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1. Copyright © 2002 by Harcourt, Inc. All rights reserved.
Topic 25 :Topic 25 :
Strategic HRMStrategic HRM
By Zhu WenzhongBy Zhu Wenzhong

2. Copyright © 2002 by Harcourt, Inc. All rights reserved.
• Define strategic HRM.Define strategic HRM.
• Explain the difference between the soft and hardExplain the difference between the soft and hard
side of HRMside of HRM
• Explain the implications of a strategic approach toExplain the implications of a strategic approach to
HRMHRM
• State the advantages and disadvantages of strategicState the advantages and disadvantages of strategic
HRMHRM
• State the definition of a flexible workforce andState the definition of a flexible workforce and
suggest its advantages.suggest its advantages.
LEARNING GOALSLEARNING GOALS

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Strategic HRMStrategic HRM can be regarded as a general approachcan be regarded as a general approach
to the strategic management of human resources into the strategic management of human resources in
accordance with the intentions of the organization onaccordance with the intentions of the organization on
the future directionthe future direction it wants to take. It is concernedit wants to take. It is concerned
withwith longer-term people issues and macro-longer-term people issues and macro-
concerns about structureconcerns about structure, quality, culture, values,, quality, culture, values,
commitment and matching resources to future need.commitment and matching resources to future need.
Strategic HRMStrategic HRM refers to the management of humanrefers to the management of human
resources as an important asset which has strategicresources as an important asset which has strategic
value and role for the business.value and role for the business.
Strategic HRM should not only focus on both the soft
side of HRM and the hard side of HRM, but
especially the hard side.
Definition of strategic HRMDefinition of strategic HRM

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Soft side and hard side of HRMSoft side and hard side of HRM
Soft side:
• Motivation
• Culture building
• Support for employees
• Employee and
individual relations
Hard side:
• Analyzing current needs
for employees
• Predicating future
demand
• Predicating future supply
• Predicating labor turnover

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Soft side and hard side of HRMSoft side and hard side of HRM
• Mainly concerned with theMainly concerned with the
way in which people areway in which people are
managed,managed, such as how tosuch as how to
motivate workers, how tomotivate workers, how to
develop an organizationaldevelop an organizational
culture, how to support or trainculture, how to support or train
employees etc.employees etc.
Soft side of HRMSoft side of HRM

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Soft side and hard side of HRMSoft side and hard side of HRM
• Concerned about qualifyingConcerned about qualifying
the number and types ofthe number and types of
employees that a businessemployees that a business
need,deciding whether they areneed,deciding whether they are
available and planning how toavailable and planning how to
get them through predicatingget them through predicating
the demand and supply ofthe demand and supply of
workforce for the future.workforce for the future.
Soft side of HRMSoft side of HRM
Hard side of HRMHard side of HRM

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The implications of strategic HRMThe implications of strategic HRM
The implications:The implications:
• Integration into overall corporateIntegration into overall corporate
strategic planningstrategic planning
• Developing an organizationalDeveloping an organizational
cultureculture
• Motivating, training and supportMotivating, training and support
• Coordination with other functionsCoordination with other functions
• Developing a flexible workforceDeveloping a flexible workforce
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Advantages and disadvantages ofAdvantages and disadvantages of
Strategic HRMStrategic HRM
Advantages:
• Help gain a competitive
edge
• Help solve HRM
problems
• Make the efficient use of
employees and reduce
costs
• Help anticipate and plan
for changes
• Benefit long term
Disadvantages:
• Difficulty in predicating the
people behavior
• Problems with predicating
external events affecting HR
planning
• Needing constantly
monitoring
• Leading to industrial relation
problems

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The flexible workforceThe flexible workforce
Definition:Definition:
• A workforce that can respondA workforce that can respond
quickly in quantity and type toquickly in quantity and type to
changes in demand a business maychanges in demand a business may
face.face.
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The flexible workforceThe flexible workforce
• The organization of a flexibleThe organization of a flexible
workforceworkforce
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Core workers
Periphery Workers

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The flexible workforceThe flexible workforce
• Full-time employees whoFull-time employees who
have specific skills andhave specific skills and
job securityjob securityCore workersCore workers

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The flexible workforceThe flexible workforce
• Part-time or temporaryPart-time or temporary
workers who availableworkers who available
whenever neededwhenever neededCore workersCore workers
Periphery workersPeriphery workers

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The flexible workforceThe flexible workforce
Examples of flexible workforce
practices:
• Part-timePart-time
• TemporaryTemporary
• Bank timeBank time
• Job sharingJob sharing
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The flexible workforceThe flexible workforce
Major advantages of a flexibleMajor advantages of a flexible
workforceworkforce::
• Employee benefiting from flexibleEmployee benefiting from flexible
working hoursworking hours
• More employee opportunities of trainingMore employee opportunities of training
and being multi-skilledand being multi-skilled
• Reducing business costs and increasingReducing business costs and increasing
productivityproductivity
• Reacting quickly to changes in theReacting quickly to changes in the
workforceworkforce
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