1. Role of STRATEGIC Human Resources Management (HRM) in Business strategy GMB 6070 - Session 2 16th May ‘11

2. Presentation Plan Discussion - Strategy formulation process Discussion - Role of environment in strategy development Role of Strategic Human Resources in the contribution to overall strategy Group discussion - Situational approach to strategy 16th May '11 2 USIU - GMB 6070 - MAY 16

3. Strategy formulation process Involves planning and taking decisions that lead to the establishment and achievement of the organization’s goals of a specific plan. The process comprises three phases: Diagnosis Formulation Implementation 16th May '11 3 USIU - GMB 6070 - MAY 16

4. …Strategy formulation process 16th May '11 USIU - GMB 6070 - MAY 16 4 Diagnosis: Analyzes internal environment of the organization - this is also called performing a situation analysis. It involves evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses Analyzes external environment to review major opportunities and threats Identifies major critical issues – usually a set of two to five major problems, threats, weaknesses, and/or opportunities that require priority attention by management

5. …Strategy formulation process 16th May '11 USIU - GMB 6070 - MAY 16 5 Formulation stage: Development of a clear set of recommendations with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them. Looks for "sustainable" competitive advantages – (despite steady erosion by the efforts of competition). In order to align "fits" between resources plus competencies with opportunities, and also fits between risks and expectations the SHRM will help to focus on the following:

6. …Strategy formulation process 16th May '11 USIU - GMB 6070 - MAY 16 6 Review the current key objectives and strategies of the organization, identified and evaluated as part of the diagnosis Identify a rich range of strategic alternatives to address the three levels of strategy formulation Balance evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization Decide on the alternatives that should be implemented or recommended.

7. GMB 6070 - Session 2 – May 16th Role of Environment on strategy formulation

9. This requires an analysis of what is happening outside the organization and an evaluation of current resources (strength and weaknesses) and an assessment of opportunities and threats present in the environment.

10. Environment could be classified as external and internal.16th May '11 8 USIU - GMB 6070 - MAY 16

12. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management.

13. They may be general forces and trends within the overall set-up which consist of political, economic, socio-cultural, technological, legal and environment, – (PESTLE).16th May '11 9 USIU - GMB 6070 - MAY 16

15. The internal environment of a corporation consists of variables (strengths and weaknesses) that are within the organization and are not usually within the short run control of top management.

16. These include the corporate culture, structure, resources and competencies.

17. One of the widely used methods for internal analysis of the firms is Value Chain Analysis which assesses the strengths and areas of improvement that divide a business into a number of linked activities, each of which may produce value to the customers.16th May '11 10 USIU - GMB 6070 - MAY 16

19. Parenting – the manner in which the management coordinates activities and deploys resources and cultivates capabilities among product lines and business units.16th May '11 11 USIU - GMB 6070 - MAY 16

20. …Environmental scanning 16th May '11 12 USIU - GMB 6070 - MAY 16

22. Influencing performance

23. Measuring performance

24. Determining competencies

25. Creating an enabling environment

26. Creating passion for quality and competitiveness.

27. ..R BA.pptx16th May '11 13 USIU - GMB 6070 - MAY 16

28. GMB 6070 - Session 2 – May 16th Role of Strategic human resources in strategy implementation

30. An organization’s mission is the purpose or the reason for the organization’s existence.

31. HR should articulate the fundamental, uniqueness and focus that sets a company apart from other firms of its type and identifies the scope of the company's operation in terms of the products offered and markets.

32. HR should formulate policies to communicate the corporate mission to all employees.16th May '11 15 USIU - GMB 6070 - MAY 16

34. On-boarding - (Orientation) policy,

35. Induction policy,

36. Remuneration Policy,

37. Motivation Policy,

38. Performance Management Policy,

39. Training and Development Policy,

40. Employee Satisfaction Index Policy

41. Employee Exit and Separation Policy

42. Such policies should help HR demonstrate value creation by monitoring implementation of corporate strategy and business competitiveness.

43. ..limate 1 - Slide.pptx16th May '11 16 USIU - GMB 6070 - MAY 16

44. …Role of human resources in strategy implementation HR professionals are often defensive about their comparative worth, but they do not need to apologize for not being subject matter experts; all they need is to demonstrate strategy implementation competitiveness. 16th May '11 17 USIU - GMB 6070 - MAY 16

45. …Role of Strategic human resources in strategy implementation 16th May '11 18 USIU - GMB 6070 - MAY 16

46. How Strategic human resources contribute to overall strategy In his book “Workplace Excellence” Dan Robkins wrote: “It’s (HR) not just a place to go when troubles arise; Human Resources is a vital department within companies, but too often they are misunderstood and underutilized.” 16th May '11 19 USIU - GMB 6070 - MAY 16

48. Twenty (20) years ago – 90s- we realized the need for a new department handling talent and other people issues “Human Resources,”.16th May '11 20 USIU - GMB 6070 - MAY 16

50. According to Richard Chang, author of The Passion Plan at Work, HRM focuses mainly on

51. HR Research and Information Systems

52. Labour Relations

53. Employee Assistance

54. Employee Compensation/Benefits. 16th May '11 21 USIU - GMB 6070 - MAY 16

56. Career Development (helping individuals align their career planning)

57. Organizational Development (helping groups initiate and manage change)

58. Training and Development (design / execute)

59. Delivering training to ensure people are enabled to perform their jobs competently16th May '11 22 USIU - GMB 6070 - MAY 16

61. Selection and Staffing

62. Organizational/Job Design

63. Human Resource Planning

64. Performance Management System16th May '11 23 USIU - GMB 6070 - MAY 16

66. Reasons why HR should be part of the strategic planning process team include:16th May '11 24 USIU - GMB 6070 - MAY 16

68. HRD will help line managers to develop SMART performance objectives for employees

70. Although individual departments are aware of the status of their own departments, HR folks are often aware of group initiatives and changes that has occurred company-wide.

71. Accordingly, they will be able to speak about OD issues with unique insights on how changes may impact the established systems and processes16th May '11 26 USIU - GMB 6070 - MAY 16

73. That means training and development are guaranteed to be needed at some point of the strategic growth process.

74. HRD team must speak instantly on any issues, and provide input that could help the organization to achieve its goals faster. 16th May '11 27 USIU - GMB 6070 - MAY 16

76. HR should have a huge influence on:

77. Effectiveness and efficiencies in production

78. Effective communication

79. Marketing and sales

80. Upgrades on subject matter skills

81. Influence on developing soft skills for SME

82. Enhancement in cost reduction and overall equipment efficiency (OEE).16th May '11 28 USIU - GMB 6070 - MAY 16

85. Group Work 16th May '11 31 USIU - GMB 6070 - MAY 16

86. Reading Assignment Read Course Text – Anthony, Kacmar and Perrewe ( 2006 ) - Ch.2 16th May '11 32 USIU - GMB 6070 - MAY 16

87. End Thank you