Rashidmusa
Compensation And Policy
Leolingham2000
Management Consultant
Anupsoans
Trainer/facilitator

Hi everybody,:grin:
This is Rashid from Dubai.:).
I want to know difference between Technical HR and Strategic HR.
I would be greatful if any one give me simple explaination of these terms.
It would be better if one would explain how it works and quote an examples how it works.
Sincerely yours
Rashid from Dubai.
19th October 2008 From Saudi Arabia
RASHID,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
=======================================
TECHNICAL HR means
the particular position in the HR department has all the technical
knowledge [ process /procedure/systems/ legal aspects/adminstration/ financial etc]
to implement / administer the policies for the benefits of the staff.

EXAMPLES.

Human Resources Technical COORDINATOR [COMPENSATION ]
Position incumbents are required to possess a broad knowledge of XXXX's compensation (class and pay plans, payroll system); benefit (employee leave, health, dental, life and long term disability insurance; workers' compensation; deferred compensation; and retirement), employment (application, testing, certification, selection, performance evaluation and Equal Employment Opportunity/Affirmative Action) and labor relations (collective bargaining agreements) programs. Incumbents are responsible for providing employees with general background information on these programs, as well as answering specific questions on employee eligibility, cost and any special requirements. Since each program requires the processing of documents, paper or electronic, to initiate or change employee participation, much of the position's time is spent reviewing and completing these documents.
---------------------------------------------------------------------------------------
Human Resources Technical Specialist [ PAYROLL ]
A position incumbent serves as a technical expert in PAYROLL ADMINISTRATION programs, with their primary function being to advise staff regarding all aspects of the program assigned, including employee eligibility, document processing, cost and administrative or statutory changes. Incumbents must have an in-depth knowledge of all state and federal laws and administrative rules, guidelines, policies and procedures that relate to the program. They also assist in the development of forms, guidelines and procedure manuals that govern program administration. Incumbents spend considerable time reviewing agency documents for accuracy and completeness, and following up with agency HR staff regarding omissions and corrections. The positions have a statewide payroll responsibility for tax withholding and a document processing oversight responsibility for legislative and judicial branch employees.
================================================== ==================
STRATEGIC HRM DEFINED
Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations strategies, policies and practices. The key characteristic of strategic HRM is that it is integrated. HRM strategies are generally integrated vertically with the business strategy and horizontally with one another. The HRM strategies developed by a strategic HRM approach are essential components of the organization's business strategy.
Concerns of strategic HRM
Strategic HRM is concerned with the relationship between human resource management and strategic management in the firm. Strategic HRM refers to the overall direction the organization wishes to pursue in order to achieve its goals through people. It is argued that, because intellectual capital is a major source of competitive advantage, and in the last analysis it is people who implement the strategic plan, top managernent must take these key considerations fully into account in developing its corporate strategies. Strategic HRM is an integral part of those strategies.
Strategic HRM addresses broad organizational issues relating to organizational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change. It is concerned with both meeting human capital requirements and the development of process capabilities, that is, the ability to get things done effectively. Overall, it will consider any major people issues that affect or are affected by the strategic plan of the organization. 'The critical concerns of HRM such as choice of executive leadership and formation of positive patterns of labour relations, are strategic in any firm.'
The focus of strategic HRM
Strategic HRM focuses on actions that differentiate the firm from its competitors. It develops declarations of intent which define means to achieve ends, and it is concerned with the long term allocation of significant company resources, and with matching those resources and capabilities to the external environment. Strategy is a perspective on the way in which critical issues or success factors can be addressed, and strategic decisions aim to make a major and long term impact on the behaviour and success of the organization.
The meaning of strategic HRM
Strategic HRM has four meanings:
the use of planning;
a coherent approach to the design and management of personnel systems, based on an employment policy and manpower strategy, and often underpinned by a 'philosophy';
matching HRM activities and policies to some explicit business strategy;
• seeing the people of the organization as a 'strategic resource' for the achievement of 'competitive advantage'.

AIMS OF STRATEGIC HRM
The fundamental aim of strategic HRM is to generate strategic capability by ensuring that the organization has the skilled, committed and well-motivated employees it needs to achieve sustained competitive advantage. Its objective is to provide a sense of direction in an often turbulent environment, so that the business needs of the organization, and the individual and collective needs of its employees, can be met by the development and implementation of coherent and practical HR policies and programmes. Strategic HRM should provide unifying frameworks which are at once broad, contingency based
and integrative.

STRATEGIC HRM MODELS
There are three models: high performance management (high performance working), high commitment management and high involvement management. Within the framework of the concept of strategic HRM, these describe various approaches to its development and implementation.
performance management
High performance working involves the development of a number of interrelated processes that together make an impact on the performance of the firm through its people in such areas as productivity, quality, levels of customer service, growth, profits, and ultimately the delivery of increased shareholder value. This is achieved by 'enhancing the skills and engaging the enthusiasm of employees' the starting point is leadership, vision and benchmarking to create a sense of momentum and direction. Progress must be measured constantly.
That the main drivers, support systems and culture are:
*decentralized, devolved decision making made by those closest to the customer so as constantly to renew and improve the offer to customers;
*development of people capacities through learning at all levels, with particular emphasis on self-management and team capabilities - to enable and support performance improvement and organizational potential;
*performance, operational and people management processes aligned to organizational objectives - to build trust, enthusiasm and commitment to the direction taken by the organization;
* fair treatment for those who leave the organization as it changes, and engagement with the needs of the community outside the organization - this is an important component of trust and commitment-based relationships both within and outside the organization.
High-performance management practices include rigorous recruitment and selection procedures, extensive and relevant training and management development activities, incentive pay systems and performance management processes.
The strategy may be expressed as a drive to develop a performance culture in an organization, and the following is an example of the performance strategy formulated recently by a large local authority:


The fundamental business need the strategy should meet is to develop and maintain a high performance culture. The characteristics of such a culture are:
*a clear line of sight exists between the strategic aims of the authority and those of its departments and its staff at all levels
*management defines what it requires in the shape of performance improvements, sets goals for success and monitors performance to ensure that the goals are achieved
*leadership from the top which engenders a shared belief in the importance of continuing improvement
*focus on promoting positive attitudes that result in a committed and motivated workforce
*performance management processes aligned to the authority's objectives to ensure that people are engaged in achieving agreed goals and standards
*capacities of people developed through learning at all levels to support performance improvement
*people provided with opportunities to make full use of their skills and abilities
*people valued and rewarded according to their contribution.
--------------------------------------------------------------------------------

commitment management
One of the defining characteristics of HRM is its emphasis on the importance of enhancing mutual commitment . High commitment management has been described as 'A form of management which is aimed at eliciting a commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust.'

The approaches to creating a high commitment organization are:
• the development of career ladders and emphasis on trainability and commitment as highly valued characteristics of employees at all levels in the organization;
• a high level of functional flexibility with the abandonment of potentially rigid job descriptions;
• the reduction of hierarchies and the ending of status differentials;
• a heavy reliance on team structure for disseminating information (team briefing), structuring work (team working) and problem solving (quality circles).
job design as something management consciously does in order to provide jobs that have a considerable level of intrinsic satisfaction;
• a policy of no compulsory lay-offs or redundancies and permanent employment guarantees, with the possible use of temporary workers to cushion fluctuations in the demand for labour;
• new forms of assessment and payment systems and, more specifically, merit pay and profit sharing;
• a high involvement of employees in the management of quality.
----------------------------------------------------------------------------


involvement management
This approach involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement. The aim is to create a climate in which there is a continuing dialogue between managers and the members of their teams in order to define expectations and share information on the organization's mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved.

Five high-involvement work practices have been identified:
'on-line' work teams;
'off-line' employee involvement activities and problem solving groups;
• job rotation;
suggestion programmes;
• decentralization of quality efforts.

====================================

AS AN EXAMPLE OF STRATEGIC HRM

SUPPOSE THE CORPORATE MANAGEMENT DECLARES
THE COMPANY MUST ACHIEVE ''CORPORATE EXCELLENCE/PRODUCTIVITY''
and defined the corporate excellence as: a "highperforming organization"
which achieves key results through teamwork and innovation.

Achieving Corporate Excellence
for the 'STRATEGIC HRM''
The specific challenges to achieving corporate
excellence
include:
DEVELOPMENT OF
-STRATEGIES
-TACTICS
-PLANS
-PROGRAMS
in each of the elements listed below.

-Effective recruitment / selection the right people,
the best fit, which will reduce the attrition rate.
-Development of an effective system to retain talents.
-Providing leadership with necessary skills for senior management.
-Providing support programs for implementing '' best practices''
within financial and operating constraints.
-Providing communication support relating effectively with a broad
range of stakeholders who may have conflicting or
competing interests.
-Provide a consistent, stable, and clearly defined
HRM policies and standards to build trust and
effectively deliver services.
- Recruiting / Managing the highest calibre of both senior
managers and middle managers through succession
planning.
-Providing resources to develop employees skills/knowledge/
ability to meets the corporate objectives through
appropriate programs.

-Manage the timeliness and currency of legislative
acts, regulations, and amendments with reference to HR POLICIES.
-Meet the skill level of workers and the broad scope
of workplace types.
-Enable / Ensure the safe and early return to
meaningful work is in the best interests of
the worker, employer, coworkers, and family.
-Ensure that all injuries are preventable.
Focusing on prevention will result in reduced
injuries and costs.
-Provide appropriate safety management programs
for each workplace.
- Make provision of resources for education of all employees.
HR WORKLIFE APPROACH
Promoting a culture of well-being involves the
following four steps:
• developing a concept of wellness through
discussions with EMPLOYEES.
• incorporating the concept of well-being in all
our communications.
• implementing "best practices" in all our
programs and services, with the intent of
contributing to the well-being of
workers and employers.
• exploring different measures for determining
well-being and how various stakeholders can
contribute.

The Ideal Workplace (Our Dream)
Develop a HR Strategic Plan which is based on the attainment of
a dream shared by the Board of Directors. The dream helps us
believe we can move beyond today’s reality to tomorrow’s possibilities.
This HR Strategic Plan is a commitment intended
to work toward the achievement of this dream.
##################################################



20th October 2008 From India, Mumbai
Thanks Mr Leo Lingham for your comments.

I would like to share with you what I have information on this after posting my qerry I search some books and find this in concise to describe the diffrence.

I hope this will be add more information to us.

Human resources management (HRM) effectiveness has two essential dimensions. \The first, Technical HRM, includes the delivery of HR basics such as recruiting, compensation, and benefits.
The second, Strategic HRM , involves delivering those services in a way that directly supports the implementation of the firm’s strategy. Strategic behavior is result of strategic HR.

STRATEGIC BEHAVIOR:- will fall into two general categories:
1. Core Behavior: That flow from directly from core competencies defined by the firm.
2. Situation Specific Behavior: Those are essential key points in firms or business unit’s
value chain. An example of these latter behaviors might
be cross-selling requires in the branch of retail bank.
3. Value Behavior: Identified set of value behaviors such as staying flexible and adaptable, taking initiative for one’s own development and resolving issues in a objective manner, as one time-to-value driver. There is nothing symbolic about the importance of these behaviors to the success of the company. This is what needs to integrate performance criteria and give them equal weight age with more traditional performance measures. If one-half bonus and merit pay is based on financial results, and one-half on an employee’s adherence to the value behaviors.

As the primary source of production in our company has shifted from physical to intellectual capital, senior HR managers have come under fire to demonstrate exactly how they create value for their organization?
More important, they have been challenged to serve increasingly as strategic partner in running the business.
But what does it mean to be a strategic asset?
The literature defines the term as
Strategic Asset = “The set of difficult to trade and imitate, scarce, appropriable and
Specialized resources that bestow the firm’s competitive advantage”
Think about the difference between the
1. ability to align every employee’s efforts with company’s overall vision.
2. and innovative policy such as 360-degree performance appraisals.
The first is strategic capability whose cause is largely invisible to competitors;
The second is a policy that, although initially innovative, is visible to competitors- and thus quickly copied. Simply put, strategic assets keep a firm’s competitive edge sharp for the long haul- but by definition they are difficult to copy.
Strategic Capability = arising out of strategic asset.
Thus HR’s problem- that its impact on firm strategy is difficult to see- is the very quality that also makes it a prime source of sustainable competitive potential. But to realize these potential
“Human resources manager must understand the firm’s strategy: that is for developing and sustaining an advantage in the market place. Then they must grasp the implication of that strategy for HR. In short they must move from s “bottom-up” perspective (emphasizing, compliance and traditional HR) to a “top-down” perspective. (Emphasizing the implementation of strategy) .Finally they need innovative assessment systems that will let them demonstrate their influence on measures that matters to CEO’s, namely firm profitability and shareholders’ value.

Regards

Rashid
20th October 2008 From Saudi Arabia
Thanks Mr Leo Lingham for your comments.

I would like to share with you what I have information on this after posting my qerry I search some books and find this in concise to describe the diffrence.

I hope this will be add more information to us.

Human resources management (HRM) effectiveness has two essential dimensions. The first, Technical HRM, includes the delivery of HR basics such as recruiting, compensation, and benefits.
The second, Strategic HRM , involves delivering those services in a way that directly supports the implementation of the firm’s strategy. Strategic behavior is result of strategic HR.

STRATEGIC BEHAVIOR:- will fall into two general categories:
1. Core Behavior: That flow from directly from core competencies defined by the firm.
2. Situation Specific Behavior: Those are essential key points in firms or business unit’s
value chain. An example of these latter behaviors might
be cross-selling requires in the branch of retail bank.
3. Value Behavior: Identified set of value behaviors such as staying flexible and adaptable, taking initiative for one’s own development and resolving issues in a objective manner, as one time-to-value driver. There is nothing symbolic about the importance of these behaviors to the success of the company. This is what needs to integrate performance criteria and give them equal weight age with more traditional performance measures. If one-half bonus and merit pay is based on financial results, and one-half on an employee’s adherence to the value behaviors.

As the primary source of production in our company has shifted from physical to intellectual capital, senior HR managers have come under fire to demonstrate exactly how they create value for their organization?
More important, they have been challenged to serve increasingly as strategic partner in running the business.
But what does it mean to be a strategic asset?
The literature defines the term as
Strategic Asset = “The set of difficult to trade and imitate, scarce, appropriable and
Specialized resources that bestow the firm’s competitive advantage”
Think about the difference between the
1. ability to align every employee’s efforts with company’s overall vision.
2. and innovative policy such as 360-degree performance appraisals.
The first is strategic capability whose cause is largely invisible to competitors;
The second is a policy that, although initially innovative, is visible to competitors- and thus quickly copied. Simply put, strategic assets keep a firm’s competitive edge sharp for the long haul- but by definition they are difficult to copy.
Strategic Capability = arising out of strategic asset.
Thus HR’s problem- that its impact on firm strategy is difficult to see- is the very quality that also makes it a prime source of sustainable competitive potential. But to realize these potential
“Human resources manager must understand the firm’s strategy: that is for developing and sustaining an advantage in the market place. Then they must grasp the implication of that strategy for HR. In short they must move from s “bottom-up” perspective (emphasizing, compliance and traditional HR) to a “top-down” perspective. (Emphasizing the implementation of strategy) .Finally they need innovative assessment systems that will let them demonstrate their influence on measures that matters to CEO’s, namely firm profitability and shareholders’ value.

Regards

Rashid
20th October 2008 From Saudi Arabia
Thanks Mr Leo Lingham for your comments.

I would like to share with you what I have information on this after posting my qerry I search some books and find this in concise to describe the diffrence.

I hope this will be add more information to us.

Human resources management (HRM) effectiveness has two essential dimensions. The first, Technical HRM, includes the delivery of HR basics such as recruiting, compensation, and benefits.
The second, Strategic HRM , involves delivering those services in a way that directly supports the implementation of the firm’s strategy. Strategic behavior is result of strategic HR.

STRATEGIC BEHAVIOR:- will fall into two general categories:
1. Core Behavior: That flow from directly from core competencies defined by the firm.
2. Situation Specific Behavior: Those are essential key points in firms or business unit’s
value chain. An example of these latter behaviors might
be cross-selling requires in the branch of retail bank.
3. Value Behavior: Identified set of value behaviors such as staying flexible and adaptable, taking initiative for one’s own development and resolving issues in a objective manner, as one time-to-value driver. There is nothing symbolic about the importance of these behaviors to the success of the company. This is what needs to integrate performance criteria and give them equal weight age with more traditional performance measures. If one-half bonus and merit pay is based on financial results, and one-half on an employee’s adherence to the value behaviors.

As the primary source of production in our company has shifted from physical to intellectual capital, senior HR managers have come under fire to demonstrate exactly how they create value for their organization?
More important, they have been challenged to serve increasingly as strategic partner in running the business.
But what does it mean to be a strategic asset?
The literature defines the term as
Strategic Asset = “The set of difficult to trade and imitate, scarce, appropriable and
Specialized resources that bestow the firm’s competitive advantage”
Think about the difference between the
1. ability to align every employee’s efforts with company’s overall vision.
2. and innovative policy such as 360-degree performance appraisals.
The first is strategic capability whose cause is largely invisible to competitors;
The second is a policy that, although initially innovative, is visible to competitors- and thus quickly copied. Simply put, strategic assets keep a firm’s competitive edge sharp for the long haul- but by definition they are difficult to copy.
Strategic Capability = arising out of strategic asset.
Thus HR’s problem- that its impact on firm strategy is difficult to see- is the very quality that also makes it a prime source of sustainable competitive potential. But to realize these potential
“Human resources manager must understand the firm’s strategy: that is for developing and sustaining an advantage in the market place. Then they must grasp the implication of that strategy for HR. In short they must move from s “bottom-up” perspective (emphasizing, compliance and traditional HR) to a “top-down” perspective. (Emphasizing the implementation of strategy) .Finally they need innovative assessment systems that will let them demonstrate their influence on measures that matters to CEO’s, namely firm profitability and shareholders’ value.

Regards

Rashid
20th October 2008 From Saudi Arabia
Management functions like Finance, Marketing and HR can be performed as a routine without aligning it with the larger corporate strategy. Similarly sub functions within HR like Recruitment, T & D, Comp and Benefits etc can be performed without connecting it to corporate objectives. Every function in an organization needs alignment with the larger corporate strategy, which has been drawn up to give the organization a competitive advantage vis a vis the environment in which it operates and the competition it faces and the customers it serves and the suppliers it partners with. Strategic HR aligns its people practices in a way so as to enable its people to deliver the corporate strategy. Simply put while 'technical HR' focuses on the HR 'do ables', strategic HR focuses on HR 'deliverables'. unless the HR is strategic in its 'do ables', execution of the startegy will be poor/fail. So while HR may have done the required number of training hours for all its employees, these skills may not be one's needed by employees to execute the corporate strategy or HR may have focused only on the skills and not the behavior/attitude needed to operationalise the skill in a team setting.
21st October 2008
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