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Meeting Present and Emerging Strategic Human Resource Challenges

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Challenges

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Explain how a firm’s human resources influence its performance.

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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.

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Distinguish between the role of the HR department and the role of the firm’s managers in utilizing human resources effectively.

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Indicate how members of the HR department and managers within a company can establish a strong partnership.

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Formulate and implement HR strategies that can help the firm achieve a sustained competitive advantage.

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Identify HR strategies that fit corporate and business unit strategies.

Key HR Challenges for Today’s Managers

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Rapid Change Workforce Diversity Globalization Rise of Internet Environment

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Legislation Evolving Work and Family Roles Skill Shortages and the Rise of the Service Sector

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Organization Competitive Position: Cost, Quality, Distinctive Capabilities Decentralization Downsizing Organizational Restructuring

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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

Cultural Differences Between Hewlett-Packard and Apollo Cultural Element Hewlett-Packard Apollo Behavioral regularities Norms Dominant values Philosophy Rules of the game Feeling or climate

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Planning and coordination Professional orientation People-minded style

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Carefully laid-out work objectives

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Quality/reputation Components company

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Flexible bureaucracy Functional/matrix structure

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Problem solving Specialize Long tenure

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Strong engineering and marketing influence Polite/congenial Sing from the same hymnbook

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Crisis management Entrepreneurial orientation Rough-and-tumble style Pushing your own agenda

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Time-to-market Systems integrator

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“Ad-hoc-racy” Functional/integrated structure

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“Winning is everything” Be a generalist Job hoppers

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Strong R&D and engineering influence Political/confrontational Mixed bag/misfits

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.

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.

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.

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.

Effective HR Strategy Formulation and Implementation

Organizational Strategies Fit Organizational Characteristics Fit Consistency HR Strategies Consistency Environment Fit Improved Firm Performance Fit Organizational Capabilities

Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies

Business Strategy Common Organizational Characteristics Overall cost leadership

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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 HR Strategies

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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

Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.)

Business Strategy Common Organizational Characteristics HR Strategies Differ entiation

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Strong marketing abilities

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Product engineering

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Strong capability in basic research

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Corporate reputation for quality or technological leadership

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Amenities to attract highly skilled labor, scientists, or creative people.

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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

Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.)

Business Strategy Focus Common Organizational Characteristics

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Combination of cost leadership and differentiation strategy directed at a particular strategic target.

HR Strategies

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Combination of HR strategies above.

Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies Strategic HR Area Defender Strategy Prospector Strategy Work flows

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Efficient production Control emphasis Explicit job descriptions Detailed work planning

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Innovation Flexibility Broad job classes Loose work planning Staffing

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Internal recruitment HR department makes selection decision Emphasis on technical qualifications and skills Formal hiring and socialization process

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External recruitment Supervisor makes selection decision Emphasis on fit of applicant with culture Informal hiring and socialization process of new employees

Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.) Strategic HR Area Employee separations Defender Strategy Prospector Strategy

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Voluntary inducements to leave Hiring freeze Continuing concern for terminated employee Preferential rehiring policy

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Layoffs Recruit as needed Individual on his/her own No preferential treatment for laid-off workers Performance appraisal

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Uniform appraisal procedures Used as control device Narrow focus High dependence on superior

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Customized appraisals Used as developmental tool Multipurpose appraisals Multiple inputs for appraisals

Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.) Strategic HR Area Training Defender Strategy

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Individual training On-the-job training Job-specific training “Make” skills Compensation

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Fixed pay Job-based pay Seniority-based pay Centralized pay decisions Prospector Strategy

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Team-based or cross functional training External training Generic Training emphasizing flexibility “Buy” skills

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Variable pay Individual-based pay Performance-based pay Decentralized pay decisions

Selected HR Strategies For Firms Low and High on Different Environmental Characteristics Environmental Dimension Degree of Uncertainty Volatility Low

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Detailed work planning Job-specific training Fixed pay High dependence on superior

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Control emphasis Efficient production Job-specific training Fixed pay High

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Loose work planning Generic training Variable pay Multiple inputs for appraisals

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Flexibility Innovation Generic training Variable pay

Selected HR Strategies For Firms Low and High on Different Environmental Characteristics (cont.) Environmental Dimension Low High Magnitude of Change Complexity

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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

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Broad job classes Informal hiring and socialization of new employees “buy” skills Customized appraisals

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Flexibility External recruitment Decentralized pay decisions Multiple inputs for appraisals

Competencies Required of HR Department to Become a Full Strategic Partner

Leadership

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Understand the nature and styles of leadership, and display appropriate leadership characteristics in performance of professional responsibilities.

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Demonstrate leadership at multiple performance levels:

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Individual

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Team

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Unit or Organization

Competencies Required of HR Department to Become a Full Strategic Partner (cont.) Knowledge of the Business

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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.

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Understand key business disciplines

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Nature, scope, and HR implications of business

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globalization Information technology as it affects competitiveness and business processes

Competencies Required of HR Department to Become a Full Strategic Partner (cont.)

HR Strategic Thinking

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Understand the strategic business planning process.

Understand and be able to apply a systematic HR

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planning process.

Be able to select, design, and integrate HR systems or practices to build organizational mindset, capability, and competitive advantage for the business.

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Be able to develop and integrate business unit HR strategies within framework of corporate HR strategies.

Competencies Required of HR Department to Become a Full Strategic Partner (cont.)

Process Skills

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All HR professionals should be competent in key corporate processes and understand management processes critical to particular business units.

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Understand key process skills such as consulting,

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problem solving, evaluation/diagnosis, workshop design, and facilitation.

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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.

Competencies Required of HR Department to Become a Full Strategic Partner (cont.)

HR Technologies

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All HR professionals should have a generalist perspective on HR systems and practices as they relate

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to achievement of business competitive advantage.

Generalists are capable of designing, integrating, and implementing HR systems to build organizational

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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.