Chapter Meeting Present and Emerging Strategic Human Resources Challenges Copyright © 2016 Pearson Education, Inc 1-1 Chapter Challenges Understand the major challenges affecting HR Develop competence in planning and implementing strategic HR policies Develop competence in selecting HR strategies to increase firm performance Become aware of HR best practices Copyright © 2016 Pearson Education, Inc 1-2 Chapter Challenges Understand the need to establish a close partnership between the HR department and managers Recognize career opportunities in various human resources management subfields Copyright © 2016 Pearson Education, Inc 1-3 Types of Employees Managers Line employees Junior employees Staff employees Exempt employees Senior employees Nonexempt employees Copyright © 2016 Pearson Education, Inc 1-4 Human Resources Strategy Human resources strategy refers to a firm’s deliberate use of human resources to help it gain or maintain an edge against competitors in the marketplace Copyright © 2016 Pearson Education, Inc 1-5 Key HR Challenges Copyright © 2016 Pearson Education, Inc 1-6 Organizational Culture Organizational culture refers to the basic assumptions and beliefs shared by members of an organization Copyright © 2016 Pearson Education, Inc 1-7 Key Elements of Organizational Culture • • • • • • Observed behavioral regularities Norms Dominant values Philosophy Rules of the game Feeling of climate Copyright © 2016 Pearson Education, Inc 1-8 Strategic HR Policies: Benefits • • • • • • • Encouraging Proactive Behavior Communicating Company Goals Stimulating Critical Thinking and Examination of Assumptions Identification of Gaps Between Current Situation and Future Vision Encouragement of Line Managers’ Participation Identification of HR Constraints and Opportunities Creating Common Bonds Copyright © 2016 Pearson Education, Inc 1-9 Strategic HR Policies: Challenges • • • • • • • • • Maintaining a Competitive Advantage Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Daily Problems Develop HR Strategies Suited to Unique Organizational Features Coping with Environment Securing Management Commitment Translating the Strategic Plan into Action Combining Intended and Emergent Strategies Accommodating Change Copyright © 2016 Pearson Education, Inc 1-10 Strategic HR: Choices • • • • • • • • • Work Flows Staffing Employee Separations Performance Appraisal Training and Career Development Compensation Employee Rights Employee and Labor Relations International Management Copyright © 2016 Pearson Education, Inc 1-11 Selecting HR Strategies • • To increase firm performance HR strategies should fit with other organizational aspects Copyright © 2016 Pearson Education, Inc 1-12 HR Fit with Organizational Strategies Corporate Strategies Evolutionary Business Steady State Porter’s Business Unit Strategies Cost Leadership Differentiation Focus Miles & Snow’s Business Strategies Defender Prospector Copyright © 2016 Pearson Education, Inc 1-13 Miles & Snow’s Business Strategies Copyright © 2016 Pearson Education, Inc 1-14 HR Fit with Environment • • • • Degree of Uncertainty Magnitude of Change Volatility Complexity Copyright © 2016 Pearson Education, Inc 1-15 HR Fit with Environment Copyright © 2016 Pearson Education, Inc 1-16 HR Fit with Organizational Characteristics • • • • • Production Process Firm’s Market Posture Firm’s Overall Managerial Philosophy Firm’s Organizational Structure Firm’s Organizational Culture Copyright © 2016 Pearson Education, Inc 1-17 HR Fit with Organizational Capabilities • Distinctive Competencies • HR Strategies should o o o Competitive edge Help firm exploit its competencies Assist the firm to help use its HR skills Copyright © 2016 Pearson Education, Inc 1-18 HR Department Managers: An Important Partnership To foster effective partnerships, companies should: • • • • • Analyze the people side of productivity View HR roles as consultants Instill a shared sense of common fate Require HR training to include managerial experience Actively involve top corporate and divisional managers in HR plans Copyright © 2016 Pearson Education, Inc 1-19 HR Audit Periodic HR Audits should ask: Is the turnover rate exceptionally low or high? Are employees who quit good employees or marginal? What is the firm’s ROI regarding recruitment, training, and performance plans? Is the firm complying with government regulations? How well is the company managing employee diversity? Are HRM policies and procedures helping the firm reach long-term goals? Copyright © 2016 Pearson Education, Inc 1-20 Summary and Conclusions • • • • HR Challenges Facing Managers Environmental Challenges Organizational Challenges Individual Challenges o o o Planning and Implementing Strategic HR Policies Policies and procedures should be congruent o Selecting HR Strategies to Increase Firm Performance The Important Partnership of HR and Managers Copyright © 2016 Pearson Education, Inc 1-21 Pearson Education, Inc Copyright Click to edit Master text styles Second level Third level Fourth level Fifth level Copyright © 2016 Pearson Education, Inc 1-22 ... employees Nonexempt employees Copyright © 2016 Pearson Education, Inc 1-4 Human Resources Strategy Human resources strategy refers to a firm’s deliberate use of human resources to help it gain or maintain... International Management Copyright © 2016 Pearson Education, Inc 1-11 Selecting HR Strategies • • To increase firm performance HR strategies should fit with other organizational aspects Copyright © 2016 . .. Copyright © 2016 Pearson Education, Inc 1-2 Chapter Challenges Understand the need to establish a close partnership between the HR department and managers Recognize career opportunities in various human