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Transcript of 01 Besseyre Eduson Presentation
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INTRODUCTION TO STRATEGIC HUMAN
RESOURCES MANAGEMENT
CHARLES-HENRI BESSEYRE DESHORTS, PHD
ASSOCIATE PROFESSOR HEC PARIS
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Course contents overview
1. Definition of HRM, Evolution of HRM, The Traditional
Roles
2. Strategy, Basic Concepts and Evolution
3. The Strategic Roles of HRM: Business Partner, Value
Creation, Outside-In4. Strategy & HRM: Implementation, Contribution & Co-
Construction
5. Strategic Decisions where HRM can play a Key Role:
Market, Technology, Globalization, Mergers &
Acquisitions
CHARLES-HENRI BESSEYRE DES HORTS, LECTURE 1 2
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Lecture 1
Definition of HRM, Evolution of HRM, The
Traditional Roles
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Agenda of the Session
Definitions of HRM
The HRM System
Evolution of HRM
Traditional Roles of HRM
Administrative
Legal
Psychological
Managerial
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Definitions of HRM
Human Resources Management (HRM) refers to the
policies, practices, and systems that influenceemployees behavior, attitudes and performance.
HRM seeks to achieve competitive advantage through
the strategic deployment of a highly committed and
capable workforce, using an integrated array of cultural,structural, and personnel techniques
HRM is characterized by a number of practices:
strategic workforce planning, recruitment & integration,
job design & grading, performance/potentialassessment, total compensation, careers & mobility,
training & development
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Human Resources Management
System
STRATEGIC OBJECTIVES
Strategic Workforce
PlanningJOB DESIGN &
GRADING
Recruitment/
Integration
Training &
Development
Careers/
Mobility
PERFORMANCE /
POTENTIAL
ASSESSMENT
Total
Compensation
COMMUNICATION
TECHNOLOGY
HR CONTROL
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Evolution of HRM: Expertise +
Partnership
Administ rat ive
Legal
Psychological
Managerial
Business Partner
Value Creation
Expertise
1950s 1970s 1990s 2000s
Patnershipwith
Managers/Employees
Outside-in
Collective
Individual
(Stakeholders)
(Tools)
(Motivation)
(Protection)
(Discipline)
(Influence)
(Innovation)
Traditional
Roles
Strategic
Roles
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HR function transformation
ControlComply with norms and
control management
processes
PERSONNEL
ServicesProvide efficient and
effective services tocustomers
HUMAN
RESOURCES
DecisionsContribute to the
improvement of
organizational
decisions
TALENTSHIP
Source: adapted from Boudreau & Ramstad, 2007
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From personnel to human resources
Personnel Mgt
Cost
Administrative
Collective
Static
Mechanistic
Short Term
Rigid
Quantitative
Equal i ty
Human Resources Mgt
Investment
Strategic
Individual/Group
Dynamic
Organic
Long Term
Flexible
Qualitative
Equi ty
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Administrative role
Foundation of HRM: record keeping of all basic people
activities + compliance with local legal rules Recruitment
Job assignment
Training
Career Health & Safety
Compensation
Benefits
Absenteeism Turnover
Etc
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Administrative role (contd)
Mass production of data and transactional
work: efficiency key issue Key issues of accuracy, precision and
maintenance of the personnel data files at the
local and central HRM levels HRM Information Systems (HRIS) constitute
the backbone of all administrative activities
e-HR (Internet-based HRIS) split the
administrative role between HRM function,
managers and employees (cf. managerial role)
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Legal role
Compliance with local legal rules: employment
(recruitment, anti-discrimination, dismissals) , workenvironment (working time, physical environment),
compensation & benefits (minimum wage, equal
pay), training & development (budget, target
populations) , health and safety,labor relations Increasing importance in HRM because of the change
of labor laws in many countries around the world
towards more protection for employees and more rules
to apply for employers: Continental Europe stills givesthe highest level of protection
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Legal role (contd)
Labor relations focus:
Personnel representat ives:defense ofcompliance with legal rules
Union representatives:negotiation of new local
norms and legal rules
Work counc i ls :information and/or consultation
on company situation (in Germany: co-
determination of key strategic decisions)
Transnational labo r s tructu res inmul t inational companies:global norms
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Psychological role
Impact of HRM is critical to reinforce employees motivation and
engagement: obtaining the extra mile is the key objective Many motivation theories explain HRM practices: two key ones
Maslow Needs Hierarchy Adams Equity Theory
People are motivated when the
ratio between contribution and
reward is balanced
Contr ibut ion
Reward
Lots of consequences for HRM:
Individualization of HR decisions Perception of fairness
Managers involvement in HR
decisions
Basic/Physiological
Security
Social/Belonging
Recognition
Self-
actualization
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Managerial role
The stage of development of HRM that is the most
common in organizations today: HR practices widelyshared with internal customers (managers & employee)
with HRIS and/or e-HR
Development of professional practices using
sophisticated tools internally developed or acquiredfrom external providers, for example:
recruitment & integration:campus management,
job profiles, tests, interviews, assessment centers,
induction programs
training & development:needs assessment,
competencies gap analysis, training plan, personnel
reviews, career tracks, mobility programs
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Managerial role (contd)
Development of professional practices using
sophisticated tools internally developed oracquired from external providers, for example:
performance management:performance
evaluation, job grading, salary surveys,
compensation packages (fixed/variable,
short/long term), benefits plan (global vs.
individualized, rigid/flexible: cafeteria)
talent management:employer branding, talentidentification, specific development programs,
compensation packages, perquisites
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Key learning points of Session 1
HRM is a fairly recent field in management sciences
and has experienced a tremendous change in the last50 years from traditional to strategic roles, partly thanks
to technology (internet)
HRM is built upon policies, practices that form a system
aiming at increasing company performance and
competitive advantage
Adm inist rat ive ro le:foundation of HRM to ensure that
HR decisions are based on accurate and reliable data,HRIS are critical
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Key learning points of Session 1
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Key learning points of Session 1
(contd)
Legal ro le:compliance with legal rules and norms with
increasing pressure from many stakeholders (states,communities, unions)
Psycholog ical role:get from the employees the extra
mile through motivational and engagement programs,
key issue of fairness in HRM
Managerial role:development and use of sophisticated
tools (using technology), involvement of managers and
employees in HR decisions
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