1. © 2008 Prentice Hall, Inc.© 2008 Prentice Hall, Inc.
All rights reserved.All rights reserved.
PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
The University of West AlabamaThe University of West Alabama
1
Human ResourceHuman Resource
ManagementManagement
ELEVENTH EDITIONELEVENTH EDITION
G A R Y D E S S L E RG A R Y D E S S L E R
Strategic Human Resource ManagementStrategic Human Resource Management
and the HR Scorecardand the HR Scorecard
Chapter 3Chapter 3
Part 1 | IntroductionPart 1 | Introduction

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After studying this chapter, you should be able to:
1.1. Outline the steps in the strategic managementOutline the steps in the strategic management
process.process.
2.2. Explain and give examples of each type ofExplain and give examples of each type of
companywide and competitive strategy.companywide and competitive strategy.
3.3. Explain what a strategy-oriented human resourceExplain what a strategy-oriented human resource
management system is and why it is important.management system is and why it is important.
4.4. Illustrate and explain each of the seven steps in the HRIllustrate and explain each of the seven steps in the HR
Scorecard approach to creating human resourceScorecard approach to creating human resource
management systems.management systems.

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The Strategic Management ProcessThe Strategic Management Process
• Strategic ManagementStrategic Management
 The process of identifying and executing theThe process of identifying and executing the
organization’s mission by matching its capabilitiesorganization’s mission by matching its capabilities
with the demands of its environment.with the demands of its environment.
• StrategyStrategy
 A chosen course of action.A chosen course of action.
• Strategic PlanStrategic Plan
 How an organization intends to balance its internalHow an organization intends to balance its internal
strengths and weaknesses with its externalstrengths and weaknesses with its external
opportunities and threats to maintain a competitiveopportunities and threats to maintain a competitive
advantage over the long-term.advantage over the long-term.

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Business Vision and MissionBusiness Vision and Mission
• VisionVision
 A general statement of an organization’s intendedA general statement of an organization’s intended
direction that evokes emotional feelings indirection that evokes emotional feelings in
organization members.organization members.
• MissionMission
 Spells out who the company is, what it does, andSpells out who the company is, what it does, and
where it’s headed.where it’s headed.

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Types of StrategiesTypes of Strategies
Diversification
Strategy
Geographic
Expansion
Strategy
Vertical
Integration
Strategy
Corporate-Level
Strategies
Consolidation
Strategy

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Types of Strategies (cont’d)Types of Strategies (cont’d)
Cost Leadership Focus/Niche
Business-Level/
Competitive
Strategies
Differentiation

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Achieving Strategic FitAchieving Strategic Fit
• The “Fit” Point of View (Porter)The “Fit” Point of View (Porter)
 All of the firm’s activities must be tailored to or fitAll of the firm’s activities must be tailored to or fit
the chosen strategy such that the firm’s functionalthe chosen strategy such that the firm’s functional
strategies support its corporate and competitivestrategies support its corporate and competitive
strategies.strategies.
• Leveraging (Hamel and Prahalad)Leveraging (Hamel and Prahalad)
 ““Stretch” in leveraging resources—supplementingStretch” in leveraging resources—supplementing
what you have and doing more with what you have—what you have and doing more with what you have—
can be more important than just fitting the strategiccan be more important than just fitting the strategic
plan to current resources.plan to current resources.

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Strategic Human Resource ManagementStrategic Human Resource Management
• Strategic Human Resource ManagementStrategic Human Resource Management
 The linking of HRM with strategic goals andThe linking of HRM with strategic goals and
objectives in order to improve business performanceobjectives in order to improve business performance
and develop organizational cultures that fosterand develop organizational cultures that foster
innovation and flexibility.innovation and flexibility.
 Involves formulating and executing HR systems—HRInvolves formulating and executing HR systems—HR
policies and activities—that produce the employeepolicies and activities—that produce the employee
competencies and behaviors that the company needscompetencies and behaviors that the company needs
to achieve its strategic aims.to achieve its strategic aims.

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Strategic Human Resource ChallengesStrategic Human Resource Challenges
Corporate
productivity and
performance
improvement
efforts
Increased HR
team involvement
in design of
strategic plans
Basic Strategic
Challenges
Expanded role of
employees in the
organization’s
performance
efforts

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Human Resource Management’sHuman Resource Management’s
Strategic RolesStrategic Roles
Strategy
Execution
Role
Strategic
Planning
Roles
Strategy
Formulation
Role

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Creating the Strategic Human ResourceCreating the Strategic Human Resource
Management SystemManagement System
Human Resource
Professionals
Employee
Behaviors and
Competencies
Components of a
Strategic HRM System
Human Resource
Policies and
Practices

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K E Y T E R M S
strategic planstrategic plan
strategic managementstrategic management
visionvision
missionmission
SWOT analysisSWOT analysis
strategystrategy
strategic controlstrategic control
competitive advantagecompetitive advantage
leveragingleveraging
strategic human resource managementstrategic human resource management
HR ScorecardHR Scorecard
metricsmetrics
value chain analysisvalue chain analysis

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Creating an HR ScorecardCreating an HR Scorecard
1
2
3
4
5
Outline value chain activities
Define the business strategy
Outline a strategy map
Identify strategically required
outcomes
Identify required workforce
competencies and behaviors
6
7
8
9
10
Create HR Scorecard
Identify required HR policies
and activities
Choose HR Scorecard
measures
Summarize Scorecard
measures on digital dashboard
Monitor, predict, evaluate
The 10-Step HR Scorecard Process