ChallengesExplain how a firms 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 firms 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 Todays ManagersEnvironmentRapid ChangeWorkforce DiversityGlobalizationRise of InternetLegislationEvolving Work and Family RolesSkill Shortages and the Riseof the Service SectorOrganizationCompetitive Position: Cost,Quality, Distinctive CapabilitiesDecentralizationDownsizingOrganizational RestructuringSelf-Managed Work TeamsSmall BusinessesOrganizational CultureTechnologyOutsourcingIndividualMatching People and OrganizationEthical Dilemmas and Social ResponsibilityProductivityEmpowermentBrain DrainJob Insecurity

Cultural Differences Between Hewlett-Packard and ApolloCultural ElementHewlett-PackardApolloBehavioral regularitiesPlanning and coordinationProfessional orientationPeople-minded styleCrisis managementEntrepreneurial orientationRough-and-tumble styleNormsCarefully laid-out workobjectivesPushing your own agendaDominant valuesQuality/reputationComponents companyTime-to-marketSystems integratorPhilosophyFlexible bureaucracyFunctional/matrix structureAd-hoc-racyFunctional/integratedstructureRules of the gameProblem solvingSpecializeLong tenureWinning is everythingBe a generalistJob hoppersFeeling or climateStrong engineering andmarketing influencePolite/congenialSing from the same hymnbookStrong R&D and engineering influencePolitical/confrontationalMixed bag/misfits

Code of Ethics of the American Marketing Association1. 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.

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:

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 StatementBlazing 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.Its 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 ImplementationOrganizationalStrategiesOrganizationalCharacteristicsOrganizationalCapabilitiesEnvironmentHR StrategiesConsistencyConsistencyConsistencyConsistencyImprovedFirmPerformanceFitFitFitFit

Selected HR Strategies That Fit Porters Three Major Types of Business StrategiesBusinessStrategyCommon OrganizationalCharacteristicsHR StrategiesOverallcostleadershipSustained capital investment and access to capitalIntense supervision of laborTight cost control requiring frequent, detailed control reportsLow-cost distribution systemStructured organizationand responsibilitiesProducts designed for ease in manufactureEfficient productionExplicit job descriptionsDetailed work planningEmphasis on technicalqualifications and skillsEmphasis on job-specifictrainingEmphasis on job-based payUse of performanceappraisal as a control device

Selected HR Strategies That Fit Porters Three Major Types of Business Strategies (cont.)BusinessStrategyCommon OrganizationalCharacteristicsHR StrategiesDiffer-entiationStrong marketing abilitiesProduct engineeringStrong capability in basic researchCorporate reputation forquality or technologicalleadershipAmenities to attract highly skilled labor, scientists, or creative people.Emphasis on innovationand flexibilityBroad job classesLoose work planningExternal recruitmentTeam-based trainingEmphasis on individual-based payUse of performance appraisal as development tool

Selected HR Strategies That Fit Porters Three Major Types of Business Strategies (cont.)BusinessStrategyCommon OrganizationalCharacteristicsHR StrategiesFocusCombination of cost-leadership and differentiation strategy directed at a particular strategic target.Combination of HR strategies above.

Selected HR Strategies That Fit Miles and Snows Two Major Types of Business StrategiesStrategicHR AreaDefender StrategyProspector StrategyWork flows

StaffingEfficient productionControl emphasisExplicit job descriptionsDetailed work planning

Internal recruitmentHR department makes selection decisionEmphasis on technical qualifications and skillsFormal hiring and socialization processInnovationFlexibilityBroad job classesLoose work planning

External recruitmentSupervisor makes selection decisionEmphasis on fit of applicant with cultureInformal hiring and socialization process of new employees

Selected HR Strategies That Fit Miles and Snows Two Major Types of Business Strategies (cont.)Employeeseparations

PerformanceappraisalVoluntary inducements to leaveHiring freezeContinuing concern for terminated employeePreferential rehiring policy

Uniform appraisal proceduresUsed as control deviceNarrow focusHigh dependence on superiorLayoffsRecruit as neededIndividual on his/her ownNo preferential treatment for laid-off workers

Customized appraisalsUsed as developmental toolMultipurpose appraisalsMultiple inputs for appraisalsStrategicHR AreaDefender StrategyProspector Strategy

Selected HR Strategies That Fit Miles and Snows Two Major Types of Business Strategies (cont.)Training

CompensationIndividual trainingOn-the-job trainingJob-specific trainingMake skills

Fixed payJob-based paySeniority-based payCentralized pay decisionsTeam-based or cross-functional trainingExternal trainingGeneric Training emphasizing flexibilityBuy skills

Variable payIndividual-based payPerformance-based payDecentralized pay decisionsStrategicHR AreaDefender StrategyProspector Strategy

Selected HR Strategies For Firms Low and High on Different Environmental CharacteristicsDegree ofUncertainty

VolatilityDetailed work planningJob-specific trainingFixed payHigh dependence on superior

Control emphasis Efficient productionJob-specific trainingFixed payLoose work planningGeneric trainingVariable payMultiple inputs for appraisals

FlexibilityInnovationGeneric trainingVariable payEnvironmentalDimensionLowHigh

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

ComplexityBroad job classesInformal hiring and socialization of new employeesbuy skillsCustomized appraisals

FlexibilityExternal recruitmentDecentralized pay decisionsMultiple inputs for appraisalsEnvironmentalDimensionExplicit job descriptionsFormal hiring and socialization of new employeesmake skillsUniform appraisal proceduresControl emphasisInternal recruitmentCentralized pay decisionsHigh dependence on superiorLowHigh

Competencies Required of HR Department to Become a Full Strategic PartnerLeadershipUnderstand the nature and styles of leadership, and display appropriate leadership characteristics in performance of professional responsibilities.Demonstrate leadership at multiple performance levels:IndividualTeamUnit or Organization

Competencies Required of HR Department to Become a Full Strategic Partner (cont.)Knowledge of the BusinessUnderstand corporate business (structure, vision and values, goals, strategies, financial, and performance characteristics).Understand the units 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 disciplinesNature, scope, and HR implications of business globalizationInformation technology as it affects competitiveness and business processes

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

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

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

Environmental challenges are the forces external to the firm. They influence organizational performance but are largely beyond managements control. Managers need to monitor the external environment constantly for opportunities and threats. This slide demonstrates how a variety of environmental factors impact the organization.The term organizational culture refers to the basic assumptions and beliefs shared by members of an organization. These beliefs operate unconsciously, are taken for granted, and are typically very apparent to someone outside the organization. This slide illustrates the key elements of organizational culture, and the ways in which these elements differ between two organizations.Expectations that employers will behave ethically are increasing. Many firms and professional organizations have created codes of ethics outlining principles and standards of personal conduct for their members. This slide, and the next, represent the code of ethics of the American Marketing Association. Unfortunately, these codes often do not meet employees expectations of ethical employer behavior. Polls have indicated that almost half the respondents believe that managers do not consistently make ethical decisions.This slide, and the next, represent an organizations mission statement. Mission statements have become useful tools that an organization may use to clarify the essential strengths and purposes of an organization, as well as point to where the organization would like to go.The success of HR strategies depends on the situation or context in which they are used. An HR strategys effect on firm performance is always dependent on how well it fits with other factors. This slide depicts the key factors that firms should consider in determining which HR strategies will have positive impact on firm performance: organizational strategies, environment, organizational characteristics, and organizational capabilities.These next three slides illustrate Porters three major types of business strategies. The overall cost leadership strategy is aimed at gaining a competitive advantage through lower costs. Cost leadership requires aggressive construction of efficient plant facilities, intense supervision of labor, vigorous pursuit of cost reductions, and tight control of distribution costs and overhead.A differentiation business strategy attempts to achieve a competitive advantage by creating a product or service that is perceived as unique. Approaches to differentiation can take may forms, among them: design or brand image; technology; features; customer service; and dealer networks.A focus strategy relies on both a low-cost position and differentiation, with the objective of serving a narrow target market better than other firms. The HR strategies likely to fit the focus strategy best would be somewhere in the middle of those described for low-cost producers and differentiators.These next three slides illustrate how strategic HR areas differ between the two major types of business strategies suggested by Miles and Snow. Work flows, staffing, employee separations, performance appraisal, training, and compensation all can be approached differently; depending on whether a defender strategy or a prospector strategy is used.The next two slides focus on four major dimensions of the environment in which an organization operates: degree of uncertainty, volatility, magnitude of change, and complexity. HR strategies are given for environments that are low in the particular environmental dimension, and different strategies are given for environments that are high in the same environmental dimension.For the sake of the firm, managers and the HR department need to work together closely. Lack of cooperation has traditionally been a problem. The next five slides highlight five competencies required of HR departments in order that they might be strategic partners with management. Companies can take certain steps to foster an effective partnership between managers and HR department. Companies should: (1) Analyze the people side of productivity rather than depend solely on technical solutions to problems. (2) View HR professionals as internal consultants who can provide valuable advice and support that improve the management of operations. (3) Instill a shared sense of common fate in the firm rather than a win/lose perspective among individual departments and units. (4) Require some managerial experience as part of the training of HR professionals. (5) Actively involve top corporate and divisional managers in formulating, implementing, and reviewing all HR plans and strategies in close collaboration with the HR department. (6) Require senior HR executives to participate on an equal basis with other key managers from the various functional areas (marketing, finance) involved in charting the enterprises strategic direction.