Browse Course Material

Course info, instructors.

  • Prof. Diane Burton
  • Prof. Paul Osterman

Departments

  • Sloan School of Management

As Taught In

  • Industrial Relations and Human Resource Management

Learning Resource Types

Strategic hr management, assignments, course schedule.

Session 1: The Strategic Importance of HR Case: Southwest Airlines: Using Human Resources for Competitive Advantage (A), Stanford Case #HR-1.

Reading: Pfeffer, Jeffrey. The Human Equation: Building Profits by Putting People First . Boston, MA: Harvard Business School Press, 1998, chapters 1 and 2.

Assignment Questions

  • What is Southwest’s competitive strategy? What are the sources of its success? How does it make money?
  • What are the foundations of Southwest’s competitive advantage?
  • How are these sources of competitive advantage produced and sustained by what the organization does and how it does it?
  • To what extent are Southwest’s sources of advantage difficult to imitate and likely to persist over time?
  • To what extent is Southwest’s success based on Herb Kelleher?
  • How serious is the competitive threat? To what extent can United and/or Continental duplicate Southwest’s business model? Why or why not?

Session 2: Strategic Execution and Economic Value: Internal and External Alignment Case: Portman Hotel, HBS 9-489-104.

  • What is Portman’s strategy for competing successfully in its chosen market?
  • What behaviors, skills, and attitudes will it need from its people, particularly the personal valets, to execute its strategy?
  • How do Portman’s human resource management practices (recruitment, selection, compensation, training, career development, performance appraisal, staffing and organizational design, management and supervision) help or hinder the development of the skills and behaviors listed in Question 2.
  • Is Portman having problems? What are the symptoms? What are the causes of the problems Portman is experiencing?
  • What should Portman do?
  • How much should Portman be willing to invest to address its difficulties? Or alternatively, what is the successful implementation of Portman’s strategy worth? Some operating figures are given in the case. FYI: the capital costs of the hotel work out to $310,000 per room.

Session 3: Work Systems Cases: New United Motors Manufacturing, Inc (NUMMI), Stanford Case #HR-11.

Optional Reading: Rubinstein, Saul R., and Thomas A. Kochan. Learning from Saturn: Possibilities for Corporate Governance and Employee Relations . Ithaca, NY: Cornell University/ILR Press, 2001.

  • What is motivating the workers at NUMMI?
  • What are the design elements of the Toyota team-based manufacturing system?
  • Why has General Motors had so much trouble learning from NUMMI and Saturn?
  • Jamie Hresko is now running one of GM’s largest assembly plants. What advice would you give him for how he might introduce some of the NUMMI methods to this facility?

Session 4: The Role of the HR Function

Reading: Ulrich, Dave. Human Resource Champions: The Next Agenda for Adding Value and Delivering Results . Boston, MA: Harvard Business School Press, 1998, pp. 23-31 and 231-254.

Session 5: Self-Managed Teams Case: Slade Plating Department, HBS #9-496-018

Reading: Wageman, Ruth. “Critical Success Factors for Creating Superb Self-Managing Teams.” Organizational Dynamics . Summer 1997, pp. 49-61.

  • How would you describe the culture of the Sarto group? Be specific. How has it evolved? What impact has it had on the effectiveness of the group?
  • What are the determinants of social status and influence within the plating department? The Sarto group? The Clark group?
  • What do you learn by analyzing the data provided in the exhibits? How does this influence your interpretations of what is going on?
  • Why did management previously ignored the illegal “punch-out” system?
  • What actions would you take if you were Porter? What are the risks associated with these actions?

Important supplemental information: The 1996 starting salary in the Plating Department was $8.00; Tony Sarto’s hourly wage was $12.00. The average wage for semi-skilled workers in the U.S. was $12.00. Firms similar to Slade in the Michigan area, such as suppliers to the auto industry, paid an average hourly wage of $14.70. United Auto Workers working at the ‘Big Three (General Motors, Chrysler and Ford), had starting salaries around $13.00 an hour and earned on average $19.00 an hour. The minimum wage in 1996 was $4.25, raised to $4.75 on October 1, 1996.

Session 6: Participation and Involvement Film: Breakdown at Eastern Airlines

Reading: Pfeffer, Jeffrey. “Can You Manage With Unions.” Chap. 8 in The Human Equation: Building Profits by Putting People First . 2000, pp. 225-251.

Session 7: Training and Development Case: ServiceMaster Industries, Inc., HBS #9-388-064.

  • What role have ServiceMaster’s values and goals played in the firm’s success?
  • Why haven’t other companies successfully copied the ServiceMaster approach?
  • How important are training and development in the ServiceMaster system? How does ServiceMaster socialize its employees? How does training and development affect the organization’s continued growth?
  • Why has ServiceMaster been willing to spend the resources it has on training and development for a set of jobs that many might see as comparatively low-skilled and for positions that typically experience high turnover?
  • There have been proposals (particularly by former U.S. Secretary of Labor, Robert Reich) that the U.S. follow the lead of some other countries (e.g., France, Singapore) and mandate a certain level of training–for instance, as a percentage of the firm’s payroll. What do you think of this policy? Why and when might organizations spend less than a socially optimal amount on training? What else might be done if one believes that too little training and skill development are occurring in the economy?

Session 8: Culture Case: Morgan Stanley: Becoming a One-Firm Firm, HBS #9-400-043.

Reading: Kaplan, R. S., and D. P. Norton. “Linking the Balanced Scorecard to Strategy.” California Management Review 39, no.1 (Fall 1996).

  • What do you think of Mack’s strategy for increased integration? Is this compelling to you? Why or why not?
  • Given his strategy, what do you think of his emphasis on revamping the performance management system? What are the pros and cons of implementing a new system of the type being discussed?
  • If Mack is to be successful at changing the strategy and culture at Morgan Stanley, what other actions would you recommend he take? What other HR levers should he be thinking about using?
  • Given your answer to question #3, what recommendations do you have for how he should proceed? How should he implement these changes?

Session 9: Performance Appraisal Case: The Firmwide 360 Performance Evaluation Process at Morgan Stanley, HBS #9-498053 and Rob Parson at Morgan Stanley (A), HBS #9-498-054.

  • What is your assessment of Parson’s performance? Should he be promoted?
  • Using the data in the case, please complete the Evaluation and Development Summary presented in Exhibit 3 of the Rob Parson (A) case.
  • If you were Paul Nasr, how would you plan to conduct the performance appraisal conversation? What would your goals be? What issues would you raise and why, and how would you raise them?
  • If you were Rob Parson, how would you conduct yourself in the performance evaluation meeting? What are your goals? Be prepared to role-play the appraisal conversation in class as either Nasr or Parson.

Cases to be distributed in class: Rob Parson at Morgan Stanley (B), HBS #9-498-055, (C), HBS #9-498-056, and (D), HBS #9-498-058.

Session 10: Diversity Case: The Case of the Part-time Partner.

Reading: Thomas, David A., and Robin J. Ely. “Making Differences Matter: A New Paradigm for Managing Diversity.” Harvard Business Review (September-October 1996): 80-90.

  • Would you vote to make Julie a partner? Why or why not?
  • What are the pros and cons from the firm’s viewpoint and from the society’s viewpoint of this decision?
  • What is your assessment of how the firm handled the situation?
  • How might they have proceeded differently?

Session 11: Information Sharing Case: Jack Stack (A) and (B), HBS #9-993-009 and #9-993-010.

Reading: Case, John. “Opening the Books.” Harvard Business Review (March-April 1997): 118-127. (Reprint 97201)

  • What does it take to succeed in the engine remanufacturing business? What are the critical skills and organizational competencies?
  • What is it like to work in such a plant?
  • What are the major risks of a leveraged buy-out such as this?
  • What do you think of Stack’s ideas about management?
  • What are the key elements of the program Stack put in place?
  • Can this approach be used elsewhere? Under which circumstances would it be more (less) appropriate? How could it be implemented?

Session 12: Benefits Case: The SAS Institute: A Different Approach to Incentives and People Management Practices in the Software Industry, Stanford Case #HR-6.

Reading: Pfeffer, Jeffrey. “Six Dangerous Myths About Pay.” Harvard Business Review (May-June 1998): 109-119.

  • What are the complementary elements of the SAS HR system that make the compensation system effective?
  • Why has SAS been able to get away with a compensation system that seems to violate industry conventions?
  • Could the SAS approach work in other high technology organizations?
  • What would happen if VDS tried to emulate the SAS approach? Why?

Session 13: Compensation Systems Case: Visionary Design Systems, HBS #9-495-011.

  • What is the basic philosophy and values of VDS?
  • How would you characterize the VDS compensation (base, bonus, and stock) system? On what principles is it based?
  • Why has VDS had problems with its Product Data Management effort? To what extent do you see incentive issues as important? What other issues are important?
  • What should VDS do about the Product Data Management (PDM) problems?
  • Would you make any changes to VDS’ compensation systems? What? Why?

Session 14: Pay for Performance Case: Performance Pay at Safelite Autoglass (A) HBS #9-800-291.

  • What are the pros and cons of switching from wage rates to piece rate pay?
  • Is Safelite a good candidate for switching from wage rates to piece rates?
  • Should there be a guaranteed wage? If so, how should it be set?
  • What are the likely consequences of a switch from wage to piece rates for turnover, recruitment, productivity, and product quality?

Session 15: Non-Profit Management Case: The John Snow Institute.

  • How successful is JSI?
  • How effective is their current human resource management system?
  • What should Joel Lamstein do?

Session 16: Managing Service Workers Case: Harrah’s Entertainment, Inc.: Rewarding Our People HBS #9-403-008.

  • What were the challenges facing Gary Loveman when he took charge?
  • What were the key changes he undertook?
  • What were the consequences for employees?

Session 17: Alignment and Motivation Case: Nordstrom Department Store. Center for Human Resources, Wharton School of the University of Pennsylvania.

Reading: Simons, Robert. “Control in an Age of Empowerment.” Harvard Business Review . Reprint #95211.

  • How effective is Nordstom’s human resource management system? In what ways does it contribute to the firm’s success?
  • Do you have any concerns about the practices described in the case?
  • Would you change management systems at Nordstrom? Why? Which systems?

Session 18: Review & Wrap-up

Assignment Question

  • Reflecting on the companies we have studied in this course, as well as your own work experience, what lessons do you draw about the respective roles that general managers and the HR function in organizations should play in the management of human resources?

Summary of Class Sessions and Assignment Due Dates ( PDF )

MIT Open Learning

assignment on strategic human resource management

CAREER GUIDES

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Home › Strategic Human Resources Management › What is Strategic Human Resource Management?

What is Strategic Human Resource Management?

Certified HR Professional

TABLE OF CONTENTS

Strategic human resource management is a process that helps the human resources department maximize the potential of its workforce through strategic planning, talent management, leadership development, organizational design, and performance management.

In the past, strategic HR management was an administrative function. Today, HR managers play a critical role in ensuring that the organization has the right people that help improve business performance and ensure that it delivers on its mission.

It means that HR professionals need to understand its goals and objectives. How they can best help the organization achieve those goals, and what actions will allow them to do so. This article will help you better understand what strategic human resource management is and how a smart plan can bring tremendous value to the organization.

If you’re interested in learning more via video, then watch below. Otherwise, skip ahead.

CMMS Software

What are Strategic HR Management Goals?

Strategic human resource management involves developing and implementing strategies for attracting, retaining, motivating, and managing talented individuals who contribute to the organization’s success. HRM also includes policies and practices designed to ensure fairness in employment relations.

Strategic human resource management aims to achieve a competitive advantage by creating value for customers, shareholders, employees, and other stakeholders. The term “strategy” refers to the organization’s overall plan of action to create value. It is not just one thing; it is a combination of many things, including:

  • Actions are taken by the organization to meet customer needs
  • Policies and procedures used to manage the organization
  • Processes used to produce goods or services
  • Marketing activities used to sell products and services
  • Financial decisions made to fund operations
  • Organizational structure
  • The technology used to support business processes
  • People-related issues such as recruitment, selection, training, compensation, benefits, and performance management
  • Legal requirements and regulations affecting the organization

How Can Businesses Benefit from HR Strategic Planning?

Businesses benefit from strategic human resources management because it allows human resource departments to make better decisions. For example, companies can develop plans to improve productivity, reduce costs, increase profits, and enhance employee satisfaction. The sales and HR departments play a role in determining whether the company should expand into new markets, acquire another company, or merge with another business.

HR strategic context

If you want to attract more customers, understand what your target market wants and how you can provide it. It would be best if you also decided which marketing methods would work best.

To retain current customers, you must first find out why they buy from you instead of competitors. Then you must figure out ways to keep them satisfied. You may even wish to consider offering discounts or gifts to reward loyal customers.

You must also think about motivating your employees to perform well and stay productive. If you want to hire more qualified candidates, you must first understand the qualities you are looking for in potential hires. You must also decide if you’re going to use job descriptions or conduct interviews when hiring.

Once you have determined your priorities, you can begin to implement changes to improve results.

Strategic Human Resources Management Benefits

Strategic HR involves careful consideration and analysis. Due to that, here are specific benefits of human resource strategic planning for businesses:

  • Identify areas of weakness and strengths
  • Develop strategies to address these weaknesses and strengths
  • Establish sub-goals and objectives to measure progress toward the end goal
  • Make sure there is alignment between business strategy and human resources strategy
  • Ensure that all aspects of the organization revolve around the same set of goals and objectives
  • Create a culture of continuous improvement
  • Evaluate the effectiveness of programs and policies
  • Increased job satisfaction
  • Employee retention

Check our certified HR courses if you want to learn more about developing and implementing a strategic HR management plan. Master HR management and how to get the best out of your employees.

Human Resources Certifications

7 Steps to Creating a Strategic HR Plan

One of the main functions of HR is to provide an effective organization’s workforce management. It includes operational and strategic management and developing a plan that helps employees evolve. To do this, you need to start by determining the purpose of your human resource strategy.

Next, you need to look at the organizational structure of your company. How many levels are there? Do you have a different human resources department within each class? Are some divisions larger than others?

Some of the target outcomes for human resources planning include the following:

  • Increase profitability through a strategic HR planning process
  • Improve customer service
  • Enhance employee morale and motivation
  • Provide training and development opportunities
  • Reduce turnover rates
  • Maintain high-quality standards

Once you have these outcomes in mind, you can follow the following steps in developing a strategic HR department.

1. Define Goals

Defining goals helps you focus on a more strategic human resource management strategy. It gives you direction and provides a framework for measuring success. A goal is an objective you hope to achieve within a specific time frame. It’s something you want to accomplish. A plan is usually quantifiable. For example, you might say, “I want to increase my sales revenue by 20% to achieve a competitive advantage.”

Goals break down into sub-goals. The intermediate goals help you reach the ultimate goal. Additionally, they provide milestones in the strategic HR planning process. For example, if your ultimate goal is to increase sales revenue by 20%, then your intermediate goals can be:

  • Achieve a 5% increase in sales revenue over last year.
  • Achieve a 10% increase in sales revenue from January to June.
  • Achieve a 15% increase in sales revenue during July.

It’s also essential to develop a SWOT analysis when defining your strategic HRM goals. The SWOT analysis helps identify any potential threats or obstacles that may hinder organizational success.

When conducting a SWOT analysis of your HR strategy, consider the following questions:

  • What are your strengths?
  • What are your weaknesses?
  • Where are your opportunities?
  • What are your threats?

Answering these questions will help you define business goals and improve business performance.

2. Determine Objectives

Objectives are measurable actions you take to meet your goals. They are how you achieve your goals.

Your objectives should be realistic. They should not be too ambitious. If they are too complicated, you may fail. You also don’t want them to be so easy that you will never succeed.

You should have a working strategic human resource management process to define specific human resource objectives for your business. Some examples include:

  • Increase the number of new hires by 50%.
  • Increase the average length of employment by three months.
  • Reduce the percentage of employees who leave their jobs by 25%.
  • Eliminate the use of temporary workers.
  • Increase the number and proportion of women in management positions.
  • Increase the proportion of senior managers with MBA degrees.

Your HR objectives should align with your overall company objectives. For example, if your company wants to increase its market share, setting up similar goals makes sense. Additionally, you should align all your HR objectives to your company’s financial objectives.

Keep in mind that the more tangible your objectives are, the easier it will be to measure progress.

3. Create Strategies

Strategic human resource management is all about the strategies you intend to use to achieve your objectives. They are the methods you’ll use to get there. There are many different strategies available. However, there are three main types.

conflict management strategies

  • Change Strategy  – This involves changing the current status quo or making changes that are already underway.
  • Reinforcement Strategy  – Involves reinforcing existing practices and policies.
  • Innovation Strategy  – Introduces new ideas and processes.

Your organization’s strengths and weaknesses are the foundation for your strategic human resource management. There isn’t a single best tactic. Instead, the best strategy depends on the situation.

4. Develop Tactics

Develop HR techniques you’ll use to implement your strategies. There are two kinds of tactics:

  • Direct Tactics  – These involve implementing your strategies immediately. Examples include hiring additional staff, promoting more people, giving raises to employees, and employee retention strategies.
  • Indirect Tactics  – These involve using other resources to support your strategies. Examples include advertising, training, outsourcing services, etc.

When developing strategic human resource management tactics, think about the results you expect from each tactic. Do you need immediate results? Or can you wait until later? How much money will you need? How much time do you have before you need to start seeing results?

It would be best to keep in mind that you can only do what you have authority over. So, if you’re trying to promote employees but they report directly to someone else, you won’t be able to do anything about it.

5. Plan Implementation

Planning is determining when, where, and how to execute each tactic. Planning includes deciding whether to act now, wait until later, or do nothing.

While implementing, it’s essential to closely monitor different factors that may affect the composition of a workplace. These factors include:

  • Age  – Older employees tend to have more significant experience than younger ones. Younger employees are usually less experienced. It can be hard to find good talent among young people.
  • Gender  – Women typically make up about half of the workforce. Men generally make up the rest. Companies with a higher proportion of female employees tend to have better performance.
  • Race  – People of color tend to earn lower salaries than white men. In addition, they are less likely to receive promotions.

6. Monitor Performance

Monitoring results is the process of evaluating what has happened after implementation. Monitoring includes measuring performance against pre-determined benchmarks. It also includes assessing the impact of any changes made by strategic HR management to improve effectiveness.

Monitoring performance is an ongoing activity. It requires constant attention. Monitoring helps determine what works and what doesn’t.

There are several tools you can use, including:

  • Observation

7. Evaluate Performance

Evaluating performance is critical in any HR department. It is the process of comparing actual results to expected outcomes. Evaluation can be done by analyzing data collected through monitoring and evaluation.

Evaluating your performance is crucial because it lets you know if your strategies are working. If not, then you need to change them. For example, if your HR strategies aren’t producing desired results, you might consider changing your approach, including outsourcing strategic human resource services.

Including strategic human resource management in the overall business strategy help with creating a productive environment, but it also helps with other crucial aspects such as retaining employees.

If the human resource department succeeds in creating an effective strategy, it brings value to the organization.

Take time to create the human resource management strategy. Having the right plan creates a streamlined process that’s easy to follow. Good luck.

If you are new to human resources and are looking to break into an HR role, we recommend taking our HR Certification Courses , where you will learn how to build your skillset in human resources, build your human resources network, craft a great HR resume, and create a successful job search strategy.

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Strategic human resource management: The ultimate guide

Brynne Conroy

Alana Rudder

Alana Rudder

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Published 7:34 a.m. UTC Dec. 13, 2023

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Strategic human resource (HR) management treats human capital — or employees — as another financial asset of the company. Just like you’d consider real estate or raw materials as an asset to be optimized, strategic HR does the same for the company’s labor force. The more effective your strategic human resources plan is, the stronger the company will be both financially and culturally. 

Considering a strategic approach to HR management is increasingly important in our changing world. Creating a strategic human resource management plan can ensure you have a pipeline to qualified employees as time goes on, ensuring the sustainability of the business.

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What is strategic human resource management?

A good way to think of human resources is on an input/output paradigm. Traditional human resources weigh inputs more heavily. You’re focused on following compliance standards, regulations and processes. You’re managing benefits packages, running payroll , hiring new talent and managing day-to-day employee relations .

“Strategic HR focuses on supporting organizational goals,” said Anette Harris, owner and senior director of human resources at Harris Financial Coaching. “It plays a crucial role in analyzing employee life-cycle trends that can help an organization achieve its objectives.”

In other words, you’re much more focused on output. You’re looking at metrics like employee engagement and profit per employee. You still have to consider employment law, but you’re also aligning the company’s missions and objectives with what’s happening in the HR office and the company’s long-term goals. 

Benefits of strategic human resource management

There are a number of benefits to implementing strategic human resource management. They include: 

  • More quantifiable data. You can’t measure the impact of strategic HR unless you actually implement it. Once you start implementing it, you can gather the data that will help you measure the tangible benefits of the company’s strategies in terms of real dollars. As more time goes on and more data is gathered, you’ll gain even deeper insights.
  • Better the company’s finances. “Any financial measure that you can think of is greatly impacted to the positive when there’s a strong employee experience in place,” said Jim Link, chief human resource officer at SHRM. That means implementing strategic HR can help your company’s bottom line. 
  • Less turnover. If you have good strategic HR, your employees are likely to be happier. Happier employees are more likely to stick with you, saving you the costs of having to hire and train new employees. 
  • Prepare for future skill gaps. If you’re approaching HR strategically, you’ll be able to project future skill gaps that may pop up in the labor market. When you anticipate these shortages, you can draft policies that create a clear pipeline to get skilled applicants trained for the work you’ll need done.

Creating an effective HR strategy

Align hr and company goals.

The first step in creating an effective HR strategy is aligning HR’s goals with the larger company’s goals. If management and HR don’t interact a lot currently, it’s the strategic human resource manager’s job to bridge that gap. You’ll need your HR skills to mediate the two departments at first, but you’ll also need to break out your math skills. 

“The first thing you should do is learn the numbers of the business,” said Link. “But that doesn’t mean you just learn the numbers. You also learn the mission, values, goals and guiding principles of the organization.” 

Having this data will help you identify the most important metrics to measure as you create the best employee experience possible within the company’s budget. 

Define and assess company culture

It takes time to build company culture. Before you can start on the journey, you need to understand where company culture currently stands. The four key cultures you should assess are:

  • Collaboration

Link conveys these four cultures as individual legs on a four-legged stool. When one leg is longer or shorter than the others, everything is thrown off balance. The goal, then, is to grow each culture symbiotically with the other. As you build your stool, you’ll also want to consider cultures employees are likely to value in the future.

“When we look at the world and what employees are really seeking from their employer moving forward, they’re seeking a culture of care,” said Link.

Track important HR metrics

When you’re building out your company’s strategic human resource plan, you’ll want to start measuring metrics like: 

  • Cost per employee.
  • Revenue per employee. 
  • Employee productivity.
  • Employee engagement.
  • Retention rate.
  • Voluntary turnover rate. 

Some of these metrics can be measured by numerical data input, but others will require different approaches. For example, you might use employee surveys to gather data for a final SWOT analysis. This data can then help you present information to management or the board as you attempt to implement new policies.

Identify key areas of improvement

Once you have the data from current performance, hold it up against the company’s mission statement, stated values and – of course – its bottom line. First, evaluate company culture based on the four-legged stool model. If there are any areas where the culture could be performing better, that’s something you’ll want to address. 

Whether or not the culture is on course, you’ll need to also consider the financials before presenting any information across departments. Let’s say your employees are beyond happy and productive, but profit per employee is still low. You’d then use that data to find innovative ways to maintain company culture while also increasing revenue per employee. 

Set a plan to reach HR goals

After you’ve identified areas for improvement, you’ll need to get together a plan to work towards your new goals. That may mean implementing new initiatives within HR, but in most situations, it requires the involvement of other departments — most notably leadership. 

Get leadership buy-in and support

Improving employee experience and performance often requires policies from the top. That means strategic human resource managers need to engage leadership. You may need their stamp of approval to do something like changing the employee benefit package or streamlining processes in a particular department to enable employees to do their work more efficiently. 

If you’ve done your work on the numbers side of things, Link doesn’t see any reason for leadership to stand in opposition: “Companies that make a purposeful strategic investment in their employees have a much greater likelihood of generating short- and long-term success for the business. Full stop.”

Execute, monitor and adjust your plan

Once you’ve created buy-in with the necessary parties, execute your plan. Gather data as you go so you can monitor your progress, making any adjustments as necessary. 

Remember that as you grow one leg of your strategic HR stool, you’ll inherently need to work on the others. Being prepared to make adjustments along the way is a necessary part of the job.

Frequently asked questions (FAQs)

Strategic HR focuses more on outputs than inputs. It measures factors like employee performance, productivity, profit and retention against short and long-term company goals. All of these metrics are key indicators for either the success or failure of a business.

Traditional HR focuses primarily on compliance and regulations, handling day-to-day tasks like employee interactions and payroll . It considers federal, state and local employment law (inputs). Strategic HR focuses on the net financial impact employee policies have on the company (output) over the long-term and if they help the company meet its goals.

If your company isn’t agile, it’s going to be difficult to implement strategic HR — though the key factor is getting leadership buy-in. While it may initially be challenging to get managers or ownership on board with your vision, if you do ample research on current performance and projected profit margins after policy implementation, it gets a lot easier to convince leadership to implement changes.

Let’s say your organization knows it’s going to need employees capable of working with AI in the next five years. With that human resource need in mind, you may implement a training program or develop a relationship with a local college to identify talented graduates. That way, the company’s strategic plan is sustainable in the long run, as it won’t run into as many labor shortages.

Link says two of the best examples of successful strategic human resource management are IBM and Google. 

“IBM was ahead of the curve,” he said. “They focused on the area between human performance and capability vs. business outcomes. Because they’re so insightful about what their employees need, they can very quickly offer a personalized approach to each and every employee through their career coaching system, fostering a culture of learning which creates new business opportunities.”

Google is known for its strategic efforts during the hiring process in particular. On top of unique perks in its benefits package, Google makes group decisions when onboarding new members rather than leaving the decision to a single manager. This fosters a culture of collaboration even within the HR department itself.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Brynne Conroy

Brynne Conroy has over 12 years of experience writing about money, with a particular focus on women's finances and small business lending and credit products. Her debut book was an Amazon #1 New Release across multiple categories, and she has been awarded a PEN America grant for the body of her work in the field. Find her bylines on LendingTree, Her Agenda, GoBankingRates, and Business Insider, and features on MSN Money, Jean Chatzky's HerMoney, and Yahoo Finance.

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

  • 11.1 An Introduction to Human Resource Management
  • Introduction
  • 1.1 What Do Managers Do?
  • 1.2 The Roles Managers Play
  • 1.3 Major Characteristics of the Manager's Job
  • Summary of Learning Outcomes
  • Chapter Review Questions
  • Management Skills Application Exercises
  • Managerial Decision Exercises
  • Critical Thinking Case
  • 2.1 Overview of Managerial Decision-Making
  • 2.2 How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems
  • 2.3 Programmed and Nonprogrammed Decisions
  • 2.4 Barriers to Effective Decision-Making
  • 2.5 Improving the Quality of Decision-Making
  • 2.6 Group Decision-Making
  • 3.1 The Early Origins of Management
  • 3.2 The Italian Renaissance
  • 3.3 The Industrial Revolution
  • 3.4 Taylor-Made Management
  • 3.5 Administrative and Bureaucratic Management
  • 3.6 Human Relations Movement
  • 3.7 Contingency and System Management
  • 4.1 The Organization's External Environment
  • 4.2 External Environments and Industries
  • 4.3 Organizational Designs and Structures
  • 4.4 The Internal Organization and External Environments
  • 4.5 Corporate Cultures
  • 4.6 Organizing for Change in the 21st Century
  • 5.1 Ethics and Business Ethics Defined
  • 5.2 Dimensions of Ethics: The Individual Level
  • 5.3 Ethical Principles and Responsible Decision-Making
  • 5.4 Leadership: Ethics at the Organizational Level
  • 5.5 Ethics, Corporate Culture, and Compliance
  • 5.6 Corporate Social Responsibility (CSR)
  • 5.7 Ethics around the Globe
  • 5.8 Emerging Trends in Ethics, CSR, and Compliance
  • 6.1 Importance of International Management
  • 6.2 Hofstede's Cultural Framework
  • 6.3 The GLOBE Framework
  • 6.4 Cultural Stereotyping and Social Institutions
  • 6.5 Cross-Cultural Assignments
  • 6.6 Strategies for Expanding Globally
  • 6.7 The Necessity of Global Markets
  • 7.1 Entrepreneurship
  • 7.2 Characteristics of Successful Entrepreneurs
  • 7.3 Small Business
  • 7.4 Start Your Own Business
  • 7.5 Managing a Small Business
  • 7.6 The Large Impact of Small Business
  • 7.7 The Small Business Administration
  • 7.8 Trends in Entrepreneurship and Small-Business Ownership
  • 8.1 Gaining Advantages by Understanding the Competitive Environment
  • 8.2 Using SWOT for Strategic Analysis
  • 8.3 A Firm's External Macro Environment: PESTEL
  • 8.4 A Firm's Micro Environment: Porter's Five Forces
  • 8.5 The Internal Environment
  • 8.6 Competition, Strategy, and Competitive Advantage
  • 8.7 Strategic Positioning
  • 9.1 Strategic Management
  • 9.2 Firm Vision and Mission
  • 9.3 The Role of Strategic Analysis in Formulating a Strategy
  • 9.4 Strategic Objectives and Levels of Strategy
  • 9.5 Planning Firm Actions to Implement Strategies
  • 9.6 Measuring and Evaluating Strategic Performance
  • 10.1 Organizational Structures and Design
  • 10.2 Organizational Change
  • 10.3 Managing Change
  • 11.2 Human Resource Management and Compliance
  • 11.3 Performance Management
  • 11.4 Influencing Employee Performance and Motivation
  • 11.5 Building an Organization for the Future
  • 11.6 Talent Development and Succession Planning
  • 12.1 An Introduction to Workplace Diversity
  • 12.2 Diversity and the Workforce
  • 12.3 Diversity and Its Impact on Companies
  • 12.4 Challenges of Diversity
  • 12.5 Key Diversity Theories
  • 12.6 Benefits and Challenges of Workplace Diversity
  • 12.7 Recommendations for Managing Diversity
  • 13.1 The Nature of Leadership
  • 13.2 The Leadership Process
  • 13.3 Leader Emergence
  • 13.4 The Trait Approach to Leadership
  • 13.5 Behavioral Approaches to Leadership
  • 13.6 Situational (Contingency) Approaches to Leadership
  • 13.7 Substitutes for and Neutralizers of Leadership
  • 13.8 Transformational, Visionary, and Charismatic Leadership
  • 13.9 Leadership Needs in the 21st Century
  • 14.1 Motivation: Direction and Intensity
  • 14.2 Content Theories of Motivation
  • 14.3 Process Theories of Motivation
  • 14.4 Recent Research on Motivation Theories
  • 15.1 Teamwork in the Workplace
  • 15.2 Team Development Over Time
  • 15.3 Things to Consider When Managing Teams
  • 15.4 Opportunities and Challenges to Team Building
  • 15.5 Team Diversity
  • 15.6 Multicultural Teams
  • 16.1 The Process of Managerial Communication
  • 16.2 Types of Communications in Organizations
  • 16.3 Factors Affecting Communications and the Roles of Managers
  • 16.4 Managerial Communication and Corporate Reputation
  • 16.5 The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing
  • 17.1 Is Planning Important
  • 17.2 The Planning Process
  • 17.3 Types of Plans
  • 17.4 Goals or Outcome Statements
  • 17.5 Formal Organizational Planning in Practice
  • 17.6 Employees' Responses to Planning
  • 17.7 Management by Objectives: A Planning and Control Technique
  • 17.8 The Control- and Involvement-Oriented Approaches to Planning and Controlling
  • 18.1 MTI—Its Importance Now and In the Future
  • 18.2 Developing Technology and Innovation
  • 18.3 External Sources of Technology and Innovation
  • 18.4 Internal Sources of Technology and Innovation
  • 18.5 Management Entrepreneurship Skills for Technology and Innovation
  • 18.6 Skills Needed for MTI
  • 18.7 Managing Now for Future Technology and Innovation
  • What has been the evolution of human resource management (HRM) over the years, and what is the current value it provides to an organization?

Human resource management over the years has served many purposes within an organization. From its earliest inception as a primarily compliance-type function, it has further expanded and evolved into its current state as a key driver of human capital development. In the book HR From the Outside In (Ulrich, Younger, Brockbank, Younger, 2012), the authors describe the evolution of HR work in “waves”. 1 Wave 1 focused on the administrative work of HR personnel, such as the terms and conditions of work, delivery of HR services, and regulatory compliance. This administrative side still exists in HR today, but it is often accomplished differently via technology and outsourcing solutions. The quality of HR services and HR’s credibility came from the ability to run administrative processes and solve administrative issues effectively. Wave 2 focused on the design of innovative HR practice areas such as compensation, learning, communication, and sourcing. The HR professionals in these practice areas began to interact and share with each other to build a consistent approach to human resource management. The HR credibility in Wave 2 came from the delivery of best-practice HR solutions.

Wave 3 HR, over the last 15–20 years or so, has focused on the integration of HR strategy with the overall business strategy. Human resources appropriately began to look at the business strategy to determine what HR priorities to work on and how to best use resources. HR began to be a true partner to the business, and the credibility of HR was dependent upon HR having a seat at the table when the business was having strategic discussions. In Wave 4, HR continues to be a partner to the business, but has also become a competitive practice for responding to external business conditions. HR looks outside their organizations to customers, investors, and communities to define success—in the form of customer share, investor confidence, and community reputation. HR’s credibility is thus defined in terms of its ability to support and drive these external metrics. Although each “wave” of HR’s evolution is important and must be managed effectively, it is the “outside in” perspective that allows the human resource management function to shine via the external reputation and successes of the organization.

Catching the Entrepreneurial Spirit

Human resources outsourcing—entrepreneurial ventures.

Human resources is a key function within any company, but not all companies are able to afford or justify full-time HR staff. Over the last decade, HR outsourcing has become a good business decision for many small companies whose current staff doesn’t have the bandwidth or expertise to take on the risks of employee relations issues, benefits and payroll, or HR compliance responsibilities. This has led many HR practitioners to try out their entrepreneurial skills in the areas of HR outsourcing and “fractional HR.”

Human resources outsourcing is very commonly used by smaller companies (and often large companies too) to cover such tasks as benefits and payroll management. This is an area that has been outsourced to third parties for many years. More recent is the trend to have “fractional HR” resources to help with the daily/weekly/monthly HR compliance, employee relations, and talent management issues that companies need to address. Fractional HR is a growing industry, and it has become the service offering of many entrepreneurial HR ventures. Fractional HR is essentially as it sounds—it is the offering of HR services to a company on a part-time or intermittent basis when the company may not be able to justify the cost of a full-time HR resource. An HR professional can be available onsite for a specified number of hours or days weekly or monthly, depending on the company’s needs and budget. The HR professional handles everything from HR compliance issues and training to employee issues support. Also, for companies that are keen on development of employees, the HR resource can drive the talent management processes—such as performance management, succession planning, training, and development—for companies who require more than just basic HR compliance services.

How does a business leader decide whether HR outsourcing is needed? There are generally two factors that drive a leader to consider fractional HR or HR outsourcing—time and risk. If a leader is spending too much time on HR issues and employee relations, he may decide that it is a smart tradeoff to outsource these tasks to a professional. In addition, the risk inherent in some HR issues can be very great, so the threat of having a lawsuit or feeling that the company is exposed can lead the company to seek help from a fractional HR professional.

HR entrepreneurs have taken full advantage of this important trend, which many say will likely continue as small companies grow and large companies decide to off-load HR work to third parties. Some HR companies offer fractional HR as part of their stated HR services, in addition to payroll and benefits support, compensation, and other HR programmatic support. Having a fractional HR resource in place will often illuminate the need for other HR services and program builds, which are generally supported by those same companies. Whether you are an individual HR practitioner or have a small company of HR practitioners and consultants, fractional HR and HR outsourcing can be a very viable and financially rewarding business model. It can also be very personally rewarding, as the HR professional enables smaller companies to grow and thrive, knowing that its HR compliance and processes are covered.

  • What do you believe is contributing to the growth of the fractional HR and HR outsourcing trend? Do you expect this trend to continue?
  • At what point should a company consider bringing on a full-time HR resource instead of using a fractional HR resource? What questions should the company ask itself?

Human resource management provides value to an organization, to a large extent, via its management of the overall employee life cycle that employees follow—from hiring and onboarding, to performance management and talent development, all the way through to transitions such as job change and promotion, to retirement and exit. Human capital is a key competitive advantage to companies, and those who utilize their human resource partners effectively to drive their human capital strategy will reap the benefits.

Human resource management includes the leadership and facilitation of the following key life cycle process areas:

  • Human resources compliance
  • Employee selection, hiring, and onboarding
  • Performance management
  • Compensation rewards and benefits
  • Talent development and succession planning

Human resources is responsible for driving the strategy and policies in these areas to be in accordance with and in support of the overall business strategy. Each of these areas provides a key benefit to the organization and impacts the organization’s value proposition to its employees.

Concept Check

  • How has the function of human resource management evolved over the years?
  • In what way do you usually interact with human resources?

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  • Authors: David S. Bright, Anastasia H. Cortes
  • Publisher/website: OpenStax
  • Book title: Principles of Management
  • Publication date: Mar 20, 2019
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/principles-management/pages/1-introduction
  • Section URL: https://openstax.org/books/principles-management/pages/11-1-an-introduction-to-human-resource-management

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Strategic Human Resources Management

Module overview.

This module covers the area of strategic human resource management, offering a comprehensive cover of the advances in the HRM field for PG students.

Aims and Objectives

Learning outcomes, subject specific intellectual and research skills.

Having successfully completed this module you will be able to:

  • identify and evaluate key HR issues which critically impact on organisational performance and strategic direction;
  • make sense of and critique scholarly publications on HRM.
  • identify relevant metrics in strategic human resource management;
  • interpret and integrate human resources management into the strategic thinking, direction setting, planning and operation of the organisation;
  • demonstrate the interventions needed to generate commitment among key Stakeholders and business partners for a strategic HR agenda;

Transferable and Generic Skills

  • develop effective policies, with regard to e.g. strategic human resource management, with appropriate sensitivity and responsiveness to the current role assumed by the HR function and future aspirations;
  • contribute effectively to contemporary organizations in terms e.g. of awareness of the complexity and importance of strategic human resource management.
  • recognise the strengths and limitations of contemporary organisations in relation to specific paradigms (e.g. strategic human resource management);
  • develop in-depth and critical evaluation skills using multiple and competing perspectives in written arguments;
  • evaluate the significance of empirical evidence in understanding e.g. strategic human resource management issues;

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • the main differentiating features and characteristics of the strategic human resource management paradigm;
  • the contribution that strategic human resource management can make to promoting and achieving the organisation’s strategic intent;
  • the complex relationships between business strategy and human resource management;
  • different ways in which HRM can be strategically pursued within organisations and its links with organisational performance.
  • aspects of continuity and change embedded in the strategic human resource management paradigm;
  • Human Resource Management: What and Why? (Chapter 1)
  • Strategy and Strategic Management (Chapter 2)
  • Strategic HRM: ‘Best Fit’ or ‘Best Practice’? (Chapter 3)
  • Strategic HRM and Sustained Competitive Advantage (Chapter 4)
  • Building a Workforce: the Challenge of Interest Alignment (Chapter 5)
  • Management Power, Employee Voice and Social Legitimacy (Chapter 6)
  • Workforce Performance and the ‘Black Box’ of HRM (Chapter 7)
  • Chapter 8: HR Strategy in Manufacturing (Chapter 8)
  • HR Strategy in Services (Chapter 9)
  • HR Strategy in Multidivisional Firms (Chapter 10)
  • Chapter 11: HR Strategy in Multinational Firms (Chapter 11)
  • Final Thoughts: Main Themes and Next Steps (Chapter 12)

Learning and Teaching

Teaching and learning methods.

Teaching methods include:

  • Case studies
  • Directed reading
  • Small and large group discussions
  • Organizational Storytelling
  • Interactive Group Activities

Learning activities include:

  • Case study problem solving
  • Action learning set discussions
  • Critical reflection

General Resources

Module Resources. Publications and case studies from Major HRM Professional Associations including CIPD and SHRM Fictional and non-fictional stories and movies that focus on realities of the world of work.

Journal Articles

Human Resource Management Review.

Human Resource Management Journal (UK and US).

The International Journal of Human Resource Management.

Boxall, P. and Purcell, J (2015). Strategy and Human Resource Management . Basingstoke, UK: Palgrave Macmillan.

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Strategic Human Resource Management: What Is It And Why Is It Important?

  • Employee Management , Templates & Guides

Most businesses have some type of human resource management plan — even if it’s just a rudimentary process for hiring and onboarding. But the businesses that want to succeed incorporate strategic human resource management into their workflows.

In this article, the workforce-optimization experts at Sling define this high-level practice, examine why it’s important, and discuss ways to integrate it into your business.

What Is Strategic Human Resource Management?

light bulb against a black chalkboard

Strategic human resource management (or SHRM for short) is a holistic approach to assembling the best team for your business’s growth and success.

To fully understand strategic human resource management, it’s vital that you’re first familiar with regular human resource management. Human resource management (HRM) is the process and practice of recruiting, hiring, and onboarding the best employees for your business.

HRM also includes providing your employees with the training, development, work environment, benefits , and compensation they need to perform at their best amongst their coworkers and within your company in general.

Strategic human resource management takes these activities to the next level by hiring and training employees in alignment with the goals of the business and the vision statement, mission statement , and organizational strategies that guide them.

The formal definition of SHRM is:

The process and practice of attracting, hiring, developing, rewarding, and retaining employees for their benefit and the benefit of each department and the business as a whole.

A human resource department that works under the auspices of SHRM must, by necessity, interact with other divisions within your business in order to:

  • Get to know their unique needs
  • Understand their goals and how they fit in with the goals of the business
  • Create hiring and retention strategies that align with those goals
  • Give those departments what they need to succeed

Strategic human resource management is a more integral, hands-on approach to furthering the interests and abilities of your business.

Why Is Strategic Human Resource Management Important?

two business professionals discussing strategic human resource management using a whiteboard

Strategic human resource management is the foundation of a strong business because, when properly applied, it ensures that the company as a whole is working together to reach its goals. This gives the business a greater chance to succeed.

Think of your business like a racecar and the components of that car like the departments within your business.

The goal of the racecar is to be the first to cross the finish line. If all the components are working at 100 percent, the race is much easier.

But if the tires are a little low on air, the brakes are overworn in spots, and the engine timing isn’t dialed in, the racecar may fall behind.

SHRM, then, is like the mechanic and pit crew that work hard to ensure that the racecar is in the best possible shape to reach the checkered flag before the other cars.

A human resources department practicing SHRM analyzes the performance of each department and how they’re working together with the other parts of the business.

They then identify ways that departments can change in order to get better and hire employees with the right mix of skills and abilities to make that possible.

All of that being said, your business can function without a formal strategic human resource management plan — many companies do and have for a long time.

But those businesses are often practicing SHRM without even realizing it. SHRM is part of their overall strategy, but they call it by some other name or don’t delineate it from regular human resource activities.

And, really, that’s not surprising. It can be a significant challenge to make SHRM a separate part of your organization and to put plans in place to govern the process. But the benefits far outweigh the drawbacks.

For instance, once established, SHRM can help your business:

  • Avoid talent shortage
  • Maintain compliance with government laws and regulations
  • Anticipate workforce needs in a changing market
  • Facilitate staffing changes
  • Remain agile as the market evolves
  • Plan for short-term and long-term growth
  • Improve operations
  • Stay ahead of the technology curve

When you step back and examine your business as a whole, you’ll find that human capital management is one of the most fundamental parts of your operation. Strategic human resource management helps you maximize its incredible potential.

Objectives Of Strategic Human Resource Management

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As we mentioned earlier, strategic human resource management is about assembling the best team for your business’s growth and success. At its most basic, the objective of the process is to match the right employees with the right jobs in your organization.

Your HR department can do this while interviewing prospective employees or even during the performance review of a long-time team member who is reaching out for more responsibility.

ADD_THIS_TEXT But the goals of SHRM don’t stop there. Other SHRM objectives include:

  • Anticipating job and skill changes
  • Implementing a successful onboarding process
  • Adapting to rapid technology changes
  • Improving business operations
  • Complying with local, state, and federal regulations
  • Powering product innovation
  • Facilitating growth
  • Mitigating risk
  • Preventing talent shortage or surplus
  • Adjusting to a more globalized economy
  • Preparing for generational and cultural shifts

As you can see, SHMR is integral to the successful operation of your business and its growth over both the short and long term.

Because this process is connected to every aspect of your business , you may feel overwhelmed by the prospect of creating a new SHRM strategy.

Don’t let this prevent you from implementing a system that can revolutionize the way your business operates — both now and in the future.

Keep in mind that strategic human resource management doesn’t have to address all of the objectives on this list from the moment it goes into effect. Start small and expand into different areas once you’ve addressed one or two objectives.

SHRM Vs. HRP Vs. Organizational Strategy

strategic human resource management

Before we move on to the nuts and bolts of the strategic human resource management process, it’s important to understand where SHRM falls in the grand scheme of your business.

SHRM is part of the larger category of business activity known as human resources (HR). HR is a foundational component of your business that deals with what is, perhaps, the most important asset of all: people.

Human resources also includes such activities as human resource planning (HRP) and, at a higher level, even dovetails into organizational strategy.

How does it all fit together to make your company successful? It helps to visualize various activities on a scale from “simple” to “complex” (or, perhaps, practical to theoretical). Let’s start at the bottom and work our way up.

Earlier in this article, we discussed one of the most basic functions of human resources: matching the right person with the right job. From there, we move up the “complexity” scale to Human Resource Planning (HRP).

HRP is the ongoing process of systematically planning ahead to optimize and maximize the hiring and retention of high-quality employees . Essentially, then, HRP is about looking at the hiring process as a whole and improving the way your business matches employees to jobs.

Further up the human resources scale, we come to SHRM, which is, as we’ve discussed, a holistic approach to assembling the best team for your business’s growth and success.

At first glance, it may appear that HRP and SHRM are the same activity under a different name. They seem so similar because one is actually part of the other.

In this case, HRP is a small part of SHRM. Viewed from a different perspective, SHRM contains and governs HRP.

It’s very much like a set of nesting dolls: the smaller one (HRP) fits nicely into the next largest (SHRM), which, in turn, fits into the next largest, and so on.

For practical purposes, it helps to think about HRP as part of the frontline, boots-on-the-ground application, while SHRM is the guiding principle behind those applications.

In other words, SHRM is the why to HRP’s what .

Another way to think about SHRM and HRP is to view your business as a large, complicated machine.

HRP is one component (a gear, for example) that works with other similar components (e.g., production, logistics, shipping, management, etc.) to keep the machine running.

Strategic human resource management, on the other hand, takes a step back and analyzes the machine itself.

SHRM looks at the performance of each component (each department in your business), how they work together to make everything run smoothly, and what the business as a whole can do to improve.

But is SHRM the final step in the process? Is it the force that guides everything else? No, it’s not. Above SHRM lies your business’s organizational strategy.

strategic human resource management

Organizational strategy , at its most basic, is a plan that specifies how your business will allocate resources to support infrastructure, production, marketing, inventory , and other business activities.

How does this affect SHRM? Think of it like this: Organizational strategy directs SHRM directs HRP . In many ways, the strategy side of your business mirrors the relationship between SHRM and HRP.

Organizational strategy is subdivided into three distinct categories: corporate strategy, business strategy, and functional strategy. Just like SHRM and HRP, each level is a part of the one above it.

Corporate level strategy is the main purpose of your business — it’s the destination toward which your business is moving.

Business level strategy is the bridge between corporate level strategy and much of the “boots-on-the-ground” activity that occurs in functional level strategy.

Functional level strategy is the specific actions and benchmarks you assign to departments and individuals that move your business toward the goals created by your corporate level strategy. They are a direct offshoot of your business level strategies.

With those categories in mind, you start to see the bigger picture of your business: SHRM is a component of your business level strategy, while HRP is a component of your functional level strategy.

So, how do we get from the theory of SHRM to the practice of SHRM? In other words, where does the rubber meet the road? We’ll address that issue in the next section.

Strategic Human Resource Management Planning Process

coworkers using graphs and charts to plan strategic human resource management

1) Understand Your Business Goals

Before you can implement SHRM, you must understand your business goals.

Whether it’s increased market penetration, expansion into new markets, or a stronger bottom line, once you set goals, you can formulate strategies ( functional , business , and corporate ) to make those objectives possible.

With this road map in mind, your HR department can then begin the process of implementing strategic human resource management.

2) Evaluate Your Team

When you’ve established where you want your business to go — via the goals and strategies created in step one — you can evaluate your current team to see how their skills contribute to the objectives you’ve set.

It’s also essential to identify the team members who are interested in receiving training in new aspects of your business

A great time to assess all of these details is during your periodic performance reviews .

3) Analyze Your HR Capabilities

Analyzing your HR capabilities is vital if you want your new strategies to succeed.

Is your HR department equipped and prepared to perform the job of strategic human resource management? Do the team members there have enough knowledge and training?

If not, you may need to make some changes within the department, provide on-the-job training , or bring in new talent to facilitate the transition.

4) Examine Each Department

Once your HR department is ready, it’s time to turn them loose to examine the other departments that make up your business with an eye toward bringing them all into alignment with your goals and strategies.

The purpose of this examination is to discover each department’s unique needs and how HR can provide talent to bring performance up to 100 percent.

5) Begin Hiring To Satisfy Departmental Needs

With department needs in mind, Human Resources can then begin hiring to satisfy those requirements.

Some departments may need specific skills, while other departments may need team members who fit more readily into the existing company culture .

With strategic human resource management, your business can hire the best employees to take your company to the next level and beyond.

The Challenges Of Strategic Human Resource Management

As beneficial and powerful as strategic human resource management is, it’s not without its challenges.

First and foremost, SHRM relies on forecasting. And, no matter how much data you have on hand, or how much experience you have in the business, forecasting is always an imperfect art and is never 100% accurate.

Similarly, you can never account for the ups and downs of the market and the rapid change that could happen at any time without warning.

As such, there will always be some error built into your strategic human resource management. That error will affect the other steps on this list for the good or the bad (depending on how accurate your forecast is). The trick is to make sure that the good always exceeds the bad.

Realistically, though, errors in forecasting can’t be helped. All you can do is give it your best shot. If you do discover errors in your forecasting, you can always return to step one and start the process over with the new information.

Other challenges of the strategic human resource management process include:

  • A resistant workforce
  • Inefficient information systems
  • Overall cost
  • Time and effort

That said, when you are aware of those challenges going in, you can take steps to overcome them right away so that you can get to the benefits sooner.

Scheduling, Communication, And SHRM

Sling's scheduling feature for strategic human resource management

Scheduling is a key part of strategic human resource management. And in the 21st century, the best schedules are created with help from dedicated software like Sling .

Whether your business has one shift or three, offers flextime or a compressed workweek , or works a 9-to-5 work schedule or a 9/80 work schedule , Sling can help simplify the schedule-creation process.

Communication is another component of SHRM.

mobile Sling app

It doesn’t matter if that communication revolves around scheduling, inventory , clocking in and out, ethics , or customer service. The better you communicate with your employees the stronger your team will be.

We developed the Sling app to streamline communication as well as make scheduling, tracking labor, finding substitutes, assigning tasks, and building employee engagement extremely simple.

There are so many ways Sling can help improve your strategic human resource management that we don’t have room to talk about them here. So instead of reading about it, why not try it out?

Sign up for a free account and see for yourself how Sling can help you implement the necessary strategies to make your business successful.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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Online Free Samples

Strategic Human Resource Management

  • Assessment: Individual Assignment (Research based Case study)
  • Case Study: Whirlpool’s Diverse Talent Retention Strategy

Whirlpool Corporation (NYSE: WHR) is the number one major appliance manufacturer in the world, with approximately $21 billion in annual sales, 93,000 employees and 70 manufacturing and technology research centers in 2016. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in nearly every country throughout the world.

Whirlpool recently revamped their HR strategy into a People Excellence Strategy, establishing an operating system based on specific analytics they had gathered. In reviewing their diversity scorecard, it became apparent that Whirlpool had a “leaky bucket” problem. While they had made strides in the attraction and hiring of diverse talent, they were losing that talent at the same, if not a faster, rate. Clearly something needed to be done to engage and retain that talent.

To address this issue, Whirlpool’s talent management and diversity organizations developed a retention risk assessment toolkit. The toolkit includes three phases:

  • Assessing the impact Whirlpool would face should an employee leave
  • Understanding the likelihood that an employee will leave
  • Creating action plans to prevent this regrettable loss

To test this retention risk assessment toolkit, Whirlpool targeted a pilot group of 65 employees at the senior manager, director and senior director levels, who had been identified as the organization’s top diverse talent. Managers were trained on the toolkit and were provided with a “Retention Risk Manager Guide” and a “Stay Interview Manager Reference Guide.”

All of the initial assessments were done within the “Risk assessment Workbook” that was designed to automatically analyze the data entered into it and compute the level of impact and risk that existed for this employee.

To assess the impact on Whirlpool if an employee should leave, managers were asked to answer each of the following yes or no questions:

  • If this employee left Whirlpool, in the current business environment would we sustain a significant revenue loss or increased risk?
  • If this employee left Whirlpool, would we lose significant intellectual capital?
  • Is this employee in a critical role or on a Succession Plan for a critical role?
  • Is there a weak or non-existent contingency plan for if this role were vacant?
  • Would this role be difficult to fill both internally and externally?

The risk retention assessment includes 25 yes or no questions managers were asked to answer about their employees and their relationship to those employees. Questions are grouped into four areas: job/role, development and alignment to career goals, manager/employee relationship and external support system. Answers are then calculated to measure that employee’s level of “retention risk.”

Whirlpool quickly discovered that many managers had difficulty answering a significant number of questions about their employees. Understanding the importance of the manager/employee relationship to retaining talent, Whirlpool created a template for stay interviews as a way to help managers answer those questions, and to create dialogue between managers and employees. This approach directly impacted the level of interaction between the diverse talent and their individual supervisors.

After the first round of interviews was completed, both managers and employees were given a survey about the process. The two major findings from that survey were:

  • Managers assessed their relationship with their employees as being stronger than the employees’ assessment.
  • There were some engagement factors that were specifically called out by employees as important to them that were missed by managers. They were:

Managers were able to reference the “Retention Risk Manager Guide” throughout the process. In the action planning section of the guide, for instance, managers could find concrete examples of actions they may take with their employees like:

  • Have the employee complete their Development Plan / Career Compass. Gain alignment on the plan.
  • Ensure you are recognizing your employees for their contribution either publically or privately.
  • Recommend that the employee get involved with WHR Employee Resource Groups (Diversity Networks) or in the local community; foster these connections
  • Identify 1 developmental opportunity for the employee to attend in the next 90 days; commit to supporting with time, resources etc.
  • Ensure regular 1-1 check-ins to discuss work progress and any issues/concerns with achieving the employee’s objectives. Ensure at least one discussion per month focuses in on longer-term development as well. This could be a supervisor, a manager once removed or a functional leader.

As an extra layer of support during the pilot process, Whirlpool created focus groups for both the managers and employees to discuss the process. These quarterly meetings have been particularly valuable for the managers who have appreciated the opportunity to share their experiences with their peers and to learn from each other.

In one of the manager focus group sessions, a leader shared that he was struck by how much more he knew about the male employee than the female employee that he did the retention risk assessment with. Upon deeper reflection it was clear that he knew more about the male employee because of the connections they had outside work through their shared interests. He noted that you would undoubtedly have natural connections with people who are similar to you, and that it was imperative to put more effort into getting to know people who are different from you. This acknowledgment demonstrates the value of inclusion as interaction with employees who are different from each other creates an intentional focus and effort.

The results As time goes by, Whirlpool is seeing that communication between employees and managers that are involved in the pilot is getting better and employees are saying that these conversations are getting easier to have. Through building stronger relationships with their managers, these employees have also commented that opportunities for professional growth have been presented to them that may not have been in the past.

And, the numbers are speaking for themselves. The attrition rate of female employees who were in the pilot program was 12 points lower (9 percent vs. 21 percent) than those not in the program and 14 points lower (14 percent vs. 28 percent) for underrepresented minorities (URM).

Things to note The first rounds of stay interviews were awkward conversations for many of the managers and employees. For example, there were several instances in which a manager thought he or she knew an employee well, but really didn’t.

Advice: Stick with it. If the managers and employees followed the outline and stuck with the process, the conversations got easier over time and many employees reported an improvement in their relationship with their manager.

It is important to understand the current relationship between a manager and their employees before moving forward with the process. It is not going to be a productive process if the relationship is severely broken.

Advice: Don’t try to fix these relationships using this process. The main objective is to retain talent and engaging in this process within a difficult relationship will not help. Leverage another senior leader, a mentor or sponsor for instance, to conduct the retention risk assessment and stay interviews.

Next steps It was important for Whirlpool to pilot this process as a stand-alone tool in order to accurately measure its impact and make any needed adjustments. In addition to the pilot group, the HR leadership team has started to utilize the tools within the HR organization. The vision is that the retention risk assessment and stay interviews will be fully integrated into the personal development planning process already being used by managers across the organization in the next year and a half.

Training for all managers will be provided to ensure maximum engagement. The retention/stay interview training has also been recorded so that managers can view it on their own time. In addition, a toolkit for this process for HR Business partners including a discussion guide has been created to facilitate post-training conversations.

London, J. (8 Sep, 2015). Retrieved on 21st August, 2017 from http://www.diversitybestpractices.com/news-articles/case-study-whirlpools-diverse-talent-retention-strategy

General requirements Assume that you are an expert Human Resource Management consultant brought in by the Whirlpool board of directors to advise on their Retention Strategies and Labour relations policy. Carefully investigate the information above and conduct a thorough research from the company website to identify the retention strategies and labour relations policy for this organisation. And prepare a formal report for the board of directors outlining their take for managing relationship with various stakeholders involved.

Specific requirements You report should encompass the following points:

  • Discuss the importance of retention strategies in the current global competitive environment for human capital recruitment. (LO6) (12 marks)
  • Identify at least three major retention strategies of Whirlpool and evaluate the effectiveness of these strategies. (LO6) (21 marks)
  • Recommend two more retention strategies for Whirlpool which are not mentioned in the case study and discuss why these may be effective in retaining valuable human capital. (LO6) (20 marks)
  • Conduct a further research in to the Whirlpool’s relationship management practices including the relationship with trade unions. Provide comparative analysis with two other companies. (LO4) (15 marks)
  • Evaluate Whirlpool as a growing organization with a global scope in terms of their human capital management practices and recommend five strategies that manage key relationship issues including the relationship with trade unions. (LO4) (22 marks)
  • You are further required to summarize your answers in a report that reflect professional standards of practices within business organizations. (5 marks)
  • You must also use correct referencing style throughout the report. (5 Marks)

Introduction This is a report which will analyze the case study of whirlpool, a global market leader in manufacturing of appliances all over the world. The focus of the report will be on the significance of global retention strategies in global competitive environment and the major strategies that has been taken by the organization for improving the retention rate so that the can prevent the reduction in turnover rate in the organization. However, the report will also highlight the relationship management practices in Whirlpool which will identify the relationship with the employees, trade unions and consumers. The report will conclude by providing a reflection on global business standards in an organization.

Importance of retention strategies in the current global competitive environment Global retention strategies will have a significant impact on maintaining competitive advantage and long-term sustainability. The increase in the turnover rate within an organization will increase the overall cost structure a and will have a negative impact on the performance and productivity of the organization. Thus, it is essential that the employees remain in the organization by maintaining the required level of productivity and performance (Deery & Jago, 2015). However, the implementation of the global retention strategy not only ensures that turnover is decreased but also attracts new talents in to the organization. Moreover, retention strategies are focus on developing effective between the employees and the management. The various retention policies used by the organization are the means of keeping the employees satisfied. Effective retention strategy will reduce the overall cost as cost of replacing an employee is high and if the turnover rate is high it will affect the organization significantly. Thus, retention strategy will reduce the replacement cost of the employees in the organization. High retention rate will ensure high productivity and enhances the recruitment processes. The employees stay in the organizations that tend to fulfill their promises made during their recruitment and global retention strategies ensures transparency in the human resources parties within the organization. Moreover, it will boost the morale of the employees and improve their level of commitment to the organization.

Three major retention strategies of Whirlpool and effectiveness of these strategies The three retention strategies taken by Whirlpool are as follows:

  • Measuring the influence of resignation of an employee on the organization
  • Developing plans which will be able to prevent this loss

These retention risk tool kit has been a success for the organization and it can be understood form the pilot study they have conducted within the organization. The talent management and diversity unit within the organization developed a set of questionnaires which were asked to the managers. The questionnaire consisted of 25 close ended questions that attempted to find out how much the managers were aware about their employees and their relationship with the employees. These methods have been effective as the organization has been able to identify the extent of the managers interaction with their employees and the underlying problems in it. Thus, the problems that were addressed were mitigated with effective strategies which included quarterly meetings where they shared their experiences and learned form each other. Thus, it was seen that the employees and managers that were involved in pilot test were able to develop a better communication among them.

Relationship management is important as improve the quality of the organizational culture. Whirlpool’s strategy of implementing relationship management ensured that the retention rate decrease especially among the employees that took part in the pilot test. Moreover, the managers and the employees were able to identify their lacking which enabled them to grow at a personal level. Thus, these strategies show that whirlpool focused on developing a better communication between the workforce and the managers within the organization. Communication in an organization has to be two-way as flow of information is important for better understanding of the goals and objectives of the jobs they are performing. Thus, the tool that the organization developed is incorporated with the human resources and the managers use this tool to develop effective relationship with the employees. This enables them to know more about the problems the workforce is facing and how it can be mitigated to retain the employees that are getting dissatisfied with the policies within the organization. Moreover, the organization also developed programs for training the managers so that they can improve their interpersonal skills. Thus, Whirlpool focused on improving the manager and employee engagement within the organization which will motivate them and facilitate in being more productive.

Recommended retention strategies for Whirlpool and its effectiveness The recommended retention strategies for Whirlpool are as follows:

  • Planning of careers instead of filling of roles
  • Investing in line managers

The organization will consist of top performers and it would be wrong to think that they would stay in their position forever. The employees have their short-term and long-term goals and it is the responsibility of the organization to provide them with the opportunity of moving forward towards their career objectives. Thus, the organization will have to provide more challenging roles, enable them to grow at a personal level as well as at an organizational level. Individual growth is important for the employees as stagnancy ion growth will demotivate the employees and they will look for better options for fulfilling their goals and objectives (Dennis, 2016). Thus, it is essential for the organization the needs and wants of the employees so that they can develop paths for each of them in their own way. Thus, if employees want to shift to different roles, it is feasible to provide them with the desired job profile they are looking, it may happen some employees wants to move up the ladder and reach a level of a manager. Thus, it is the responsibility of the organization to provide him/her with the opportunity of moving up the ladder. It may also happen that an employee is driven my money and so it is viable to provide him/her with the opportunity of earning more.

It is essential to invest in the managers as they have the maximum level of interaction with the employees. The turnover rate is dependent on the environment the manager creates among its workforce and it can be said that most of the employees quit because of their managers. Thus, it is essential to spent on training and development program for the managers so that they can improve their interpersonal skills and leadership skills. The managers should have essential skill of communicating the goal, objectives and role of each of employees within an organization. Moreover, the managers should be able to motivate their workforce and discuss with them about their career goals (Bryant & Allen, 2013). This will enable to keep their p0erosnla goals in alignment to the organizational goals. Thus, it is essential to have individual conversation with employees on a regular basis so that it increases the team bonding. Thus, it can be seen that the responsibility of the manager are crucial in highly motivated and effective workforce. Thus, maintaining skillful leaders within the organization will improve the retention rate and productivity.

Whirlpool’s relationship management practices Whirlpool has focused on developing good relationship with the consumers and the indirect stakeholders in the organization. Thus, the organization has focused on using customer relationship management to provide the organization with better customer experience. Thus, the organization focuses on developing cooperative, ongoing and long-term relationship with the customers. Whirlpool has implemented CRM in to their business model where they are using technology to provide the consumers with a better customer experience. On the other hand, they are using the retention strategies to develop a smooth relationship with the employees (Terera & Ngirande, 2014).

Various instances suggest that Whirlpool have had issues maintaining good relationships with the trade unions. Whirlpool follows all the global trade laws maintaining diversity and providing equal opportunity to the workers. Thus, the organization is focusing on maintaining a good relationship with the trade union as they belong to the manufacturing sector. The organization is highly dependent on the labors working in their factories and thus, Whirlpool is focused on maintaining all quality standards in terms of health, safety and work environment.

Comparative analysis of relationship management The comparative analysis of Whirlpool suggests that the major competitors in the industry are making use of similar strategies to develop a good relationship with the consumers. Jenn-Air is using similar strategies as they are belong to the manufacturing sector and highly dependent on their workforce. Similarly, Indesit is following similar strategies in maintaining appropriate relationship with the trade unions (Ahammad et al., 2016).

Whirlpool as a growing organization with a global scope Whirlpool is a growing organization in terms if their global human resource practices. The diversity in the global human resources is increasing at a rapid rate and the organizations will have to keep on changing their human resources to improve the quality of their workforce. Thus, there are new challenges faced by the organization on a day-to-day basis and the organization is focused on acquiring talent that is more global. Thus, they want to increase their intellectual property and use innovation gain competitive advantage in the market.

Five strategies that manage key relationship issues The five strategies, which will facilitate in managing global relationship issues, are as follows:

  • Focusing on relationship with customers and suppliers: It is essential to maintain good relationship with the suppliers and the customers at the same time, as they are the indirect stakeholders in the organization. Thus, communication is one of the most essential parts of building a relationship with the customers and the suppliers (Howard, Turban & Hurley, 2016). The organizations will have to communicate effectively with the suppliers to develop a bond, which is based on mutual understanding.
  • Changes in the expectations:  The organizations will have to be focused on the quality and the quantity of the inventory. This will enable to identify the weaknesses of their suppliers in the market and data analysis will ensure them to create a competitive strategy for business. Thus, they will be able to manage effectively their relationship with respective suppliers by keeping track of their data (Shaw, Park & Kim, 2013).
  • Maintaining trust, loyalty and openness:  The relationship between the organization, suppliers and the customers are based on the trust, loyalty and openness. The organizations should be transparent about their policies and should develop a relationship based on trust. This will provide competitive advantage in the long run. The suppliers should be treated equally as partners, which will facilitate in achieving innovation and collaboration. Thus, this increases the success are of the organizations (Hancock et al., 2013).
  • Setting standard agreements on beforehand:  The organization will have to set standard agreement with the trade union even though they have minimum in this age of globalization. However, they may cause problems so it is necessary to maintain all the necessary factors. However, there are differences in trade union laws in different countries, their effectiveness vary and the organizations will have to evaluate the situations carefully.
  • Use of technology:  The organization should make use of technology so that they can manage their supply chain and relationship with the customers in a better way. Thus, innovation in technology and vertical integration is required to maintain this.

Reflect professional standards of practices within business organizations This report has highlighted organizational human resources in terms of marinating relationship with the employees and the trade unions. Whirlpool was going through a phase where they had high turnover rate but they were able to change this by implementation of global retention strategies within the organization. Thus, the repot has been able to highlight the retention strategies that are implemented to improve relationship management.

Conclusion Thus, it can be concluded from the report that Whirlpool had issues with their retention rate but they have been able to make changes to their retention strategies, which have had positive impact on the human resources of the organization. The manufacturing companies always face problems with trade union and even though the significance of trade union has decreased significantly, there are some implication which has been able to portray.

References Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International Business Review, 25(1), 66-75.

Bryant, P. C., & Allen, D. G. (2013). Compensation, benefits and employee turnover: HR strategies for retaining top talent. Compensation & Benefits Review, 45(3), 171-175.

Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453-472.

Dennis, M. J. (2016). Practice effective retention strategies to increase enrollment. Enrollment Management Report, 20(8), 1-3.

Hancock, J. I., Allen, D. G., Bosco, F. A., McDaniel, K. R., & Pierce, C. A. (2013). Meta-analytic review of employee turnover as a predictor of firm performance. Journal of Management, 39(3), 573-603.

Howard, L. W., Turban, D. B., & Hurley, S. K. (2016). Cooperating teams and competing reward strategies: Incentives for team performance and firm productivity. Journal of Behavioral and Applied Management, 3(3).

Shaw, J. D., Park, T. Y., & Kim, E. (2013). A resource?based perspective on human capital losses, HRM investments, and organizational performance. Strategic management journal, 34(5), 572-589.

Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences, 5(1), 481.

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Strategic Human Resource Management

A strategy is a way of doing something. It is a game plan for action. It is usually includes the formulation of a goal and set of action plans for accomplishment. It implies consideration of the competitive forces at work in managing an organization and the impact of the outside environment on organization actions.

Human Resource Management is concerned with the people dimension of management. It is a process of acquisition, development, motivation, and maintenance of human resource of an organization.

“The field of Human Resource Management involves planning, organizing, directing, controlling functions of procuring, developing, maintaining and utilizing a labor force.”

Lecture on Introduction to Human Resource Management

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  • NOC:Advances in Strategic Human Resource Management (HRM) (Video) 
  • Co-ordinated by : IIT Bombay
  • Available from : 2022-11-09
  • Intro Video
  • Week 1 : Lecture 1A : The Evolution and Role of HR Function
  • Week 1 : Lecture 1B : Evolution and Nature of Strategic Human Resource Management
  • Week 1 : Lecture 1C : Contributions of and Trends in HR Function
  • Week 1 : Lecture 1D : Measuring Effectiveness of HR Function
  • Week 1 : Lecture 1E : Competence Maturity Model and People Competence Maturity Model
  • Week 1 : Lecture 2A : Organizational Healing: An Introduction
  • Week 1 : Lecture 2B : Working with Remote Teams
  • Week 1 : Lecture 2C : Restoring Social and Psychological Well-being
  • Week 1 : Lecture 2D : Employee Assistance Program
  • Week 1 : Lecture 3A : Talent Management: An Introduction
  • Week 1 : Lecture 3B : Potential Matrix: A Tool for Talent Management
  • Week 1 : Lecture 3C : HR Digitization for Talent Management
  • Week 2 : Lecture 4A : Positive Employee Relation: The Introduction
  • Week 2 : Lecture 4B : Positive Work Practices in Organization
  • Week 2 : Lecture 4C : Humanistic Management Model
  • Week 2 : Lecture 4D : Link of Humanistic Model and HR Processes
  • Week 2 : Lecture 4E : Process to make organization great place to work
  • Week 2 : Lecture 5A : Diversity Management: The Introduction
  • Week 2 : Lecture 5B : Significance of a Diverse and Inclusive Workplace
  • Week 2 : Lecture 5C : Significance of a Diverse and Inclusive Workplace
  • Week 2 : Lecture 5D : Biases in Organization and Ways of their Resolution
  • Week 2 : Lecture 6A : Intergenerational Relationships in Organization: The Introduction
  • Week 2 : Lecture 6B : Classifications of Generations at Workforce
  • Week 2 : Lecture 6C : Types and Attributes of Generations at Workplace
  • Week 2 : Lecture 6D : Ways of Synergizing Across Generations
  • Week 2 : Lecture 6E : Ways of enhancing Intergeneration Synergy
  • Week 3 : Lecture 7A : Intergenerational Relationships in Organization: The Introduction
  • Week 3 : Lecture 7B : Classifications of Generations at Workforce
  • Week 3 : Lecture 7C : Types and Attributes of Generations at Workplace
  • Week 3 : Lecture 7D : Ways of Synergizing Across Generations
  • Week 3 : Lecture 8A : Intergenerational Relationships in Organization: The Introduction
  • Week 3 : Lecture 8B : Classifications of Generations at Workforce
  • Week 3 : Lecture 8C : Types and Attributes of Generations at Workplace
  • Week 3 : Lecture 8D : Ways of Synergizing Across Generations
  • Week 4 : Lecture 9A : Role and Challenges of Sustainable HRM
  • Week4: Lecture 9B: Contribution of HRM in Corporate Sustainability & Corporate Social Responsibility
  • Week4: Lecture9C:Ways to integrate Corporate Sustainability&Corporate Social Responsibility with HRM
  • Week 4 : Lecture 10A : Important HR Metrics and Ratios in HRM Function
  • Week 4 : Lecture 10B : HR Analytics explained through Case Examples
  • Week 4 : Lecture 10C : Tools for Effective Decision Making and Factors for Success in Future at Work
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HRM 530 Week Six Assignment

College of Nursing

Driving change: a case study of a dnp leader in residence program in a gerontological center of excellence.

View as pdf A later version of this article appeared in Nurse Leader , Volume 21, Issue 6 , December 2023 . 

The American Association of Colleges of Nursing (AACN) published the Essentials of Doctoral Education for Advanced Practice Nursing in 2004 identifying the essential curriculum needed for preparing advanced practice nurse leaders to effectively assess organizations, identify systemic issues, and facilitate organizational changes. 1 In 2021, AACN updated the curriculum by issuing The Essentials: Core Competencies for Professional Nursing Education to guide the development of competency-based education for nursing students. 1 In addition to AACN’s competency-based approach to curriculum, in 2015 the American Organization of Nurse Leaders (AONL) released Nurse Leader Core Competencies (updated in 2023) to help provide a competency based model to follow in developing nurse leaders. 2

Despite AACN and AONL competency-based curriculum and model, it is still common for nurse leaders to be promoted to management positions based solely on their work experience or exceptional clinical skills, rather than demonstration of management and leadership competencies. 3 The importance of identifying, training, and assessing executive leaders through formal leadership development programs, within supportive organizational cultures has been discussed by national leaders. As well as the need for nurturing emerging leaders through fostering interprofessional collaboration, mentorship, and continuous development of leadership skills has been identified. 4 As Doctor of Nursing Practice (DNP) nurse leaders assume executive roles within healthcare organizations, they play a vital role within complex systems. Demonstration of leadership competence and participation in formal leadership development programs has become imperative for their success. However, models of competency-based executive leadership development programs can be hard to find, particularly programs outside of health care systems.

The implementation of a DNP Leader in Residence program, such as the one designed for The Barbara and Richard Csomay Center for Gerontological Excellence, addresses many of the challenges facing new DNP leaders and ensures mastery of executive leadership competencies and readiness to practice through exposure to varied experiences and close mentoring. The Csomay Center , based at The University of Iowa, was established in 2000 as one of the five original Hartford Centers of Geriatric Nursing Excellence in the country. Later funding by the Csomay family established an endowment that supports the Center's ongoing work. The current Csomay Center strategic plan and mission aims to develop future healthcare leaders while promoting optimal aging and quality of life for older adults. The Csomay Center Director created the innovative DNP Leader in Residence program to foster the growth of future nurse leaders in non-healthcare systems. The purpose of this paper is to present a case study of the development and implementation of the Leader in Residence program, followed by suggested evaluation strategies, and discussion of future innovation of leadership opportunities in non-traditional health care settings.

Development of the DNP Leader in Residence Program

The Plan-Do-Study-Act (PDSA) cycle has garnered substantial recognition as a valuable tool for fostering development and driving improvement initiatives. 5 The PDSA cycle can function as an independent methodology and as an integral component of broader quality enhancement approaches with notable efficacy in its ability to facilitate the rapid creation, testing, and evaluation of transformative interventions within healthcare. 6 Consequently, the PDSA cycle model was deemed fitting to guide the development and implementation of the DNP Leader in Residence Program at the Csomay Center.

PDSA Cycle: Plan

Existing resources. The DNP Health Systems: Administration/Executive Leadership Program offered by the University of Iowa is comprised of comprehensive nursing administration and leadership curriculum, led by distinguished faculty composed of national leaders in the realms of innovation, health policy, leadership, clinical education, and evidence-based practice. The curriculum is designed to cultivate the next generation of nursing executive leaders, with emphasis on personalized career planning and tailored practicum placements. The DNP Health Systems: Administration/Executive Leadership curriculum includes a range of courses focused on leadership and management with diverse topics such as policy an law, infrastructure and informatics, finance and economics, marketing and communication, quality and safety, evidence-based practice, and social determinants of health. The curriculum is complemented by an extensive practicum component and culminates in a DNP project with additional hours of practicum.

New program. The DNP Leader in Residence program at the Csomay Center is designed to encompass communication and relationship building, systems thinking, change management, transformation and innovation, knowledge of clinical principles in the community, professionalism, and business skills including financial, strategic, and human resource management. The program fully immerses students in the objectives of the DNP Health Systems: Administration/Executive Leadership curriculum and enables them to progressively demonstrate competencies outlined by AONL. The Leader in Residence program also includes career development coaching, reflective practice, and personal and professional accountability. The program is integrated throughout the entire duration of the Leader in Residence’s coursework, fulfilling the required practicum hours for both the DNP coursework and DNP project.

The DNP Leader in Residence program begins with the first semester of practicum being focused on completing an onboarding process to the Center including understanding the center's strategic plan, mission, vision, and history. Onboarding for the Leader in Residence provides access to all relevant Center information and resources and integration into the leadership team, community partnerships, and other University of Iowa College of Nursing Centers associated with the Csomay Center. During this first semester, observation and identification of the Csomay Center Director's various roles including being a leader, manager, innovator, socializer, and mentor is facilitated. In collaboration with the Center Director (a faculty position) and Center Coordinator (a staff position), specific competencies to be measured and mastered along with learning opportunities desired throughout the program are established to ensure a well-planned and thorough immersion experience.

Following the initial semester of practicum, the Leader in Residence has weekly check-ins with the Center Director and Center Coordinator to continue to identify learning opportunities and progression through executive leadership competencies to enrich the experience. The Leader in Residence also undertakes an administrative project for the Center this semester, while concurrently continuing observations of the Center Director's activities in local, regional, and national executive leadership settings. The student has ongoing participation and advancement in executive leadership roles and activities throughout the practicum, creating a well-prepared future nurse executive leader.

After completing practicum hours related to the Health Systems: Administration/Executive Leadership coursework, the Leader in Residence engages in dedicated residency hours to continue to experience domains within nursing leadership competencies like communication, professionalism, and relationship building. During residency hours, time is spent with the completion of a small quality improvement project for the Csomay Center, along with any other administrative projects identified by the Center Director and Center Coordinator. The Leader in Residence is fully integrated into the Csomay Center's Leadership Team during this phase, assisting the Center Coordinator in creating agendas and leading meetings. Additional participation includes active involvement in community engagement activities and presenting at or attending a national conference as a representative of the Csomay Center. The Leader in Residence must mentor a master’s in nursing student during the final year of the DNP Residency.

Implementation of the DNP Leader in Residence Program

PDSA Cycle: Do

Immersive experience. In this case study, the DNP Leader in Residence was fully immersed in a wide range of center activities, providing valuable opportunities to engage in administrative projects and observe executive leadership roles and skills during practicum hours spent at the Csomay Center. Throughout the program, the Leader in Residence observed and learned from multidisciplinary leaders at the national, regional, and university levels who engaged with the Center. By shadowing the Csomay Center Director, the Leader in Residence had the opportunity to observe executive leadership objectives such as fostering innovation, facilitating multidisciplinary collaboration, and nurturing meaningful relationships. The immersive experience within the center’s activities also allowed the Leader in Residence to gain a deep understanding of crucial facets such as philanthropy and community engagement. Active involvement in administrative processes such as strategic planning, budgeting, human resources management, and the development of standard operating procedures provided valuable exposure to strategies that are needed to be an effective nurse leader in the future.

Active participation. The DNP Leader in Residence also played a key role in advancing specific actions outlined in the center's strategic plan during the program including: 1) the creation of a membership structure for the Csomay Center and 2) successfully completing a state Board of Regents application for official recognition as a distinguished center. The Csomay Center sponsored membership for the Leader in Residence in the Midwest Nurse Research Society (MNRS), which opened doors to attend the annual MNRS conference and engage with regional nursing leadership, while fostering socialization, promotion of the Csomay Center and Leader in Residence program, and observation of current nursing research. Furthermore, the Leader in Residence participated in the strategic planning committee and engagement subcommittee for MNRS, collaborating directly with the MNRS president. Additional active participation by the Leader in Residence included attendance in planning sessions and completion of the annual report for GeriatricPain.org , an initiative falling under the umbrella of the Csomay Center. Finally, the Leader in Residence was involved in archiving research and curriculum for distinguished nursing leader and researcher, Dr. Kitty Buckwalter, for the Benjamin Rose Institute on Aging, the University of Pennsylvania Barbara Bates Center for the Study of the History of Nursing, and the University of Iowa library archives.

Suggested Evaluation Strategies of the DNP Leader in Residence Program

PDSA Cycle: Study

Assessment and benchmarking. To effectively assess the outcomes and success of the DNP Leader in Residence Program, a comprehensive evaluation framework should be used throughout the program. Key measures should include the collection and review of executive leadership opportunities experienced, leadership roles observed, and competencies mastered. The Leader in Residence is responsible for maintaining detailed logs of their participation in center activities and initiatives on a semester basis. These logs serve to track the progression of mastery of AONL competencies by benchmarking activities and identifying areas for future growth for the Leader in Residence.

Evaluation. In addition to assessment and benchmarking, evaluations need to be completed by Csomay Center stakeholders (leadership, staff, and community partners involved) and the individual Leader in Residence both during and upon completion of the program. Feedback from stakeholders will identify the contributions made by the Leader in Residence and provide valuable insights into their growth. Self-reflection on experiences by the individual Leader in Residence throughout the program will serve as an important measure of personal successes and identify gaps in the program. Factors such as career advancement during the program, application of curriculum objectives in the workplace, and prospects for future career progression for the Leader in Residence should be considered as additional indicators of the success of the program.

The evaluation should also encompass a thorough review of the opportunities experienced during the residency, with the aim of identifying areas for potential expansion and enrichment of the DNP Leader in Residence program. By carefully examining the logs, reflecting on the acquired executive leadership competencies, and studying stakeholder evaluations, additional experiences and opportunities can be identified to further enhance the program's efficacy. The evaluation process should be utilized to identify specific executive leadership competencies that require further immersion and exploration throughout the program.

Future Innovation of DNP Leader in Residence Programs in Non-traditional Healthcare Settings

PDSA Cycle: Act

As subsequent residents complete the program and their experiences are thoroughly evaluated, it is essential to identify new opportunities for DNP Leader in Residence programs to be implemented in other non-health care system settings. When feasible, expansion into clinical healthcare settings, including long-term care and acute care environments, should be pursued. By leveraging the insights gained from previous Leaders in Residence and their respective experiences, the program can be refined to better align with desired outcomes and competencies. These expansions will broaden the scope and impact of the program and provide a wider array of experiences and challenges for future Leaders in Residency to navigate, enriching their development as dynamic nurse executive leaders within diverse healthcare landscapes.

This case study presented a comprehensive overview of the development and implementation of the DNP Leader in Residence program developed by the Barbara and Richard Csomay Center for Gerontological Excellence. The Leader in Residence program provided a transformative experience by integrating key curriculum objectives, competency-based learning, and mentorship by esteemed nursing leaders and researchers through successful integration into the Center. With ongoing innovation and application of the PDSA cycle, the DNP Leader in Residence program presented in this case study holds immense potential to help better prepare 21 st century nurse leaders capable of driving positive change within complex healthcare systems.

Acknowledgements

         The author would like to express gratitude to the Barbara and Richard Csomay Center for Gerontological Excellence for the fostering environment to provide an immersion experience and the ongoing support for development of the DNP Leader in Residence program. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

  • American Association of Colleges of Nursing. The essentials: core competencies for professional nursing education. https://www.aacnnursing.org/Portals/42/AcademicNursing/pdf/Essentials-2021.pdf . Accessed June 26, 2023.
  • American Organization for Nursing Leadership. Nurse leader core competencies. https://www.aonl.org/resources/nurse-leader-competencies . Accessed July 10, 2023.
  • Warshawsky, N, Cramer, E. Describing nurse manager role preparation and competency: findings from a national study. J Nurs Adm . 2019;49(5):249-255. DOI:  10.1097/NNA.0000000000000746
  • Van Diggel, C, Burgess, A, Roberts, C, Mellis, C. Leadership in healthcare education. BMC Med. Educ . 2020;20(465). doi: 10.1186/s12909-020-02288-x
  • Institute for Healthcare Improvement. Plan-do-study-act (PDSA) worksheet. https://www.ihi.org/resources/Pages/Tools/PlanDoStudyActWorksheet.aspx . Accessed July 4, 2023.
  • Taylor, M, McNicolas, C, Nicolay, C, Darzi, A, Bell, D, Reed, J. Systemic review of the application of the plan-do-study-act method to improve quality in healthcare. BMJ Quality & Safety. 2014:23:290-298. doi: 10.1136/bmjqs-2013-002703

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