HAS 3240 chapter 01

© 2001 by Prentice Hall 1-1

11Meeting Present and

Emerging Strategic Human Resource

Challenges


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

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.

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

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

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

Identify HR strategies that fit corporate and business unit strategies.


Key HR Challenges for Today’s Managers

Environment• Rapid Change• Workforce Diversity• Globalization• Rise of Internet

• Legislation• Evolving Work and Family Roles• Skill Shortages and the Rise

of the Service Sector

Organization• Competitive Position: Cost,

Quality, Distinctive Capabilities• Decentralization• Downsizing• Organizational Restructuring

• 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


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

OrganizationalStrategies

OrganizationalStrategies

OrganizationalCharacteristics

OrganizationalCharacteristics

OrganizationalCapabilities

OrganizationalCapabilities

EnvironmentEnvironment

HR Strategies

Consistency

Consistency

Co

nsi

sten

cy

Co

nsisten

cy

ImprovedFirm

Performance

ImprovedFirm

Performance

FitFit

FitFit

FitFit

FitFit


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

BusinessStrategy

Common OrganizationalCharacteristics HR Strategies

Overallcostleadership

• 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

• 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.)

BusinessStrategy


Differ-entiation

•Strong marketing abilities•Product engineering•Strong capability in basic research•Corporate reputation forquality or technologicalleadership•Amenities to attract highly skilled labor, scientists, or creative people.

• Emphasis on innovationand 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.)

BusinessStrategy


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

• Combination of HR strategies above.


Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies

StrategicHR Area Defender Strategy Prospector Strategy

Work flows

Staffing

• Efficient production• Control emphasis• Explicit job descriptions• Detailed work planning

• Internal recruitment• HR department makes

selection decision• Emphasis on technical

qualifications and skills• Formal hiring and

socialization process

• Innovation• Flexibility• Broad job classes• Loose work planning

• 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.)

Employeeseparations

Performanceappraisal

• Voluntary inducements to leave• Hiring freeze• Continuing concern for

terminated employee• Preferential rehiring

policy

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

superior

• Layoffs• Recruit as needed• Individual on his/her own• No preferential treatment

for laid-off workers

• 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.)

Training

Compensation

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

• Fixed pay• Job-based pay• Seniority-based pay• Centralized pay

decisions

• Team-based or cross-functional training• External training• Generic Training

emphasizing flexibility• “Buy” skills

• Variable pay• Individual-based pay• Performance-based pay• Decentralized pay

decisions



Selected HR Strategies For Firms Low and High on Different Environmental Characteristics

Degree ofUncertainty

Volatility

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

superior

• Control emphasis • Efficient production• Job-specific training• Fixed pay

• Loose work planning• Generic training• Variable pay• Multiple inputs for

appraisals

• Flexibility• Innovation• Generic training• Variable pay

EnvironmentalDimension Low High


Selected HR Strategies For Firms Low and High on Different Environmental Characteristics (cont.)

Magnitudeof Change

Complexity

• Broad job classes• Informal hiring and

socialization of new employees• “buy” skills• Customized appraisals

• Flexibility• External recruitment• Decentralized pay

decisions• Multiple inputs for

appraisals

EnvironmentalDimension

• 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

Low High


Competencies Required of HR Department to Become a Full Strategic Partner

Leadership

• Understand the nature and styles of leadership, and display appropriate leadership characteristics in performance of professional responsibilities.• Demonstrate leadership at multiple performance levels:

•Individual•Team•Unit or Organization


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

Knowledge of the Business

• 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.• Understand key business disciplines• Nature, scope, and HR implications of business

globalization• Information technology as it affects

competitiveness and business processes



• Understand the strategic business planning process.• Understand and be able to apply a systematic HR

planning process.• Be able to select, design, and integrate HR systems or

practices to build organizational mindset, capability, and competitive advantage for the business.• Be able to develop and integrate business unit HR

strategies within framework of corporate HR strategies.

HR Strategic Thinking



• All HR professionals should be competent in key corporate processes and understand management processes critical to particular business units.• Understand key process skills such as consulting,

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

Process Skills



• All HR professionals should have a generalist perspective on HR systems and practices as they relate to achievement of business competitive advantage.• Generalists are capable of designing, integrating, and

implementing HR systems to build organizational 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.

• All HR professionals should have a generalist perspective on HR systems and practices as they relate to achievement of business competitive advantage.• Generalists are capable of designing, integrating, and

implementing HR systems to build organizational 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.

HR Technologies


Relationship of HR Department and managers

a. HR responsible for developing programs; management responsible for implementation

b. Each accountable for assisting the other!


Companies can foster effective partnership

Formal HR skills training for managers Managerial experience as part of training for

HR professionals Position HR staff as internal consultants Implement incentives for HR and managers

to work together Involve top operational managers in

development of HR strategies Involve senior HR executive(s) as equal

partners in corporate strategic planning


Companies can foster effective partnership

Establish ongoing evaluation process

Predetermined goals (specific, measurable, related to corporate goals)

Data gathering systems Evaluate both process and outcomes

—relate to goals!


Recap Chapter 1

HR includes a long list of functions There are strategic choices in each of these

functional areas that should be made in a way that supports the mission and overall strategic plan

Environmental factors and organizational characteristics impact the most effective mix of HR strategies

HR professionals and operating management must collaborate on both strategy development and implementation of HR processes

Documents

HAS 3240 chapter 01