STRATEGIC HUMAN RESOURCE MANAGEMENT

Azgar S MBA2309
PART A
1. What is strategic HRM?

• Strategic Human Resource Management (HRM) involves aligning

human resource policies and practices with the overall strategic
goals of an organization.
• It focuses on long-term planning, workforce development, and
creating a competitive advantage through effective people
management.

2. What are HR metrics?

• HR metrics are measurements used to evaluate the effectiveness

and efficiency of human resource policies and practices.
• They include data points such as employee turnover rate, time to
hire, employee engagement, and training effectiveness.

3. Define Vision, Mission & Core Values Vision:

• A vision statement outlines the long-term aspirations and desired

future state of an organization.
• It provides a clear and inspirational direction for the company's
future. Mission:
• A mission statement defines the organization's purpose, core
objectives, and approach to achieving its goals.
• It serves as a guide for decision-making and strategic planning.
Core Values:
• Core values represent the fundamental beliefs and guiding principles
of an organization.
• They shape the company culture and influence behaviors, actions,
and decisionmaking within the organization.
4. Write the meaning of HRD Programmed evaluation.

• HRD (Human Resource Development) Programmed Evaluation

involves assessing the effectiveness and impact of HRD initiatives.
• It measures how well training and development programs achieve
their goals and contribute to organizational success.

5. What is E- Selection and E-Recruitment?

E-Selection:

• The process of using electronic methods and digital tools to screen,

evaluate, and select job candidates.

• Utilizes online assessments, video interviews, and applicant tracking

systems to streamline the selection process.

E-Recruitment:

• The use of online platforms and technology to attract, source, and

hire candidates for job openings.

• Involves posting job ads on career websites, using social media for
recruitment, and leveraging recruitment software for managing
applications.

6. How do you understand E-Employee Profile?

• An E-Employee Profile is a digital record of an employee's personal

and professional information.
• It typically includes details such as contact information, job history,
skills, performance evaluations, and training records.
• Used to streamline HR processes, facilitate employee management,
and enhance data accessibility.
7. What is career planning?

• Career planning is the process of setting career goals and creating a

strategy to achieve them.
• It involves assessing skills, interests, and values, and aligning them
with career opportunities and development activities.

8. Define competency-based compensation.

• Competency-based compensation is a pay system that rewards

employees based on their skills, knowledge, and abilities.
• It focuses on the competencies required for a role and compensates
employees for demonstrating and developing these competencies.

9. Define Coaching.

• Coaching is a developmental process where an experienced

individual, the coach, guides and supports another person, the
coachee, in achieving specific personal or professional goals.
• It involves providing feedback, encouragement, and strategies to
enhance performance and facilitate growth.

10. What is meant by counselling?

• Counselling is a professional service provided by trained individuals

to help people address and resolve personal, emotional, or
psychological issues.
• It involves creating a supportive environment where individuals can
explore their feelings, thoughts, and behaviors to achieve personal
growth and well-being.

PART B

11. A) Explain various SHRM model.

Various Strategic Human Resource Management (SHRM) Models

Strategic Human Resource Management (SHRM) models provide
frameworks that align HR strategies with organizational objectives to
achieve competitive advantage. These models focus on integrating HR
practices with business strategies, ensuring employees contribute
effectively to organizational goals. The major SHRM models are discussed
below:

1. The Matching Model (Michigan Model)

This model emphasizes aligning HR systems with organizational strategy.

It highlights that HR functions such as selection, appraisal, rewards, and
development must match the organization’s strategic goals.

• Key Features:

• HR and business strategy must align for effective performance.

• Focuses on the "hard" approach, treating employees as

resources to achieve business objectives.

• Advocates a top-down approach to HR practices.

• Strengths:

• Promotes integration between business and HR strategies.

• Enhances managerial control over HR policies.

• Limitations:

• Ignores employee needs and development.

• Overemphasis on organizational goals may lead to employee

dissatisfaction.

2. The Harvard Framework

Developed at Harvard University, this model focuses on creating a
balance between employee and organizational interests. It integrates
stakeholders, situational factors, and long-term HR outcomes.

• Key Elements:

• Stakeholder Interests: Employees, management, unions, and

government.

• Situational Factors: Workforce characteristics, business

strategy, and external environment.

• HRM Policy Choices: Recruitment, appraisal, rewards, and

training.

• Long-term Outcomes: Commitment, competence, congruence,

and cost-effectiveness.

• Strengths:

• Holistic approach considering multiple factors.

• Encourages employee engagement and long-term outcomes.

• Limitations:

• Complexity in implementation due to the number of factors. •

Requires significant resources and managerial
involvement.

3. The Resource-Based View (RBV) Model

This model emphasizes leveraging human resources as a key source of

competitive advantage. It focuses on developing unique, valuable, and
inimitable HR capabilities.

• Core Principles:
 • HR practices should enhance employee knowledge, skills, and
abilities (KSAs).

• Organizations must develop resources that are rare, valuable,

and difficult to replicate.

• Sustained competitive advantage is achieved through effective

HR systems.

• Strengths:

• Emphasizes the strategic value of human capital.

• Encourages innovation and employee development.

• Limitations:

• Resource development can be time-consuming and costly.

• External market conditions may affect internal resource

utilization.

4. Best Practice Model

This model suggests that certain "best practices" in HRM lead to superior
organizational performance, regardless of context or industry.

• Key Best Practices:

• Selective recruitment.

• Performance-based rewards.

• Comprehensive training programs.

• Employee participation in decision-making.

• Job security.

• Strengths:
 • Easy to replicate across organizations.

• Proven methods to improve employee motivation and

productivity.

• Limitations:

• Ignores contextual differences between organizations.

• May not suit unique organizational goals or cultures.

5. The Best Fit Model

This model argues that HR strategies should fit the organization’s specific
circumstances, such as culture, structure, and external environment.

• Key Aspects:

• HRM practices must align with business strategy.

• Adaptable to organizational lifecycle stages (growth, maturity,

decline).

• Strengths:

• Encourages customization of HR policies.

• Ensures relevance and practicality in diverse situations.

• Limitations:

• Time-consuming to identify the best fit.

• Challenging to adapt quickly in dynamic environments.

Conclusion

SHRM models provide strategic insights into aligning HR practices with

business objectives. While the Matching Model emphasizes control and
alignment, the Harvard Framework and Resource-Based View focus on
employee development and unique capabilities. The Best Practice and
Best Fit models offer flexibility, while the HPWS model fosters high
performance. Organizations should choose or adapt models based on
their specific needs, goals, and external environment to ensure effective
HR strategies.

12. B) Discuss the concept of Benchmarking in detail.

Concept of Benchmarking in Strategic Human Resource Management

Benchmarking is a systematic process of comparing an organization’s

practices, processes, and performance metrics with those of leading
organizations or industry standards. It aims to identify best practices,
improve efficiency, and achieve competitive advantage by adopting
superior methods. In Strategic Human Resource Management (SHRM),
benchmarking helps enhance HR functions, align them with business
objectives, and maintain competitiveness in talent management.

Definition of Benchmarking

Benchmarking is the continuous process of measuring products, services,

and practices against strong competitors or industry leaders to gain
insights for improving performance.

Types of Benchmarking

1. Internal Benchmarking

• Compares practices and processes within different units or

departments of the same organization.

• Example: Comparing the recruitment process efficiency

between regional branches.
 2. Competitive Benchmarking

• Compares the organization's processes with those of direct

competitors.

• Example: Evaluating employee turnover rates compared to

rivals.

3. Functional Benchmarking

• Compares processes with organizations from different

industries but with similar functions.

• Example: Studying innovative training programs from unrelated

sectors.

4. Generic Benchmarking

• Focuses on comparing generic processes regardless of industry

or function.

• Example: Benchmarking customer service practices in HR

functions.

Steps in Benchmarking Process

1. Planning

• Identify the key areas or processes to be benchmarked.

• Select benchmarking partners or reference organizations.

2. Data Collection

• Gather qualitative and quantitative data through surveys,

interviews, or public reports.

• Ensure data accuracy and relevance.

3. Analysis
 • Compare collected data with the organization’s current
practices.

• Identify performance gaps and best practices.

4. Implementation

• Develop an action plan to adapt and integrate best practices

into the organization’s processes.

• Set measurable objectives for improvement.

5. Monitoring and Evaluation

• Track the progress of implemented changes.

• Continuously refine practices to maintain alignment with

benchmarks.

Importance of Benchmarking in SHRM

1. Improves HR Efficiency

• Helps streamline HR processes such as recruitment,

performance appraisal, and training.

2. Enhances Talent Management

• Adopts superior practices to attract, retain, and develop top

talent.

3. Promotes Innovation

• Encourages adopting creative HR strategies from industry

leaders.

4. Drives Organizational Growth

• Aligns HR objectives with strategic goals, fostering sustainable

growth.
 5. Builds Competitive Advantage

• Ensures HR practices remain at par with or superior to

competitors.

Conclusion

Benchmarking is a vital tool in SHRM for enhancing HR functions and

achieving strategic alignment. By identifying best practices and
addressing performance gaps, organizations can improve efficiency,
foster innovation, and maintain competitiveness. However, its success
depends on proper planning, effective implementation, and periodic
evaluation to ensure continuous improvement.

13. A) Explain the benefits and limitations of online employee surveys

Benefits and Limitations of Online Employee Surveys

Online employee surveys are an efficient tool for collecting feedback,

opinions, and insights from employees in an organization. They are
widely used in Strategic Human Resource Management (SHRM) to assess
employee satisfaction, engagement, organizational culture, and other HR-
related metrics. However, while they offer several advantages, there are
also limitations to their effectiveness.

Benefits of Online Employee Surveys

1. Cost-Effectiveness

• Online surveys reduce costs associated with paper printing, physical

distribution, and manual data collection.

• Platforms like Google Forms, SurveyMonkey, or specialized HR

software make surveys economical.
2. Time Efficiency

• Surveys can be distributed to all employees simultaneously, and

responses can be collected in real-time.

• Automation ensures faster analysis and reporting.

3. Convenience for Employees

• Employees can complete surveys at their convenience, leading to

better participation.

• Online surveys are accessible from multiple devices, such as

desktops, tablets, and smartphones.

4. Anonymity and Honesty

• Online surveys often allow anonymity, encouraging employees to

provide honest and candid feedback without fear of repercussions.

5. Broad Reach

• Online surveys can be distributed to employees across multiple

locations, ensuring inclusivity.

• Global organizations benefit from the ability to collect data from

geographically dispersed teams.

6. Easy Customization and Scalability

• Surveys can be tailored to specific organizational needs, with

options for different question types (e.g., multiple-choice, Likert
scales).

• They are scalable for small teams or large organizations.

7. Immediate Reporting and Analytics

 • Many survey platforms provide instant reports, graphs, and trends,
enabling HR teams to analyze data quickly and make informed
decisions.

8. Environmentally Friendly

• Reduces the need for paper, contributing to sustainability initiatives.

Limitations of Online Employee Surveys

1. Low Response Rates

• Employees may ignore surveys, particularly if they perceive them as

timeconsuming or irrelevant.

• Lack of follow-up or visible action on past surveys can demotivate

participation.

2. Technology Barriers

• Employees with limited access to devices or technical knowledge

may face difficulties in participating.

• Poor internet connectivity in remote locations can hinder response

collection.

3. Survey Fatigue

• Frequent or overly long surveys can cause fatigue, leading to rushed

or incomplete responses.

4. Limited Depth of Feedback

• Online surveys often rely on predefined questions, which may not

capture nuanced or in-depth insights.

• Open-ended responses are harder to analyze systematically.

5. Anonymity Concerns
 • Despite assurances, some employees may doubt the anonymity of
online surveys, leading to biased or cautious feedback.

Conclusion

Online employee surveys are a valuable tool in SHRM for understanding

employee sentiments, identifying workplace challenges, and driving
strategic decisions. Their cost-effectiveness, convenience, and scalability
make them a preferred method for data collection. However,
organizations must address their limitations by designing engaging,
concise surveys, ensuring data privacy, and taking visible action on
feedback. This balance ensures maximum effectiveness and credibility of
the survey process.

14. A) Describe the characteristics and objectives of career planning.

Characteristics and Objectives of Career Planning

Career planning is a strategic process undertaken by individuals or

organizations to align personal goals, aspirations, and skills with career
opportunities. It involves assessing skills, setting career objectives, and
taking actionable steps to achieve longterm professional growth. In
Strategic Human Resource Management (SHRM), career planning plays a
critical role in aligning employee development with organizational goals.

Characteristics of Career Planning

1. Goal-Oriented Process

• Focuses on defining short-term and long-term career objectives.

• Helps individuals and organizations create actionable plans for

career advancement.
2. Continuous and Dynamic

• Career planning is not a one-time activity; it evolves with changing

interests, skills, and opportunities.

• It requires periodic review and adjustment based on personal and

organizational needs.

3. Mutual Benefit

• Balances individual aspirations with organizational objectives,

fostering employee satisfaction and productivity.

4. Developmental Focus

• Encourages skill enhancement, knowledge acquisition, and personal

growth.

• Aligns employees’ competencies with future roles and

responsibilities.

5. Individual and Organizational Responsibility

• Career planning is a shared responsibility.

• Individuals identify goals and take initiative for self-

development.

• Organizations provide resources, training, and opportunities to

support career growth.

Objectives of Career Planning

1. Aligning Personal and Organizational Goals

• To ensure that employees’ career aspirations align with the strategic

objectives of the organization.

• Helps in retaining talent by creating a clear growth path.

2. Enhancing Employee Motivation and Satisfaction

• Provides a sense of direction and purpose, which increases job

satisfaction and employee morale.

3. Skill and Competency Development

• Identifies skills gaps and facilitates training programs to prepare

employees for future roles.

• Encourages continuous learning and professional development.

4. Reducing Employee Turnover

• Effective career planning builds loyalty and reduces attrition by

addressing employees’ growth expectations.

5. Preparing for Future Challenges

• Develops a talent pipeline to fill critical roles and address succession

planning needs.

• Prepares employees for leadership positions and other key roles in

the organization.

Conclusion

Career planning is a critical element of SHRM that benefits both

individuals and organizations. Its characteristics, such as being goal-
oriented, developmental, and aligned with market trends, ensure it
remains a dynamic and effective process. The objectives, from enhancing
motivation to reducing turnover and fostering innovation, highlight its
importance in achieving sustainable growth and competitiveness in the
modern workplace.

15. B) Discuss the objectives and principles of employee's welfare.

Objectives and Principles of Employee Welfare

Employee welfare refers to the various services, benefits, and facilities

provided to employees by an organization to improve their well-being,
enhance job satisfaction, and promote a better quality of work-life. It is a
critical aspect of Strategic Human Resource Management (SHRM) as it
directly impacts employee morale, productivity, and retention.

Objectives of Employee Welfare

The primary goals of employee welfare initiatives are outlined below:

1. Enhance Employee Well-Being

• Improve the physical, mental, and emotional health of employees

through health insurance, stress management programs, and
recreational activities.

2. Increase Job Satisfaction

• Provide facilities like canteens, transport, housing, and childcare to

improve employee satisfaction and reduce stress.

3. Improve Work-Life Balance

• Offer flexible working hours, leave policies, and family support

programs to help employees manage their professional and personal
lives effectively.

4. Boost Productivity and Efficiency

• Ensure employees are comfortable and motivated to perform better

through welfare measures such as ergonomic workplace designs and
healthy working conditions.

5. Promote Employee Morale and Loyalty

 • Welfare schemes create a sense of belongingness and loyalty
among employees, reducing turnover and absenteeism.

Principles of Employee Welfare

The principles guiding the formulation and implementation of employee

welfare programs are:

1. Principle of Adequacy

• Welfare measures should meet the basic needs and expectations of

employees, ensuring adequacy in services like healthcare, housing,
and safety.

2. Principle of Equity

• Ensure fairness and equality in providing welfare benefits, regardless

of an employee's rank, gender, or background.

3. Principle of Participation

• Encourage employee involvement in designing and implementing

welfare programs to ensure relevance and effectiveness.

4. Principle of Safety and Security

• Provide a safe working environment with adequate measures to

prevent accidents, injuries, and workplace hazards.

5. Principle of Social Justice

• Uphold the rights and dignity of employees by adhering to labor

laws and ethical standards.

Conclusion
Employee welfare plays a vital role in promoting a positive work
environment and achieving organizational goals. By addressing employee
well-being, job satisfaction, and safety, welfare initiatives create a
motivated and loyal workforce. Adhering to principles such as equity,
flexibility, and responsibility ensures that welfare measures are fair,
relevant, and sustainable. As a strategic function, employee welfare
significantly contributes to organizational success and employee
happiness.