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At the end of this workshop you should be better able to:

Understand how HRM has evolved as a discipline

Know and understand the concepts of horizontal and vertical integration

Recognise when a perspective on HRM is strategic or operational.

1

Think about …
What is strategic HRM? How does it contribute to organisational strategy and performance? See the evolution of HRM on the next slide.

2

Evolution of HRM
High
Low
1890 – 1913
1914 – 1939
1945 – 1979
1980 – 1990s
Organisational scope
“Welfare
Officer”
“Labour Manager”
Personnel
Management
Human Resource
Management
Human Capital
HR Business Partner
People
Timeline / Period
3

3

Emergence and evolution of the term ‘HRM’ (Kaufman article)
”The main contribution of this article, however, comes from the insights it provides for understanding the past and present of SHRM and useful research directions going forward” (Kaufman, 2015).
Pre-1970s:
Personnel and administration, payroll, ‘time and motion’, health and safety, ‘training’.
1980s:
Recognition of humans as assets, resources to be managed.
1990s:
Recognition of need to align people management with organisational objectives; potential to ‘add value’, ‘be the difference’, give the competitive edge; humans different from other resources.
4
Kaufman, B.E. (2015) ‘Evolution of HRM as seen …’ Human Resource Management. May – June 2015. 54(3): 389 – 407.

Key strategic questions to ask
What does your organisation want to achieve in the next 2 – 5 years?
To achieve this, what do we need from our people?
High commitment, high performance or high involvement (three approaches to achieve these)
How do we as HRM people want to achieve this?
Three different types of strategy
What must we remember in all of this?
5

What is Strategic HRM?
6

A Framework for Strategic Human Resource Management
“The critical managerial task is to align the formal structure and human resource systems so that they drive the strategic objectives of the organization” (p. 37).
“Strategy in their treatment is thus an integrated plan of action to accomplish the mission of the enterprise (p. 34).”
7
Fonbrun, C.J., Devanna, M.A. & Tichy, N.M. (1984) Strategic Human Resource Management. Wiley: London.

7

(1) What is Strategic HRM? One view
The concept of Strategic HRM: Chris Hendry and Andrew Pettigrew, 1986
Strategic HRM has four meanings:
The use of planning.
A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy and often underpinned by a ‘philosophy’.
Matching HRM activities and policies to some explicit business strategy.
Seeing the people of the organisation as a ‘strategic resource’ for the achievement of ‘competitive advantage’.
8
Hendry, C. and Pettigrew, A. (1986) The practice of Strategic Human Resource Management. Personnel Review. 15(5): 3-8.

Chris Hendry, (Centre for Corporate Strategy and Change, School of Industrial and Business Studies, University of Warwick),
Andrew Pettigrew, (Centre for Corporate Strategy and Change, School of Industrial and Business Studies, University of Warwick)

8

(2) What is Strategic HRM? Another view
The concept of Strategic HRM: John Purcell, 2001
Strategic HRM is emergent rather than a deliberate process:
“Big strategies in HRM are most unlikely to come, ex cathedra, from the board as a fully formed, written strategy or planning paper. Strategy is much more intuitive and often only ‘visible’ after the event, seen as ‘emerging patterns of action’. This is especially the case when most of the strategy, as in HRM, is to do with internal implementation and performance strategies, not exclusively to do with external market ploys.”
9
Purcell, J. (2001). The Meaning of Strategy in Human Resource Management. In Storey, J. (Ed.),
Human Resource Management: A Critical Text. Thomson Learning: London. (pp. 59 – 77).
John Purcell (2001)

John Purcell, (University of Bath School of Management)
Ex cathedra- with the full authority of office
Emergent strategy: unlikely to come from the senior team as a written strategy or plan.
Evolves from patterns of action.
Strategy individual to organisation- internal implementation, performance strategy
Less to do with external factors and more related to internal factors
9

(3) What is Strategic HRM? And another …
The concept of Strategic HRM: Michael Armstrong, 2006
Strategic HRM as an integrated process:
“Strategic HRM is essentially an integrated process that aims to achieve ‘strategic fit’. A strategic HRM approach produces HR strategies that are integrated vertically with the business strategy and are ideally an integral part of that strategy, contributing to the business planning process as it happens. Strategic HRM is also about horizontal integration, which aims to ensure that the different elements of the HR strategy fit together and are mutually supportive.”
10
Armstrong, M. (2006) A handbook of Human Resource Practice. Kogan Page: London.

Michael Armstrong (Honours graduate in economics from the London School of Economics, Managing Partner of e-reward.uk, Chief Examiner Employee Reward for the CIPD from 1997-2001)
Horizontal and vertical integration- HR strategy fits and supports the organisation
Must integrate strategy into the organisation- make it fit
This is in opposition to the emergency HRM idea
10

(4) And one more …
Martin McCracken, 2016:
“The human resources business partner (HRBP) role is advocated as a way for human resource (HR) professionals and the HR profession to become more strategic and less transactional, necessitating the development of different competencies.”
11
McCracken, M.G. et al. (2016) Human resource business partner lifecycle model: exploring how the relationship between HRBPs and their line manager partners evolves over time. Human Resource Management Journal. 27(1): 58 – 74.
What would ‘transactional HRM involve?

They work closely with their business area and help it to implement the business strategy from a people perspective. For example, if the strategy is to drive sales, the HRBP will help the business to create a culture and people approach which will support this.
https://www.cipd.co.uk/careers/career-options/hr-business-partner-roles
11

Vertical and Horizontal Integration
12

Types of Integration
Vertical Integration:
The extent to which Human resource strategy is integrated with the wider business strategy (‘external fit’) Example: Growth and recruitment.
Horizontal Integration:
The extent to which aspects of Human resource management are integrated with each other. Example: Appraisal and Learning and Development.
Key issue:
Increased specialisation has resulted in fragmentation and the creation of specialist posts within HR.
13
Farnham, D. (2010) Human Resource Management in context. CIPD: London. (p. 149)

13

Vertical and horizontal integration
14
Rees, G. and Smith, P. (2018) Strategic Human Resource Management. SAGE: London. (p. 85).

External environmental forces
PESTEL, Porter’s 5 Forces
Firm

Mission and Strategy
Structure
HRM

Selection
The HRM Cycle
Performance
Appraisal
Rewards
Training

Fombrun, C.M., Tichy, N.M. and Devanna, M.A. (1984) Strategic Human Resource Management. John Wiley: New York.

What is Strategic HRM/PMD?
Approaches to Strategic HRM:
High-performance management approach: The development of a number of interrelated processes which together make an impact on the performance of the firm through its people in such areas as productivity, quality, levels of customer service, growth, profits and shareholder value.
High-commitment management model: Emphasises the importance of enhancing mutual commitment. A form of management which is aimed at eliciting commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organisation are based on high levels of trust.
High-involvement management: Involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement.
15
What’s the difference?
What might HRM put in place?

High-performance management approach: Example: relating engagement initiatives linked to performance. Performance- based pay.
High-commitment manegemtn model: Employees choose to behave in a way favourable to the organisation. Given sutonomy and certain freedoms which give trust. For example: flexible working initiatives.
High-involvement management: employees as partners. Respect. For example: employee voice schemes.
15

Organisation: SHRM
Working in your groups, can you give an example of an organisation which practices SHRM?
Are they emergent or integrated?
Do they use horizontal and vertical integration?
What kind of approach do they take?

16

Learning outcomes

At the end of this workshop you should be better able to:

Know and understand what a megatrend is.

Identify some of the most critical megatrends and think about PMD’s role to proactively prepare the business for the future.

Conduct an external analysis of the megatrends to evaluate the possible impact of megatrends on the business.

Understand the concept of Ethics and it’s relevance to HR Professionals

1

Reading
Readings in textbook. See Module Handbook
CIPD. (2014) Megatrends Report. Available at: https://www.cipd.co.uk/knowledge/work/trends/megatrends

2

DHRP Muscat Online October 2020 Evening

2

3
Megatrends – What is a megatrend and why do they matter?
What do you think a megatrend is? If we don’t know, let’s research…

4
What’s after what’s next? Megatrends shaping 2018 and beyond:
The future of work

https://www.megatrends2018.com/

Something is in the air! But what?
5
The Research Process to Identify Megatrends
1. Decide methodology and conceptual framework
2. Identify current megatrends
3. Select most impactful megatrends
4. Survey business leaders (relevant individuals)
5. Analyse each megatrend and the implications
6. Analyse effects of all six megatrends in combination
7. Draw conclusions on consequences for leaders
8. Identify how leaders should respond
What is changing?
What are the implications for organisations and their leaders in the immediate and longer term?
How will this affect the way that leaders lead?
What are the main drivers of change? And their implications?

Let’s say something is changing in leadership…
Vielmetter, G. and Sell, Y. (2014) Leadership 2030. The six megatrends you need to understand to lead you company into the future. MAMACOM: New York.

What is a megatrend all about?
The concept of megatrends was introduced by John Naisbitt in his 1982 book Megatrends.
Megatrends is not a short-term trend.
A megatrend is “a long-term, transformational process with global reach, broad scope, and a fundamental and dramatic impact”.
6
Vielmetter, G. and Sell, Y. (2014) Leadership 2030. The six megatrends you need to understand to lead you company into the future. MAMACOM: New York. (p. 6).

Three dimensions defining a megatrend
7

1. Time
Observable over decades, megatrends can be projected with a high degree of probability at least 13 years into the future.

2. Reach
Megatrends affect all regions and stakeholders, including governments, individuals and businesses.
3. Impact
Megatrends fundamentally transform policies, society and the economy.

Megatrend lifecycle
8

9
Gartner Top 10 Strategic Technology Trends 2020

https://www.gartner.com/smarterwithgartner/gartner-top-10-strategic-technology-trends-for-2020

Megatrends are the new drivers of change
What are the (causes and) consequences of megatrends on:
The business environment?
The organisation?
People management and development?
What do the megatrends have in common?
What are the implications of the megatrends taken together?

10

Example of six current megatrends
11
Vielmetter, G. and Sell, Y. (2014) Leadership 2030. The six megatrends you need to understand to lead you company into the future. MAMACOM: New York.
Potential impact on work, workplace and workforce in UAE?

Some of the megatrends
Megatrends Reports (CIPD):
Megatrends: More selfies? Self-employment in the UK.
https://www.cipd.co.uk/knowledge/work/trends/megatrends/self-employment
Megatrends: Are organisations losing the trust of their workers?
https://www.cipd.co.uk/knowledge/work/trends/megatrends/organisations-losing-workers-trust
Megatrends: Have we seen the end of the payrise?
https://www.cipd.co.uk/knowledge/work/trends/megatrends/organisations-losing-workers-trust
Megatrends: Are we working harder than ever?
https://www.cipd.co.uk/knowledge/work/trends/megatrends/working-harder
Megatrends: Has job turnover slowed down?
https://www.cipd.co.uk/knowledge/work/trends/megatrends/has-job-turnover-slowed
12

12

Case Studies
In your groups:
Read through assigned CIPD report
As a group, summarise this report (practice your efficient reading skills)
What does the report say about megatrends?
From the findings of the report, what advice would you give to HR teams for the next 5 years?
13

Championing better work and working lives
14
Includes what work is and where, when and how work takes place.
Includes demographics, general shifts, attitudes and expectations, the changing skills base and trends in learning and education.
Includes how organisations are evolving and adapting, understanding of culture, trust and engagement and how people are best organised, developed, managed, motivated and rewarded to perform at their best.

(1)
Work

(2) Workforce

(3)
Workplace

15
Josh Bersin: HR’s Essential Role In The New World Of Work

Hear Josh Bersin at the HRD Summit 2018 discuss the five mandates for HR organisations in the coming years and explain how we can best provide value to our companies, leveraging the focus of the “individual in charge,” the growth in citizenship and need for engagement, and the relentless impact of digital technology in business.
For more HR insights visit www.HRDConnect.com or read the summary of Josh Bersin’s talk here: http://bit.ly/JoshBersin

#1 issue for companies is attracting and retaining talent
Jobs constantly changing
Since 2008 productivity has slowed- so how helpful is technology? Slowest growth of any industrial revolution we have ever had. We have not re-organized our companies to use the new technology yet.
Generation of management does not know how to use new technology- can’t run things the same way as before just faster.
Engagement- 2008 recession: avg engagement was 3.11% Today it is 3.2% Not really gone up. Why is that? Leaders who understand they are in the people business will support engagement.
25% of the day answering emails
We are now working harder, more stressed, more overwhelmed.
So many new forums to contact people- social media. Less work done per hour because we are so distracted. Wondering where to spend our time.
HR must do something about this
Avg employee now takes one week less vacation than 10 years ago.
Mental health issues- depression, stress. 40%of US workers believe they have very stressful jobs
Millennials: no stock market options. Believe they will be in worse financial situation than their parents. Income inequality, homelessness, see it as an unfair world. They want to rely on employers- push them to take more of a citizenship role in society
HR role:
Regardless of technology and how much it takes over, it’s still all about people
5 essential topics for HR to think about in their planning:
Create a new organization structure- the industrial model no longer really works. Need agile, networks of teams. Working independently but linked together. Movement between teams. Optimal team size is 5 people. Everyone cannot work from home. Physical proximity creates relationships and opens up lines of communication= engagement and productivity. Shared culture and leadership. Deloitte example- no org chart but everyone knows what to do.
Management: coaching, feedback, develop people, leadership effectiveness. 39% of people now work for leaders younger than they are. Digital leaders. Need different skills for managers now. Feedback: old notion of once per year feedback. Continuous feedback process. PM should now be to coach and develop people not weed out poor performers. Issues need to be known by management.
Employee experience: strong mission and culture. Culture drives the brand. Help employees have a healthier experience at work. Well-being now a part of HR. Re-design the workplace to be more humanistic.
Hack the career: people are living and working longer. Mentor roles for more senior people. Jobs are becoming technology and soft skills.
Embrace new technology: HR technology that improves work. AI-based systems. Tools to manage teams. Liase with IT team on team-based tools.
Communicate this to CEO’s
Chief Productivity Officer

15

Sustainability of work, workplace and workforce
“Sustainability has gone from a nice to do to a must do. It is about building a successful business for the long term. Sustainability will be a decisive factor in terms of which businesses will be here in 20 or 30 years time. It is the future of business.”
Steve Howard, Chief Sustainability Officer IKEA Group
16
Rahim, K. (2014) “Why IKEA Thinks This Mega-Trend Will Define The Next 30 Years Of Business,” Forbes. February 7, 2014. Available at: http://www.forbes.com/sites/rahimkanani/2014/02/07/why- ikea-thinks-this-mega-trend-will-define-the-next-30-years-of-business/

Reflective Question
What impact do megatrends have on PMD?
How will organisations ensure they stay up to date with new megatrends?
What are the key megatrends for us to be aware of now?
17

Ethics and trends in HR Profession
As an HR manager, What IF;
You found that one of the credentials submitted by an applicant is dubious or misleading?
You Discover that an employee who has been with the organisation for some time, is skilled and has established a successful record, had lied about his educational credentials?
Let’s turn the tables now, What if the Organization finds out that;
Five years into your HR profession, one of your first year recruit was based on favourism?
You rejected an application when the person met all the specified criteria laid in the requirements?
18

Ethics
The Moral principles that guide
our behaviours concerning what is
‘right’ and what is ‘wrong’.
19

Ethics
Remember: Sometimes HR managers compromise on ethical standards because of organizational pressures. Research suggests that such deviance is obvious in small firms and those large firms with weak cultures and leadership.
20

How to avoid ethical dilemas
Clear Code of conduct that will address ‘Grey areas’ in employee relations and management.
Complying with external audits (regulatory bodies)
21

Mode of excellence for HR
22

Changing world of work
The drastic change in the world (e.g. demographics, skills level, technology) has triggered a paradigm shift that reflects the changing landscape of requirements at work in different organizations. HR managers are required to think pro-actively and strategically to address such changing trends in the world of work
23

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