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Strategic Human Resource Management ASB Summer University 2015, Aarhus, Denmark
Course Title: Strategic Human Resource Management*
Masters Level
Term 2: 10 ECTS course: Duration: 16 July - 05 Aug, 2015
Faculty: Professor Debi S. Saini, Management Development Institute, Gurgaon, India
E-mail: [email protected] [email protected] Mobile: +91-9810341064
Aim of the course:
Research from different parts of the globe shows that that lack of people management skills is one of
the top compatencies that employers look for while recruting managers as those who lack these are not
likely to succees in the present chaotic business world. A large number of general management books
published after the best-selling one, In Search of Excellence by Tom Peters and Bob Waterman (1982)
testifies this fact. Most companies do claim that their people are their greatest asset. In actuality,
however, some only (e.g., Google, IBM, Southwest Airlines, Lego, and Carlsberg), genuinely practice
this mantra through creation of people-centric ambiance. Companies that truly value their human
resource (HR) are able to build employer brand, hire & retain competent employees, and promote
employee engagement. Eventually, this approach helps produce the requisite people behaviors,
attitudes, and mental models that are necessitated by high performance work systems and company’s
business strategy.
In this context, this course has been designed with the aim of analyzing strategic HR models; new HR
themes and interventions; as also related measures, targets and plans of action. The course also helps
explain why some companies almost always adopt just hard, cost-reduction, and instrumentalist people
policies; and in the process remain only short-termist in their approach. It underscores that even
several low-cost strategy companies have been following soft HR interventions for competitive
advantage.
Main issues:
Concretely speaking, three broad sets of issues are focused on in the course: articulating the strategic
HRM context that helps identify issues in building people-first culture, discussing emerging HR focus
areas that help promote sustainable competitive advantage, and aligning the selected HR interventions
with business strategy; all these help shape the desired HR architecture.
Specifically, the course will focus on discussing and analyzing the following areas of strategic HRM:
Building a framework of high performance work system (HPWS) in view of SHRM literature
& chaotic competition;
HR strategy models and using soft & hard strategic HR interventions;
Building employee recruitment, selection & talent acquisition strategies;
Leading change & flexibility through appropriate HR & IR strategies, including trade union
substitution policies;
* © Debi Saini. Please do not copy or forward without permission
Building engagement through employee involvement, diversity & nurturing organizational
culture that puts primacy on employee-first values;
Dynamics of building a learning organization & managing knowledge;
Strategic HR issues in managing local and global businesses;
Human capital investment and aligning HR interventions with business strategy.
Prerequisites
This course will suit those who believe that appropriate handling of people management issues is a key
success factor for viability of business and its exponential growth; be they functional managers
involved in operations, information technology, marketing, finance or HRM. It will also suit those
who wish to join own organization or a consulting company, and are searching a proper approach in
managing people. There is no prerequisite for joining the course in terms of specific degrees.
Teaching methodology
Learning of the course contents will involve focusing on analyzing the relevant concepts; as also
organizational problems and the need for taking decisions to resolve them. It will be facilitated through
lectures, video presentations, case discussions, exercises, problem-solving discussions, role plays and
one home assignment (Project described below). The Class Representative should help the process
of forming 10 groups of about equal number of students each, and mail the names and the group
numbers to the faculty. The usual class session will begin by discussing the relevant theoretical
concepts by the faculty, followed by case analysis presentation by the group concerned, and then
discussion on the case as also reviewing the learning of the day. Case discussions will aim at solving
people-management problems and deriving the relevant HR concepts through that process. The above
devices are aimed to promote learning by involving the class. The participants will undertake some
exercises in the class to help them develop specific people-management competencies. Also, the
participants will be encouraged to contribute to class learning by raising queries and replying to those
raised by others.
Learning outcome
On completion of the course, the participants are expected to have attained the following knowledge
and abilities:
Knowledge of the linkages between HR issues & contextual business realities through the eye
of HR strategy models;
Knowledge of the factors that facilitate employee engagement, and hiring & retaining talent;
Ability to understand how to confront adversarialism and promote employee cooperation
through strategic industrial relations and psychological contract;
Ability to understand the dynamics of labour flexibility & effecting strategic change;
Knowledge of strategic HR themes, including building of a learning organization;
Knowledge of the use of strategic HR interventions in domestic & global business realities; &
Ability to develop strategic HR interventions, HR measures and score cards & align them with
business strategy.
Examination Assessment procedure:
Performance Evaluation:
Component Weightage
1. Case presentation & discussion by groups 20 %
2. HRM strategy essay work: 20 %
3. End-Term Exams 60%
Each individual student will write an essay mainly focusing on any company of her or his choice
that has adopted some of the themes of strategic HRM being discussed in this course and the
results the practice of these themes have led to. In doing so, the student should bring out clearly
references to the literature that has been developed on these SHRM themes and how the company
concerned is applying these themes (practices) in its peculiar context. S/he should support her/his
formulations with the help of the working of those practices in few other companies as well if
possible, though the main concern shall be on the company that is the main focus of the essay. The
information about the practice of the relevant themes may be obtained from the internet, company
websites, management journals, business books, magazines and newspapers. The essay should identify
the HR interventions chosen by the main organization being focused on, and how these interventions
have been linked to, or integrated with, the company’s business strategy. The student may choose a
company from private sector or public sector. While the essay contents are being developed, the
student must also link her/his formulations with the conceptual learning gained from the course.
The project essay will be due to be submitted by each student in soft as well a hard copy on or before a
specified date, and shall have a length of between 2500 to 3000 words, double spaced (References and
appendices can be separate). The essay should reflect the student’s diagnostic, analytical and
application skills.
The project essay summary will be presented by each student on the last day of course teaching.
SESSIONS PLAN
Date Subject Topic & Issues References Assignements/ Case Qs/
Exercices, etc.
Course begins
16 July
Day 1
9.0-
12.50
Context and nature of strategic
HRM:
Linking Globalization and the
changed work paradigm
Readings:
Reese and
Smith (2014),
Ch. 1
New business challenges, as
also new people manage -ment
issues
HR’s response to new
challenges—Concept of
strategic HRM including
New industrial relations (IR)
as its part
Challenges of Strategic
HRM/HRD
Shifts in today’s HRM
Evolution of SHRM
Critique of strategic HRM
Storey, Wright
&
Ulrich(2009),
Ch. 9
Saini & Khan
(2000) pp. 13-
34
Longenecker
(2007)
17 July
Day 2
9.0-
12.50
Strategic management, HRM
strategy, and HRM strategy models:
Organization Strategy development and
implementation: Vision/
mission/ objectives /goals/
values
Rational vs. emergent strategy
Business Strategy and HRM
Strategy Interface
HRM strategy models of
Tichy, Devanna et al., Beer et
al., and Others
Broad theoretical approaches
to HR strategy: best practice;
best fit; & resource-based view
approaches
Overview of Strategic themes
in SHRM
Readings:
Reese and
Smith (2014),
Chs 2 & 3.
Beardwell, et
al. (2004) Ch.
2
Presentation of analysis
of:
Case: JetBlue Airways—
Starting from Scratch
(HBP)
Group 1
Questions:
1. 1. Analyze how the values,
vision and beliefs of the top
management led to
formation of the
organizational culture of
JetBlue.
2. 2. Which HR strategy model
is reflected in the HR
systems and approach of
JetBlue?
3. 3. Why is JetBlue
management so particular
about being a non-union
company?
4. 4. Analyze the leadership of
Ann Rhoades as a
charismatic HR
professional?
5. 5. Which factors led to the
success of this airline; and
what lessons you can learn
from this case?
20 July
Day 3
9.0-
12.50
Recruitment and selection
strategies:
Contemporary issues in
recruitment & selection
The hiring process
Values in the hiring process
Strategic recruitment—
Linking hiring to desired
culture & talent retention, &
employer of choice
Gen X & Gen Y profiles
Issues in retention &
turnover
Retention strategies
Readings:
Reese and
Smith (2014),
Ch. 5.
Stein, S.
(2007), Ch. 5
Group 2 to do
Presentation of analysis
of:
Two Caselets:
A. McDonald’s
Questions:
1. 1. Describe how
McDonald’s has aligned its
business, human resource,
and staffing strategies?
2. 2. What are some possible
talent-related threats that
could eat away its
competitive advantage?
Would higher turnover or a
tight labour market in which
it is difficult to find talent be
a problem?
3. 3. What would you
recommend the company to
do so as to maintain its
competitive advantage over
the next five years?
B. Starbuck’s Staffing
strategy
Questions:
1) 1. How can Starbucks use
staffing to pursue its growth
strategy and maintain its
competitive advantage?
2) 2. What kind of staffing
strategy would you
recommend Starbuck’s to
pursue to help it continue to
hire the right people?
Exercise: Check Your
Values—The death of a
salesman
21 July
Day 4
9.0-
12.50
Changing paradigm in employee
relations:
Traditional issues in
management of industrial
relations (IR)
Frames of reference in, or
Perspectives of, IR: Pluralist,
Unitarist & Radical
frameworks
Generic changes in IR at
global level and their causal
roots
From pluralist IR to neo-
pluralism and neo-unitarist IR strategies
Readings:
Reese and
Smith (2014),
Ch. 8
Saini & Khan
(2000), Chs. 1,
pp.13-34, 2, 3
Hollinshead,
Nicolls, &
Tailby, (2003),
Ch.10 (pp.
372-392 only).
Presentation of analysis
of:
Case: People Management
Fiasco at Honda Motor
Cycles and Scooters India
Ltd. (HMSI
(Harvard Business
publishing)
General discussion with
all groups
Key Questions:
1. Who all are the
IR actors in this
case?
2. What do you
think were the
gains of the
workers in this
case? What are
the sources of
their strength
that led to these
gains?
3. If “IR is a game
of power,” how
much power was
enjoyed by each
of the 3 main IR
actors?
4. What do you
think were the
principal causes
of the trouble
that HSMI
faced?
22 July
Day 5
9.0-
12.50
Strategies for developing
cooperative employee relations:
New IR dynamics
Union-substitution strategies
Re-orienting managers &
Readings:
Guest (1987)
Cross et al.
(2003)
Case: People Management
Fiasco at HMSI
(Harvard Business
publishing) contd…
Group 3 to present
analysis of the following
union leaders for cooperation
as opposed to adversarialism
Managing Employee Relations
through New Psychological
contract
Building Psychological
contract:
five Qs.
Key Questions:
5. What HR
strategy &
business strategy
was followed by
HMSI before the
fiasco?
6. If you were
HMSI’s CEO,
what HR strategy
would you have
followed before
the pre-fiasco?
7. What are the key
challenges
before HMSI in
the post-July 25
scenario?
8. What people-
mgt. strategies
should HMSI
adopt in the short
run as well as
long run?
9. What lessons in
people mgt. and
IR do you learn
from this case?
23 July
Day 6
9.0-
12.50
Strategic approach to building an
engaging/ exciting organization
Balancing employee &
business needs
Concept of engagement &
Gallop’s model
Factors that contribute to
employee engagement.
Key practices used by some
companies in promoting
engagement & excitement?
Readings:
Walton (1985)
Storey, Wright
& Ulrich
(2009), Ch.18
Presentation of analysis
of:
Case : Renn Zaphiropoulos
(Harvard Business
publishing)
Group 4
1. List the
interventions used by
Versatec Inc. for
employee engagement.
2. What importance was
attributed to
communication in
Renn’s mgt.
philosophy?
3. Is Renn a
transformational leader?
Which of his
competencies are most
critical?
4. Aanalyze the following
statement of Renn:
“Very few orders are given here and
virtually no punishment. We don’t
like phonies; we throw them out after
they have been here a very short
period of time. We like the brutal
truth….You will find very little ‘Fix
it, Renn is coming.’… Effort does
not count. Results count.”
5. What lessons in people
management do you
learn from this case?
24 July
Day 7
9.0-
12.50
Managing diversity (DM):
Proactive diversity management (DM) as a HRM
strategy
Concept and approaches to
DM
Building & implementing a
diversity strategy agenda
Readings:
Reese and
Smith (2014),
Ch. 9
Saini (2007)
Thomas
(2004)
Exercise: Diversity
Learning Sheet
Exercise: Pre- and
Post-DM sessions
Exercise on Identifying the
needs for Diversity
Training
27 July
Day 8
9.0-
12.50
Developing a learning organization
(LO) and benchmarking of HR
practices:
Learning and knowledge-
creation culture
Nature of learning
organization
Peter Senge’s model of
Learning Organization &
Garvin’s building blocks
Issues in creating a learning
organization
Readings:
Holbeche
(2009), Ch. 17
Garvin (1993)
Senge (1990)
Presentation of analysis
of:
Case: Children’s Hospitals
and Clinics--A. (HB
Publishing)
Group 5
Questions:
6. 1. What should Morath say
in meeting with Mathews
Managing knowledge workers
and HR’s role
parents (Answeri this
question through a role
play)
7. 2. How do you assess Julie
Morath’s Patient Safety
Initiative & blameless
reporting as part of learning
organization?
8. 3. What barriers did Julie
Morath face towards openly
discussing medical errors,
and did she overcome them?
9. 4. What challenges does
Julie Morath face now in
opertionalizing her vision of
Children’s as a learning
organization?
10. 5. What lessons in learning
organization do you learn
from this case?
28 July
Day 9
9.0-
12.50
Employee involvement (EI)
strategies as opposed to collectivist
“employees’ participation in
management”:
The Concept of EI &
Employee participation (EP)
The logic of the changing
paradigm and its relevance in
the new business environment
Company newsletter; team
briefing; team working
Attitude surveys; suggestion
schemes; quality circles; and
TQM
EI: Rhetoric & realities
Readings:
Torrington et
al. (2008), Ch.
21 (pp. 510-
519 only)
Hollinshead,
Nicolls, &
Tailby, (2003),
Ch.10 (pp.
372-392 only).
Presentation of analysis
of:
Case: Labour-Mgt.
Partnership: How to make
it Work & Its analysis by 3
Analysts
(Complimentary: Debi
Saini)
Group 6
Questions:
1. What was the CEO’s
strategy in initiating
the change agenda?
2. What are the strong
points & limitations
of the analyses of
the three analysts?
3. If you come to know
that analyst 3 is an
HR Chief of a large
company, what
comment would you
make on his
analysis?
4. With which analyst
you agree the most
and why?
5. What are the merits
of studying a case
through this new
methodology of
evaluating the
analysts?
29 July
Day 10
9.0-
12.50
People issues in managing
organizational flexibility & leading
culture change:
Flexible organization––The
flexible firm model of
Atkinson
Flexibility as per hard and
soft HRM strategy models
Soft flexibility through Work-
–Life balance
HR issues in promoting and
managing culture change
Leadership development issues for building capacity to
adapt to change needs.
Readings:
Reese and
Smith (2014),
Ch. 8
Torrington et
al. (2008), Ch.
5
Presentation of analysis
of:
Case: Dynamics of Change
at NDPL
(Complimentary by Debi
Saini)
Group 7
Questions:
1. What factors
contributed to the
Co.’s turnaround?
2. What role was
played by HR
strategy in
promoting change?
3. What should the
CEO now do to
march towards the
company vision?
4. What lessons in
Strategic HRM do
you learn from this
case?
Project Finalization The date of submission is 31st July before 18.00 hours.
3 Aug.
Day 11
Understanding & developing
9.0-
12.50
Transformational Leadership—The
essence of strategic HRM:
Readings:
Kanter (2010)
Saini & Khan
(2000), Ch. 18
Film Analysis
& an Exercise
4 Aug.
Day 12
9.0-
12.50
Strategic HRM issues in global
business management:
Internationalization
strategies of companies
Approach of staffing in global
organizations
Management of cross-cultural
issues
Building global mindset and
developing global leaders
Readings:
Reese and
Smith (2014),
Ch. 12
Holbeche
(2009), Chs.
14
Dalton (2005)
Storey, Wright
&
Ulrich(2009),
Ch. 24
Presentation of analysis
of:
Case: HCM Beverage Co.
(Harvard Business
publishing)
Group 8
Key Qs.:
1. What challenges
does Johnson face
presently?
2. Is he fit for the Job
of a global manager
or should he go
back to US—why?
3. If he stays, what
should be his
transformational
change agenda?
4. How should the
raise in wages issue
be decided?
5. What lessons do
you learn from this
case?
4 Aug.
contd...
Day 12
14.15-
15.45
p.m.
Aligning HRM strategy with
business strategy:
Developing HR strategy; &
aligning it to business
Identifying critical success
factors for comptt. advantage
Identifying desired culture &
Readings:
Ulrich &
Brockbank
(2005), Ch. 7
Miller et al.
(2002)
Fragos (2002)
Group 9
Presentation of the
exercise solution:
Exercise: Building and
aligning HR Strategy:
HCM Beverage Co.
(Read Ch. 7 of Ulrich &
behaviours
Identifying HR interventions
& aligning them to culture
Phillips, J.
(2005)
Brockbank [2005], and do
this alignment exercise in a
similar manner as done in
this chapter)
Other Groups should also
compe prepared with this
case: They would be asked
to comment on the issues
involved in alignment.
5 Aug.
Day 13
9.00
a.m. to
1.00
pm
Group 10: Presentation by the group on what they leraned from the Course.
This would be followed by discussion by all other groups. Students would b eunder
observation for the pupose of course work assessment especially in this session for their
insightful contribution to the learning of the class.
(All groups must sit down and discuss before preparing their point of view as to what they have learned, and how these learning could be applied in solving business problems)
Examination Preparation; examination date 13 August 2015
LIST OF LITERATURE (COMPULSORY)
Essential Text:
Reese, G, and Smith, P. (2014) Strategic Human Resource Management: An International
Perspective, London: Sage, Chapters 1, 2, 3, 5, 6, 8, 9, 12. Desired Readings from Journals & Book Chapters:
Beardwell, I., Holden, L. and Claydon, T. (2004), Human Resource Management (4th edition),
London: Prentice Hall, Chapter 2.
Cross, R., Baker, W., and parker, A. (2003), “What Creates Energy in Organizations,” MIT Sloan Management Review, 44 (4), pp. 51-56.
Dalton, Catherine (2005), “Human Resource Management in Global Environment: Key for Personal and Organizational Success: An Interview with Eliza Hermann,” Business Horizon, Vol. 48, pp. 193-198.
Frangos, C. (2002), “Aligning Human Capital with Business strategy: Perspectives from Thought Leaders,” http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&sqi=2&ved=0CEUQFjAD&url=http%3A%2F%2Fwww.exinfm.com%2Fworkshop_files%2FAligning%2520Human%2520Capital.pdf&ei=LcOQUdnYDILqrQfz9oHgBQ&usg=AFQjCNFVn26JvPN1G38VxegfjU5YQMhsTQ&bvm=bv.46340616,d.bmk downloaded on 13 May, 2013.
Garvin, David (1993), “Building a Learning Organization,” Harvard Business Review, Vol. 71, No. 4 (July–August): 78–91.
Guest, D. (1987), “Human Resource Management and Industrial Relations,” Journal of Management Studies, 24 (50), pp. 503-21.
Holbeche, L. (2009), Aligning Human Resources and Business Strategy, Butterworth
Heinemann, Chapters 14 & 17.
Hollinshead, G., Nicolls, P. and Tailby, S. (2003), Employee Relations, 2nd ed., London:
Prentice Hall, Chapter 10 (pp. 372-392).
Kanter, R. (2010) ”Leadership in a globalizing world,” In Nohria, N. And Khuran, R.,
Handbook of Leadership Theory and Practice: A Harvard Business School Centennial
Colloquium on Advancing Leadership. Boston, Mass: Harvard Business Press, pp. 1-41.
Longenecker, C., Neubert, M., Fink, L. (2007), “Causes and Consequences of Managerial
Failure in Rapidly Changing Organizations,” Business Horizons, Vo. 50, pp.145-155.
Miller, D., Eisenstat, Foote, N. (2002), “Strategy from the Inside Out: Building Capability-creating Organizations,” California Management Review, 44 (3), pp. 37-54.
Phillips, J. (2005), Investing in Company’s Human Capital—Strategies to Avoid Spending too Little—or Too Much, New York: American Management Association. Chapter 9.
Saini, D. (2007), “Manpower Diversity for Business Success: Some Emerging Perspectives,”
Manpower Journal, Vol. XLII, , No. 2, pp. 1-22.
Saini, D. & Khan, S. (eds.) (2000) Human Resource Management: Perspectives for the New
Era, New Delhi: Response Books, a Division of Sage Publishers, New Delhi. Chs. 1 (pp. 13-34), 2, 3.
Senge, Peter (1990), “The Leader’s New Work: Building Learning Organizations,” MIT Sloan Management Review, 32 (1) pp. 7-22.
Stein, S. (2007), Make Your Workplace Great: The 7 Keys to an Emotionally Intelligent Organization, Mississauga (Canada): John Wiley, Chapter 5.
Storey, J., Wright, P. and Ulrich, D. (eds.) (2009), The Routledge Companion to Strategic Human Resource Management, London: Routledge, Chapters 9, 18, and 24.
Thomas, D. (2004), “Diversity as Strategy,” Harvard Business Review, Vol. 82 (Sep. 2004), pp. 98-108.
Torrington, D., Hall, L. and Taylor, S. (2008) Human Resource Management, 7th
edition,
Prentice Hall, London. Chapters 5 and 21 (pp. 510-518 only).
Ulrich, D. and Brockbank, W. (2005), The HR Value Proposition, Boston: Harvard Business
School Press, Chapter 7.
Walton, Richard (1985), From Control to commitment in the Workplace, Harvard Business Review, March-April, 63 (2) pp. 76-84.
Cases: The following 5 full cases are to be procured for each student from Harvard Business
Publishing (HBP) online:
JetBlue Airways—Starting from Scratch
People Management Fiasco at Honda Motor Cycles and Scooters India Ltd.
Renn Zaphiropoulos
Children’s Hospitals and Clinics—A
HCM Beverage Co Other cases/caselets to be discussed in the class will be provided by Dr Debi Saini as complementary: