Public Enterprise Management Ch18. Strategic HRM — SHRM, competency model, talent management

1. Strategic HRM (SHRM) Overview

SHRM (Strategic Human Resource Management): An approach that links human resource management with organizational strategy to create a sustainable competitive advantage.

Traditional HRM vs SHRM

Category	Traditional HRM	SHRM
Focus	Administration & compliance	Strategic partnership
Time Horizon	Short-term & transactional	Long-term & transformational
Role	Administrative support	Participation in strategic decision-making
Control	Rule-based	Value- & commitment-based
Employee Relations	Cost center	Investment asset

Fit in SHRM

Vertical Fit: Alignment between HR strategy and business strategy
Horizontal Fit: Consistency among HR subsystems

2. Competency Model

Competency: A collection of behaviors, knowledge, skills, and attitudes shared by high-performing talent.

Competency Types

Type	Description	Example
Core Competency	Common to all employees	Customer orientation, collaboration
Job Competency	Specialized competency by job role	Financial analysis, coding
Leadership Competency	For managers	Vision casting, coaching

Competency-Based Recruitment and Selection (CBRS)

Behavioral Event Interview (BEI) technique: “How did you resolve a team conflict in the past?” → STAR method (Situation, Task, Action, Result).

3. Talent Management

Competition for Talent

McKinsey’s “War for Talent”: Core talent (A-players) account for a decisive share of performance.

High Performer Management Principles

Differentiated compensation
Assignment of challenging jobs
Clear career paths provided
Touchpoints with top leadership

Succession Planning

An internal candidate development system to prepare for future vacancies in key positions.

9-Box Grid: A 9-cell matrix classifying talent by Performance (Low/Medium/High) × Potential (Low/Medium/High).

4. Advanced Motivation Theories

Equity Theory (Adams)

Employees judge fairness by comparing their input-to-output ratio to a reference standard.

Under-reward: Decrease inputs, increase outputs, or change the standard
Over-reward: Increase inputs or cognitive reinterpretation

Expectancy Theory (Vroom)

Motivation = Expectancy × Instrumentality × Valence

Element	Question
Expectancy	Will effort lead to goal achievement?
Instrumentality	Will achieving the goal lead to rewards?
Valence	Are the rewards meaningful to me?

Reinforcement Theory (Skinner)

Type	Description
Positive Reinforcement	Reward desirable behavior
Negative Reinforcement	Increase behavior by removing unpleasant stimuli
Extinction	Decrease behavior by stopping rewards
Punishment	Suppress behavior through unpleasant stimuli

5. Diversity Management

Management that transforms diversity in gender, age, race, and cultural background into organizational strengths.

Effects of Diversity Management: Creative problem solving / Global market accessibility / Reflecting customer diversity / Attracting top talent

Glass Ceiling: An invisible barrier women and minorities face when advancing to senior career levels.

Inclusive Leadership

Creating an environment where diverse members can contribute while maintaining their identities.

6. HR Outsourcing and Shared Services

HR Outsourcing: Contracting out non-core HR tasks such as recruitment, payroll, and training to external specialized agencies. Advantages of HR Outsourcing (HRO): Cost reduction, securing expertise, focus on core competencies.

HR Shared Services Center (HR SSC): Centralizing and standardizing HR administrative tasks across multiple business units.

Core Summary (Frequently Tested Keywords)

Keyword	Associated Theory
Vertical & Horizontal Fit	SHRM strategic alignment
STAR Method	Competency-based behavioral interview
9-Box Grid	Performance × Potential talent classification
Equity Theory	Adams, input/output ratio comparison
Expectancy Theory	Vroom, E×I×V
Reinforcement Theory	Skinner, adjusting behavioral outcomes
Glass Ceiling	Career barrier for women and minorities