1.
Chapter 1 :
INTRODUCTION TO SHRM

2.
Course Objectives:
Identify, devise and implement appropriate
strategies to ensure organizational survival /
growth and response to the market of external
and internal contextual turbulences and
uncertainties, taking into account the values
and ethical standards which organization
operates.

3.
Learning Outcome I
Identify the contexts, including the international one, within which organisations operate affect strategy and people
management.
 Strategy meaning
 Strategy concept
 Strategic management
 Strategy management process
 Strategic HRM
 Aims of strategic HRM
 Approaches to strategic HRM
 HR strategies
 Types of Hr strategies
 Difference between strategic HRM and HRM
 Hard & soft elements of HRM

4.
Strategy meaning
A strategy is all about integrating organizational activities and utilizing
and allocating the resources within the organizational environment so
as to meet the present and future objectives.
Strategy can be defined as “A direction set for the company and its
various components to achieve a general desired state in the future.
Strategy, in short, bridges the gap between “where we are” and “where
we want to be”.

5.
CONCEPT OF STRATEGY
The concept of strategy is based on three subsidiary concepts:
Strategic fit
Distinctive
capabilities
Competitive
advantage

6.
Competitive advantage
• Competitive advantage is what makes an entity's products or services more
desirable to customers than that of any other rival.
• Competitive advantages can be broken down into comparative
advantages and differential advantages.
• Comparative advantage is a company's ability to produce something
more efficiently than a rival, which leads to greater profit margins.
• A differential advantage is when a company's products are seen as
both unique and of higher quality, relative to those of a competitor.
Example: https://www.youtube.com/watch?v=9Ch58j0pRug&feature=emb_title

7.
Strategies for Competitive Advantage
Differentiation means
companies deliver better
benefits than anyone else. A
firm can achieve
differentiation by providing a
unique or high-quality product.
Focus means the company's leaders understand and service their
target market better than anyone else. They either use cost
leadership or differentiation to do that.
https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828
Cost leadership means
companies provide reasonable
value at a lower price. Firms
do this by continuously
improving operational
efficiency.

8.
Distinctive capabilities
• Distinctive capabilities or core competences describe what the organization is specially or
uniquely capable of doing. They are what the company does particularly well in comparison
with its competitors.
• Key capabilities can exist in such areas as technology, innovation, marketing, delivering
quality, and making good use of human and financial resources.
• Four criteria have been proposed by Barney (1991) for deciding whether a resource can be
regarded as a distinctive capability or competency:
• value creation for the customer;
• rarity compared to the competition;
• non-imitability;
• non-substitutability.

9.
Strategic fit
Strategic fit expresses the degree to which an
organization is matching its resources and
capabilities with the opportunities in the
external environment. The matching takes
place through strategy and it is therefore vital
that the company has the actual resources and
capabilities to execute and support the
strategy

10.
Strategic management
• Strategic management is the ongoing planning,
monitoring, analysis and assessment of all
necessities an organization needs to meet its goals
and objectives. Changes in business environments
will require organizations to constantly assess their
strategies for success.
• The strategic management process helps
organizations take stock of their present situation,
chalk out strategies, deploy them and analyze the
effectiveness of the implemented management
strategies.
https://www.youtube.com/watch?v=icqu2Kl1Imc

11.
Components of Strategic Management Process

12.
Strategic management process has following four steps:
1. Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and
providing information for strategic purposes. It helps in analyzing the internal and external factors
influencing an organization. After executing the environmental analysis process, management should
evaluate it on a continuous basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course of action for
accomplishing organizational objectives and hence achieving organizational purpose. After conducting
environment scanning, managers formulate corporate, business and functional strategies.
3. Strategy Implementation- Strategy implementation implies making the strategy work as intended or
putting the organization’s chosen strategy into action. Strategy implementation includes designing the
organization’s structure, distributing resources, developing decision making process, and managing
human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key
strategy evaluation activities are: appraising internal and external factors that are the root of present
strategies, measuring performance, and taking remedial / corrective actions. Evaluation makes sure that
the organizational strategy as well as it’s implementation meets the organizational objectives.

13.
Strategic Human Resource Management (SHRM)
Strategic Human Resource Management is a combination
of Strategy and Human Resource Management (HRM).
Strategic Human Resource Management is the practice of
aligning business strategy with that of HR practices to
achieve the strategic goals of the organization.
The aim of SHRM (Strategic Human Resource
Management) is to ensure that HR strategy is not a means
but an end in itself as far as business objectives are
concerned.
The idea behind SHRM is that companies must “fit” their
HR strategy within the framework of overall Business
objectives and hence ensure that there is alignment
between the HR practices and the strategic objectives of
the organization
Evaluation and corrective action
Implement the human resource management strategy
Determine the tools required for employees to complete the job
Estimate your company’s future HR requirements
Analyze your current HR capacity in light of your goals
Evaluate your HR capability
Develop a thorough understanding of your company’s objectives
https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management

14.
APPROACHES TO SHRM
There are five approaches to strategic HRM.
The Resource-based strategy
• Resource-based theory suggests that resources that are valuable, rare, difficult to imitate, and nonsubstitutable best position a firm
for long-term success. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior
performance over time.
Strategic fit
• Strategic fit expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the
external environment.
High-performance management
• A high-performance work system is a bundle of HRM practices designed to promote employees' skills, motivation and
involvement to enable a firm to gain a sustainable competitive advantage
High commitment management
• High-commitment management emphasizes personal responsibility, independence, and empowerment of employees across all
levels instead of focusing on one higher power
High-involvement management
• High-involvement management approach involves treating employees as partners in the enterprise whose interests are respected
and who have a voice on matters that concern them.

15.
https://www.businessmanagementideas.com/differences/difference-between-strategic-hrm-and-hrm/20803

16.
HR Strategies
HR strategies set out what the organization intends to do about its
human resource management policies and practices, and how they
should be integrated with the business strategy and each other.
The purpose of HR strategies is to guide development and
implementation programmes.
They provide a means of communicating to all concerned the
intentions of the organization about how its human resources will be
managed.
They enable the organization to measure progress and evaluate
outcomes against objectives.

17.
Types of HR strategies
Overarching
HR
strategies
•Overarching strategies describe the general intentions of the
organization about how people should be managed and developed and
what steps should be taken to ensure that the organization can attract
and retain the people it needs and ensure so far as possible that
employees are committed, motivated and engaged. They are likely to
be expressed as broad-brush statements of aims and purpose, which set
the scene for more specific strategies.
Specific
HR
strategies
•Specific HR strategies set out what the organization intends to do in
areassuch as:
•Talent management – how the organization intends to ‘win the war for
talent’;
•Continuous improvement – providing for focused and continuous
incremental innovation sustained over a period of time;
•Knowledge management – creating, acquiring, capturing, sharing and
using knowledge to enhance learning and performance;
•Resourcing – attracting and retaining high-quality people;
•Learning and developing – providing an environment in which
employees are encouraged to learn and develop;
•Reward – defining what the organization wants to do in the longer
term to develop and implement reward policies, practices and
processes that will further the achievement of its business goals and
meet the needs of its stakeholders;
•Employee relations – defining the intentions of the organization about
what needs to be done and what needs to be changed in the ways in
which the organization manages its relationships with employees and
their trade unions.

18.
Within the HRM view, two approaches have been identified.
• Storey (1989) labelled these two approaches hard HRM and soft HRM.
• The ‘hard’ approach, rooted in manpower planning is concerned with
aligning human resource strategy with business strategy, while the ‘soft’
approach is rooted in the human relations school, has concern for workers’
outcomes and encourages commitment to the organization by focusing on
workers’ concerns.
• Simply, hard HRM Views people as a resource used as a means of achieving
organizational goals while soft HRM Encourages employers to develop
strategies to gain employee commitment.
Hard and soft HRM

19.
Thank you