The Strategic Contribution of HRM

1. The Strategic Contribution of HRM Nicola Broadbent - National Express Natalie Edworthy - EMR Samantha Ho - Experian QAS Dinah Regan - BPIF

2. Objectives of Presentation • How can the HR function contribute to organisational strategy? • How can the HR function work effectively with line managers in the achievement of organisational goals?

3. What is Strategic HRM?

4. How can HR contribute towards the organisational strategy? • Developing HR strategies which support the business – Board presence • Understanding of business via environmental scanning of the internal and external environment the organisation operates within – pro-active rather then reactive • Financial Management Information – turnover/absence • Transformational activities – agents of change management • Areas of expertise – employment law, reward, learning and development, performance management, recruitment, policy

5. AMO model For people to perform better organisations must ensure that employees: • Ability – have the ability and necessary knowledge and skills • Motivation – be motivated to work and want to do it well • Opportunity – be given the opportunity to deploy their skills (Purcell et al, 2003)

6. Strategy Map Viability Competitive Advantage Business Goals: Employer of choice Profit Corporate Social Responsibility Product / Service Development / Differentiation Growth market share Cost reduction Capable People Performance And their actions Relevant non-HR resources: Ability finance, technology, brands Motivation Opportunity to Participate People Management:Relevant management: Recruitment & Selection processes e.g. Marketing, Finance, Learning & Development operations Performance Management / Appraisals Reward & Recognition practices Employee engagement / Well-being

7. Cost Implications • Cost of initiative: training, consultation, implementation = £28,800 • Cost of absence per year = £2,500,000 Saving ££££

8. How can HR work effectively with line managers help achieve organisational objectives? • Collaboration with line managers rather then be an ‘obstructive’ function – must involve, consult with key stakeholders within business from outset – buy in is key to the success of HR initiative. • HR must have an understanding of the strategic intentions of business and climate it operates within so it can respond to its needs and be aware of challenges/pressures – closer to the business – less remote. • Training for front line managers to ensure effective and consistent implementation of HR policies/practices • Coaching on area of expertise – employment law/best practice for employee relation issues to mitigate business risks – equip tools/knowledge – Critical friend to line managers. • Management information – demonstrate benefits/impact i.e. turnover & absence – Line managers respond to hard facts! • Cost implications/ benefits/balance

9. Thinking Performer -CIPD (2008) High Effectiveness Low Low Efficiency High

10. Any Questions?