Meeting Present and Emerging Strategic Human Resource Challenges

1. 1 Meeting Present and Emerging Strategic Human Resource Challenges

2. Challenges • Explain how a firm’s human resources influence its performance. • Describe how firms can use HR initiatives to cope with workplace changes and trends such as a more diverse work force, the global economy, downsizing, and new legislation. • Distinguish between the role of the HR department and the role of the firm’s managers in utilizing human resources effectively. • Indicate how members of the HR department and managers within a company can establish a strong partnership. • Formulate and implement HR strategies that can help the firm achieve a sustained competitive advantage. • Identify HR strategies that fit corporate and business unit strategies.

3. Key HR Challenges for Today’s Managers Environment • Rapid Change • Workforce Diversity • Globalization • Rise of Internet • Legislation • Evolving Work and Family Roles • Skill Shortages and the Rise • of the Service Sector Organization • Competitive Position: Cost, • Quality, Distinctive Capabilities • Decentralization • Downsizing • Organizational Restructuring • Self-Managed Work Teams • Small Businesses • Organizational Culture • Technology • Outsourcing Individual • Matching People and Organization • Ethical Dilemmas and Social Responsibility • Productivity • Empowerment • Brain Drain • Job Insecurity

4. Cultural Differences Between Hewlett-Packard and Apollo Cultural Element Hewlett-Packard Apollo Behavioral regularities • Planning and coordination • Professional orientation • People-minded style • Crisis management • Entrepreneurial orientation • Rough-and-tumble style Norms • Carefully laid-out work • objectives • Pushing your own agenda Dominant values • Quality/reputation • Components company • Time-to-market • Systems integrator Philosophy • Flexible bureaucracy • Functional/matrix • structure • “Ad-hoc-racy” • Functional/integrated • structure Rules of the game • Problem solving • Specialize • Long tenure • “Winning is everything” • Be a generalist • Job hoppers Feeling or climate • Strong engineering and • marketing influence • Polite/congenial • Sing from the same hymnbook • Strong R&D and • engineering influence • Political/confrontational • Mixed bag/misfits

5. Code of Ethics of the American Marketing Association As a member of the American Marketing Association, I recognize the significance of my professional conduct and my 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. 4. By supporting free consumer choice in circumstances that are legal and are consistent with generally accepted community standards.

6. Code of Ethics of the American Marketing Association (cont.) 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.

7. Blazing Graphics’ Mission Statement Blazing Graphics will provide you with the most effective visual communication attainable. We will help you achieve all of your goals while providing you with the greatest value both seen and unseen. Here at Blazing Graphics we will take the time to do things right. We do this by controlling the entire graphic art process. This enables us to better coordinate each job while providing a higher level of service.

8. Blazing Graphics’ Mission Statement (cont.) Our mission is to ensure exceptional quality by opening up communication between crafts normally separated and at times adverse to one another. Here at Blazing Graphics we have committed ourselves and our resources to being on the forefront of technology. Creative technical know-how is the single most critical determinant of economic competitiveness. It’s our real belief that together we can create an environment that will be both personally and professionally fulfilling for all the people who make up the Blazing Community.

9. Effective HR Strategy Formulation and Implementation Organizational Strategies Environment Consistency Fit Fit Improved Firm Performance HR Strategies Consistency Consistency Fit Fit Organizational Characteristics Organizational Capabilities Consistency

10. Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies Common Organizational Characteristics Business Strategy HR Strategies Overall cost leadership • Sustained capital investment and access to capital • Intense supervision of labor • Tight cost control requiring frequent, detailed control reports • Low-cost distribution system • Structured organization • and responsibilities • Products designed for ease in manufacture • Efficient production • Explicit job descriptions • Detailed work planning • Emphasis on technical • qualifications and skills • Emphasis on job-specific • training • Emphasis on job-based pay • Use of performance • appraisal as a control device

11. Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.) Common Organizational Characteristics Business Strategy HR Strategies Differ- entiation • Strong marketing abilities • Product engineering • Strong capability in basic research • Corporate reputation for • quality or technological • leadership • Amenities to attract highly skilled labor, scientists, or creative people. • Emphasis on innovation • and flexibility • Broad job classes • Loose work planning • External recruitment • Team-based training • Emphasis on individual- • based pay • Use of performance appraisal as development tool

12. Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.) Business Strategy Common Organizational Characteristics HR Strategies • Combination of HR • strategies above. • Combination of cost- • leadership and • differentiation strategy • directed at a particular • strategic target. Focus

13. Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies Strategic HR Area Defender Strategy Prospector Strategy • Innovation • Flexibility • Broad job classes • Loose work planning • External recruitment • Supervisor makes selection decision • Emphasis on fit of applicant with culture • Informal hiring and socialization process of new employees Work flows Staffing • Efficient production • Control emphasis • Explicit job descriptions • Detailed work planning • Internal recruitment • HR department makes selection decision • Emphasis on technical qualifications and skills • Formal hiring and socialization process

14. Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.) Strategic HR Area Defender Strategy Prospector Strategy Employee separations Performance appraisal • Voluntary inducements to leave • Hiring freeze • Continuing concern for terminated employee • Preferential rehiring policy • Uniform appraisal procedures • Used as control device • Narrow focus • High dependence on superior • Layoffs • Recruit as needed • Individual on his/her own • No preferential treatment for laid-off workers • Customized appraisals • Used as developmental tool • Multipurpose appraisals • Multiple inputs for appraisals

15. Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.) Strategic HR Area Defender Strategy Prospector Strategy Training Compensation • Individual training • On-the-job training • Job-specific training • “Make” skills • Fixed pay • Job-based pay • Seniority-based pay • Centralized pay decisions • Team-based or cross-functional training • External training • Generic Training emphasizing flexibility • “Buy” skills • Variable pay • Individual-based pay • Performance-based pay • Decentralized pay decisions

16. Selected HR Strategies For Firms Low and High on Different Environmental Characteristics Environmental Dimension Low High Degree of Uncertainty Volatility • Detailed work planning • Job-specific training • Fixed pay • High dependence on superior • Control emphasis • Efficient production • Job-specific training • Fixed pay • Loose work planning • Generic training • Variable pay • Multiple inputs for appraisals • Flexibility • Innovation • Generic training • Variable pay

17. Selected HR Strategies For Firms Low and High on Different Environmental Characteristics (cont.) Environmental Dimension Low High Magnitude of Change Complexity • Explicit job descriptions • Formal hiring and socialization of new employees • “make” skills • Uniform appraisal procedures • Control emphasis • Internal recruitment • Centralized pay decisions • High dependence on superior • Broad job classes • Informal hiring and socialization of new employees • “buy” skills • Customized appraisals • Flexibility • External recruitment • Decentralized pay decisions • Multiple inputs for appraisals

18. Competencies Required of HR Department to Become a Full Strategic Partner Leadership • Understand the nature and styles of leadership, and display appropriate leadership characteristics in performance of professional responsibilities. • Demonstrate leadership at multiple performance levels: • Individual • Team • Unit or Organization

19. Competencies Required of HR Department to Become a Full Strategic Partner (cont.) Knowledge of the Business • Understand corporate business (structure, vision and values, goals, strategies, financial, and performance characteristics). • Understand the unit’s business, including special knowledge of competitors, products, technology, and sources of competitive advantage. • Understand internal and external customers. • Understand the environment (external and internal) of corporation and individual businesses. • Understand key business disciplines • Nature, scope, and HR implications of business globalization • Information technology as it affects competitiveness and business processes

20. Competencies Required of HR Department to Become a Full Strategic Partner (cont.) HR Strategic Thinking • Understand the strategic business planning process. • Understand and be able to apply a systematic HR planning process. • Be able to select, design, and integrate HR systems or practices to build organizational mindset, capability, and competitive advantage for the business. • Be able to develop and integrate business unit HR strategies within framework of corporate HR strategies.

21. Competencies Required of HR Department to Become a Full Strategic Partner (cont.) Process Skills • All HR professionals should be competent in key corporate processes and understand management processes critical to particular business units. • Understand key process skills such as consulting, problem solving, evaluation/diagnosis, workshop design, and facilitation. • Understand the basic principles, methodologies, and processes or organizational change and development. • Facilitate and manage organizational change. • Balance, integrate, and manage under conditions of uncertainty and paradox.

22. Competencies Required of HR Department to Become a Full Strategic Partner (cont.) HR Technologies • All HR professionals should have a generalist perspective on HR systems and practices as they relate to achievement of business competitive advantage. • Generalists are capable of designing, integrating, and implementing HR systems to build organizational capability and create business competitive advantage. • Specialists are capable of designing/delivering leading-edge practices to meet competitive business needs. • All HR professionals are capable of measuring effectiveness of HR systems and practices.