Strategic Human Resource Management

1. Strategic Human ResourceManagement

2. Overall Goal of Strategic Management for an Organization • Deploy & allocate resources ==> competitive advantage

3. What is Strategic Management? • analyze competitive situation • develop strategic goals • devise plan of action • allocate resources • implement plan • evaluate results

4. The Strategic Planning Process An Overview

5. Strategy Implementation Strategy Formulation HR Practices Recruiting Training Performance Management Job Analysis Job Design Selection Development Pay Structure Incentives Benefits Labor Relations Employee Relations Mission Goals SWOT Strategic Choice Firm Performance Productivity Quality Productivity Human Resource Capability Skills Abilities Knowledge Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Human Resource Needs Skills Behaviors Culture Strategy Evaluation Emergent Strategies

6. Strategy Implementation Strategy Formulation HR Practices Recruiting Training Performance Management Job Analysis Job Design Selection Development Pay Structure Incentives Benefits Labor Relations Employee Relations Mission Goals SWOT Strategic Choice Firm Performance Productivity Quality Productivity Human Resource Capability Skills Abilities Knowledge Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Human Resource Needs Skills Behaviors Culture Strategy Evaluation Emergent Strategies

7. Strategy Formulation • Mission • Goals • External analysis • Internal analysis • Strategic choice

8. S W O T • Internal Strengths • Internal Weaknesses • External Opportunities • External Threats

9. Types of Strategies • Corporate • Business • Functional

10. Corporate Strategies • Grand • Growth • Retrenchment/turnaround • Stability • Diversification • Related • Unrelated

11. Business Strategies • Adaptation Model • Defender • Prospector • Analyzer • Reactor • Competitive Strategies • Differentiation • Cost Leadership • Focus

12. Strategic Human Resource Management • Definition: • The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

13. Factors Influencing Functional Strategies • Organizational Design • U-form, H-form, M-form, Flat • Corporate Culture • Technology • Workforce Composition • Diversity, Labor Trends, Unionization

14. Strategy Implementation Strategy Formulation HR Practices Recruiting Training Performance Management Job Analysis Job Design Selection Development Pay Structure Incentives Benefits Labor Relations Employee Relations Mission Goals SWOT Strategic Choice Firm Performance Productivity Quality Productivity Human Resource Capability Skills Abilities Knowledge Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Human Resource Needs Skills Behaviors Culture Strategy Evaluation Emergent Strategies

15. HR Practices: Options for Fit with Strategy • Job Analysis & Design • Recruitment & Selection • Training & Development • Performance Appraisal • Pay Systems • Labor & Employee Relations

16. Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

17. Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

18. Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

19. Strategy Implementation Strategy Formulation HR Practices Recruiting Training Performance Management Job Analysis Job Design Selection Development Pay Structure Incentives Benefits Labor Relations Employee Relations Mission Goals SWOT Strategic Choice Firm Performance Productivity Quality Productivity Human Resource Capability Skills Abilities Knowledge Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Human Resource Needs Skills Behaviors Culture Strategy Evaluation Emergent Strategies

20. Business Strategies • Adaptation Model • Defender • Prospector • Analyzer • Reactor • Competitive Strategies • Differentiation • Cost Leadership • Focus

21. Strategy Implementation Strategy Formulation HR Practices Recruiting Training Performance Management Job Analysis Job Design Selection Development Pay Structure Incentives Benefits Labor Relations Employee Relations Mission Goals SWOT Strategic Choice Firm Performance Productivity Quality Productivity Human Resource Capability Skills Abilities Knowledge Human Resource Actions Behaviors Results (Productivity, Absenteeism, Turnover) Human Resource Needs Skills Behaviors Culture Strategy Evaluation Emergent Strategies

22. Agenda Item Mini-Map

23. A Word of Caution • The terms “strategy” and “planning” may be applied to EVERY function in a generic way … meaning that you will have a strategy and make a plan for each activity (like training, recruiting, etc.)

24. A Word of Caution, con’d • For the purposes of your maps, use “strategy” and “planning” as HR FUNCTIONS • Strategy=“corporate strategy” -- the relationship of the company’s strategy to HR activities • Planning=The supply and demand of employees