1 Meeting Present and Emerging Strategic Human Resource Challenges

1. 1Meeting Present and Emerging Strategic Human Resource Challenges

2. Challenges facing HR • How can HR influence firm performance? • How can HR cope with workplace changes and trends? • What are HR strategies that help a firm achieve competitive advantage?

3. Key HR Challenges for Today’s Managers: Environmental • Rapid change • Workforce diversity • Globalization • Internet revolution • Legislation • Evolving work and family roles • Skill Shortages • Rise of the service sector

4. Key HR Challenges for Today’s Managers: Organizational • Quality, distinctive capabilities • Decentralization • Downsizing • Organizational restructuring • Self-managed work teams • Small business growth • Technology • Outsourcing

5. Key HR Challenges for Today’s Managers: Cultural • Basic assumptions and beliefs shared by members of an organization… • rules, norms • behaviors • philosophy • dominant values • feeling or climate

6. Individual Challenges Key HR Challenges for Today’s Managers: Individual • Matching People and Organization • Ethical dilemmas • Social responsibility • Productivity • Empowerment • Brain drain • Job insecurity

7. Mission Statement: Otis Elevator Our mission is to: provide any customer a means of moving people and things up, down and sideways over short distances with higher reliability than any similar enterprise in the world.

8. CODE OF ETHICS: As a member of the American Marketing Association, I recognize the significance of my professional conduct and responsibilities to society and to other members of my profession: 1. By acknowledging my accountability to society as a whole as well as to the organization for which I work. 2. By pledging my efforts to assure that all presentations of goods, services, and concepts be made honestly and clearly. 3. By striving to improve marketing knowledge and practice in order to better serve society.

9. Code of Ethics (cont’d) 4. By supporting free consumer choice in circumstances that are legal and are consistent with generally accepted community standards. 5. By pledging to use the highest professional standards in my work and in competitive activity. 6. By acknowledging the right of the American Marketing Association, through established procedure, to withdraw my membership if I am found to be in violation of ethical standards of professional conduct.

10. HR Strategy Leads to Improved Organizational Performance Organizational Strategies Organizational Capabilities HR Strategies Organizational Characteristics Environments

11. Porter’s Differentiation Strategy • Efficient production • Explicit job descriptions • Detailed work planning • Emphasis on technical skills • Emphasis on job-specific training • Emphasis on job-based pay • Use performance appraisal

12. Porter’s Low-cost Leadership Strategy • Efficient production • Explicit job descriptions • Detailed work planning • Emphasis on qualifications and skills • Emphasis on job-specific training • Emphasis on job-based pay • Use of performance appraisal

13. Porter’s Focus Strategy Low cost Differentiation

14. Miles and SnowDefender Strategy -- RECRUITING • Internal recruitment • HR makes selection decision • Emphasis on qualifications and skills • Formal hiring and socialization process

15. Miles and SnowProspector Strategy -- RECRUITING • External recruitment • Supervisor makes selection decision • Emphasis on applicant fit with culture • Informal hiring and socialization process of new employees

16. Miles and SnowDefender Strategy -- Compensation • Fixed pay • Job-based pay • Seniority-based pay • Centralized pay decisions

17. Miles and Snow Prospector Strategy -- Compensation • Variable pay • Individual-based pay • Performance-based pay • Decentralized pay decisions

18. LEADERSHIPHow HRcan bea Strategic Partner • Understand styles of leadership • Display appropriate leadership • Demonstrate leadership at all levels of performance – team, individual, unit or organization

19. KNOWLEDGE OF BUSINESSHow HR can be a Strategic Partner HR must understand… • internal / external customers • key business disciplines • business structure, vision, values, goals, strategies, finances • competitors, products, technology and sources of competitive advantage

20. STRATEGIC THINKINGHowHR can be a Strategic Partner • Understand strategic business planning • Apply a systematic HR planning process • Integrate HR systems to build capability and competitive advantage for the firm • Develop and integrate department strategies within corporate framework

21. PROCESS SKILLSHowHR can be a Strategic Partner • Know management processes • Know process skills: consulting, problem solving, evaluation and communication • Understand organizational development • Facilitate and manage change • Manage under uncertainty and instability

22. TECHNOLOGYHow HR can be a Strategic Partner • Maintain HR documentation using knowledge management and technology • Build firm’s capability using info systems • Provide training in use of technology

23. Case 3M has a $1 billion budget and staff of 7,000. To speed growth, 3M announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, 3M introduced specially trained “black belts” to root out inefficiencies in departments. If you were a “black belt”, what would you look for?