The Framework of

Strategic Human Resource

Management
Prof. Dr. Fatma Zehra TAN
 •Human resource
management

•Strategy: concept and

Concerned process

Topics •Strategic human resource

management: concept and
process

•HR strategies
 • •Human resource management is
defined as a system of activities and
strategies that focus on
successfully managing employees at
What is Human all levels of an organization to achieve
goals.
Resource
Management? • •John Storey believes that HRM can be
regarded as a : set of interrelated
policies with an ideological and
philosophical underpinning.
 • •A particular constellation of beliefs
and assumption

Four aspects of • •A strategic thrust informing decisions

meaningful about people management

version of HRM • •The central involvement of line

managers

• •Reliance upon a set of levers to shape

the employment relationship
 • •Matching model of HRM

• •The Harvard framework

Models of • •Warwick framework

HRM
• •Guest framework

• •Storey framework
• •The Michigan model is also known as
the 'matching model' or 'best-
fit' approach to human resource
management. In essence, it requires
that human resource strategies have a
tight fit to the overall strategies of the
business.
 • •One of the first explicit model of HRM
concept was made by Michigan school.

• •HR systems and the organization structures

should be managed in a way that is
congruent with organizational strategy.

Matching • •Emphasizes on the interrelatedness and

model of HRM coherence of the HRM activities.

• •İgnores stakeholder interests, situational

factors, and notion of strategic choice.

• •Expresses the coherence of internal HR

policies and the importance of matching
them to external business strategy.
Four Generic Processes
• •Selection

• •Appraisal

• •Rewards

• •Development
 • •The Harvard framework for HRM is
an HR model comprised of six
components. These include the core HR
activities, like recruitment, training,
The Harvard and reward systems. When done
well, HRM policies lead to
Framework positive HRM outcomes. These include
the previously mentioned retention,
cost-effectiveness, commitment, and
competence.
• •It also state that :
Human resource management involves
all management decisions and action that
affect the nature of the relationship
between the organization and its human
resources.

• •Two characteristic feature:

1- line managers
2- personnel
 • •One of the primary goals of
the HR department is to maintain
productivity by providing the company
with an adequate number of skilled and
efficient workers.
Aims of HR
• •The overall purpose of HRM is to
ensure that the organization is able to
achieve success through people.
 • •Organizational effectiveness

• •Human capital
HRM is concerned
with achieving • •Knowledge management
objectives in the
areas such: • •Reward management

• •Employee relations

• •Meet diverse needs

• •Rhetoric reality
 • •Organizational effectiveness is the measure of
how successfully (or not) organizations are
achieving their missions and advancing their
Organizational visions through their core strategies. Organizational
Effectiveness Effectiveness requires that Human Resource
and Organizational Development efforts tie directly
to the desired business outcomes.
 •Leadership. …..

•Communication. ...

The Six Systems of •Accountability. ...

Organizational
Effectiveness •Delivery. ...

•Performance. ...

•Measurement.
 • •Human capital is an asset consisting
of the knowledge and skills held by a
person that can be used by an
organization to advance its goals. The
staffing function of human resource
Human Capital management searches, recruits and
acquires employees with the human
capital necessary for the organization's
needs.
 Knowledge
Management
• •Knowledge management is the
conscious process of defining,
structuring, retaining and sharing
the knowledge and experience of
employees within an organization.
The main goal of knowledge
management is to improve an
organization's efficiency and
save knowledge within the
company.
 Reward Management
• •Reward management is
concerned with the formulation and
implementation of strategies and
policies that aim to reward people
fairly, equitably and consistently in
accordance with their value to the
organization. . Reward
management aims to create and
efficiently operate
a reward structure for an
organization.
 Employee Relations
• •The definition of employee
relations refers to an organization's
efforts to create and maintain a
positive relationship with its employees.
When it comes to employee relations,
an HR department has two primary
functions. First, HR helps prevent and
resolve problems or disputes
between employees and
management. Second, they assist in
creating and enforcing policies that are
fair and consistent for everyone in the
workplace.
• Meet Diverse Needs

• Rhetoric and reality

 Characteristics of HRM
• •The diversity of HRM
• •The strategic nature of HRM
• •The commitment-oriented nature of HRM
• •People as human capital
• •Unitarist philosophy
• •HRM as a management-driven activity
• •Focus on business values
HRM and Personnel
Management
• •Personnel management can be
defined as obtaining, using and
maintaining a satisfied workforce.
It is a significant part of
management concerned with
employees at work and with their
relationship within the
organization.
Strategy: concept and process

• •Strategy generally involves setting goals

and priorities, determining actions to achieve
the goals, and mobilizing resources to
execute the actions. A strategy describes how
the ends (goals) will be achieved by
the means (resources).
The concept of strategy is based on three subsidiary
concepts:

•Competitive •Distinctive
•Strategic fit
advantage capabilities
 • •Competitive advantage is the leverage a
business has over its competitors. This can be
gained by offering clients better and greater
value. Michael Porter defined the two ways
in which an organization can
Competitive achieve competitive advantage over its rivals:
cost advantage and differentiation advantage.
advantage • •Innovation
• •Quality
 • •Distinctive capabilities are those
that are unique to your business,
those which give you a competitive
advantage over the rest of the
Distinctive market. The buyer may select your
Capabilities product on the strength of your
reputation alone – which is a
unique competitive advantage that
cannot be easily replicated by your
competition.
 •Rarity
•Value
compared to
creation for
the
the customer
competition
Four criteria whether
resources regarded as
distinctive capability
•Non- •Non-
or not: imitability substitutability
 • •Strategic fit expresses the degree
to which an organization is
matching its resources and
capabilities with the opportunities
in the external environment. The
Strategic Fit matching takes place
through strategy and it is therefore
vital that the company has the
actual resources and capabilities to
execute and support the strategy.
 • •Strategic intent
The
fundamentals of • •Resource based strategy

strategy • •Strategic capability

• •Strategic management
 • •Strategy formulation is
the process of determining and
The Systematic establishing the goals, mission
and objectives of an organization,
Approach to and identifying the appropriate
Formulate and best courses or plans of
action among all available
Strategy alternative strategies to achieve
them.
 • •Strategic human resource management is
Strategic the connection between a company's human
resources and its strategies, objectives, and
Human goals. The aim of strategic human resource
Resource management is to: Advance flexibility,
innovation, and competitive advantage.
Management: Develop a fit for the purpose of
Concept and organizational culture.
Process
 •High- •The resource-
involvement based
management approach

Approaches to
Strategic HRM
•High-
commitment •Strategic fit
management

•High-
performance
management
Strategic HRM is in
some ways an attitude
of mind that expresses
a way of doing things.
 • •HR strategies set out what the
HR Strategies 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.

• •The purpose of HR strategies is to guide

development and implementation
programs.
 • •Overarching strategies describe the
Types of HR general and basic intentions of the
Strategies organization about how people should be
managed and developed, what steps
should be taken to ensure that the
organization can attract and retain the
people it needs and ensure that
employees are committed, motivated and
engaged.
Specific HR strategies set out
what the organization intends • ••Talent management
to do in areas such as: • •Continuous improvement
• •Knowledge management
• •Resourcing
• •Learning and developing
• •Reward
• •Employee relations
Criteria • •will satisfy business needs;

for an • •● is founded on detailed analysis and study, not just wishful

thinking;
Effective • •● can be turned into actionable programs that anticipate
HR implementation requirements and problems;

Strategy • •● 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.
Here is a comment from a chief executive (Peabody Trust) 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.
Thank You