MODELS OF STRATEGIC HUMAN RESOURCE MANAGEMENT. Dr. Enyonam C. Kudonoo 1

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1 MODELS OF STRATEGIC HUMAN RESOURCE MANAGEMENT Dr. Enyonam C. Kudonoo 1

2 MODELS OF SHRM There are three main models: The high performance management model High commitment model High involvement model There is no one exclusive model. A thought through HR strategy leverages ideas from all three models. Dr. Enyonam C. Kudonoo 2

3 THE HIGH PERFORMANCE MANAGEMENT MODEL It aims at using people to improve firm performance through: Productivity Quality Levels of customer service Growth Profits Increase of shareholder value. Dr. Enyonam C. Kudonoo 3

4 THE HIGH PERFORMANCE MANAGEMENT MODEL Has characteristics such as: Careful and extensive systems for recruitment, selection and training. Formal systems for sharing information with the individuals who work in the organization. Clear job design High level participation processes. Monitoring of attitudes Performance appraisals Properly functioning grievance procedures Promotion and reward schemes that provide financial and recognition of high performing employees of the organization. Dr. Enyonam C. Kudonoo 4

5 HIGH COMMITMENT MODEL Goes beyond high-performance model to include: employee commitment identification with organization s values and goals. High commitment: a form of management which is aimed at eliciting a commitment, so that behaviour is primarily selfregulated rather than controlled by sanctions and pressure external to the individual, and relations within the organization are based on high levels of trust (Wood,1996) Dr. Enyonam C. Kudonoo 5

6 HIGH COMMITMENT MODEL -CHARACTERISTICS Development of career ladders and emphasis on trainability of employees at all levels. A high level of functional flexibility with abundant potentially rigid job descriptions The reduction of hierarchies. A heavy reliance on team structure for disseminating information (team briefing), structuring work (team working), and problem solving (quality circles). Dr. Enyonam C. Kudonoo 6

7 HIGH COMMITMENT MODEL - CHARACTERISTICS Job design becomes something management consciously does in order to provide jobs which have a considerable level of intrinsic satisfaction. A policy of: no compulsory lay-offs or redundancies and permanent employment guarantee with possible use of temporary workers to cushion fluctuations in the demand for labour. Dr. Enyonam C. Kudonoo 7

8 HIGH COMMITMENT MODEL -CHARACTERISTICS New forms of assessment, payment systems and more specifically, merit pay profit sharing. A high involvement of employees. (Wood & Albanese, 1995). Dr. Enyonam C. Kudonoo 8

9 HIGH INVOLVEMENT MODEL Has to do with treating employees as partners, their interests respected and they have voice in the organization. The main aim is to create a climate in which continuous dialogue between employees and management prevails. Expectations are defined through shared information on organization s vision, mission, values and goals. It establishes mutual understanding and a framework of managing and developing people is developed and ensured. Dr. Enyonam C. Kudonoo 9

10 EFFECTIVE HUMAN RESOURCE STRATEGIES Selection and the careful use of tests to identify people with potential to contribute to organizational success. Recognizing the importance of training and the fact that it is an ongoing activity. Design jobs to ensure: flexibility, commitment and Motivation. Including steps to ensure that employees have the responsibility and autonomy to use their knowledge and skills to the fullest. Dr. Enyonam C. Kudonoo 10

11 EFFECTIVE HUMAN RESOURCE STRATEGIES Communication that ensures that the twoway process keeps everyone fully informed. In the private sector, employees share ownership programmes to keep them aware of the implications of their: actions, including absence and labour turnover, for the financial performance of the organization. Dr. Enyonam C. Kudonoo 11