F/615/2700 Strategic Human Resource Management - ATHE Level 7 Diploma in Strategic Management

Aim: The aim of this unit is to help learners acquire knowledge and understanding of human resource management strategy and its impact on the efficiency of an organisation.

Learning outcome 1: Understand the factors affecting human resource management strategies in organisations
Learning outcome 2: Understand how strategic human resource management contributes to the achievement of the strategic plans of organisations
Learning outcome 3: Understand how to prepare human resource management strategies for organisations
Learning outcome 4: Be able to develop a human resource management strategy for an organisation

Indicative Content

1. Understand the factors affecting human resource management strategies in organisations

• Organisational structure and culture; flexible working practices, seasonality, mission, leadership styles, size of the organisation, national, international, nature of the business function, hierarchical, flat, functional, centralised and de-centralised, product based, project, matrix, liquid, theories Handy, Mintzberg, Weber
• Impact of financial resources; availability of labour, skills needs v shortages, cost of labour, productivity, minimum wage, nature of workforce, seasonality, nature of contracts, remuneration packages, reward systems
• Government legislation affecting human resource management strategies such as rights for disabled workers, equal opportunities legislation, data protection laws, health and safety laws, contracts of employment, breaks and holiday entitlement, redundancy and dismissal, maternity arrangements, race relations, sex discrimination
• Current organisational situation, competitive and financial environment, culture of the organisation, organisation strategy, need for human resources, human resource plans and policies e.g. recruitment and selection, learning and development, performance management, staffing adjustments, talent management

2. Understand how strategic human resource management contributes to the achievement of the strategic plans of organisations

• HRM models e.g. best practice, contingency, Harvard Framework; Guest, Patterson, HRM and personnel management, HRM activities
• Contribution to achievement of strategic plans- alignment of organisation and SHRM plans, human capital, SHRM and organisational performance e.g. growth of the business, reduction in business, change to business function, moving sites, impact of technology, labour market competition, increase in efficiency, reduction in overall budget
• Factors to consider - government policies e.g. employment, education, training, industrial, regional; personnel requirements e.g. numbers, skill sets, training, experience; internal and external factors e.g. workforce profiles, skills availability, labour market competition, Outsourcing, forecasting, gap analysis

• Planning: purpose of plan e.g. identifying need for new talent, re-skilling and up-skilling employees; resources required e.g. new equipment, software and associated training; criteria for success; financial implications; SMART targets; key milestones, contingency plans

• Planning models e.g. human capital strategy, People Maturity Model, top down bottom up, goal based, issue based, alignment, scenario, organic, 5-P model

3. Understand how to prepare human resource management strategies for organisations

• Factors to consider - government policies e.g. employment, education, training, industrial, regional; personnel requirements e.g. numbers, skill sets, training, experience; internal and external factors e.g. workforce profiles, skills availability, labour market competition, Outsourcing, forecasting, gap analysis Government legislation affecting human resource management strategies such as rights for disabled workers, equal opportunities legislation, data protection laws, health and safety laws, contracts of employment, breaks and holiday entitlement, redundancy and dismissal, maternity arrangements, race relations, sex discrimination

• Current organisational situation, competitive and financial environment, culture of the organisation, organisation strategy, need for human resources, human resource plans and policies e.g. recruitment and selection, learning and development, performance management, staffing adjustments, talent management

4. Be able to develop a human resource management strategy for an organisation

• Decision on the model which will be used, business factors e.g. location of operations, technology, productivity, competition, employee development, business growth, contraction, financial implications and skills requirements. Alignment of SHRM to strategic plan and business objective. External factors, demand and supply of labour, Government policy. Monitoring, performance indicators, quantitative and qualitative measures

• Barriers to implementation e.g. finance, trade union influence, skill availability, resistance to change, lack of alignment, communications, consultation process, timescales, works councils