STRATEGIC HUMAN RESOURCE MANAGEMENT Michael Armstrong This resource

STRATEGIC HUMAN RESOURCE MANAGEMENT Michael Armstrong This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

THE CLOUDY NATURE OF STRATEGY ‘Strategy is problem solving in unstructured situations. ’ Lester Dignam ‘There is a gap between the rhetoric and the reality of SHRM. ’ John Purcell Lynda Grattan ‘Strategy is a emergent and flexible. ’ pattern in a stream of activities. ’ Sean Tyson ‘Strategy consists of illusions in the board room. ’ Henry Mintzberg ‘Strategy is often fragmentary, evolutionary and largely intuitive. ’ James Quinn This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT? Is it about long-range strategic planning? Is it about day-to-day strategic management? Or is it about both? This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM DEFINED Strategic HRM is the process of defining how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

MODEL OF STRATEGIC HRM Strategic management – strategic role of HR HR strategies – overall/specific Strategic choice Strategic analysis This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SO WHAT IS THE STRATEGIC ROLE OF HR SPECIALISTS? This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT ‘My credibility depends on running an extremely efficient and cost-effective administrative machine… If I don’t get that right, and consistently, then you can forget about any big ideas. ’ HR Director ‘Give me a break! It’s so demeaning. How many people in marketing or finance have to say they are a partner in the business? Why do we have to think that we’re not an intimate part of the business, just like sales, manufacturing and engineering? I detest and loathe term and I won’t use it. ’ Tim Miller, Standard Chartered Bank ‘The CIP thinks that we will all be strategic business partners, and we’re not, you know. We have to deal with day-to-day HR issues that arise in the business. ’ Student practitioner ‘The term worries me to death. HR has to be an integral and fundamental part of developing the strategy of the business. I don’t even like the term ‘close to the business’ because, like ‘business partner’, it implies we are working alongside our line management colleagues but on a separate track, rather than people management being an integral part of the business. ’ Alex Wilson, BT This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HR’s STRATEGIC ROLES Formulate integrated HR strategies Contribute to the development of business strategies Work with line managers to support the achievement of their business goals This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SEVEN STEPS TO BEING STRATEGIC Aware of business context Understand the business Appreciate how HR can add value See the big picture Act as change agent Practice evidence. Make based convincing business management case for innovation This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SO WHAT ABOUT HR STRATEGY? This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HR STRATEGY AREAS • • • Overall: performance engagement ‘the big idea’ human capital advantage HRM process advantage etc • • Specific: organization development corporate social responsibility resourcing talent management learning and development employee reward employee relations employee well-being This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

EXAMPLES OF OVERALL HR STRATEGIES A strong focus on the overall effectiveness of the organization, its direction and how it's performing. There is commitment to, belief in, and respect for individuals. New Forest Council The only HR strategy you really need is the tangible expression of values and the implementation of values. West Water Maintain competitive advantage by continuing to attract very high calibre people. Boots Stimulate changes on a broad front aimed at achieving competitive advantage through people. Pilkington Optronics We want GSK to be a place where the best people do their best work. Glaxo. Smith. Kline Staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers. Lands’ End This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

BALANCED SCORECARD IN AN INTERNATIONAL CHARITY Organizational effectiveness perspective: • programme development • programme delivery • process development and management • cost-effectiveness Financial perspective: • income growth • enlistment and retention of supporters • cost/income ratio • • Stakeholder perspective: impact on clients relationships with key funding agencies and supporters development of brand influence People perspective: leadership behaviour talent management learning and development employee satisfaction – a ‘great place to work’ This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HIGH-PERFORMANCE STRATEGY: CORPORATION OF LONDON • Clear line of sight between strategic aims of the Corporation and its staff • Management sets goals for success and monitors performance • Leadership from the top and at all levels of management • Focus on promoting engagement and commitment • Performance management processes aligned to Corporation objectives • Capacities of people enhanced by comprehensive learning and development programmes • People valued and rewarded according to their contribution This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

DECLARATION OF STRATEGIC INTENT: CARE DELIVERY CHARITY • Achieve strategic integration – match HR policies and practices to the business strategy • Plan coherent approaches to the development of HR processes so that they are interrelated and mutually supporting • Focus on the needs to achieve flexibility, responsiveness, quality and costeffectiveness in the delivery of HR services This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

CRITERIA FOR HR STRATEGIES • Aligned to corporate goals • Set out clear aims • Supported by business case • Take account of individual as well as business needs • Contain realistic and achievable plans for implementation This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM TOOLKIT This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

CONDUCTING A STRATEGIC REVIEW 1. Involve senior management and line managers Analysis 2. Diagnosis 3. Conclusions and recommendations 4. Involve employees and their representatives Action planning This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HR STRATEGY GOALS: HOW DO THEY RATE? Possible HR strategic objectives Importance* Effectiveness* Support the achievement of organizational goals Meet needs of employees Develop a high-performance culture Ensure that the organization is seen as ‘a great place to work’ Increase engagement and commitment Recruit and retain talented people Develop talented people Reward people according to their contribution Provide employees with a voice Provide a good working environment Other (specify) * Scale: 10 = high 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM GAP ANALYSIS What are the current and desired SHRM characteristics in your organization? 1 2 3 4 5 6 7 Effective high-performance work system in place No attempt made to encourage high performance Integrated talent management programmes are operating effectively Talent management is haphazard or ineffective Sophisticated techniques are used to recruit employees A traditional approach is adopted with regard to sourcing recruits and selecting applicants Focus on using blended learning and development processes Reliance on the delivery of traditional training courses A total reward approach is used effectively Reward programmes limited to financial rewards Only lip service is paid to employee participation and involvement Employees given a voice on all matters that concern them Mark on the scale: X for current, O for desired – eg: High-quality HR practices O X Poor-quality HR practices

HR IMPLICATIONS OF CORPORATE STRATEGIES Corporate strategy Implications for HR strategy 1. 2. 3. 4. 5. 6. This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

ANALYSIS OF RESOURCING GOALS Possible resourcing goals Importance* Effectiveness* Match people resources to business requirements Avoid unexpected deficits or surpluses of staff Attract and recruit high-quality candidates Minimize recruitment costs Maximize ‘recruitment intensity’, ie high numbers of applicants per vacancy Increase ‘predictive validity’, ie the extent to which predictions of suitability at the point of recruitment are achieved Increase retention rates Reduce cost of labour turnover * Scale: 10 = high, 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

ANALYSIS OF TALENT MANAGEMENT GOALS Talent management goals Importance* Effectiveness* Define what is meant by talent in terms of competencies and potential Ensure that talent is treated as a key corporate resource Develop a pool of talent that will provide a guaranteed supply of highly qualified people Provide for management succession Rely primarily on growth from within, while recognizing the need to bring in fresh blood from time to time Identify those with talent and potential Institute programmes to develop talent Create a compelling employee value proposition Develop the organization as an employer of choice * Scale: 10 = high, 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

ANALYSIS OF LEARNING AND DEVELOPMENT GOALS Learning and development goals Importance* Effectiveness* Create human capital advantage by ensuring that the organization has more skilled and competent people than its competitors Extend the skills base of the organization Improve individual, team and organizational performance Attract and retain high-quality people by offering them learning and development opportunities Improve organizational flexibility by multi-skilling Provide additional non-financial reward to people in the form of growth and career opportunities Reduce the length of learning curves to minimize learning costs Ensure that talented people are developed to achieve their maximum potential Provide line managers with the skills required to lead and develop their people * Scale: 10 = high, 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

ANALYSIS OF REWARD MANAGEMENT GOALS Reward management goals Importance* Effectiveness* Reinforce the achievement of organizational goals Improve individual, team and organizational performance Recruit and retain high-calibre staff Facilitate staff mobility Achieve strong relationship between pay and performance Reinforce organizational values Motivate and engage employees Cost effective Well-communicated and understood by employees Managed effectively by line managers * Scale: 10 = high, 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

ANALYSIS OF EMPLOYEE RELATIONS GOALS Employee relations goals Importance* Effectiveness* Build stable and cooperative relationships with employees and, where present, their trade unions Operate on a partnership basis with trade unions Achieve engagement through employee involvement and communication processes Minimize conflict with employees and their unions Adopt a high-commitment approach to develop mutuality Maintain bargaining structures and negotiating procedures that enable agreements to be reached smoothly * Scale: 10 = high, 0 = low This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

PRIORITIZATION OF HR STRATEGIES Summary of HR strategy Business case Timing Responsibility for 1. 2. 3. 4. 5. 6. This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM GUIDELINES • Be clear on what has to be achieved and why • Ensure that what you do fits the business strategy, culture and circumstances of the organization • Aim for continuous improvement – evolution not revolution • Don’t follow fashion – do your own thing • Keep it simple – over-complexity is a common reason for failure • Don’t rush – it takes longer than you think • Assess resource requirements and costs • Manage change – involve, communicate and train This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

Michael Armstrong email@michael-armstrong. eu Art work by Youngs Design Ian@youngsdesign. co. uk This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.