Strategic Human Resource

Management

Session # 5

Dr. Marie Paz H. Angeles

May 11, 2024
https://www.youtube.com/watch?v=h71kUZBoD2s

• Why LESS is MORE | A Monk Explains Minimalism

• Nick Keomahavong
• 418K subscribers
https://www.youtube.com/watch?v=ELsUbrDhHuA

• The Enemy of Happiness | A Monk's Perspective

• Nick Keomahavong
 What is Human Resource Management?

• Human Resource Management, or HR Management, or HRM, - is the

practice of managing people to achieve a better (organizational)
performance.
• For example, if you hire people into a business, you are looking for
people who resonate with your company culture as they will be happier,
stay longer, and be more productive than people who don’t.
• Another example is engagement.
• Engaged employees are more productive, deliver higher quality work,
and make customers happier.
• This means that if HR can find ways to make employees more engaged,
this benefits the company.
What is Human Resource Management?

• The HR department aims to provide the knowledge, tools, training,

legal advice, administration, and talent management crucial to
supporting and advancing the company.

• This is what Human Resource Management boils down to:

optimizing organizational performance through better management
of human resources.
What is Human Resource Management?
Human resources are all the people who work for or contribute to the
organization in one capacity or another.

Together, these people make up a company’s workforce.

They can be full-time or part-time salaried or hourly employees, for

example, but also contingent workers such as consultants, contractors,
or freelancers.
 Why is Human Resource Management
important?

HRM involves various activities, processes, and policies – tied together in

an HR strategy – that aim to align a company’s workforce with its strategic
(business) objectives.
 Effective HR Role is integral in the following :

1.Attracting and retaining talent:

The HR department creates a comprehensive talent strategy that helps the
organization recruit, develop, and retain the right people.
2. Enabling managers:
Managers play a crucial role in employee retention and success. HR is
there to equip managers with all the tools, resources, and support they
need to help their teams flourish.
3. Driving strategic planning:
HR works with senior leaders to keep the HR strategy in line with the
organization’s objectives. This enables the HR team to identify talent gaps
and create workforce plans to then proactively find the right talent for the
right position.
Effective HR Role in the following :

• 4. Fostering organizational culture: HRM plays a vital role in shaping

and cultivating the company’s culture by establishing the values, norms,
and behaviors that correspond with the organization’s mission and vision.

• 5. Creating a productive work environment: A positive work

environment is good for employee productivity, which, in turn, is critical to
the success of the business. Various HRM practices, therefore, aim to
implement effective performance management systems, set clear job
expectations, and provide regular feedback, among other things.
 The seven (7) Human Resource basics:

• When we talk about Human Resource Management, several

elements are considered cornerstones for effective HRM policies.
• These cornerstones are:

1. Recruitment & selection

2. Performance management
3. Learning & development
4. Succession planning
5. Compensation and benefits
6. Human Resources Information System (HRIS)
7. HR data and analytics
1. Recruitment & selection

• Recruitment and selection are the most visible elements of HR.

• Who doesn’t remember their very first job interview, right?

• The goal of the Recruitment and Selection process is to find and hire
the best candidate for the job, with the former focusing on attracting
potential candidates to apply for the role and the latter focusing on
evaluating and choosing the best candidate among the applicants.
The recruitment process usually involves the following
steps in some shape or form:

1. Preparing:
•Vacancy intake with the hiring manager
•Write job description
•Creating job advertisements
The recruitment process usually involves the following
steps in some shape or form:

• 2. Sourcing:
• Sourcing candidates
• Checking the existing talent pool
• Keeping the hiring manager informed
The recruitment process usually involves the following
steps in some shape or form:

• 3. Screening:
• Screening resumes
• Phone screening
• Giving a realistic job preview
The last phase of the recruitment phase has some overlap with
the selection process, which then continues as follows:

•4. The job interview

•An assessment
•References and background check
•The hiring decision
•Job offer and contract
•(Preboarding and onboarding)
2. Performance management

Performance management is the second HR Management cornerstone.

It is a set of processes and systems aimed at developing employees in a

way that enables them to perform their jobs to the best of their ability.

Employees who are empowered to their full potential, improve the

efficiency, sustainability, and profit margin of a business.
2. Performance management

• The goal of performance management is threefold:

1.To help employees build on skills that enable them to

perform better in their roles
2.To reach their highest potential
3.To boost their success while accomplishing the strategic
goals of the organization.
• Effective performance management is based on a continuous
conversation between employees, their managers, and HR.

• A strategic and systematic performance management process

combines verbal and written components that take place throughout
the year.

• It involves the following actions:

 Performance Management involves the following actions:

•Establishing clear expectations

•Setting individual objectives and goals that align with team and
organizational goals
•Providing different types of feedback
•Regular performance conversations, such as performance reviews
and performance appraisals
•Evaluating results.

•* Important decisions regarding an employee’s career, such as promotions, bonuses, and

dismissals, should be linked to the organization’s performance management process.
3. Learning & Development

• Learning and development (L&D) is another HR fundamental

and an essential part of an organization’s overall
people development strategy.

• Put simply, L&D is a systematic process that enhances people’s

skills, knowledge, and competencies to improve their work
performance.
 3. Learning & Development

• Learning involves acquiring knowledge, skills, behaviors, and

attitudes that result in better job performance.
• Examples of what learning activities can look like include:
• Reading blogs, articles, or books
• Hands-on experimentation
• Peer learning
• Lunch and learn sessions
• Attending seminars, conferences, or webinars
3. Learning & Development

• Development evolves around broadening and deepening a person’s

knowledge in line with their individual, long-term professional goals.

• The idea here is to grow job-related abilities and expand someone’s

potential for future opportunities.
• Activities focused on development include:
• Coaching
• Job shadowing
• Leadership training
• Mentoring
3. Learning & Development

• L&D helps employees to reskill and upskill.

• It is typically led by HR, and a solid learning and development program can
be very helpful in advancing the organization toward its long-term goals.
• This approach allows employees to bridge skill gaps and grow into leaders.
• A well-known framework that connects performance management with L&D
activities is the 9-box grid.
• Based on people’s performance and potential ratings, HR and the manager can
advise on various development plans in consultation with the employee.
4. Succession Planning

• Succession planning involves planning contingencies in case key

employees leave the organization.
• It is about proactively identifying top performers and potential leaders
and getting them ready to fill (senior) positions as soon as someone
leaves.
• While crucial for the continuity – and sometimes even the survival –
of the business, many companies of all sizes still don’t have a solid
succession plan.
4. Succession Planning
Succession planning is a complex process and if you want to navigate it successfully,
keep the following three things in mind:

1.Critical roles only:

Succession planning focuses on roles that are vital to the organization’s
competitiveness and continuity, especially senior leadership roles.
2. Key talent:
Unsurprisingly, for those critical roles, only top performers and potential leaders
(usually internal candidates) are selected to be mentored and developed.
3. Continuity:
The ultimate purpose of succession planning is to ensure that someone else is ready to
take over immediately when someone leaves to maintain business continuity.
5. Compensation and Benefits

• Another fundamental component of HR management is

compensation and benefits, often called comp & ben.
• Fair compensation is critical in attracting, motivating, and
retaining employees.

• Compensation and benefits consist of all the monetary and

non-monetary rewards employees receive from their
employer in exchange for their labor.
5. Compensation and Benefits

• Examples include:
• Salary
• Bonuses
• Insurance
• Retirement contribution
• Childcare benefits
• Flexible working options
• Etc.
 Getting comp and ben right is important for two
main reasons:

• On the one hand, making a solid, attractive offer is key to

attracting the best talent.

• On the other hand, comp & ben and related taxes can
account for up to 70% of business costs, highlighting the
importance of balancing this with the organization’s budget
and profit margins.
• HR should, therefore, closely monitor the state of
compensation and benefits at their organization.
• A final thing to note here is that
employee satisfaction is mainly driven by what they perceive a
s fair
rather than by how much someone is paid.

• How employees feel about the company’s pay philosophy and

process is more likely to impact their outlook than the actual
pay.
• So, in addition to offering decent compensation, HR teams
may want to start paying more attention to how
pay transparency works and how to manage compensation
perceptions at their company.
6. Human Resource Information System (HRIS)

• The two final HR Management basics are not HR practices

but tools to improve HR.
• The first one is the Human Resources Information System
, or HRIS.
• Most HRIS solutions support all the HR processes and
practices we discussed above.
• Sometimes, however, the management of these
functionalities is spread out over different HR systems.
6. Human Resource Information System (HRIS)

• For example:
• HR professionals often use an Applicant Tracking System, or ATS, for
recruitment and selection to keep track of applicants and new hires
• For performance management, a performance management
system is used to keep track of individual goals and insert
performance ratings
• In L&D, organizations utilize the Learning Management System
(LMS) to distribute learning content internally, and other HR
systems are used to keep track of budgets and training approvals
• Compensation specialists often use a payroll system
• There are digital tools that enable effective succession planning.
6. Human Resource Information System (HRIS)

According to the annual Digital Employee Experience Audit,

30% of companies still use more than ten different HR
systems.

The bottom line here is that there is a significant digital

element to working in HR, which is why we need to mention
the HRIS when talking about the basic components of HRM.
7. HR Data and Analytics
• The final HR fundamental revolves around data and analytics. In the
last decade, HR has made a significant leap towards becoming more
data-driven.
• The HRIS we just discussed is essentially a data-entry system. The
data in these systems can be used to make better and more informed
decisions.
• An easy way to keep track of critical data is through HR metrics
and/or HR KPIs.
• These are specific measurements showing how a company performs
on a given indicator. This is referred to as HR reporting
7. HR Data and Analytics

• This type of reporting focuses on the current and past state of the
organization.
• Using HR and people analytics, HR can also make predictions.
• Examples include workforce needs, employee turnover intention, the
impact of the employee experience on customer satisfaction, and many
others.
• HR can make more data-driven decisions by actively measuring and
looking at this data.
• These decisions are more objective, which makes it easier to find
management support for them.
 How has Human Resource Management changed and
evolved?

• What Human Resource Management looks like today – and what is

expected of HR professionals – is vastly different from what it looked like a
hundred years ago.
• From around 1900 until the 1940s, for example, HR teams were mainly
expected to keep employees healthy so that they would remain productive.
• During the 1980s and 1990s, HR departments ought to focus on motivating
and engaging the workforce while modernizing their HR practices through
technology implementations.
 How has Human Resource Management changed and
evolved?

• What we’ve seen from 1990 onwards, and still see today, is
that HR is expected to be a strategic partner and able to align
the business agenda and the HR agenda.

• As for the (near) future, and as we enter the digital-human

era of work, things will shift further, and even more will be
expected of HR teams.
• They will have to guide the organization to adapt to
workforce changes and redefine the working relationship
between talent and employers.
 Human Resource Management Skills :

• To strategize and execute HR initiatives, HR professionals

need to possess the following skills:
1.HR specific skills, including:
1. HRM knowledge and expertise
2. Administrative expertise
3. Employee experience expertise
2.Business acumen, including:
1. Commercial awareness
2. HR strategy creation and execution
3. Advising
 Human Resource Management Skills :

3. Soft skills, including:

1. Communication skills
2. Active listening
3. Proactivity
4. Digital & data literacy, including:
4. HR reporting skills
5. Being analytical and data-driven
6. Command of technology
18 HR Skills Every HR Professional
Needs [2024 Guide]
Written by Erik van Vulpen
https://www.aihr.com/blog/hr-skills/
1. Communication skills
2. Administrative expertise
3. HR Management knowledge and expertise
4. HR strategy creation & execution
5. Managing priorities
6. Proactivity
7. Advising
8. Coaching
9. Recruitment and selection
10. Employee experience expertise
11. Command of technology
12. Being analytical and data-driven
13. HR reporting skills
14. Commercial awareness
15. Cultural awareness and sensitivity
16. Wellbeing evangelism
17. Active listening
18. Teamwork
Importance of HR skills
Developing HR skills
Future HR skills
References :

https://www.aihr.com/blog/human-resource-basics/
https://www.aihr.com/blog/hr-skills/