Efforts, skills and capabilities that people contribute to an employing organisation Essay Example

Functions: This includes staffing budgets, departmental budgets, accounts receivable and payable, insurance receivables, and overall package costing.
- Expert Administration: SHRM requires an active role from staff members in effectively reengineering administrative and process within the organization.
- Decision Making Focus: Approaching strategically involves choosing the best options from various possibilities.
- Rights and Leave Policies: This includes state, federal, family, and medical leave rights, county-approved leaves of absence, rights upon return to work, and temporary assignments for light duty periods.

Literature Review:

According to SHRM, organizations need to adopt a strategy that focuses on critical capabilities in order to achieve organizational goals and specific business objectives. Unlike traditional HRM, SHRM emphasizes the flexible utilization of human resources to gain competitive advantages. Organizations also need to develop an emergent strategy to ensure smooth workflow, as suggested by Wei (2006). Mintzberg and Waters argue that the realized strategy, which is the actual strategy implemented, is only partially related to the intended strategy. Mintzberg suggests that only 10-30% of the intended strategy is realized. The primary factor determining the realized strategy is what Mintzberg refers to as emergent strategy. This refers to the decisions that arise from complex processes where individual managers interpret the intended strategy and adapt to changing external circumstances. It is important to view this model as a process, particularly taking into account the variable of time. As demonstrated in the model below, the realized strategy has an impact on the intended strategy over time. This highlights the significance of current strategies in shaping future strategies.There are two primary types of organizations: those with deliberate strategies and those with emergent strategies. These pure forms are rare

and it's unlikely that any organization operates solely under one of these types. In a pure deliberate strategy, the organization must have clear and detailed objectives, which must be executed precisely as planned. On the other hand, for a strategy to be purely emergent, there must be consistency in actions over time without any specific objectives. According to Mintzberg & Waters (1985), these pure types of strategies are extremely rare, but there are several different types of strategies that exist between these two extremes in today's companies. Mintzberg & Waters (1985) identify eight different types of strategies. The planned strategy involves clear objectives supported by formal control. The leader plays a central role in this strategy, with clear and precise objectives, and the goal is to translate these objectives into collective action with minimal deviation. Systems and processes are put in place to ensure everyone acts according to the intended plan. To be effective, this strategic process requires a highly stable environment or accurate prediction of the environment. When organizations invest significant resources in a mission or project, they may not be able to tolerate an unstable environment.When organizations plan ahead for several years and prevent avoiding behavior, they can achieve sustained competitive advantage. Mining companies are an example of this. The human resources of an organization offer the potential for synergy when properly deployed, maintained, and utilized. Historically, traditional HRM focused on transactional and administrative support services. However, the emergence of SHRM shifted the focus to the relationship between HRM and strategic management. To successfully perform the roles of business partner and change agent under SHRM, HR practitioners need to possess various core competencies

such as business knowledge, strategic visioning, global operating skills, credibility, integrity, and internal consulting skills. One example of a strategy related to intended and planned strategies is Motorola in China. This case demonstrates how Motorola adjusted its strategies based on emerging trends. In the early 2000s, Motorola faced challenges in the Chinese market and most of its implemented strategies were unsuccessful.Motorola realized that its previous strategies were no longer effective in keeping up with market trends. The Chinese cell phone market is large and has the potential for continual long-term growth, resulting in intense competition for access to consumer markets. Nokia, Siemens, Samsung, and local manufacturers like TCL pose a threat to Motorola. However, a nationwide survey conducted by the China Telecommunications Association and Eaglewings Public Relations revealed that 84% of Chinese consumers prefer foreign mobile phones, with Motorola, Nokia, and Ericsson being their favorite brands. This suggests that Motorola's main competition in dominating the cell phone market in China would likely come from foreign companies outside of China. The government structure in China favors local control and dominance in most industries. The government controls the service provider sector and plays a dominant role in distribution channels. This makes it challenging for foreign companies to establish dominance. Hence, Motorola used long-term strategies to compete with locally-owned companies influenced by the government's power instead of relying on short-term tactics to gain market share.According to the Ministry of Information Industry, as of April 2002, Motorola held a market share of 28.7% in the mobile phone industry, representing a 10% market share in the Chinese cell phone market as of the first quarter of 2005. Due to the

growth phase of the industry life cycle in China, companies aimed to prioritize local responsiveness. To address this, Motorola developed strategies to adapt to the changing environment and ensure customer satisfaction. By setting both long-term goals and short-term targets, Motorola became a leading organization in China's mobile market. This was supported by the region's availability of cheap labor and abundant resources, enabling them to manufacture mobiles at a lower cost. As a result, they were also able to capture the market in the sub-continent. Considering this, what drives the adoption of Emergent SHRM in Indian companies is well understood in terms of managerial innovation in today's global business.The increasing importance of implementing new managerial innovations in strategic human resource management is widely discussed in both business and academic literature. However, there has been a lack of research conducted on this topic in emerging countries like India. This study aims to identify the factors that drive the adoption of advanced and emerging strategic human resource practices in Indian organizations. The liberalization of the Indian economy, which began in 1991, serves as a notable example of such innovation. The structural changes resulting from liberalization have created a highly competitive environment, which has led to an increase in research on innovation. Indian organizations typically exhibit characteristics such as generalizability, relevance, acceptability, and the diffusion of practices. Insights from organizational theories suggest that managerial innovation is primarily adopted by Indian organizations to improve their overall performance. Walston et al. (2001) argue that emergent strategic innovations have the potential to enhance efficiency, making them particularly attractive to organizations facing intense competition. Adoption and diffusion occur through the generation, development, and

implementation of new ideas or behaviors (Damanpour, 1991).The above text discusses the factors that influence the features of individuals, organizations, and the context in which they operate. It refers to Kimberly (1981) and Kimberly and Evanisko (1981) for support.

The image titled "Figure 001" illustrates how a strategic human resource management (SHRM) plan is implemented. The directors use SWOT and STEEPLE analysis to create a predefined scheme, which then leads to the development of a corporate strategy. The main image depicted in Figure 001 represents this process.

In a similar vein, when Tata Tea acquired loss-making Tetley of the UK in 2000, many believed it would burden the Tata group. However, the Tata group proved the skeptics wrong and started showing early signs of a turnaround in 2001. One contributing factor to this success was a debt restructuring exercise that reduced interest costs. Additionally, Tata Tea injected ?30 million into the Tetley group to replace high-cost debt. Furthermore, the complementary nature of Tetley's global retailing operations with Tata Tea's domestic business played a role in this positive outcome.Following the acquisition of Tetley, the Tata group made several significant acquisitions including the US telecom web operator Tyco Global, Daewoo Commercial Vehicles, and Boston's Ritz Carlton hotel. One of the notable acquisitions was Tata Motors acquiring the commercial vehicles unit of the bankrupt Korean group, Daewoo, in March 2004. This acquisition not only expanded Tata Motors' product portfolio but also allowed them to establish a presence in the international market. The company now utilizes Korea as a hub for exporting commercial vehicles to other Asian markets. Renamed as Tata Daewoo Commercial Vehicle Ltd. (TDCV) in South Korea, the company

has been experiencing healthy growth. In the 2005-06 fiscal year, TDCV achieved a 26% increase in turnover, reaching Rs 1,647 crore compared to Rs 1,247 crore the previous year. The company's net profit also soared by 163% to Rs 60.75 crore. This success can be attributed to the change in strategy by the Indian Company, which is just one example among many Indian companies implementing new strategies. Another example is the Indian Railway, where Tata departed from their intended strategy and adopted an emergent strategy to adapt to India's changing culture and achieve their target. This shift in strategy proved to be fruitful.

Intended Vs. Emergent Strategy: Fit for Organization

According to Mintzberg and Waters, strategy should be viewed from a broader perspective. They differentiate between deliberate strategies (those intended by the organization) and emergent strategies (strategies that emerge within an organization without being guided by intentions).Deliberate scheme refers to a planned and intentional scheme that must meet three conditions: clear and defined purposes, shared knowledge among all members of an organization, and successful realization of those purposes without interference. On the other hand, emergent scheme is characterized by an order that arises without specific intention. While it may be difficult to imagine action without purpose, emergent scheme is not chaotic but rather unintentional order. The authors believe that purely emergent schemes are rare, and it is more common to find tendencies towards deliberate or emergent strategies rather than perfect examples of either. They present different types of schemes that fall on a spectrum between deliberate and emergent strategies. In organizations such as Walmart, Ebay, and Citigroup, strategies are developed over time.They have various methods for planning

and preparing schemes, both intentional and emergent. Common techniques for explaining these schemes include the Quantitative Analysis Planning Matrix and Ansoff Matrix. In Strategic Human Resource Management (SHRM), they have developed schemes to address emergent situations as well. The HR professional's role becomes more challenging under SHRM as they align HR systems, policies, and practices with business strategy to gain a sustained competitive advantage. To effectively support the company's business strategy, the HR professional must think beyond the intended approach and embrace emergent SHRM strategies. Understanding the company's business direction and competitive position in the market is crucial for successful execution of the HR manager's role as a strategic business partner.To successfully fulfill the role of a strategic partner, the HR director must possess competencies related to the issues involved in strategy development and contribute to organizational design and change management (Lawler, III and Mohrman, 2003). According to Rowden (1999), the HR function should shift from delivering prepackaged HR services to assisting managers in creating customized strategic plans that influence company performance. The HR director plays a vital role in formulating strategy and providing the necessary human resources to support various strategies and strategic initiatives within the organization. They assume a leadership role in developing human capital and the required capabilities to implement the strategy successfully and manage change processes (Lawler III & Mohrman, 2003). Effective management of human capital is crucial for executing business strategies. According to Ulrich (1998), the modern HR professional must fulfill four complementary roles. The first role, administrative excellence, is important because it immediately contributes to the overall efficiency of the organization. As an administrative expert, they must rethink how

work is conducted throughout the organization. The second role that HR professionals must embrace is that of an employee advocate.The role of the HR director is crucial as they serve as an Employee Advocate, representing employees in management discussions, providing opportunities for personal and professional growth, and ensuring that employees have the necessary resources to meet their demands. Additionally, the HR director may propose employee empowerment, giving employees more control over their work schedules.

Two other important roles for the modern HR professional are Strategic Partner and Change Agent. As a Strategic Partner, the HR professional must constantly evaluate the alignment between current HR practices and business objectives, and develop policies and practices to maximize this alignment. The HR practitioner should also be responsible for defining the organizational architecture by examining various components such as strategy, structure, rewards, processes, people, style, and shared values. This new knowledge will enable HR to confidently contribute value to the executive team.

As a Change Agent, the HR director plays a crucial role in implementing and managing organizational change. They assess potential sources of resistance to change and collaborate with line managers to overcome these barriers.The HR professional's role as a change agent is to replace resistance with resolution, planning with results, and fear of change with excitement about its possibilities. These last two roles - strategic partner and change agent - are of particular interest to us because they represent the emerging strategic dimension of HR function - SHRM. In addition to the above roles, the HR practitioner needs to be a model and take on the special role of integrating people strategies with business strategies in a

way that advances the bottom line. Metzler (1998) adds that the HR manager must play an active and guiding role in enabling the organization to effectively manage its human resources, invest in these people, support their growth and respect their needs while fostering innovations needed to achieve the strategic business objectives. The HR professional operating under the SHRM system must define roles that include early and active participation in key strategic business decisions. He must become the partner of decision makers in the organization and share accountability for organizing and implementing work. He must carry out effective monitoring to ensure that everyone in the organization, at every organizational level, remains focused on shared strategic priorities. He must challenge old ways and constantly promote innovation to enhance corporate performance and the company's competitiveness.

Conclusion

In summary, it is important to consider both Intended and Emergent Schemes when making decisions regarding market changes. Many companies solely focus on intended strategies, which can lead to failure when faced with unexpected challenges such as a recession. Developing strategies for both types will help companies achieve future success. 3M's approach of empowering employees is a common example that demonstrates the effectiveness of incorporating both deliberate and emergent strategies. The key difference between deliberate and emergent strategy lies in their focus - deliberate strategy emphasizes direction and control, while emergent strategy allows for the concept of "strategic learning." Emergent strategies do not imply a lack of control; instead, they promote openness, flexibility, responsiveness, and a willingness to learn. This mindset is crucial for navigating complex, uncertain, and evolving environments. In the best-case scenario, it enables management to take action before

fully understanding everything. Deliberate strategies help manage and impose goals on the organization while providing a sense of direction. Therefore, the conclusion is that strategy formation involves both deliberate and emergent approaches.The emphasis on either side can change in different clips, but the need to address both aspects of this phenomenon remains constant.