1 / 37

Strategic Management & Planning

Chapter 2 & 5a. Strategic Management & Planning. Strategic HR Management. The use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness. Part 1. Productivity & HR. Productivity.

abdalla
Download Presentation

Strategic Management & Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2 & 5a Strategic Management & Planning

  2. Strategic HR Management • The use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness. Chapter 2 & 5a

  3. Part 1 • Productivity & HR Chapter 2 & 5a

  4. Productivity • A measure of the quantity and quality of work done, considering the cost of the resources used. • A ratio of the inputs and outputs that indicates the value added by an organization. • Unit labor cost: computed by dividing the average cost of workers by their average levels of output Chapter 2 & 5a

  5. Improving Organizational Productivity • Organizational restructuring • Re-designing work • Aligning HR Activities • Outsourcing analyses and assistance Chapter 2 & 5a

  6. Organizational Culture & Effectiveness • Organizational Culture • The shared values and beliefs in an organization • Strategy and culture must be compatible. • Culture affects recruitment and retention of employees. • Culture can enhance or constrain organizational performance. Chapter 2 & 5a

  7. Part 2 • HR Planning Chapter 2 & 5a

  8. Human Resource Planning • Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization. • Purpose of HR Planning • right people with right skills at right place at right time Chapter 2 & 5a

  9. Types of Workers Needed • Core knowledge workers • Traditional job-based employees • Contract labor • Alliance/partners Chapter 2 & 5a

  10. 1. Core knowledge workers • Employees who have firm-specific skills that are directly linked to the company’s strategy. • Example: Senior software programmer Chapter 2 & 5a

  11. 2. Traditional Job-based workers • Employees with skills to perform a predefined job that are quite valuable to a company, but not unique. • Example: Security guard Chapter 2 & 5a

  12. 3. Contract Labor • Employees whose skills are of less strategic value and generally available to all firms. • Example: General electrician Chapter 2 & 5a

  13. 4. Alliance/Partners • Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy. • Example: Independent product label designer Chapter 2 & 5a

  14. HR Planning Model • Forecast Demand • Forecast Supply • Find balance • Shortage – recruit: full-time, part-time, recalls • Surplus – Layoffs, terminations, demotions, retirements Chapter 2 & 5a

  15. Forecasting Work Requirements • Determine expected production for department for specific time period • 10,000 T-shirts per month • Determine how many labor hours it will take to meet production goal • Each worker makes 10/hr 10,000/10 = 1000 hours Chapter 2 & 5a

  16. Forecasting Work Requirements • Convert work hours to work days • With 8 hr shifts  1000/8 = 125 days • Divide needed workdays by workdays-per-period • With 20 workdays/month  125/20 = 6.25 people Chapter 2 & 5a

  17. Forecasting Work Requirements • Make allowances for absences, training, and leaves • Round up to 7 people • Search for other ways to meet your schedule • i.e. overtime, transfers, borrow employees, temps • instead of 7 line workers to do 6.25 work, hire 6 & work a little overtime Chapter 2 & 5a

  18. Your Goal: • Make sure employees on hand matches workload Chapter 2 & 5a

  19. Overstaffing • Having more workers than minimum necessary • Costs & flexibility increase • Efficiency drops • Coaching & training opportunities may be taken Chapter 2 & 5a

  20. Understaffing • Having fewer workers than minimum necessary • Can get you behind schedule • Costs may end up higher as you try to make up the difference • Can bring out creativity Chapter 2 & 5a

  21. Effective Staffing • The right number & kinds of workers on the right jobs at the right times Chapter 2 & 5a

  22. Forecasting Internal Labor Supply Chapter 2 & 5a

  23. Forecasting Internal Labor Supply • Staffing Tables • Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements. • Markov Analysis • A method for tracking the pattern of employee movements through various jobs Chapter 2 & 5a

  24. Sample Markov Analysis: Retail Chapter 2 & 5a

  25. Internal Supply Forecasting Tools • Skill Inventories • Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds. • Replacement Charts • Listings of current jobholders and persons who are potential replacements if an opening occurs. Chapter 2 & 5a

  26. Internal Supply Forecasting Tools • Succession Planning • The process of identifying, developing, and tracking key individuals for executive positions Chapter 2 & 5a

  27. Factors influencing external labor supply • Demographic changes in the population • National and regional economics • Education level of the workforce • Demand for specific employee skills • Population mobility • Governmental policies Chapter 2 & 5a

  28. Part 3 • Managing a HR Surplus Chapter 2 & 5a

  29. WARN Act • Workforce Reductions and the Worker Adjustment and Retraining Notification • Sets out employer requirements for advance notice of a layoff or facility closing. • 60-day notice to employees and the local community before a layoff or facility closing involving more than 50 people. • Does not cover part-time or seasonal workers. • Imposes fines for not following notification procedure. • Has hardship clauses for unanticipated closures or lack of business continuance capabilities. Chapter 2 & 5a

  30. Workforce Realignment • “Downsizing” • “Rightsizing” • “Reduction in Force” (RIF) • all mean reducing the number of employees in an organization Chapter 2 & 5a

  31. Realignment Causes • Economic • weak product demand, loss of market share to competitors • Structural • technological change, mergers and acquisitions Chapter 2 & 5a

  32. Realignment Positives • Increase competitiveness • Increased productivity Chapter 2 & 5a

  33. Realignment Negatives • Cannibalization of HR resources • Loss of specialized skills and experience • Loss of growth and innovation skills Chapter 2 & 5a

  34. Managing Realignment Survivors • Provide explanations for actions and the future • Involve survivors in transition/regrouping activities Chapter 2 & 5a

  35. How to Downsize • Attrition and hiring freezes • Not replacing departing employees and not hiring new employees • Voluntary Separation Programs • Early retirement buyouts. Chapter 2 & 5a

  36. How to Downsize • Layoffs • Employees are placed on unpaid leave until called back to work when business conditions improve. • Employees are selected for layoff on the basis of their seniority or performance or a combination of both. Chapter 2 & 5a

  37. How to Downsize • Outplacement services provided to displaced employees: • Personal career counseling • Resume preparation and typing services • Interviewing workshops • Referral assistance • Severance payments • Continuance of medical benefits • Job retraining Chapter 2 & 5a

More Related