LESSON 2: Strategic Human Resource Management (SHRM)

Question 1

WHO?

Strategy is problem solving in unstructured situations.’

Answer 1

Lester Dignam

Question 2

who?

‘There is a gap between the rhetoric and the reality of SHRM

Answer 2

Lynda Grattan

Question 3

who?

‘Strategy consists of illusions in the board room.’

Answer 3

John Purcell

Question 4

who?

‘Strategy is emergent and flexible.’

Answer 4

Sean Tyson

Question 5

who??

Strategy is a pattern in a stream of activities.’

Answer 5

Henry Mintzberg

Question 6

who??

Strategy is often fragmentary, evolutionary and largely intuitive.’

Answer 6

James Quinn

Question 7

A critical factor that affects Firm Performance

Answer 7

strategy

Question 8

A factor that contributes to Competitive Advantage in markets

Answer 8

strategy

Question 9

Having a long-term focus

Answer 9

strategy

Question 10

Plans that involve the top executives and/or board of directors of the firm

Answer 10

strategy

Question 11

A general framework that provides a perspective for selecting specific policies and procedures

Answer 11

strategy

Question 12

is a process for analyzing a company’s competitive situation, developing the company’s strategic goals, and devising a plan of action and allocation of resources that will help a company achieve its goals.

Answer 12

Strategic Management

Question 13

is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

Answer 13

Strategic human resource management

Question 14

SEVEN STEPS TO BEING STRATEGIC

Answer 14

1. Aware of business context
2. Understand the business
3. Appreciate how HR can add value 4. See the big picture
4. Act as change agent
5. Make convincing business case for innovation
6. Practice evidence-based management

Question 15

is the practice of attracting,
developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole.

Answer 15

Strategic human resource management

Question 16

TRUE OR FALSE

HR departments that practice strategic human resource management DO NOT work independently within a silo; they interact with other departments within an organization in order to understand their goals and then create strategies that
align with those objectives, as well as those of the organization.

Answer 16

TRUE

Question 17

the goals of a human resource department

Answer 17

reflect and support the
goals of the rest of the organization.

Question 18

is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation.

Answer 18

Strategic HRM

Question 19

utilizes the talent and opportunity within the human resources
department to make other departments stronger and more effective.

Answer 19

Strategic HRM

Question 20

can be defined as the linking of
human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.

Answer 20

Strategic human resource management

Question 21

Strategic HRM gives direction on how to build the foundation for strategic advantage by

Answer 21

• creating an effective organizational structure and design
• culture
• employee value proposition
  -systems thinking
• appropriate communication strategy
• preparing an organization for a changing landscape, which includes downturns and mergers & acquisitions.

Question 22

Strategic human resource management includes typical human resource
components such as

Answer 22

• hiring
• discipline
• payroll

Question 23

SHRM also involves
working with employees in a collaborative manner to ??

Answer 23

• boost retention
• improve the quality of the work experience
• maximize the mutual
  benefit of employment for both the employee and the employer.

Question 24

Strategic HRM, therefore, is concerned with the following:

Answer 24

1. Analyse the opportunities and threats existing in the external
   environment.
2. Formulate strategies that will match the organisation’s (internal)
   strengths and weaknesses with environmental (external) threats and
   opportunities. In other words, make a SWOT analysis of organisation.
3. Implement the strategies so formulated.
4. Evaluate and control activities to ensure that organisation’s objectives
   are duly achieved.

Question 25

HR STRATEGY: STRATEGIC FIT (VERTICAL)

Answer 25

Corporate Strategy ↑ Business Strategy ↑ HR Strategy ↑ HR System (Performance Mngmnt)

Question 26

HR STRATEGY: STRATEGIC FIT (HORIZONTAL)

Answer 26

HR System (Performance Mngmnt) ↔ Training ↔ Rewards

Question 27

10 STRATEGIC HUMAN RESOURCE MANAGEMENT

Answer 27

1. EMPLOYEE VALUE PROPOSITION 2. STRATEGIC WORKFORCE PLANNING 3. RECRUITMENT AND SELECTION 4. TRAINING 5. PERFORMANCE MANAGEMENT 6. 360- DEGREE FEEDBACK 7. TOTAL REWARDS 8. SUCCESION PLANNING 9. RETENTION MANAGEMENT 10. HR AUDITS

Question 27

Nature of SHRM:

Answer 27

1) Long-term Focus 2) Associated with Goal-Setting 3) Interrelated with Business Strategies 4) Fosters Corporate Excellence Skills

Question 28

As business strategies have a long-term orientation, therefore, focus of SHRM is also long-term probably more than one year.

Answer 28

Long-term Focus:

Question 29

: SHRM is highly related with setting of objectives, formulation of policy and allocation of resources and it is carried out at all levels of top management.

Answer 29

Associated with Goal-Setting

Question 30

: There is an interrelation between business strategies and SHRM. E.g. it gives significant inputs when business strategy is formulated, and human resource strategies (like recruitment, staffing, training and performance appraisal).

Answer 30

Interrelated with Business Strategies

Question 31

: SHRM considers employees as the strategic potential of the organization and on that basis makes effort to differentiate the organization from its competitors present in the markets. It also promotes learning of modern skills.

Answer 31

Fosters Corporate Excellence Skills

Question 32

Aims of SHRM:

Answer 32

1) To develop Strategic Competencies 2) To give Sense of Direction 3) To achieve Integration 4) To formulate Business Strategy

Question 33

: to make sure that the company has needed standards and competent and highly motivated employees for achieving sustainable competitive advantage.

Answer 33

To develop Strategic Competencies

Question 34

It guides the organization in the right direction so that the business requirements of the organization and the individual as well as the co-operative requirements of its employees are met by creation and attainment of consistent and reasonable HR policies and programmes.

Answer 34

To give Sense of Direction

Question 35

Target of SHRM is to give a united framework, so that the organized HR system works synergistically in accordance with the organizational strategic objectives.

Answer 35

To achieve Integration

Question 36

by focusing on the measures through which the organization can use the power of its human resources for the increasing benefits.

Answer 36

To formulate Business Strategy

Question 37

Key Features of Strategic Human Resource Management:

Answer 37

a) There is an explicit linkage between HR policy and practices and overall organizational strategic aims and the organizational environment. b) There is some organizing schema linking individual HR interventions so that they are mutually supportive. c) Much of the responsibility for the management of human resources is devolved down the line.

Question 38

Approaches of the SHRM:

Answer 38

a) attempts to link Human Resource activities with competency based performance measures. b) attempts to link Human Resource activities with business surpluses or profit.

Question 39

Barriers of SHRM:

Answer 39

1. Inducing the vision and mission of the change effort. 2. High resistance due to lack of cooperation from the bottom line. 3. Interdepartmental conflict. 4. The commitment of the entire senior management team. 5. Plans that integrate internal resource with external requirements. 6. Limited time, money and the resources. 7. The statusquo approach of employees. 8. Fear of incompetency of senior level managers to take up strategic steps. 9. Diverse work-force with competitive skill sets. 10. Fear towards victimisation in the wake of failures. 11. Improper strategic assignments and leadership conflict over authority. 12. Ramifications for power relations. 13. Vulnerability to legislative changes. 14. Resistance that comes through the legitimate labour institutions. 15. Presence of an active labour union. 16. Rapid structural changes. 17. Economic and market pressures influenced the adoption of strategic HRM. 18. More diverse, outward looking approach.

Question 40

Benefits of SHRM:

Answer 40

1) Identifying and analysing external opportunities and threats that may be crucial to the company's success. 2) Provides a clear business strategy and vision for the future. 3) To supply competitive intelligence that may be useful in the strategic planning process. 4) To recruit, retain and motivate people. 5) To develop and retain of highly competent people. 6) To ensure that people development issues are addressed systematically. 7) To supply information regarding the company's internal strengths and weaknesses. 8) To meet the expectations of the customers effectively. 9) To ensure high productivity. 10) To ensure business surplus thorough competency.

Question 41

: Expressed in statements defining business values and culture. It expresses how to treat and value people.

Answer 41

Philosophy

Question 42

: Expressed as shared values and guidelines. it establish guidelines for action on people related business issues and HR programs.

Answer 42

Policies

Question 43

: Articulated as human resource strategy. These coordinate efforts to facilitate change to address major people related business issues.

Answer 43

Programs

Question 44

For leadership managerial and operational role practices motivate needed role behaviours.

Answer 44

Practices

Question 45

: For the formulation and implementation of other activities these define how activities are carried out.

Answer 45

Processes

Question 46

5 P model of Strategic HRM

Answer 46

Philosophy Policies Programs Practices Processe

Question 47

Strategic Human Resources Management Activities

Answer 47

Human Resources Philosophy Human Resources Policies Human Resources Programs Human Resources Practices Human Resources Processes

Question 48

- Expresses how to treat and value people

Answer 48

Human Resources Philosophy

Question 49

Guidelines for action on people related business and HR programs

Answer 49

Human Resources Policies

Question 50

Help to address and change major people related business issues

Answer 50

Human Resources Programs

Question 51

Motivates needed role behavior

Answer 51

Human Resources Practices

Question 52

Defines how these activities are carried out

Answer 52

Human Resources Processes

Question 53

Importance of SHRM:

Answer 53

a) Helps firm in achieving cost-effective engagement of Labour b) Enables firm to meet changing needs c) Provides clear-cut goals, direction, and future focus d) Helps Organization in Planning and Executing Organizational Changes e) Ensures Optimum Utilization of Organizational Resources f) Develops, Manages and Sustains Skills and Knowledge

Question 54

Challenges of SHRM:

Answer 54

i. Absence of Long-term orientation ii. Lack of Strategic Reasoning iii. Lack of adequate support from top management iv. Resistance from Labour Unions v. Fear of Failure vi. Rigidity of HR Practices

Question 55

Overcoming Challenges of SHRM:

Answer 55

i. Conduct a rigorous initial analysis ii. Formulate Strategy iii. Gain Support iv. Assess barriers v. Manage Change vi. Project Management and Implementation vii. Follow-up and Evaluate

Question 56

HR Specialists.

Answer 56

TRADITIONAL HR (Accountability)

Question 57

Managing people to facilitate the activities.

Answer 57

TRADITIONAL HR (Importance)

Question 58

Custodian of HR policy implementation & compliance.

Answer 58

TRADITIONAL HR (Role of HR)

Question 58

Line Managers & HR Specialists.

Answer 58

STRATEGIC HR (Important Investment)

Question 59

Ritualistic, Reactive Activities.

Answer 59

TRADITIONAL HR (Approach Orientation)

Question 59

People Development.

Answer 59

TRADITIONAL HR (Major Function)

Question 60

HR strategy formulation & implementation in alignment with organizational strategy.

Answer 60

STRATEGIC HR (Importance)

Question 61

Strategic Business Partners.

Answer 61

STRATEGIC HR (Role of HR)

Question 62

Proactive, Business-oriented Results.

Answer 62

STRATEGIC HR (Approach Orientation)

Question 63

People and Organization's Development in line with the Business Objectives.

Answer 63

STRATEGIC HR (Major Function)

Question 64

Employee relations

Answer 64

Traditional HRM (Focus of activity )

Question 65

Slow & not integrated with larger issues

Answer 65

Traditional HRM (Initiative for change )

Question 65

Reactive & transactional

Answer 65

Traditional HRM (Role of HR )

Question 65

Short-term

Answer 65

Traditional HRM (Time Horizon )

Question 66

Bureaucratic control

Answer 66

Traditional HRM (Control )

Question 66

Focused job design

Answer 66

Traditional HRM (Job Design)

Question 66

Capital, products, technology & finance

Answer 66

Traditional HRM (Important Investment)

Question 66

Partnership with internal & external groups

Answer 66

SHRM (Focus of activity )

Question 66

Proactive & transformational, change leader

Answer 66

SHRM (Initiative for change )

Question 66

Fast, flexible & systematic

Answer 66

SHRM (Role of HR )

Question 67

Consider various time frames

Answer 67

SHRM (Time Horizon )

Question 68

Organic control

Answer 68

SHRM (Control )

Question 69

Broad job design

Answer 69

SHRM (Job Design)

Question 70

People & their knowledge skills & abilities

Answer 70

SHRM (Important Investment)

Question 71

In an organisation means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel.

Answer 71

SHRM