STRATEGIC HRMSUBMITTED BY

RajveerKhushboo

AnshumanPankaj

PriyankaVinit Bansal

Pragati

WHAT IS SHRM? Strategic human resource management

has been defined as ‘the linking of human resources with strategic goals and objectives in order to improve business performance and develop innovative organizational culture that foster innovation and flexibility.

HR STRATEGY OPTED BY

“WHIRLPOOL”

April 25, 2006 ,Whirlpool Corporation net sales = US$3.5 billion

net earnings during that period = US$118 million

Analysts attributed this increase to the company's innovative products.

Whirlpool had come a long way from where it had been in the late 1990s .

According to analysts, this was a direct result of the stagnation in its product line caused by very little attention being paid to innovation.

Top management’s conclusion by late 1999 - cut 10% of its international workforce and initiate restructuring of its global operations.

HR Strategy used by “Whirlpool” Efforts by “David R. Whitwam”, chairman

and CEO of Whirlpool, in 2000.

change in the company's corporate culture and embed innovation as a core competency.

Mr. Whitwam’s organizational goal - Increase sales and customer loyality within 2 years.

HR strategy : to make “innovation” a “core competency” at Whirlpool.

Steps taken to align the organizational goal with human resource:

In late 1999, HR dept started the innovation initiative by inviting ideas from all the employees.

25 best employees from the company's European arm sent to the headquarter at Italy.

Their assignment - brainstorm and come out with ideas regarding new products or services.

"I-box" strategy.

RESULT revenues from innovative products were

almost US$800 million in 2005 as compared to just US$10 million in 2001.

The share price had also doubled. Between 2003 and 2005, Whirlpool's

revenues had grown at an average of 9% per annum

As of April 2006, Whirlpool's innovation pipeline had 568 projects under development of which 195 were being scaled up for commercial launch.

The company expected these new appliances to rake in another US$ 3.3 billion in annual sales once they were launched

CONCLUSION HR strategies when aligned with the

business goals of the organization, at whirlpool, worked as a turnaround strategy and changed the face of the company completely.

Every organization can thus, rely on the HR strategies partially, if not completely, and create the magic of success.

Thank You.

Strategic Hrm Business Strategy A good strategy succeed Strategic HRM and Business Strategy

business strategy, one which is likely to succeed, is informed by

people factors. One of the driving factors behind the evaluation and reporting of human

capital data is the need for better information to feed into the business

strategy formulation process. In the majority of organizations people are now the biggest asset. The

knowledge, skills and abilities have to be deployed and used to the

maximum effect if the organization is to create value. The intangible value of an organization which lies in the people it employs is

gaining recognition by accountants and investors, and it is generally now

accepted that this has implications for long term sustained performance. It is therefore too simplistic to say that strategic human resource management

stems from the business strategy.

Strategic Strategic HRM and Business Strategy

HRM and Business Strategy must be mutually

informative. The way in which people are managed, motivated

and deployed, and the availability of skills and knowledge will

all shape the business strategy. It is now more common to find business strategies which are

inextricably linked with and incorporated into strategic HRM,

defining the management of all resources within the

organization.