Unit Three Seminar HR485: Strategic HR Management

1. Unit Three SeminarHR485: Strategic HR Management

2. Objectives • Describe the elements necessary for developing an HR-business strategy • • Determine the impact of not having an HR- business strategy • • Demonstrate an understanding of HR maturity level and its influence on an organization

3. Elements necessary for developing an HR-business strategy What business strategy is all about - what distinguishes it from all other kinds of business planning - is, in a word, competitive advantage. Without competitors there would be no need for a strategy..... Corporate strategy thus implies an attempt to alter a company’s strength relative to that of its competitors in the most efficient way.” Kenichi Ohmae, “The Mind of the Strategist” McGraw-Hill 1982.

4. What is HR Strategy? – No. 1 A business strategy should give you a competitive advantage. An HR strategy turns the way you manage your people into a competitive advantage. An HR strategy is a business strategy.

5. What is HR Strategy? – No. 2 strategy n. 1. The art of war 2a. The management of an army in a campaign 2b. moving troops into favourable positions (Oxford dictionary) So what are the key elements of an HR strategy? - There must be a business strategy The HR and business strategies must be completely entwined HR must focus on the same measures as the business Strategic HR thinking has to be represented at a strategic level

6. What is HR Strategy? – No. 3 • HR strategy is much more than a collection of personnel policies. • It is a complete philosophy and a holistic approach to organisational management. • One way to get a better understanding is to consider the negative of HR strategy – what it isn’t and what happens when there is no HR strategy. Some indicators would include – • Poor employee relations – union confrontation • High staff turnover • An inability to change when necessary • Poor customer service through poorly trained or disengaged staff

7. Sound principles are the foundation of HR Strategy principlen. a fundamental truth or law, a personal code of conduct (Oxford dictionary ) Principles should be simple to understand and easily expressed So what are the key principles on which HR Strategy should be based? - • Honesty? • Everyone is a unique individual? • All HR solutions must be aligned with business objectives? • All activities should add value? • Evidence based approach to management? • Measurement precedes management? • Ethical? • ???

8. HR maturity level and its influence • Learning Maturity Scale: a continuum of the stages of development and evolution for a learning organization. • Need to attach a value to all training before it is implemented.

9. HR Maturity Scale - how mature is your organization? Human Capital Barrier: Executive fails to realise true value of human capital Personnel administration (REACTIVE) Personnel Management HCM (STRATEGIC) HRM LOW V A L UE H I G H VALUE Stage 0 No Conscious Personnel Management Stage 1 Personnel Administration Stage 2 Good Professional Practice Stage 3 Effective HR Management Stage 4 HRM becomes integral to business operations Stage 5 Transition - from operational HR to strategic focus Stage 6 Organisation becomes a whole system Basic administration Payroll Nos. employed Personnel costs HRM expertise valued by line Systems start to have teeth Organisation starts to become focused on maximum value from people through processes HR business partners in place who understand the business Line managers accept HRM intervention in their management role Business measurement systems start to look at people measures Recruitment and selection systems Rudimentary performance review process Knowledge sharing culture Intellectual capital managed Individually centred but learning enabled

10. What are your questions or concerns?

11. Have a great week learning!