SHRM Notes
SHRM Notes
SHRM Notes
When HRM
Summary:
has
staff
specialists,
Strategic
HRM
has
line
managers.
1. HRM involves the process of employing people, developing their skills/capacities, and
utilizing their services. Strategic HRM can be termed as a branch of HRM.
2. While traditional HRM focuses mainly on employee relations, Startegic HRM focuses
on
partnerships
with
internal
and
external
customers.
3. When HRM has only short-term goals, Strategic HRM is for long-term goals.
4. When HRM has staff specialists, Strategic HTM has line managers.
5. When considering job design, there is a tight division of labor and independence
specialization in HRM. On the other hand, job division in Strategic HRM is flexible.
3.
analyzing the external opportunities and the threats that may impede the
companys performance. It also helps the organization to be a prospective one
rather than just focusing in the present
youll have to look for options to help you reduce the workforce in some way.
This might involve early retirements, layoffs or even terminations.
Developing a strategic human resources management plan will help you more
effectively and efficiently meet the needs your business has for qualified
employees who can fulfill their job functions successfully. If youre struggling
with your HRM plan, there are eLearning opportunities available to help you
improve your skills and create a better plan.
5. HR strategies
Strategic HRM as described in the last chapter is the process that results in the
formulation of HR strategies. The terms strategic HRM and HR strategy are often
used interchangeably, but a distinction can be made between them.
Strategic HRM can be regarded as a general approach to the strategic management of
human resources in accordance with the intentions of the organization on the future
direction it wants to take. What emerges from this process is a stream of decisions
over time, which form the pattern adopted by the organization for managing its
human resources and define the areas in which specific HR strategies need to be
developed. HR strategies will focus on the specific intentions of the organization on
what needs to be done and what needs to be changed.
This chapter starts by defining what HR strategies are and what they set out to do,
continues with descriptions of different types of strategy with examples, and
concludes with a list of the criteria for an effective strategy.
HR STRATEGIES DEFINED
HR strategies set out what the organization intends to do about its human resource
management policies and practices, and how they should be integrated with the
business strategy and each other. They are described by Dyer and Reeves (1995) as
internally consistent bundles of human resource practices, and in the words of Peter
Boxall (1996) they provide a framework of critical ends and means.
The purpose of HR strategies is to guide development and implementation
programmes. They provide a means of communicating to all concerned the intentions
of the organization about how its human resources will be managed. They enable the
organization to measure progress and evaluate outcomes against objectives.
TYPES OF HR STRATEGIES
Because all organizations are different, all HR strategies are different. There is no such
thing as a set of standard characteristics. Research into HR strategy conducted by
Armstrong and Long (1994) and Armstrong and Baron (2002) revealed many
variations. Some strategies are simply very general declarations of intent. Others go
into much more detail. But two basic types of HR strategies can be identified. These
are: 1) overarching strategies; and 2) specific strategies relating to the different aspects
of human resource management.
Overarching HR strategies
Overarching strategies describe the general intentions of the organization about how
people should be managed and developed and what steps should be taken to ensure
that the organization can attract and retain the people it needs and ensure so far as
possible that employees are committed, motivated and engaged. They are likely to be
expressed as broad-brush statements of aims and purpose, which set the scene for
more specific strategies. They are concerned with overall organizational effectiveness
achieving human resource advantage by, as Boxall and Purcell (2003) point out,
employing better people in organizations with better process, developing highperformance work processes and generally creating a great place to work.
AEGON:
The Human Resources Integrated Approach aims to ensure that from whatever angle
staff now look at the elements of pay management, performance, career development
and reward, they are consistent and linked.
The major factor influencing HR strategy was the need to attract, maintain and retain
the right people to deliver it. The aim was to introduce a system that complemented
the business, that reflected the way we wanted to treat our customers treating our
people the same. What we would do for our customers we would also do for our
people. We wanted to make an impact on the culture the way people do business.
Specific HR strategies
Specific HR strategies set out what the organization intends to do in areassuch as:
- talent management how the organization intends to win the war for talent;
- continuous improvement providing for focused and continuous
Government agency:
The key components of the HR strategy are:
- Investing in people improving the level of intellectual capital.
- Performance management integrating the values contained in the HR strategy into
performance management processes and ensuring that reviews concentrate on how
well people are performing those values.
- Job design a key component concerned with how jobs are designed and how they
relate to the whole business.
- The reward system in developing rewards strategies, taking into account that this is
a very hard driven business.
HR strategies for higher education institutions (The Higher Education Funding Council):
1. Address recruitment and retention difficulties in a targeted and cost effective
manner.
2. Meet specific staff development and training objectives that not only equip staff to
meet their current needs but also prepare them for future changes, such as using new
technologies for learning and teaching. This wouldinclude management development.
3. Develop equal opportunity targets with programmes to implement good practice
throughout an institution. This would include ensuring equal pay for work of equal
value, using institution-wide systems of job evaluation. This could involve institutions
working collectively regionally or nationally.
4. Carry out regular reviews of staffing needs, reflecting changes in market demands
and technology. The reviews would consider overall numbers and the balance of
different categories of staff.
5. Conduct annual performance reviews of all staff, based on open and objective
criteria, with reward connected to the performance of individuals including, where
appropriate, their contribution to teams.
6. Take action to tackle poor performance.
A local authority:
The focus is on the organization of excellence. The strategy is broken down into eight
sections: employee relations, recruitment and retention, training, performance
management, pay and benefits, health and safety, absence management and equal
opportunities.
An effective HR strategy is one that works in the sense that it achieves what it sets out
to achieve. In particular, it:
- will satisfy business needs;
- be founded on detailed analysis and study, not just wishful thinking;
- can be turned into actionable programs that anticipate implementation requirements
and problems;
- is coherent and integrated, being composed of components that fit with and support
each other;
- takes account of the needs of line managers and employees generally as well as
those of the organization and its other stakeholders. As Boxall and Purcell (2003)
emphasize: HR planning should aim to meet the needs of the key stakeholder groups
involved in people management in the firm. Here is a comment on what makes a good
HR strategy:
A good strategy is one which actually makes people feel valued. It makes them
knowledgeable about the organization and makes them feel clear about where they sit
as a group, or team, or individual. It must show them how what they do either
together or individually fits into that strategy. Importantly, it should indicate how
people are going to be rewarded for their contribution and how they might be
developed and grow in the organization.
objective of the company in accordance with the leveraging opportunities offered by the
outsourcing market.
One more critical aspect of growth strategy is mergers and acquisition. With M & A, the
handling issue of the acquired company,s employees also comes into the picture. To sustain
the talent advantage got due to M & A process HRs has to do thoughtful talent and
organization planning.
Innovation is a major driver of growth. It is the HR professionals of the company who are
responsible for stimulating the innovative environment in the work force.
To retain and excel the growth of the organization has to sustain and generate steady topline growth. In such scenario, the HRs has to work for building a workforce with speed,
flexibility, and adaptability to change. With a standard work environment built in
association with the HR department does wonders for company productivity and growth.
Job analysis is a process of gathering or collecting information relating to job description and job
satisfaction. It is the systematic process of gathering and organizing the information relating to
various aspects of job, which describes the job contents and minimum job requirements in terms of
skills, efforts, responsibilities and working conditions.
Where to place the employees in order to best utilize their skills and talent? How to determine the need of
new employees in the organization? How to eliminate unneeded jobs? How to set realistic performance
measurement standards? How to identify the jobs and prepare a plan to fill them?
Well, all this can be effectively done by a proper and thorough job analysis. Managers deal such kinds of
challenges in day-to-day company operations where they need to fulfill effectively and efficiently fulfill the
organizations requirements related to human resource recruitment, selection, performance, satisfaction
and cutting down and adding extra responsibilities and duties. And there is no scope where they can avert
the risk of being wrong.
An effective and right process of analyzing a particular job is a great relief for them. It helps them maintain
the right quality of employees, measure their performance on realistic standards, assess their training and
development needs and increase their productivity. Lets discuss the job analysis process and find out
how it serves the purpose.
Identification of Job Analysis Purpose: Well any process is futile until its purpose is not
identified and defined. Therefore, the first step in the process is to determine its need and desired
output. Spending human efforts, energy as well as money is useless until HR managers dont
know why data is to be collected and what is to be done with it.
Who Will Conduct Job Analysis: The second most important step in the process of job analysis
is to decide who will conduct it. Some companies prefer getting it done by their own HR
department while some hire job analysis consultants. Job analysis consultants may prove to be
extremely helpful as they offer unbiased advice, guidelines and methods. They dont have any
personal likes and dislikes when it comes to analyze a job.
How to Conduct the Process: Deciding the way in which job analysis process needs to be
conducted is surely the next step. A planned approach about how to carry the whole process is
required in order to investigate a specific job.
Strategic Decision Making: Now is the time to make strategic decision. Its about deciding the
extent of employee involvement in the process, the level of details to be collected and recorded,
sources from where data is to be collected, data collection methods, the processing of information
and segregation of collected data.
Training of Job Analyst: Next is to train the job analyst about how to conduct the process and
use the selected methods for collection and recoding of job data.
Preparation of Job Analysis Process: Communicating it within the organization is the next step.
HR managers need to communicate the whole thing properly so that employees offer their full
support to the job analyst. The stage also involves preparation of documents, questionnaires,
interviews and feedback forms.
Developing Job Description and Job Specification: Now is the time to segregate the collected
data in to useful information. Job Description describes the roles, activities, duties and
responsibilities of the job while job specification is a statement of educational qualification,
experience, personal traits and skills required to perform the job.
Thus, the process of job analysis helps in identifying the worth of specific job, utilizing the human talent in
the best possible manner, eliminating unneeded jobs and setting realistic performance measurement
standards.
Observation Method: A job analyst observes an employee and records all his performed and
non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods, ways and skills
used by him or her to perform various duties and his or her mental or emotional ability to handle
challenges and risks. However, it seems one of the easiest methods to analyze a specific job but
truth is that it is the most difficult one. Why? Lets Discover.
It is due to the fact that every person has his own way of observing things. Different people think
different and interpret the findings in different ways. Therefore, the process may involve personal
biasness or likes and dislikes and may not produce genuine results. This error can be avoided by
proper training of job analyst or whoever will be conducting the job analysis process.
This particular method includes three techniques: direct observation, Work Methods Analysis and
Critical Incident Technique. The first method includes direct observation and recording of
behaviour of an employee in different situations. The second involves the study of time and
motion and is specially used for assembly-line or factory workers. The third one is about
identifying the work behaviours that result in performance.
Interview Method: In this method, an employee is interviewed so that he or she comes up with
their own working styles, problems faced by them, use of particular skills and techniques while
performing their job and insecurities and fears about their careers.
This method helps interviewer know what exactly an employee thinks about his or her own job
and responsibilities involved in it. It involves analysis of job by employee himself. In order to
generate honest and true feedback or collect genuine data, questions asked during the interview
should be carefully decided. And to avoid errors, it is always good to interview more than one
individual to get a pool of responses. Then it can be generalized and used for the whole group.
Questionnaire Method: Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers. However, this method also
suffers from personal biasness. A great care should be takes while framing questions for different
grades of employees.
In order to get the true job-related info, management should effectively communicate it to the staff
that data collected will be used for their own good. It is very important to ensure them that it wont
be used against them in anyway. If it is not done properly, it will be a sheer wastage of time,
money and human resources.
These are some of the most common methods of job analysis. However, there are several other
specialized methods including task inventory, job element method, competency profiling, technical
conference, threshold traits analysis system and a combination of these methods. While choosing a
method, HR managers need to consider time, cost and human efforts included in conducting the process.
Use of Job Analysis:-
The estimates the quantity and quality of people will be required in future. How many and what type of
people will be required depends on the jobs to be staffed. Job-related information available through job
analysis is, therefore, necessary for human resource planning.
2. Recruitment and Selection:
Recruitment succeeds job analysis. Basically, the goal of the human resource planning is to match the
right people with the right job. This is possible only after having adequate information about the jobs that
need to be staffed. It is job analysis that provides job information. Thus, job analysis serves as basis for
recruitment and selection of employees in the organisation.
3. Training and Development:
Job analysis by providing information about what a job entails i.e., knowledge and skills required to
perform a job, enables the management to design the training and development programmes to acquire
these job requirements. Employee development programmes like job enlargement, job enrichment, job
rotation, etc.
4. Placement and Orientation:
As job analysis provides information about what skills and qualities are required to do a job, the
management can gear orientation programmes towards helping the employees learn the required skills
and qualities. It, thus, helps management place an employee on the job best suited to him/her.
5. Job Evaluation:
The job evaluation refers to determination of relative worth of different jobs. It, thus, helps in developing
appropriate wage and salary structures. Relative worth is determined mainly on the basis of information
provided by job analysis.
6. Performance Appraisal:
Performance appraisal involves comparing the actual performance of an employee with the standard one,
i.e., what is expected of him/her. Such appraisal or assessment serves as basis for awarding promotions,
effecting transfers, or assessing training needs. Job analysis helps in establishing job standards which
may be compared with the actual performance/contribution of each employee.
7. Personnel Information:
Increasing number of organisations maintain computerised information about their employees. This is
popularly known as Human Resource Information System (HRIS). HRIS is useful as it helps improve
administrative efficiency and provides decision support^ Information relating to human resources working
in the organisation is provided by job analysis only.
8. Health and Safety:
Job analysis helps in identifying and uncovering hazardous conditions and unhealthy environmental
factors such as heat, noise, fumes, dust, etc. and, thus, facilitates management to take corrective
measures to minimise and avoid the possibilitiy of accidents causing human injury
Job Description:
Job description is prepared on the basis of data collected through job analysis. Job description is a
functional description of the contents what the job entails. It is a narration of the contents of a job. It is a
description of the activities and duties to be performed in a job, the relationship of the job with other jobs,
the equipment and tools involved, the nature of supervision, working conditions and hazards of the job
and so on.
All major categories of jobs need to be spelled out in clear and comprehensive manner to determine the
qualifications and skills required to perform a job. Thus, job description differentiates one job from the
other. In sum, job description is a written statement of what a job holder does, how it is done, and why it is
done.
Purposes of Job Description:
Job description is done for fulfilling the following purposes:
1. Grading and classification of jobs
2. Placement and Orientation of new employees
3. Promotions and transfers
4. Outlining for career path
5. Developing work standards
6. Counselling of employees
7. Delimitation of authority
Job Specification:
While job description focuses on the job, job specification focuses on the person i.e, the job holder. Job
specification is a statement of the minimum levels of qualifications, skills, physical and other abilities,
experience, judgment and attributes required for performing job effectively. In other words, it is a
statement of the minimum acceptable qualifications that an incumbent must possess to perform a given
job. It sets forth the knowledge, skills and abilities required to do the job effectively.
Job specification specifies the physical, psychological, personal, social and behavioural characteristics of
the job holders. These contents of the job specification are contained in Table 5.1.
Usages of Job Specification: The usages of job specification include:
1. Personnel planning
2. Performance appraisal
3. Hiring
4. Training and development
5. Job evaluation and compensation
The above mentioned are factors that if not taken care of result into building stress within the employees.
Benefits of Job Design
The following are the benefits of a good job design:
1. Employee Input: A good job design enables a good job feedback. Employees have the option to
vary tasks as per their personal and social needs, habits and circumstances in the workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the philosophy of
leave them alone job design lays due emphasis on training people so that are well aware of
what their job demands and how it is to be done.
3. Work / Rest Schedules: Job design offers good work and rest schedule by clearly defining the
number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically demanding jobs by
minimizing the energy spent doing the job and by aligning the manpower requirements for the
same.
Job design is a continuous and ever evolving process that is aimed at helping employees make
adjustments with the changes in the workplace. The end goal is reducing dissatisfaction,
enhancing motivation and employee engagement at the workplace