers can get in no
other way.

Functional Strategy
• Functional strategy involves decision-making with respect to specific
functional areas- production, marketing, personnel, finance etc.
• While corporate and business level strategies are concerned with
“Doing the right things”, functional strategies stress on “Doing things
right”.
• Operating level strategy is concerned with strategic approaches for
managing frontline operating units(like plants, sales, etc) and for
handling day to day tasks of strategic significance(like advertising
campaign, purchasing materials, inventory control, maintenance, etc.).
Thus, it focuses on how the different functions of the enterprise
contribute to the other levels of strategy.
• Thus, functional level strategic management is the management of
relatively narrow areas of activity, which are of vital, pervasive or
continuing importance to the total organization

Today's HR managers face three
basic strategic challenges:
• One is the need to support corporate productivity
and performance improvement efforts.
• Second, employees play an expanded role in
employers' performance improvement efforts.
• The third challenge is that employers see that their
human resource units must be more involved in
designing–not just executing–the company's
strategic plan.

2.1 Outline the steps in the strategic
management process
Strategic Management Process
• 01– First step is the identification of mission, goals and
strategies.
– All the organizations have missions that define the significance of
those organizations with practical.
• E.g. Inspire the world with our innovative technologies, products and
design(2017), Inspire the World, Create the Future (2020)
– It is important to know about the goals and strategies of the
organization.

• 02– Second step is the analysis of external environment
affecting the organization.
– Successful strategies support the environmental effects in well manner.
– This step is completed only when the managers have environmental
information about trends, norms and values going out there.

• 03– Third one is the identification of threats and opportunities
after analysis of external environmental conditions.
– Positive environmental aspects are the opportunities. While,
– Negative factors of the environment are threats for
organizations.

• 04 - Fourth step is analysis of organizational reserves in
which management look through the available assets of the
organization such as skilled manpower, work activities and
etc.
– Management keeps closed sights over core competencies of the
organization that are valuable skills, resources and capabilities to
provide competitive advantages.
– In this step, managers are forced to realize the parameters affecting
goals in any way.

• 05 - Fifth step is to identify the strength and weakness through
assessment of internal organizational resources.
– The activities that control the solo resources of the organization
in well manner are the strength of the organization.
– Weaknesses are inverse activities to the strengths.
– The personality of an organization must be kept in mind that is
its culture. It is the result of understanding and supporting the
values of the organization by the employees.
– It becomes easy for the managers to transfer the distinguishing
competencies to the employees of the organization.
– Strategic choices also affect the innovation and performance
due to strong cultural tolerance of an organization.

• 06- Sixth one is the formulation of strategies for
commercial, business and practical levels of organization.
It provides Competitive advantage to the organization.
• 07- Second last step is the implementation of strategies in
practical shape.
• 08- Last step includes the evaluation of results in strategic
management process. Managers should evaluate the results
in order to compare the achievements and corrections, if
needed.

2.2 Explain and give examples of each
type of companywide
Companywide Strategic Planning
• A strategic plan is the company's plan for how it will match its internal
strengths and weaknesses with external opportunities and threats.
• A successful strategic plan helps ensure a competitive advantage.
• Strategic planning is the process of developing and maintaining a
strategic fit between the organization's goals and capabilities and its
changing marketing opportunities.
• Defining a Market-Oriented Mission
• The mission statement is the organization's purpose, what it wants to
accomplish in the larger environment.
• Market-oriented mission statement defines the business in terms of
satisfying basic customer needs.

Companywide Strategic Planning
Figure: 2
Linking Company-wide and HR Strategies

1) Internal career opportunities
2) Formal training systems
3) Appraisals measures
4) Profit-sharing plans
5) Employment security
6) Voice mechanisms
7) Job definition
8) Selectivity in recruiting
9) High wages
10)Employee ownership
11)Information sharing
12)Teams and job redesign

Strategic Human Resource Challenges
• Today's HR managers face three basic strategic challenges:
• First, Manager is “the need to support corporate productivity and
performance improvement efforts.(Dessler,2008)”
• Second, “employees play an expanded role in employers'
performance improvement efforts.”
• The third challenge is that “employers see that their human resource
units must be more involved in designing–not just executing–the
company's strategic plan.”

2.3 Competitive Strategy
1. Cost Leadership
2. Differentiation leadership
3. Cost focus
4. Differentiation focus
Cost leadership:
• Micromax smart phones and mobile phones are giving good quality products
at an affordable price which contain all the features which a premium phone
like Apple or Samsung offers
Differentiation leadership:
• BMW offers cars which are different from other car brands. BMW cars are
more technologically advanced, have better features and have got personalized
services

2.3 Competitive Strategy
Cost focus:
• Sonata watches are focused towards giving wrist watches at a low cost
as compared to competitors like Rolex, Titan, Omegaetc.
Dfferentiation focus: Titan watches concentrates on premium segment
which includes jewels in its watches.
Differentiation focus:
• Titan watches concentrates on premium segment which includes
jewels in its watches.

Hypotheses of Competitive Strategy-HRM
Archetypes
• Innovation Strategy
• Quality-Enhancement Strategy
• Cost-Reduction Strategy

Innovation Strategy
1) jobs that require close interaction and coordination among groups of individuals,
2) performance appraisals that are more likely to reflect longer-term and group-based
achievements,
3) jobs that allow employees to develop skills that can be used in other positions in the
firm,
4) compensation systems that emphasize internal equity rather than external or market-
based equity,
5) pay rates that tend to be low, but that allow employees to be stockholders and have
more freedom to choose the mix of components (salary, bonus, stock options) that
make up their pay package, and
6) broad career paths to reinforce the development of a broad range of skills.

Quality-Enhancement Strategy
1) relatively fixed and explicit job descriptions,
2) high levels of employee participation in decisions relevant to
immediate work conditions and the job itself,
3) a mix of individual and group criteria for performance appraisal that is
mostly short-term and results-oriented,
4) relatively egalitarian treatment of employees and some guarantees of
employment security, and
5) extensive and continuous training and development of employees.

Cost-Reduction Strategy
1) relatively fixed (stable) and explicit job descriptions that allow little
room for ambiguity,
2) narrowly designed jobs and narrowly defined career paths that
encourage specialization, expertise, and efficiency,
3) short-term, results-oriented performance appraisals,
4) close monitoring of market pay levels for use in making compensation
decisions, and
5) minimal levels of employee training and development

2.3 Strategy-oriented HR system and its importance
• Creating a Strategy Oriented HR System
1. HR professionals who have the strategic skills
required to build a strategy oriented HR system;
2. HR policies and activities that comprise the HR
system itself; and
3. Employee behaviors and competencies that the
company's strategy requires that emerge from the
actions and policies of the firm's strategy-supporting
HR system.

Creating a Strategy Oriented HR System
• The High Performance Work System
• Translating Strategy into HR Policy and Practice
• HR Strategy in Action:

2.4 The seven steps in the HR Scorecard approach
to creating HR systems.
What Is an HR Scorecard?
• The HR Scorecard is a concise measurement system, often summarized on a
computer screen in a “digital dashboard”. It shows the quantitative standards
or “metrics” the firm use to measure HR activities, and to measure the
employee behaviors resulting from these activities, and to measure the
strategically relevant organizational outcomes of those employee behaviors.
Information for Creating an HR Scorecard
To create an HR Scorecard, the manager needs three types of information:
• What the company's strategy
• HR scorecard relationships
• Metrics to measure all the activities and results involved

The Basic HR Scorecard Relationships
Implementing HR's Strategic Role:
• Step 1: Clearly Define Business Strategy Business strategies tend to be
very generic.
• Step 2: Build a Business Case for HRAs a Strategic Asset Human
resource professionals need to build a clear business case for why and
how HR can support the strategy.
• Step 3: Create a Strategy Map Develop a strategy map that illustrates
how the company creates customer value — essentially a diagram of
the value chain
• Step 4: Identify HR DeliverablesWithin the Strategy

Creating the HR Scorecard
• HR deliverables.
– experienced, talented staff in R&D, and
– optimal staffing levels in the manufacturing units.
• HR policies, processes and practices.
– “What are the high-performing policies, processes and practices
that will help generate the HR deliverables required to support my
company's strategy?”
• HR system alignment.
– you focus on the specific elements of the system that must
reinforce each other to produce the HR deliverables
• HR efficiency
– the measures for an HR Scorecard is to identify the exact tasks at
which HR must be efficient to support the company's strategic
goals.

Implementing The HR Scorecard
• Leading Change. You will need to enlist two sponsors — a line manager and the
head of HR. You will also need someone on the team who specializes in HR
measurement and an advisory team to supervise the work.
• Creating a Shared Need. You must create a business case for the use of the
Scorecard. Share this with line management and the HR department and allocate
between 3 percent and 5 percent of the HR budget to measurements.
• Shape a Vision. You must articulate the desired outcome of using the Scorecard by
preparing the key measures to be tracked. Define decisions that will be made based
on the measures, and figure out how you will collect the data needed for the
measurements.
• Mobilize Commitment. Identify the key players whose support you need and
engage them. Build Enabling Systems. Put the right people on the project, give
them incentives, have them report to the right people, and invest in the technology
needed.
• Monitor and Demonstrate Progress. Develop a project plan.
• Make It Last. Start with simple measures, make them visible, post the results and
change the measures as required by changing conditions.

DHRM-MCMI (1)

More Related Content

What's hot (20)

Similar to DHRM-MCMI (1) (20)

Recently uploaded (20)

DHRM-MCMI (1)