Strategic Planning:
Strategic HR Planning involves designing HR goals in alignment with the goals of the organization, identifying the HR required to achieve the goals & then developing these resources internally or acquiring them from outside. It also includes the conception & implementation of new HR initiatives required to accomplish organizational goals. The essence of Strategic Planning is to ask “ Where are we now as a business, Where do we want to be, & how should we get there ?”.
Strategic HRM:
Strategic HRM is the optimum utilization of HR to achieve the set goals & objectives in the business environment. This has to go with the organizational strategy & with the strategies of other functional areas like finance & marketing.
Strategic HRM refers to the process of developing practices, programmes & policies that help achieve organizational objectives. The nature of strategic HRM becomes more clear when it is contrasted with traditional HRM. In traditional HRM, the responsibility for people management programme rests with staff specialists in an organization but in SHRM the task of managing people vests with the line mangers. In HRM focus is on employee relations, ensuring that employees are motivated, whereas in SHRM focus on partnership with internal & external constituent groups. The role of traditional HRM is of a change follower, whereas in SHRM the role is of a change leader & initiator.
An effective HRM practices can improve performance in 3 main ways:
- Managing with technology:-
Technological applications like those of Web Portals, E-procurement, Electronic signatures etc improve HR’s performance in 4 main ways:- Self service, call-centers, productivity improvement & outsourcing. For. E.g. Using Dell’s HR Intranet, the firm’s employees can self service many of their personnel transactions, such as updating personal information & changing benefits allocations. Technology also enabled Dell to create a centralized HR Call center. Here Dell HR specialists answer questions from all Dell’s far-flung employee, reducing the need for HR Department’s each Dell Location. Firms also install internet & computer based systems for improving HR productivity. Technology also makes it easier to outsource HR activities to specialist providers by giving access to HR database
- Managing with technology:-
Technological applications like those of Web Portals, E-procurement, Electronic signatures etc improve HR’s performance in 4 main ways:- Self service, call-centers, productivity improvement & outsourcing. For. E.g. Using Dell’s HR Intranet, the firm’s employees can self service many of their personnel transactions, such as updating personal information & changing benefits allocations. Technology also enabled Dell to create a centralized HR Call center. Here Dell HR specialists answer questions from all Dell’s far-flung employee, reducing the need for HR Department’s each Dell Location. Firms also install internet & computer based systems for improving HR productivity. Technology also makes it easier to outsource HR activities to specialist providers by giving access to HR database
- Effective HR Practices:
HR Practices can improve performance. For E.g. a recent review of personality testing concluded that screening applicants through personality testing can produce employees who perform better. Similarly, well-trained employees perform better than untrained ones, & safe workplace produce fewer lost-time accidents.
- High Performance Work Systems:
A high-performance work system is an integrated set of HRM policies & practices that together produce superior employee performance. These includes, Employment Security, Selective Hiring, Extensive Training, Decentralized Decision Making, Information sharing, Emphasis on High-Quality work etc.
HR Practices can improve performance. For E.g. a recent review of personality testing concluded that screening applicants through personality testing can produce employees who perform better. Similarly, well-trained employees perform better than untrained ones, & safe workplace produce fewer lost-time accidents.
- High Performance Work Systems:
A high-performance work system is an integrated set of HRM policies & practices that together produce superior employee performance. These includes, Employment Security, Selective Hiring, Extensive Training, Decentralized Decision Making, Information sharing, Emphasis on High-Quality work etc.
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