M eeting P resent and E merging S trategic H uman R esource C hallenges

1. Meeting 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 • Competitive Position: Cost, • 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 • Matching people and organizations • Ethical dilemmas • Social responsibility • Productivity • Empowerment • Brain drain • Job insecurity

7. Strategic HR Choices – Options Available in Designing an HR System

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

9. Porter’s Differentiation Strategy HR Strategies: • Emphasis on innovation and flexibility • Broad job classes • Loose work planning • External recruiting • Team based training • Emphasis on individual-based pay • Use performance appraisal as a developmental tool

10. Porter’s Low-cost Leadership Strategy HR Strategies: • 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 as a control device

11. Porter’s Focus Strategy Low cost Differentiation

12. Miles and Snow

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

14. 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

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

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

17. HR Best Practices • Employment security • Selectivity in recruiting • High wages • Incentive pay • Employee ownership • Information sharing • Participation and empowerment • Self managed teams • Training and skill development • Cross-utilization and cross training • Promotion from within

18. HR Department and Managers “The role of a company’s HR department is to support, not supplant managers’ HR responsibility” “Every manager is an HR manager”

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