Transcript Slide 1

McGraw-Hill/Irwin

Human Resource Management: Gaining a Competitive Advantage Chapter 02 Strategic Human Resource Management

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

1.

Describe the differences between strategy formulation and strategy implementation.

2.

List strategic management process components.

3.

Discuss HRM function ’s role in strategy formulation.

4.

Describe the linkages between HRM and strategy formulation.

5.

Discuss typologies of strategies and associated HRM practices.

6.

Describe HR issues and practices associated with various directional strategies.

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Introduction

• Goal of strategic management is to deploy and allocate resources in a way that gives an organization competitive advantage.

• HRM function must be integrally involved in the company ’ s strategic management process.

• A business model is how the firm will create value for customers profitably.

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Introduction

In order to be an effective strategic component of the firm, HRM must: 1.

2.

3.

4.

Have input into the Strategic Plan; Have specific knowledge of the organization’s strategic goals; Know what types of employee skills, behaviors, and attitudes are needed to support the Strategic Plan, and Develop programs to ensure that employees have the necessary skills, behaviors, and attitudes.

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What is Strategic Management?

Strategic human resource management (SHRM)

is the pattern of planned HR activities and deployments intended to enable an organization to achieve its goals.

Strategic management

is a process to address the organization ’s competitive challenges by integrating an organization’s goals, policies and action sequences into a cohesive whole.

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Strategy Formulation 2 Phases of Strategic Management Strategy Implementation

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Mission Strategic Management Process Model Strategy Formulation Strategy Implementation Goals Strategic Choice HR Needs

Skills

Behavior

Culture HR Practices

• • • • • • • •

Recruiting Training Performance management Labor relations Employee relations Job analysis Job design

• •

Selection Development Pay structure

Incentives

Benefits Internal Analysis

Strengths

Weaknesses HR Capability

Skills,

Abilities

Knowledge

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Strategy- Competition Decisions How?

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Strategic Planning and HRM Linkages Administrative

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Strategy Formulation External Analysis

•Opportunities •Threats

Internal Analysis

•Strengths •Weaknesses 2-10

SHRM-Strategy Formulation Mission Goals Strategic Choice Internal Analysis

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SWOT Analysis for Google, Inc. SWOT Analysis for Google Inc.

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Strategy Implementation Variables Organizational Structure Types of Information Task Design Reward Systems Select Train Develop People

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HRM’s 3 Implementation Variables: Task

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Strategic Implementation Human Resource Needs

Skills

Behavior

Culture HR Practices

Recruiting

Training

Performance management

Labor relations

Employee relations

Job analysis

Job design

Selection

Development

Pay structure

Incentives

Benefits Human Resource Capability

Skills,

Abilities

Knowledge Human Resource Actions

Behaviors

Results -productivity -absenteeism - turnover

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HRM Practices

Recruitment /Selection

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McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved

Cost Porter’s Strategies

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Role Behaviors

 Behaviors that are required of an individual in his or her role as a jobholder in a social work environment.

 Different role behaviors are required for different strategies.

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5 Categories of Directional Strategies Concentration Internal Growth External Growth Mergers & Acquisitions

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McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved

Summary Human Resources

are the most important asset and single largest most controllable cost within the business model.

HR professionals

must develop business, professional-technical, change management and integration competencies.

HRM

has a profound impact on the strategic plan implementation by developing and aligning HRM practices that ensure the company has motivated employees with necessary skills.

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