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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
Strategy Implementation
   Strategy
 Formulation                   HR Practices
                       Recruiting   Job Design        Labor
    Mission                         Selection         Relations
                       Training
                                    Development
                       Performance Pay Structure      Employee
 SWOT



                       Management Incentives          Relations
            Goals                   Benefits
                       Job Analysis

Strategic Choice                                                  Firm
                       Human              Human                   Performance
Human                  Resource           Resource                Productivity
Resource               Capability         Actions                 Quality
Needs                  Skills             Behaviors               Productivity
Skills                 Abilities          Results
Behaviors                                 (Productivity,
                       Knowledge
                                          Absenteeism,                 Strategy
Culture                                   Turnover)                    Evaluation
                    Emergent Strategies
Strategy Implementation
   Strategy
 Formulation                   HR Practices
                       Recruiting   Job Design        Labor
    Mission                         Selection         Relations
                       Training
                                    Development
                       Performance Pay Structure      Employee
 SWOT



                       Management Incentives          Relations
            Goals                   Benefits
                       Job Analysis

Strategic Choice                                                  Firm
                       Human              Human                   Performance
Human                  Resource           Resource                Productivity
Resource               Capability         Actions                 Quality
Needs                  Skills             Behaviors               Productivity
Skills                 Abilities          Results
Behaviors                                 (Productivity,
                       Knowledge
                                          Absenteeism,                 Strategy
Culture                                   Turnover)                    Evaluation
                    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.
Functional
Strategies
   Organizational Design
       U-form, H-form, M-form, Flat
   Corporate Culture
   Technology
   Workforce Composition
       Diversity, Labor Trends,
        Unionization
Strategy Implementation
   Strategy
 Formulation                   HR Practices
                       Recruiting   Job Design        Labor
    Mission                         Selection         Relations
                       Training
                                    Development
                       Performance Pay Structure      Employee
 SWOT



                       Management Incentives          Relations
            Goals                   Benefits
                       Job Analysis

Strategic Choice                                                  Firm
                       Human              Human                   Performance
Human                  Resource           Resource                Productivity
Resource               Capability         Actions                 Quality
Needs                  Skills             Behaviors               Productivity
Skills                 Abilities          Results
Behaviors                                 (Productivity,
                       Knowledge
                                          Absenteeism,                 Strategy
Culture                                   Turnover)                    Evaluation
                    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
Strategy Implementation
   Strategy
 Formulation                   HR Practices
                       Recruiting   Job Design        Labor
    Mission                         Selection         Relations
                       Training
                                    Development
                       Performance Pay Structure      Employee
 SWOT



                       Management Incentives          Relations
            Goals                   Benefits
                       Job Analysis

Strategic Choice                                                  Firm
                       Human              Human                   Performance
Human                  Resource           Resource                Productivity
Resource               Capability         Actions                 Quality
Needs                  Skills             Behaviors               Productivity
Skills                 Abilities          Results
Behaviors                                 (Productivity,
                       Knowledge
                                          Absenteeism,                 Strategy
Culture                                   Turnover)                    Evaluation
                    Emergent Strategies
Business Strategies
   Adaptation Model
       Defender
       Prospector
       Analyzer
       Reactor
   Competitive Strategies
       Differentiation
       Cost Leadership
       Focus
Strategy Implementation
   Strategy
 Formulation                   HR Practices
                       Recruiting   Job Design        Labor
    Mission                         Selection         Relations
                       Training
                                    Development
                       Performance Pay Structure      Employee
 SWOT



                       Management Incentives          Relations
            Goals                   Benefits
                       Job Analysis

Strategic Choice                                                  Firm
                       Human              Human                   Performance
Human                  Resource           Resource                Productivity
Resource               Capability         Actions                 Quality
Needs                  Skills             Behaviors               Productivity
Skills                 Abilities          Results
Behaviors                                 (Productivity,
                       Knowledge
                                          Absenteeism,                 Strategy
Culture                                   Turnover)                    Evaluation
                    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

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343 shrm notes (1)

  • 1. Strategic Human Resource Management
  • 2. Overall Goal of Strategic Management for an Organization  Deploy & allocate resources ==> competitive advantage
  • 3. What is Strategic Management?  analyze competitive situation  develop strategic goals  devise plan of action  allocate resources  implement plan  evaluate results
  • 5. Strategy Implementation Strategy Formulation HR Practices Recruiting Job Design Labor Mission Selection Relations Training Development Performance Pay Structure Employee SWOT Management Incentives Relations Goals Benefits Job Analysis Strategic Choice Firm Human Human Performance Human Resource Resource Productivity Resource Capability Actions Quality Needs Skills Behaviors Productivity Skills Abilities Results Behaviors (Productivity, Knowledge Absenteeism, Strategy Culture Turnover) Evaluation Emergent Strategies
  • 6. Strategy Implementation Strategy Formulation HR Practices Recruiting Job Design Labor Mission Selection Relations Training Development Performance Pay Structure Employee SWOT Management Incentives Relations Goals Benefits Job Analysis Strategic Choice Firm Human Human Performance Human Resource Resource Productivity Resource Capability Actions Quality Needs Skills Behaviors Productivity Skills Abilities Results Behaviors (Productivity, Knowledge Absenteeism, Strategy Culture Turnover) Evaluation Emergent Strategies
  • 7. Strategy Formulation  Mission  Goals  External analysis  Internal analysis  Strategic choice
  • 8. S W O T  Internal Strengths  Internal Weaknesses  External Opportunities  External Threats
  • 9. Types of Strategies  Corporate  Business  Functional
  • 10. Corporate Strategies  Grand  Growth  Retrenchment/turnaround  Stability  Diversification  Related  Unrelated
  • 11. Business Strategies  Adaptation Model  Defender  Prospector  Analyzer  Reactor  Competitive Strategies  Differentiation  Cost Leadership  Focus
  • 12. Strategic Human Resource Management  Definition:  The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.
  • 13. Functional Strategies  Organizational Design  U-form, H-form, M-form, Flat  Corporate Culture  Technology  Workforce Composition  Diversity, Labor Trends, Unionization
  • 14. Strategy Implementation Strategy Formulation HR Practices Recruiting Job Design Labor Mission Selection Relations Training Development Performance Pay Structure Employee SWOT Management Incentives Relations Goals Benefits Job Analysis Strategic Choice Firm Human Human Performance Human Resource Resource Productivity Resource Capability Actions Quality Needs Skills Behaviors Productivity Skills Abilities Results Behaviors (Productivity, Knowledge Absenteeism, Strategy Culture Turnover) Evaluation Emergent Strategies
  • 15. HR Practices: Options for Fit with Strategy  Job Analysis & Design  Recruitment & Selection  Training & Development  Performance Appraisal  Pay Systems  Labor & Employee Relations
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. Strategy Implementation Strategy Formulation HR Practices Recruiting Job Design Labor Mission Selection Relations Training Development Performance Pay Structure Employee SWOT Management Incentives Relations Goals Benefits Job Analysis Strategic Choice Firm Human Human Performance Human Resource Resource Productivity Resource Capability Actions Quality Needs Skills Behaviors Productivity Skills Abilities Results Behaviors (Productivity, Knowledge Absenteeism, Strategy Culture Turnover) Evaluation Emergent Strategies
  • 20. Business Strategies  Adaptation Model  Defender  Prospector  Analyzer  Reactor  Competitive Strategies  Differentiation  Cost Leadership  Focus
  • 21. Strategy Implementation Strategy Formulation HR Practices Recruiting Job Design Labor Mission Selection Relations Training Development Performance Pay Structure Employee SWOT Management Incentives Relations Goals Benefits Job Analysis Strategic Choice Firm Human Human Performance Human Resource Resource Productivity Resource Capability Actions Quality Needs Skills Behaviors Productivity Skills Abilities Results Behaviors (Productivity, Knowledge Absenteeism, Strategy Culture Turnover) Evaluation Emergent Strategies
  • 23. 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.)
  • 24. 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

Notas del editor

  1. SM is a process for analyzing a company’s competitive situation, developing the company’s strategic goals, and devising a plan of action, and allocation of resources human organizational physical that will increase the likelihood of achieving those goals
  2. Mission = statement of org’s reasons for being customers served needs satisfied value received by customers technology used Goals = what org hopes to achieve in the medium- to long-term future how mission will be operationalized External analysis = examining org’s operating environment to identify strategic opportunities and threats Internal analysis = attempts to identify org’s strengths and weaknesses Strategic choice = org’s strategy ways org will attempt to fulfill its mission achieve its long-term goals
  3. U=unitary, single hr department responsible org wide H=holding company, unrelated diversification --> individual HR departments M=//holding, businesses more closely related, hr handled within each division, synergy from corporate HR across businesses flat=hr diffused through org, operating mgrs take on more hr activities --> smaller HR staff for service, consultation
  4. Job analysis & design -- narrow sets of tasks, limited sets of skills complex array of tasks, multiple high-level skills Recruitment & selection -- internal, supervisor, fit, informal external, HR, qualifications, formal Training & development -- individual, OJT, job-specific, buy team, external, generic, make Performance appraisal -- customized, developmental, multipurpose, multiple inputs uniform, control, narrow-focus, supervisory Pay systems --fixed, job-based, seniority, centralized variable, individual-based, performance, decentralized Labor/employee relations --top-down, adversarial bottom-up, enlightened