HRD Strategies for Long Term Planning & Growth

Unit-9

Basic Function Perform by each Manager

PLANNING ORGANIZING STAFFING LEADING CONTROLLING

Techniques of Human Resource Management

Planning manpower needs and recruiting people Selecting the right candidates Orienting and training new employees Managing wages and salaries (compensating employee) Providing incentives and benefits Conducting job analyses (determining the nature of each employee's job) Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment
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Why Is Human Resource Management Important to Managers?

According to Perl some of the personnel mistakes which as a manager you would like to avoid. Manager dont want to: Hire the wrong person for the job Experience high turnover Waste time with useless interviews Have your company taken to court because of discriminatory actions Have your company cited under federal occupational safety laws for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Commit any unfair labor practices
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Strategic Concept
A Strategy is a way of doing something. Thinking ahead of your competitors. Getting the right strategy of the business .. Implementing it effectively getting everybody in the organization from the top to bottom ,doing things that makes the business successful
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Strategic Role of HR
Strategic HRM is the pattern of planned human resource developments and activities intended to enable an organization to achieve its goals. Accepting HR functions as a strategic partner in both formulation of companys strategy as well as implementing those activities through HR activities. In todays time it's HR's job to build competitive advantage. Today role of HR is shifting from protector and screener to strategic partner and change agent. Formulating a strategic plan requires identifying, analyzing, and balancing the company's external opportunities and threats, and its internal strengths and weaknesses. HR plays a critical role in this.
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Organizational Strategies Based On Human Resources

Today recognition of HR has been growing . Certain conditions, where human resources contribute to a competitive advantage for organizations are INNOVATION UNUSUAL QUALITY SPECIAL SKILLS PRODUCTIVITY OUTATANDING SERVICES
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Organizational Strategies Based On Human Resource

INNOVATION

OUTATANDING SERVICES

HUMAN RESOURSE PRODUCTIVITY

UNUSUAL QUALITY

SPECIAL SKILLS
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Productivity as an HR based strategy

The more productive an organization, the better its competitive advantage, because the costs of producing goods and services is lower. Better productivity does not mean more is produced; it is fewer people (or less money or time is used to produce the same amount. Productivity is a measure of the quantity and quality of the work done. Productivity is the ratio between inputs and outputs. ( lesser the input higher the output) Productivity leads to higher standards of performance.

Organizations & Productivity

Productivity at the organizational level affects profitability and competitiveness of an organization. None of the resources used for productivity in organization are so closely scrutinized as a human resources. Most of the activities undertaken in an HR system are designed to affect individual or organizational productivity Pay, appraisal systems, training, selection, job design and complementation re activities directly concerned with productivity. A useful way to measure organizational HR productivity is by considering Unit Labor cost.
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Increasing Productivity
Some basic ways to improve organizational productivity are downsizing, re-engineering jobs, increasing computer usage. Few other ideas for productivity improvement include: Outsourcing: Contract with someone else to perform activities previously done by employees of organization. Making workers more efficient with capital equipment: Typically, the more spent on equipment per worker, the greater the output per worker. Helping workers work better: Replace outmoded (old fashioned) processes, methods, and rules. Find better ways of training people to work more efficiently. Redesigning the Jobs: Some jobs can be redesigned to make things faster, easier, and possibly even more rewarding to employees .Such changes aims to improve employee productivity. 11

Linking HR Planning & Strategy for Competitive Advantage

Many think that organizations decide on strategies and then HR planning is done to supply the right number and kinds of employees. The relationship is much deeper. The relationship among the various organizational factors/variables determine the HR plans an organizations . Business strategies should be always linked with HR plans. HR professionals should continuously do environmental scanning to know and pinpoint which skills are available and which are not. HR professionals should be able to estimate lead times for adjusting to labor shortages or surpluses, because HR will be involved in implementing any strategies that affect people
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Benefits of HRD

HRD deals with Development and Up- gradation of Human Capital HRD improves capabilities of people. Employees become innovative and enterprising-always eager to take risk and get ahead. Continuous feedback and guidance from superiors help employees grow continually and show superior performance. HRD improves team work. HRD leads to greater organizational effectiveness.
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Factors that determines HR Plans

Strategy of the Organization

Culture of the Organization

Competitive / Financial Environment

Current Organization Situation

Need for Human Resources: Quality and Skill Levels

Available Financial Resources

HR Plans and Policies for:

Recruiting Selection HR development Compensation Performance Management Staffing Adjustment

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Importance of HR Strategy

According to Strategist Michael Porter human resource management is a key for obtaining competitive advantage .Distinctive competencies can be obtained through highly developed employee skills, distinctive organizations culture, management process and systems . competitive advantage can be obtained with a high quality work force.
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Strategic Planning

Development of organizational philosophy & mission statement Environment scanning SWOT analysis Formulation of strategic objectives Generation of alternatives strategies for achieving objectives Evaluation of selection of strategy

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Functions of Strategic Planning

Periodic forward scanning Analysis based on longer time frame Communication about goals and resource allocations Framework for a short term plan evaluation and integration Decisional criteria framework for short-term decision making
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Strategic management

Strategic management is considered to be a continuous activity that requires a constant adjustment of three major interdependent poles- the values of senior management, the environment, and the resources available.

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Strategic Management

The Three Traditional poles of a Strategic Plan

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Strategic management
Strategic Management involves four steps Analyze the opportunities and threats or constraint that exists in the external environment. Formulate strategies that will match the organizations strengths and weaknesses with the environment threats and opportunities. Implement the strategies. Evaluate and control activities to ensure that the organizations objectives are achieved
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Strategic management

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Human Resource Activity Typology- By Alan Speaker

This typology categorizes human resource activities in a 2 x 2 matrix according to two dimensions: (1) the extent to which such activities are relational or transactional and (2) whether they have high or low strategic value. At one end of the transactional and relationship continuum are transactional activities that are mostly administrative and impersonal. The performance of these activities does not require a high level of interpersonal skill, and many of these activities can be computerized. At the other end of the continuum are activities that require high levels of interpersonal skill, political awareness, and sensitivity. For the strategic-value dimension, at one end of the continuum are activities that have direct business impact on the firm's ability to implement its competitive strategies.
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Human Resource Activity Typology- By Alan Speaker

At the other end of the continuum are activities that have a more indirect or less strategic impact. The model is presented in the next slide. Although there has been no survey of practitioners indicating agreement as to the placement of activities in specific quadrants, the strategic value of the activities may vary according to the specific circumstances faced by each firm.

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Human Resource Activity Typology- By Alan Speaker

Examples of activities in the low strategic value/transactional quadrant include such tasks as payroll, benefits administration, employee records, and relocation administration. These activities do not have immediate impact on the firm's ability to implement various strategies, such as those emphasizing new product innovation, exceptional product quality, or low costs. Such activities are important to employees who become very concerned when their paychecks are not in the right amount or they are having difficulties with benefits such as medical claims. These activities must be performed accurately, in a timely manner, and with cost efficiency.
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HUMAN RESOURCE ACTIVITY TYPOLOGY

High Staffing Planning (pipeline Development) Benefits Planning Retirement Planning Compliance Performance Enhancement Consulting Employee Relationship Labor Negotiations Executive Compensation Employee development Management Development Recruitment interviews
<IMPORTANT TO EXECUTIVES>

Strategic Value of Activity Payroll Benefits Administration Retirement Administration Employees Records Relocation Administration Recruitment Information Processing
<IMPORTANT TO EMPLOYEES>

Recruitment information Processing Employee Assistance Program

Low Transactional Type of HR Activity Relationship

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Requirement

of strategic Managers

Human

Information management skills statistics , analysis and research Planning skills the knowledge of planning and planning methodologies plus statistics techniques Management skills - Skills and in various business functional and environment analysis Integration skills - Competency at managing organization interfaces Change management skills - the skill of anticipating the future , facilitating the changes and developing the organizational 26 activities

Resource

Human Resource Management

Attraction Development Motivation Retention

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The End

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