T10.4 - Strategically managing the HRM function (Ch16)

HRM functions

Traditional

Transactional

Transformational

Strategic redirection and renewal

Cultural change

Knowledge management

Management development

Recruitment and selection

Training

Performance

Performance management

Employee relations

Record keeping

Employee services

Benefits administration

To manage the HRM function strategically, HR executives need to:

Measuring HRM effectiveness - approaches

Improving HRM effectiveness

Develop a strategy for HRM

How well are our customers' needs being met?

What products and services do we provide?

What are their needs?

Who are out customers? (internal)

Restructuring

Outsourcing

Process reengineering

Use of new HRM information systems

HRM software applications

Audit approach (both quantitative and qualitative) - table of examples p.672-3

Analytical approach (quantitative in nature)

Basic process for HR strategy (p.667)

Communicate the HR strategy

Develop HR strategy

Identify people issues (lack of... leaders, tech savvy, diversity, etc)

Identify strategic business issues (is it expanding, going international, needing new technology, etc)

Scan the external environment (future talent shortage, aging workforce, etc)

Ways to involve line executives in process (p.669)

Have one or two be part of the HR strategy process

Communicate the HR strategy to all of them

Interview/survey a large number (all) of them

Have senior executive team sign-off on the strategic plan

Determining whether the introduction of a programme or practice has the intended effect

Estimating the financial cost and benefits resulting from an HRM practice

Using analytical data to increase organisational effectiveness

HR accounting

Ultility analysis

Capitalisation of salary

Net present value of expected wage payments

Returns on human assets and human investments

Turnover costs

Absenteeism and sick leave costs

Gains from selection programmes

Impact of positive employee attitudes

Financial gains of training programmes