Strategic Human Resource

Management

Overall Goal of Strategic Management for an Organization

Deploy & allocate resources ==> competitive advantage

What is Strategic Management?

analyze competitive situation

develop strategic goals devise plan of action allocate resources implement plan evaluate results

The Strategic Planning Process

An Overview

Strategic Choice

Human Resource Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Productivity

Human Resource Actions

Behaviors

Results (Productivity, Absenteeism, Turnover)

Human Resource Capability

Skills

Abilities

Knowledge

Strategy Formulation

Strategy Implementation

HR Practices

Recruiting

Training

Performance Management

Job Analysis

Labor Relations

Employee Relations

Mission

Goals

Job DesignSelectionDevelopmentPay StructureIncentivesBenefits

Strategy Evaluation

SW

OT

Emergent Strategies

Strategic Choice

Human Resource Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Productivity

Human Resource Actions

Behaviors

Results (Productivity, Absenteeism, Turnover)

Human Resource Capability

Skills

Abilities

Knowledge

Strategy Formulation

Strategy Implementation

HR Practices

Recruiting

Training

Performance Management

Job Analysis

Labor Relations

Employee Relations

Mission

Goals

Job DesignSelectionDevelopmentPay StructureIncentivesBenefits

Strategy Evaluation

SW

OT

Emergent Strategies

Strategy Formulation Mission Goals External analysis Internal analysis Strategic choice

S W O T Internal Strengths Internal Weaknesses External Opportunities External Threats

Types of Strategies Corporate Business Functional

Corporate Strategies Grand

Growth Retrenchment/turnaround Stability

Diversification Related Unrelated

Business Strategies Adaptation Model

Defender Prospector Analyzer Reactor

Competitive Strategies Differentiation Cost Leadership Focus

Strategic Human Resource Management

Definition: The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

Factors Influencing Functional Strategies Organizational Design

U-form, H-form, M-form, Flat Corporate Culture Technology Workforce Composition

Diversity, Labor Trends, Unionization

Strategic Choice

Human Resource Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Productivity

Human Resource Actions

Behaviors

Results (Productivity, Absenteeism, Turnover)

Human Resource Capability

Skills

Abilities

Knowledge

Strategy Formulation

Strategy Implementation

HR Practices

Recruiting

Training

Performance Management

Job Analysis

Labor Relations

Employee Relations

Mission

Goals

Job DesignSelectionDevelopmentPay StructureIncentivesBenefits

Strategy Evaluation

SW

OT

Emergent Strategies

HR Practices: Options for Fit with

Strategy

Job Analysis & Design Recruitment & Selection Training & Development Performance Appraisal Pay Systems Labor & Employee

Relations

Job Analysis/Design

Few tasks – Many tasks

Simple tasks – Complex tasks

Few skills required – Many skills required

Specific job descriptions – General job descriptions

Recruitment/Selection

External sources – Internal sources

Limited socialization – Extensive socialization

Assessment of specific skills – Assessment of general skills

Narrow career paths – Broad career paths

Training and Development

Focus on current job skills – Focus on future job skills

Individual orientation – Group orientation

Train few employees – Train all employees

Spontaneous, unplanned – Planned, systematic

Performance Management

Behavioral criteria – Results criteria

Developmental orientation – Administrative orientation

Short-term criteria – Long-term criteria

Individual orientation – Group orientation

Pay Structure/Incentives/Benefits

Pay weighted on salary/benefits – pay weighted on incentives

Short-term incentives – Long-term incentives

Emphasis on internal equity – Emphasis on external equity

Individual incentives – Group incentives

Labor/Employee Relations

Collective bargaining – Individual bargaining

Top-down decision making – Participation in decision making

Formal due process -- No due process

View employees as expense – View employees as assets

Strategic Choice

Human Resource Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Productivity

Human Resource Actions

Behaviors

Results (Productivity, Absenteeism, Turnover)

Human Resource Capability

Skills

Abilities

Knowledge

Strategy Formulation

Strategy Implementation

HR Practices

Recruiting

Training

Performance Management

Job Analysis

Labor Relations

Employee Relations

Mission

Goals

Job DesignSelectionDevelopmentPay StructureIncentivesBenefits

Strategy Evaluation

SW

OT

Emergent Strategies

Business Strategies Adaptation Model

Defender Prospector Analyzer Reactor

Competitive Strategies Differentiation Cost Leadership Focus

Strategic Choice

Human Resource Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Productivity

Human Resource Actions

Behaviors

Results (Productivity, Absenteeism, Turnover)

Human Resource Capability

Skills

Abilities

Knowledge

Strategy Formulation

Strategy Implementation

HR Practices

Recruiting

Training

Performance Management

Job Analysis

Labor Relations

Employee Relations

Mission

Goals

Job DesignSelectionDevelopmentPay StructureIncentivesBenefits

Strategy Evaluation

SW

OT

Emergent Strategies

Agenda Item

Mini-Map

A Word of Caution The terms “strategy” and

“planning” may be applied to EVERY function in a generic way … meaning that you will have a strategy and make a plan for each activity (like training, recruiting, etc.)

A Word of Caution, con’d

For the purposes of your maps, use “strategy” and “planning” as HR FUNCTIONS Strategy=“corporate strategy” --

the relationship of the company’s strategy to HR activities

Planning=The supply and demand of employees