Transcript Document

HRM
Strategy
Strategy:
1.
The process of determining &
articulating the organisation’s:
•
•
then:
vision, mission, values,
goals & objectives, and
its internal &
external environments;
2.
Formulating plans to attain
outcomes consistent with the
above; then:
3
Implementing those plans
(including evaluation)
HR Strategy
“The pattern of planned human
resource deployments and activities
intended to enable the organisation to
achieve its goals”
Focus: To provide the organisation with
sustained competitive advantage
…through procurement, development &
alingment of people, skills, HR policies
etc.
Competitive advantage might arise from
having best people, but also from being
best at managing what you do have
Link to Corporate
Strategy
Input
Corporate
strategy
formulation
Input
HR
strateg
y
Corporate
strategy
implementation
Division
strategies
Evaluation
(measurment etc)
OTHER FUNCTIONS
HR FUNCTION
External competitive environment
Role of HRM in
Strategy Formulation
HR
Function
Strategic
Planning
Administrative
linkage
HR
Function
Strategic
Planning
One-Way
linkage
HR
Function
Strategic
Planning
Two-way
linkage
HR
Strategic
Function Planning
Integrative
linkage
Strategic Formulation:
Overview
VISION
EXTERNAL
ANALYSIS:
Opportunities
Threat
INTERNAL
ANALYSIS:
Strengths
Weaknesses
MISSION
GOALS / OBJECTIVES
STRATEGIC CHOICE
Strategic Formulation:
‘Step’ 1: Vision
Core
ideology
Organisational
Vision
Envisaged
future
Core Ideology
Core values
Essential, enduring
tenants
Core Purpose
Reason for being
What is
important?
What the
organisation
offers to society
What is
inviolate?
Controlling desire,
Dominant aspiration
Examples:
Core Purposes
3M: to solve
innovatively
unsolved
problems
Hewlett-Packard: to make technical
contributions for the advancement
and welfare of humanity
Mary Kay Cosmetics: to
unlimited opportunity to women
give
Nike: to experience the emotion of
competition, winning, and crushing
the competition
Walt Disney: to make people happy
Example:
Core Values
Walt Disney:
•
•
•
•
•
No Cynicism
Nurturing & promulgation of
wholesome American values
Creativity,
dreams
and
imagination
Fanatical
attention
to
consistency and detail
Preservation and control of the
‘Disney Magic’
Strategic Formulation:
‘Step’ 1: Vision
Core
ideology
Organisational
Vision
Envisaged
future
BHAGS
Vivid Description
Envisaged Future
BHAGS
Huge, daunting
goals
Clear & compelling,
tangible
Unifying, inspiring,
engaging
1. Difficult Target
2. Common enemy
3. Role-model
4. Internal transformation
Vivid Description
Making goals
‘imaginable’
The ‘mind’s eye’
Hopeful,
passionate,
inspiring
images & symbols
Examples:
BHAGS
Ford
(1900’s):
Democratise
automobile (Target BHAG)
the
(Nike, 1960’s): Yamaha wo tsubusu! We
will destroy Yamaha (Common Enemy
BHAG)
Stanford (1940’s): Become the Harvard
of the west (Role-Model BHAG)
GE (1980’s): #1 or #2 in every market
we serve & revolutionise this company to
have the strengths of a big company
combined with the leanness & agility of a
small company
Examples:
Vivid Description
Sony:
We will create products that become
pervasive around the world…We will be
the first Japanese company to go into
the U.S. market and distribute
directly…We
will
succeed
with
innovations that U.S. companies have
failed at - such as transistor radio…50
years from now our brand name will be
as well known as any in the world…and
will signify innovation and quality that
rival
most
innovative
companies
anywhere…’Made in Japan’ will mean
something fine, not something shoddy.
Strategic Formulation
‘Step’ 2: SWOT Analysis
Brings balance to the more
unchanging vision:
Organisation’s internal & external
environment:
Change is often a constant here!
S
W
Internal strengths &
weaknesses of organisation
O
T
External opportunities &
threats of organisation
Strategic Formulation:
‘Steps’ 3, 4 & 5: Mission,
Goals & Objectives
‘Eternal’ of
Vision
‘Now’ of
SWOT
Mission:
What business / markets are we
in to realise our vision?
Goals:
The tasks that need to be done
to enable mission
Objectives
The quantifiable targets that are
set through the goals
Examples:
Missions
Microsoft: A computer on every desktop
Saturn:
The mission of Saturn is to
market
vehicles
developed
and
manufactured in the United States that
are world leaders in quality and
customer satisfaction through the
integration or people, technology, and
business systems and to transfer
knowledge, technology and experience
throughout General Motors”.
Chevrolet:
Manufactirug safe and
reliable economy cars, sports cars,
sedans and trucks.
Electronic Data Systems: Designing &
operating information systems for both
public and private organisations
Strategic Formulation:
‘Step’ 6: Strategic Choice
Vision
Mission
Goals
Objectives
Deliberate
planning
Everyday
operations
+
Emergent
(organic,
evolutionary)
strategy
Eventual plans
Example:
A new customer
service process is
planned for through
consideration of
new aims
Example:
Customer service
people discover
new process
through dealing
with customers
HR & Corporate
Strategic Choice
Deliberate
planning
Limit or
enable choices
Eventual
plans
HR
Function
Surface,
communicate
& integrate
suggestions
Emergent
strategy
Strategic Types
Categorisations under which any
strategy can be typified
Porter:
Overall cost leadership
Differentiation
Focus
Miles and Snow
Defenders
Prospectors
Analysers
Reactors
Directional Strategies
Concentration
Internal growth
External growth
Divestment
Strategic
Implementation:
Overview
2nd major part of strategy
Implementation by all functions,
but six major implementation “musts”:
1) Organisational structure
2) Task design
3) Selection, training &
development of people
4) Reward systems
5) Leadership, power & culture*
6) Information & information systems
* Not in textbook
HR Function and
Implementation
HR enables the six implementation
musts through various HR tasks:
•Job analysis and design
•Recruitment and selection
•Training & selection
•Performance management
•Rewards and benefits
•Labour relations
•etc!
Culture, Leaders, Strategy
These can support or hinder strategy
b
a
Culture
e
d
Leadership
c
Strategy
There is a complex interaction between
culture, leadership & strategy:
•Culture affects how leaders will lead (a)
•Leaders can have a hand in shaping
culture (b)
•Culture can have a direct impact on the
type of strategies leaders choose now (c)
•Culture can have an indirect impact on
the strategies chosen through historical
patterns (d)
•Strategy can have a hand in shaping
future culture (e)
Culture, Leaders, Strategy
Culture is influential! Leaders must learn to
shape and manipulate corporate cultures:
•What they pay attention to
•How they react to critical incidences
•Deliberate role behaviour
•Rewarding right things
•Type of people they work with
•ETC!!!
Leadership = Top management!
HR function must shape culture by shaping
leadership throughout the organisation:
•Teaching
•Enabling
•Releasing
•Sharing of knowledge
•Attitudes
ETC!
Strategic Types
and HR Tasks
Different strategic types work better
with some HR practices than others, e.g.:
Porter / Miles and Snow
Cost / defender = efficiency, consistency
Differentiation / prospector = quality,
effectiveness, knowledge, creative
Focus / analyser = flexibility
Directional Strategies
Concentration = current skills focus
Internal growth = new employees, new
targets, new training
External growth = harmony, cooperation
Divestment = minimising loss
(retrenchments, morale, severance)
Strategic Measurement
& Control
Strategic
Implementation
Strategic
Formulation
Strategic
evaluation
Sets standards
(esp objectives)
Measurement
of outcomes
Thus:
Evaluation is the judgment of how the
standards set in strategic formulation were
achieved in strategic implementation
Evaluation is fed back into the formulation
of plans and the knowledge base of how to
implement them