Process of Strategic Human Resource Management - Essay Example

Week I: Introduction: The Process of Strategic Human Resource Management Human resources management (HRM) originated after the perspective of management shifted from directive type explained in scientific management concept to facilitative type explained by various management specialists. Origin of HRM as a specialty can be traced to various organizational behavioral theories proposed by Maslow (1954), Herzberg (1966), McGregor (1960), Mintzberg (1994) etc. The essence of HRM is based on the grounding principle that people form the core elements of any management function. However, this part of management function is influenced by strategy, structure and culture, all of them interdependent and equally important for effective HRM. This concept led to the evolution of strategic HRM (SHRM). Various models of SHRM have been proposed by different researchers. Each of these models considers human resources at the focal point, and organizational strategies formulated in line with organizational goals and expectations from employees. However, the challenge to SHRM is its inability to be measurable. It is extremely difficult to measure effectiveness of strategies before achieving any outcome; at the same time, waiting for outcome could be disastrous to the organization. Kaplan and Norton’s Balanced Score Card system is an impressive way to assess the effectiveness of strategies. This helps in translating an organization’s vision, mission, value and strategy into a comprehensive set of performance measures based on four key perspectives, finance, learning and growth, internal processes and customers. It also enables companies to assess short-term strategies, modify strategies and also manage performance (Kaplan & Norton, 2007). Nevertheless, SHRM is a complex and dynamic process requiring a systematic approach that includes consideration of external such as socioeconomic, technical, politicolegal factors and nature of competition; and internal factors such as culture, structure, leadership, technology, organizational goals (Lundy & Cowling, 1996, 77). Yet, the comprehensive six-step SHRM application tool seems highly useful for organizations to implement SHRM at the ground level and with a futuristic vision (Hartel et al, 2007). Considering the dynamic nature of SHRM and constantly changing environmental and organizational behaviors, scope of SHRM cannot be defined or limited. Philosophically, leaders and strategists should have an outlook of ‘change’ in using and implementing SHRM concept. References Hartel, C, Y. Fujimoto, V. Strybosch, & K. Fitzpatrick. (2007). Human resource management: Transforming theory into innovative practice. Australia: Pearson. Kaplan, R.S and D.P. Norton (2007). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, Managing for the Long Term, 2007. www.hbr.org (http://portal.sfusd.edu/data/strategicplan/Harvard%20Business%20Review%20article%20BSC.pdf) (Accessed May 12, 2010). Lundy, O and Cowling, A. 1996. The Emergence of Strategic Human Resource Management. In Strategic human resource management. 47-94. London: Routledge. Week 2: Introduction to HRM and contemporary issues at work. It is clear that HRM is a complex phenomenon and all factors related to HRM need to be considered for achieving successful HRM. HRM is concerned with people, which means a cluster of different attitudes, behaviors, sociocultural backgrounds, beliefs and expectations. Bringing these differences under one roof of an organization and aiming to achieve one common goal is highly challenging. For this reason, organizations tend to design specific objectives to be achieved, which are in line with the main goal; however, I believe that HRM cannot achieve this through predefined processes as in scientific management, but through mutual cooperation and collaboration of different individuals and groups within and outside an organization. Hartel et al. (2007) have explained about many motivational theories proposed by different researchers; the ground must have been set by Maslow’s (1954) hierarchy of needs. Hence, different motivational factors for different individuals have to be considered, which SHRM strives to incorporate into organizational objectives. Another major challenge to HRM is workforce diversity that impacts individuals, groups and organization as a whole. Various types of diversities have been identified, like group identity, values and beliefs, skills and knowledge, behavioral diversity, organizational cohort. Instead as a challenge, this diversity may be used as an opportunity to enhance organizational efficiency through effective diversity management practices. Conflicts arising out of individual differences in beliefs and values, emotional/psychological condition, experiences etc are yet other significant challenges to managers. Stress management either due to work overload, or ineffective leadership is also a common issue found. These challenges can be tackled through effective HRM practices related to diversity management such as transparent mechanisms for recruitment and selection, training and development, performance management, flexible working, work-life balance etc. References Hartel, C., Fujimoto, Y., Strybosch, V., & Fitzpatrick, K. (2007). Strategies to engage and motivate employees. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Week 3: Motivating employees and workforce diversity Organizations have been effectively tackling different challenges related to behavior, work processes, culture etc by driving desired organizational culture and ethics, which are in line with organizational objectives. In general, motivational factors may be classified as soft, including relationships, and hard such as money, position, brand etc. A balance between the two helps in achieving optimum motivation of employees. HRM has a key role in causing this balance by formulating appropriate policies, practices, remuneration, codes of conduct etc. Most important consideration towards motivation should be the psychological contract that every employee forms with the employer/organization; this bonding can be strengthened through organizational ethics that are framed in line with culture. Motivation changes with time, and leaders need to be connected with people to identify their motivational needs. At large, organizational practices too need to be changed. Another important factor for motivational change is ‘change’ itself, which may surface in various forms such as planned or unplanned changes. Adaptation to change is a complex process, and should be undertaken in a systematic manner through openness, clarity of information, disciplined and planned approach. Diversity management is an effective motivational tool considering diversity as an unavoidable challenge in any organization. Cornelius et al. (2000) defined diversity management as, ‘the process of promoting equality through valuing difference between individuals and groups, particularly those who have traditionally experienced disadvantage. In addition, good diversity management should seek a strong ‘business case,’ which encourages inclusiveness and marshals difference’ (Cornelius & Gagnon, , 27-28). In my opinion workforce diversity helps in stimulating employee creativity and innovation; enhances productivity; fosters team bonding; and improves trust and commitment towards leadership. A very important consideration in diversity management is that HRM policies should be in line with the national culture, especially in global organizational settings. HRM practices of parent organization may not be effective in its subsidiaries in other countries (Bratton & Gold, 2003, 59). Overall, motivational practices for cannot be standardized, and should be designed in order to fit the organization, people and national culture. Managing diversity can be an effective tool for organizational advancement and employee motivation to a large extent. References Bratton, J., & Gold, J. (2003). Strategic human resource management. In Human resource management. Theory and practice 3rd ed. 37-70. London: Palgrave Macmillan. Cornelius, N and S. Gagnon. (2002). From equal opportunities to managing diversity to capabilities: a new theory of workplace equality? In N. Cornelius’s (ed.) Building workplace equality: ethics, diversity and inclusion. 2nd Ed. 13-58. London: Cengage Learning EMEA. Hartel, C, Y. Fujimoto, V. Strybosch, & K. Fitzpatrick. (2007). Workforce diversity, work life demands and strategic human resource management. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Week 4: Knowledge, innovation and learning cultures. And, Ethics in the workplace Peter Drucker (2003) had strongly prophesied the necessity and importance of knowledge workers and their productivity in 21st century organizations, which can now be related to the technological advancements, capital investments, and the constantly changing demands of customers. Preparing employees to knowledge working can be an effective motivational factor. Drucker has identified six major factors that determine knowledge-worker productivity namely, the task, autonomy, continuing innovation, continuous learning and teaching, quality, and knowledge retention by organizations. This is precisely what Hartel et al (2007, 53-58) explained as the key to knowledge management, the process of developing and controlling the intellectual capital of employees. I feel this knowledge management can be accomplished by developing the employee skill set; appropriate policies and procedures for learning; adopting appropriate technology; and promoting organizational learning culture and behavior. The challenge to knowledge management is its retention because employees cannot be bound to an organization. Hence, appropriate procedures to ensure knowledge sharing and continuous learning through training, skill enhancement, empowerment, team working and learning culture can mitigate the loss thus caused to a great extent. Another approach for motivation is setting legal, ethical and moral binding towards organization in terms of employee behavior, employee safety and security and business norms (Hartel et al., 2007). In short, organizations frame codes of conduct that they expect employees to follow towards organization and vice versa. These form the grounding principles of working, which all employees are expected to follow in order to ensure a harmonious working relationship and atmosphere. The most critical aspect of this principle is the employment law that sets minimum standards of employment for employee safety, security, and safeguarding their integrity. Other benefits include occupational safety and security at workplace; employee health and accident insurance. However, I have heard of certain issues such as psychological and mental stress due to work overload and cases of harassment that are still evidenced in most of the organizations in spite of a constant struggle to avoid mishappenings on these bases; these issues warrant stronger control and monitoring measures from the leadership. References Drucker, P.F. 2003. From Capitalism to Knowledge Society. In A functioning society: selections from sixty-five years of writing on community, society, and polity. 157-168. New Jersey: Transaction Publishers. Hartel, C., Fujimoto, Y., Strybosch, V., & Fitzpatrick, K. (2007). Knowledge, innovation and developing a learning culture. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Week 5: Staffing models, recruitment and selection. And, Technology to support strategic HRM This session emphasized the fact that strategic planning is one of the core processes of implementing SHRM, and begins with HR planning consisting of recruitment and selection of the right employees. Hartel et al’s (2007) teachings indicate that HRP is the function of managers, and is done by forecasting demand and supply. Job analysis should precede recruitment and selection processes, in which job requirements in terms of people, process and skills are analysed. Job design helps in organizing all processes required to complete a specific job, and people possessing specific skills to complete each of these tasks are hired, either externally or internally. Externally, this is undertaken by the HR team, and internally it is usually a part of job rotation and/or job enrichment processes in which existing employees are groomed to perform different and/or higher tasks. This process will be especially helpful in retaining and developing existing employees thus retaining the knowledge pool. However, the trainability, educational requirements, time factor are challenges to this initiative. In both cases, i.e. recruitment and internal movement, HRM practices should be in line with the business requirements or organizational objectives. HRM process has undergone numerous changes in terms its execution, maintenance and development. HRP is majorly technologically driven in contemporary organizations. Technology has invaded all aspects of HRM including recruiting, training, developing and monitoring human resources; this is being done through email, internet, and intranet applications such as HR portal, e-learning etc. The HR information system constitutes activities such as audit, performance management, training and development, rewards and recognition etc. Through HRIS, managers can access information related to their employees from any place in the world. In addition, easy accessibility of information related to performance expectations, competencies required for job, performance management and development plans, compensation information etc is possible (Jackson, Schuler & Werner, 2008, 55). Arguably, HRIS can be successful only if it is understood; it requires training; if it can provide accurate information; its accessibility to relevant information; and is continually improved. In addition, accuracy of HRIS or any technologically driven process needs constant monitoring and also up gradation for organizations to sustain competitiveness. This is a never-ending challenge, which the managers should be ready to face; providing enough opportunity for innovation becomes the rule to sustain competitiveness. References Hartel, C., Y. Fujimoto, V. Strybosch, & K. Fitzpatrick. (2007). Technology and strategic human resource management. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Jackson, S.E, R.S. Schuler and S. Werner. 2008. Understanding the external and organizational environments. In Managing Human Resources. 10th ed. 35-72. OH, U.S.A: Cengage Learning. Week 6: Training and development Knowledge working, which forms the trend of contemporary organizational functioning, requires continuous learning. The productive capital can be compounded only through learning obtained from education, training and experience. Mabey and Salaman (1995) asserted that this development of new knowledge can be used as a technique to influence employee behavior. According to Marsick (1994), organizations can accomplish this through a coordinated systems of change, with mechanisms built in for individuals and groups to access, building and using organizational memory, structure and culture to develop long-term organizational capacity (Armstrong, 2006, 540). Hartel et al. (2007) refer to these as behavioral and cognitive approaches to employee learning, which can be used by organizations to enhance their employees’ skills and abilities. Various types of learning mechanism can be facilitated based on the situation and need, and also on individual’s learning styles. Learning within an organization begins with initial induction/orientation program followed by career development process (Hartel et al, 2007). However, ensuring effective learning is not an easy accomplishment in spite of training programs and other opportunities to learn. Firstly, the training sessions need to be tailored to the situation and type of people; secondly, learning objectives need to be clear; thirdly, cost and time factors should be appropriate with the intended learning. Various types of learning methods are being used such as lectures, demonstration, audio/visual displays, role plays, brainstorming, games, forums, discussion sessions etc. Training effectiveness evaluation helps in understanding the level of learning obtained versus the intended. However, very often, employees find it difficult to implement the learning obtained in practical situations at work. Although many models have been proposed to understand organizational learning and development, none can promise a sustainable learning and development. For instance, while the much talked about knowledge-workers trend of contemporary management on one side has its positive consequences in the form of greater innovation and improved organizational productivity, on the other hand, retention of knowledge is equally challenging due to changing psychological contract and reduced growth opportunities attributable to decentralized management. References Armstrong, M. (2006). Organizational learning and the learning organization. In A handbook of human resource management 10th ed. 539-549. London: Kogan Page. Hartel, C., Fujimoto, Y., Strybosch, V., & Fitzpatrick, K. (2007). Knowledge, innovation and developing a learning culture. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Week 7: Managing performance Performance means achieving and/or exceeding the pre-defined objectives in specific manner. Performance management refers to facilitating achievement of organizational objectives at all levels including individuals and teams, and evaluating the performance based on appropriate measurement methods and against pre-defined targets. Overall, performance management aims at continually increasing the performance outcomes. Strategic performance management ideally begins with setting objectives that are in line with organizational goals, at individual, group, functional and organizational levels. Performance evaluation process requires appropriate framework that can integrate performance at all levels and link each one with the organizational objectives. Strategic integration of performance management with organizational goals can be effectively achieved by using the balanced scorecard system (Kaplan & Norton, 2007). The challenges to this tool include assigning appropriate practices/objectives at every level that link with the four major categories, i.e. finance, learning and growth, internal processes and customers. Secondly, assigning criteria and measurement methods to those objectives need to be appropriate in order to assess the outcomes accurately. Thirdly, organizational culture and its practices need to be conducive with implementation of the BSC. Performance appraisal system is used by almost every organization to assess individual or group performance periodically. This process includes assessment of performance, identifying areas for further improvement, agreeing on future objectives/revised targets, designing training plan for individuals to achieve the revised targets, and periodic monitoring of the future performance. Instead, performance appraisal process is perceived negatively most of the times, probably due to misinterpretation of its objectives; linking its outcome to pay hike etc. Managers need to undergo sufficient training on conducting performance review discussions in which they should be able to learn how to influence individuals towards better performance, rewarding good performance, technique of providing appropriate feedback, and making individuals understand how their performances relate to organizational objectives. Different types of performance appraisal models have been developed by different organizations throughout the world. Most importantly, strategists must ensure the model has to be suitable to the culture that the employees come from; minimal or absolute no chance of making errors and be easily understood by all employees (Marchington & Wilkinson, 2005, 321-348). References Hartel, C, Y, V. Fujimoto, V. Strybosch & K. Fitzpatrick. (2007). Strategic performance management. In Human resource management: Transforming theory into innovative practice. Australia: Pearson Kaplan, R.S and Norton, D.P. Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, Managing for the Long Term, 2007. www.hbr.org (http://portal.sfusd.edu/data/strategicplan/Harvard%20Business%20Review%20article%20BSC.pdf) (Accessed May 14, 2010). Marchington, M, and A. Wilkinson. (2005). Motivation and Pay Systems. In Human resource management at work 3rd ed. 321-348. London: Chartered Institute of Personnel and Development. Week 8: Compensation and rewards Rewards refer to the additional enticement received in appreciation for good or outstanding performance, either in the form of appreciation, promotion, additional responsibilities or as shares/stocks, additional leave with pay, part of organizational profits, bonuses etc. Hence, rewards are considered as important motivational factors for every employee. Armstrong and Murlis (2007, 3) stated that the ‘strategic aim of reward management is to develop and implement reward policies, processes, and practices required to support the achievement of the organization’s business goals.’ From a SHRM perspective, types of rewards given should be aligned to expectations from and by the employees, which means employees displaying exceptional performance and take on additional responsibilities should be promoted, and those aspiring for promotion should be guided to perform well along with assigning additional responsibilities. Compensation is holistic aspect of strategic reward management, which constitutes the base pay, pay contingent on performance, competence or contribution, employee benefits and non-financial rewards that include intrinsic rewards from employment environment and work itself (Armstrong & Murlis, 2007 12). Compensation structure is greatly influenced by factors such as state/federal laws, supply-demand of labor, internal and external competition, market performance etc. However, for most of the time, it was believed that compensation is not seen as a strategic tool to achieve organizational objectives but rather as a cost to be managed and contained (Berman et al., 2009, 203). With changing trend of supply and demand of labor, diverse work opportunities and competitiveness, this trend has shifted. Although base pay has to adhere to the laws, most of the companies modify performance pay that includes bonuses, incentives, profit sharing etc to meet their strategic goals associated with compensation-linked motivational approaches. Overall, diverse rewarding practices can be found in different job settings, all aiming to enhance performance and retain employees. Good pay, in my opinion, should include both financial rewards and non-financial rewards, while the former helps in enhancing performance and retaining employees, the latter helps in keeping employees motivated throughout. Yet, the structure should be flexible so that it can be changed according to situation and market trend. References Armstrong, M and H. Murlis. (2007). Total reward and engaged performance. In Reward Management: A Handbook of Remuneration Strategy and Practice. Ed. 5. 11-30. London: Kogan Page Publishers Berman et al. 2009. Compensation: vital, visible and vicious. In Human Resource Management in Public Service: Paradoxes, Processes, and Problems. Ed. 3. 199-231. California: SAGE. Week 10: Strategic international HRM Globalization has been the trend in business world over last few decades, and with it are numerous positive as well as negative consequences. From a SHRM perspective, international management of human resources entails challenges of global issues as well as HRM ‘fit’ with cross cultural and cross national organizations. Main challenges that organizations operating in different countries include adaptability to national culture; adherence to national law; translation of HRM practices to subsidiaries operating in different regions; and global leadership and knowledge. In an global context, SIHRM focuses on developing common HR strategies but customized HR practices to suit employees of different nations in which the organizations operate. Other factors that influence SIHRM are the national economy, constitutional laws, socio-political and environmental conditions. Organizations adopt different approaches to tackle these challenges based on organizational objectives, availability of resources and finance. From a business perspective, all kinds of organizations have ventured into multiple markets other than their native ones; however, based on the extent and functionality, these organizations have been classified as international, multinational, global and transnational organizations. In all cases, expatriation and repatriation processes are sensitive and require good planning and training of employees as well as their families to adapt to the new culture and environment. Secondly, workforce diversity takes high priority in global settings, and SIHRM should be proficient enough for effective diversity management. For global leaders to be successful, they require immense knowledge of different cultures, markets, customers etc; have respect for all cultures; have the zeal to continually learn new aspects of business as well as different cultural behaviors (Beechler & Baltzley, 2008, 418). Global organizations require a distinctive approach to management and leadership. Strategic management and approaches have to be aligned to management functions in such a way that they can meet the global challenges. The key advantage to globalization is that diverse human resources can be of great competitive advantage to organization, only if they are managed effectively through right HRM policies and practices. References Beechler, S and D. Baltzley. (2008). Identifying and developing Global Leaders. In Storey, J. Ed. The Routledge companion to strategic human resource management. 410-432. OX: Taylor & Francis. Parker, B. (2005). The Landscape of Global Business. In Introduction to globalization and business: relationships and responsibilities. 2nd ed. 86-115. London: SAGE. Read More