GHRM 5113

Strategic
Human
Resource
Manageme
nt
Unit 1: Introduction to SHRM

UNIRAZAK. ALL RIG H TS RESERVED ©

S KCO E . ALL RIG H TS RESERVED ©

Asst. Prof. Dr Hemaloshinee

Vasudevan
Learning
Outcomes
By the end of this unit, you should be able to:

1.Discuss the concept of SHRM;

2.Interpret different concepts of SHRM in an organization

Introductio
n
1.Strategic human resource management is a process that creates
a link between the company’s strategic goals and the
management of human capital.
2.Thus, the strategic concept in human resource management
emphasises on the application of its strategies across other
functional units in the company have adopted.
1.1 KEY FEATURES OF
SHRM
Feature of SHRM Explanation
Business strategy and Strategic human resources create a link between the long-term goals of a company
human resources and the management of the human resources process. The company cannot achieve
its long-term goals without human capital. Each milestone or short-term goal can be
achieved when there are proper planning and effective allocation of duties in the firm.
Thus, the concept of strategic human resources, in this case, focuses on how well the
organisation can position its human resources to meet the ever-changing needs of
the company and its efforts to meet the customer requirements.

Strategic management Human resource managers can use the concept of SHRM to define the roles of
and the organising employees in the organisation. This goal can be achieved through an analysis of
function different factors affecting the business. Human resource interventions are necessary
when the management implements change in the organisation.
Decentralisation of SHRM emphasises on the need to assign more responsibilities of managing human
human resource capital to the lower level management. These efforts could help in the effective
functions management of human capital since the management function are close to the
employees.
1.1.2 Difference between Human Resource Management and Strategic Human Resource
Management

Human Resource Management Strategic Human Resource Management

Human resource management emphasises on the human Strategic human resources focus on business-level
resource level outcomes. For example, hiring of employees outcomes. It implies that the company looks at how it can
and allocation of duties in different functional units of the achieve its goals through human resources.
business.

Employees as a tool of production Employees as a Human Capital

Human resource management is limited to managing Strategic human resource management focuses on Planning
company employees. This notion is based on the - how a company can gain a competitive advantage on the
traditional scope of both scholars and corporates. market by using human resources to achieve the long term
goals.
1.1.2 Difference between Human Resource Management and Strategic Human Resource
Management

Human Resource Management Strategic Human Resource Management

Human resource management seeks to achieve the goals Strategic human resource management seeks to understand
and objectives set by the business strategy. the relationship between human resource strategies and
business strategies. As a result, this concept seeks to bring
a balance between the two business functions.
Human resource management only stops at the allocation Decentralisation of human resource functions
of duties to employees. The rest of the work is left for the
line managers and supervisors.
Decentralisation
of human
resource
functions
1.1.6 Dimensions of Strategic Human Resource Management

Table 1.6: Themes of Strategic Human Resource Management

Theme Explanation
 Human resource practices entail the traditional roles and responsibilities of human resource management in an
Human resource organisation.
practices and  To understand the effectiveness of human resources in the company, strategic human resources evaluate the
performance performance of each employee by looking at the assigned responsibilities and the level of output from each
individual.
 Therefore, the role of strategic management in human resources is to ensure human
resources are put in the right use to produce optimum results.
Re-engineering  This element of strategic human resource management focuses on aligning the company’s human resources to
companies and its core
workplace activities. For instance, researchers have identified areas such the organisational design and structure.
leadership  It also involves effective leadership through decentralising decision-making mechanisms. In
this case, a decision is made at the plant level to ensure employee involvement and
effectiveness.

 Companies institute learning for employees to gain knowledge and skills necessary to improve productivity.
Workplace
 Strategic human resource management aims at equipping employees with essential skills that can enable them
learning
to adapt to the new business strategy.
 Workplace learning also prepares employees for promotions to senior positions.
 Strategic human resource management look at empowering employees by ensuring that they have a working
1.1.7 Competencies of a Strategic Human Resource Manager

Figure 1.2: Competencies of an SHRM

manager Source: Raj
(2007)
GHRM 5113

Strategic
Human
Resource
Manageme
nt
Unit 2: SHRM and Context

UNIRAZAK. ALL RIG H TS RESERVED ©

S KCO E . ALL RIG H TS RESERVED ©

Asst. Prof Dr. Hemaloshinee

Vasudevan
Learning Outcomes

By the end of this unit, you should be able to:

1. Discuss the function of SHRM in international business;

2. Describe on different areas to focus on when integrating HRM and Business Strategies;

3. Discuss the impact of SHRM in global business;

4. Identify challenges that face MNC’s when adopting SHRM.

Introduction

1. The role of human resources in changing due to the increasing demands and rapid
transformation of the international market environment.
2. By the end of this unit, learners will be able to apply different human resource strategies to
solve challenges facing a multinational corporation and introduce better ways of production
to remain competitive.
3. They will also understand the value of SHRM in international business and how companies
around the world have evolved by adopting new methods of managing human capital.
4. As potential managers in international trade, learners will also be being introduced to both
simulated and real-life case studies relating to the unit.
2.1 FUNCTIONAL AREAS OF SHRM IN GLOBAL BUSINESS

Human resource
managers in
multinational
corporations
(MNCs) have
different types of
responsibilities,
which they need
to plan and
execute from a
strategic point of
view.
Areas which
Managers in Element/Area Description
Development and Changing Business Environment
MNCs are training
New employees
New Skills

responsible for Recruitment and It is the responsibility of the human resource management division in the
company headquarters to determine or develop policies and guidelines of how
selection employees will be recruited in all subsidiaries across the global market.

Employee and In the international business context, companies also ensure that employee
welfare is a priority.
labour relations Empowerment + motivation
Crucial tool for handling complains and conflicts in the subsidiaries in different
parts of the world.

Performance Strategic management of human resources in the global context looks at how to
develop an effective appraisal system that can be effective in both company
evaluation headquarters and its subsidiaries. A broader spectrum of this concept covers the
work performed by departments and teams in the organisation.

Remuneration Human resource function in global business develops plans that are adoptive to
specific markets due to different reasons.
benefits For instance, (1) different rules of taxation and employee remuneration
guidelines as compared to how it is done in the home country, (2) Human
resource managers develop all forms of compensation, which include the
monetary and non-monetary type of rewards to employees.
GHRM 5113 | Strategic Human Resource Management

2.1.2 The Role Conducting

successful cross-
To outperform
competitors
of SHRM in border
acquisitions

Global Business
Effectively Adapting to
coordinating changing
subsidiary conditions
operations worldwide

Sharing innovation
knowledge
throughout the
firm

Page
13
2.1.3 Challenges
Facing 1. Poor coordination of activities in different geographical
locations

International Companies may fail to monitor all the processes and events going on
in all subsidiaries in the global market. In some cases, the human

SHRM resource unit may fail to make decisions that are accurate for the
entire organisation because these firms are operating at different
levels and may also have different goals to achieve. Therefore,
human resource managers at the company headquarters may fail to
understand how these business outlets can work together to
achieve a common purpose.

Eg: Sunway
2. Inadequate response to the dynamic market environment
A multinational corporation has multiple activities going on at the
same time. The management in such companies can fail to
acknowledge the challenge of implementing an immediate
response strategy to the changing business environment. Slow
response may be experienced, especially when they need to
change was sudden, and the company had not prepared in
advance. There is always a high level of competition in the global
market; companies that fail to keep up with the changes in the
ways business transactions are done may end up making losses
and losing customer base.
Eg: Lingual Skill Test
2.1.3 Challenges
Facing 3. Lack of global awareness in human resource units
Human resource managers should be aware of the arising
International concern about current trends in managing people in a global
business environment. Thus, companies that fail to make
SHRM findings of better ways of handling human capital may end up
frustrating the existing labour force. In the long run, these
experienced employees may seek employment opportunities in
better working environments. Some employers, in this case,
maybe competitors who may benefit from qualified individuals.
Global awareness, in this case, includes adopting best
practices in the industry and doing what is required to enable
employees to perform optimally.

Eg|: Ageing Issues in Singapore vs Ageing Issues in Malaysia

4. Failure of establishing a multicultural team
Companies working in a diverse business environment must
acknowledge the fact that their backgrounds shape
customer perception. Similarly, employee behaviour is also
influenced by elements such as traditions, beliefs, attitudes,
and values. These factors are paramount when making
human resource strategies. Thus, companies that fail to
establish a multicultural team of employees may fail to
understand the needs arising in a given global market.
 Job conditions that may lead
to stress
2.1.3 SHRM Design of Tasks
• Heavy workload, infrequent rest
breaks, long work hours and
Management Style
• Lack of participation by workers in
decision- making
Career Concerns
• Job insecurity and lack of
opportunity for growth,

Achieving shiftwork
• Hectic and routine tasks that have
little inherent meaning
• Poor communication in the
organization
• Lack of family-friendly policies
advancement, or promotion
• Rapid changes for which workers are
unprepared

the Right • Do not utilize workers' skills

• Provide little sense of control

Balance Work Roles Interpersonal Relationships Environment Conditions

• Conflicting or uncertain job • Poor social environment • Unpleasant or dangerous physical
expectations • Lack of support or help from conditions such as crowding, noise,
• Too much responsibility coworkers and supervisors air pollution, or ergonomic problems
• Too many "hats to wear“

GHRM 5113 | Strategic Human Resource Management Page 16

What is workplace flexibility?

Workplace flexibility overview

A business strategy that allows workers to make choices about core aspects of their work related to:

 Time – when and how long work is performed

 Place – where work is performed

 Task – the specific tasks that are performed

GHRM 5113 | Strategic Human Resource Management

Types of flexible work arrangements
Flexible Work Arrangements Description

Flex time Choose starting and finishing times

Compressed work week Work fewer than five days but still the
same weekly hours
Telecommuting Working somewhere other than the
corporate office/company building
Regular part time Work hours less than 40

Job sharing Share a full time job with another

employee
Phased retirement Allowing older employees to remain
employed in a different manner and
status

Leaves and sabbatical Authorized periods of time off (usually

extended)

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Summary
- U n d e r s t a n d t h e o v e r a l l f u n c ti o n o f S H R M

- The work-balance life can e nhance the

employees work life

- E x p l o r e t h e m a n a g e r ’s r e s p o n s i b i l i t y i n
developing the SHRM.

UNIRAZAK. ALL RIG H TS RESERVED ©

S KCO E . ALL RIG H TS RESERVED ©

Dr Hemaloshinee Vasudevan