HRM gaining a competitive advantage chapter 002 3rd ed

Part I The Human Resource Environment Standard Slide Sample Chapter Strategic Human Resource Management Chapter The Legal Environment: Equal Employment Opportunity and Safety Chapter The Analysis and Design of Work Irwin/McGraw-Hill © The McGraw-Hill Companies, Chapter Irwin/McGraw-Hill Strategic Human Resource Objectives Management • Describe the differences between strategy formulation and strategy implementation • List the components of the strategic management process • Discuss the role of the HR function in strategy formulation • Describe the linkages between HR and strategy formulation • Discuss the more popular typologies of generic strategies and the various HR practices associated with each • Describe the different HR issues and practices associated with various directional strategies • Discuss the role of HR as a customer service business • List the competencies the HR executive needs to become a strategic partner in the company © The McGraw-Hill Companies, Strategic Management vs Strategic HRM 2-2   Strategic Management-Process for analyzing a Management company’s competitive situation, developing the company’s strategic gals, and devising a plan of action and allocating resources that will increase the likelihood of achieving these goals Strategic HRMHRM is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals Irwin/McGraw-Hill © The McGraw-Hill Companies, 2-3 Strategic Management Process S tra te g i c M a n a g e m e n t P ro c e s s S tra te g y F o rm u l a ti o n Irwin/McGraw-Hill S tra te g y Im p l e m e n ta ti o n S tra te g y E v a l u a ti o n © The McGraw-Hill Companies, Strategy Formulation 2-4 Mission - reason for being Irwin/McGraw-Hill © The McGraw-Hill Companies, Strategy Formulation 2-5 Mission - reason for being Irwin/McGraw-Hill Goals - what it hopes to achieve © The McGraw-Hill Companies, Strategy Formulation 2-6 External Analysis - opportunities - threats Mission - reason for being Goals - what it hopes to achieve Internal Analysis - strengths - weaknesses Irwin/McGraw-Hill © The McGraw-Hill Companies, 2-7 Strategy Formulation External Analysis - opportunities - threats Mission - reason for being Goals Strategic Choice - what it hopes to achieve - ways to fulfill goals and mission Internal Analysis - strengths - weaknesses Irwin/McGraw-Hill © The McGraw-Hill Companies, Strategy Formulation 2-8 External Analysis - opportunities - threats Mission - reason for being Goals Strategic Choice - what it hopes to achieve - ways to fulfill goals and mission Internal Analysis - strengths - weaknesses Irwin/McGraw-Hill HR Input © The McGraw-Hill Companies, The Role of HR in Strategy Formulation 2-9 Administrati ve Linkage Strategic Planning HR Function Irwin/McGraw-Hill © The McGraw-Hill Companies, The Role of HR in Strategy Formulation 2-10 Administrative Linkage One-Way Linkage Strategic Planning Strategic Planning HR Function HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451 Companies, The Role of HR in Strategy Formulation 2-11 Administrative Linkage One-Way Linkage Two-Way Linkage Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451 Companies, The Role of HR in Strategy Formulation 2-12 Administrative Linkage One-Way Linkage Two-Way Linkage Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function Integrative Linkage Strategic Planning HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451 Companies, 2-13 Strategic HR Management Strategic Choice Irwin/McGraw-Hill © The McGraw-Hill Companies, 2-14 Strategic HR Management HR Practices Strategic Choice Irwin/McGraw-Hill HR Needs - skills - behaviors - culture - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Capability HR Actions - skills - abilities - knowledge - behaviors - results © The McGraw-Hill Companies, 2-15 Strategic HR Management HR Practices Strategic Choice Irwin/McGraw-Hill HR Needs - skills - behaviors - culture - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Capability HR Actions - skills - abilities - knowledge - behaviors - results Emergent Strategies Firm Performance - productivity - quality - profitability © The McGraw-Hill Companies, 2-16 Product Life Cycle and Operating Strategies Growth Sales Porter Porter strategies strategies Irwin/McGraw-Hill Maturity Formation Differentiation Cost Leadership © The McGraw-Hill Companies, HR needs in Strategy Formulation 2-17 HR HR Role Role Differentiation Differentiation Cost Leadership Leadership Cost Focus of firm - creative, risk-taking - efficiency Employee role - broader tasks creative risk-takers - broad career paths - specific & repetitive Training Staffing Compensation Performance management Irwin/McGraw-Hill - recruit more from outside - external pay equity - results-oriented - specific/short-term skills - promote internally - internal pay equity - behavior-oriented © The McGraw-Hill Companies, 2-18 Product Life Cycle and Directional Strategies Sales Irwin/McGraw-Hill Gr ow th Concentration Downsizing © The McGraw-Hill Companies, HR needs in Directional Strategies 2-19 Growth Growth HR Role Role HR Interna l External Focus of firm - build on strengths - acquire companies Training - varied needs - conflict resolution Staffing - hire and promote Compensation - incentive targets - integrate new cultures acquire new skills - standardize practices Performance management - behavior & results-oriented Irwin/McGraw-Hill - standardize practices © The McGraw-Hill Companies, 2-20 HR Role Role HR Focus of firm Training HR needs in Directional Strategies Concentration Concentration - things they best - retrenchment - sharpen current skills - promote from within - replace depleted skills - internal pay equity - need for flexibility, keep morale up - tie to company success - behavior-oriented - performance-based Staffing Compensati on Downsizing Downsizing Performance managemen t Irwin/McGraw-Hill © The McGraw-Hill Companies, 2-21 Human Resource Competencies Professional & Technical Knowledge Business Competence HR Professional Integration Competence Irwin/McGraw-Hill Ability to Manage Change © The McGraw-Hill Companies, [...]... Strategy Formulation 2-11 Administrative Linkage One-Way Linkage Two-Way Linkage Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management... Resource Management 24 (1985): 429-451 Companies, The Role of HR in Strategy Formulation 2-12 Administrative Linkage One-Way Linkage Two-Way Linkage Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function Integrative Linkage Strategic Planning HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill... HR in Strategy Formulation 2-10 Administrative Linkage One-Way Linkage Strategic Planning Strategic Planning HR Function HR Function SOURCE: Adapted from K Golden and V Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451 Companies, The... Irwin/McGraw-Hill Maturity Formation Differentiation Cost Leadership © The McGraw-Hill Companies, HR needs in Strategy Formulation 2-17 HR HR Role Role Differentiation Differentiation Cost Leadership Leadership Cost Focus of firm - creative, risk-taking - efficiency Employee role - broader tasks creative risk-takers - broad career paths - specific & repetitive Training Staffing Compensation Performance management... Irwin/McGraw-Hill © The McGraw-Hill Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985): 429-451 Companies, 2-13 Strategic HR Management Strategic Choice Irwin/McGraw-Hill © The McGraw-Hill Companies, 2-14 Strategic HR Management HR Practices Strategic Choice Irwin/McGraw-Hill HR Needs - skills - behaviors - culture - recruitment - training - performance management... HR Role Role HR Interna l External Focus of firm - build on strengths - acquire companies Training - varied needs - conflict resolution Staffing - hire and promote Compensation - incentive targets - integrate new cultures acquire new skills - standardize practices Performance management - behavior & results-oriented Irwin/McGraw-Hill - standardize practices © The McGraw-Hill Companies, 2-20 HR Role Role... management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Capability HR Actions - skills - abilities - knowledge - behaviors - results © The McGraw-Hill Companies, 2-15 Strategic HR Management HR Practices Strategic Choice Irwin/McGraw-Hill HR Needs - skills - behaviors - culture - recruitment - training - performance management... of firm Training HR needs in Directional Strategies Concentration Concentration - things they do best - retrenchment - sharpen current skills - promote from within - replace depleted skills - internal pay equity - need for flexibility, keep morale up - tie to company success - behavior-oriented - performance-based Staffing Compensati on Downsizing Downsizing Performance managemen t Irwin/McGraw-Hill... labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Capability HR Actions - skills - abilities - knowledge - behaviors - results Emergent Strategies Firm Performance - productivity - quality - profitability © The McGraw-Hill Companies, 2-16 Product Life Cycle and Operating Strategies Growth Sales Porter Porter strategies strategies... management Irwin/McGraw-Hill - recruit more from outside - external pay equity - results-oriented - specific/short-term skills - promote internally - internal pay equity - behavior-oriented © The McGraw-Hill Companies, 2-18 Product Life Cycle and Directional Strategies Sales Irwin/McGraw-Hill Gr ow th Concentration Downsizing © The McGraw-Hill Companies, HR needs in Directional Strategies 2-19 Growth