Objectives Competitive advantage: what and why? How HRM activities may provide competitive advantage Identify needed skills

1. COMPETITIVE
ADVANTAGE
THROUGH HUMAN
RESOURCES

2. Competitive Advantage Through Human Resources
Objectives
• Competitive advantage: what and why?
• How HRM activities may provide competitive
advantage
• Identify needed skills

3. Competitive Advantage Through Human Resources
Competitive advantage
• Customer value
• Maintaining uniqueness
HRM as a competitive advantage
• HRM and strategy
implementation
• HR and the capacity for
change
• Human resources and
strategic unity
Skills required for HRM
Competitiveness
• General manager skills
• HRM professional skills

4. Sample of Strategic Activities within HRM Domains
Organizational Design
• Formal/informal
• Independence and
responsiveness
• Job design
• Processes used
Staffing
• Criteria for bringing in new
employees
• Procedures for recruiting and
orienting
• Design of career paths and
ladders
• Processes for succession
planning
• Types of programs for
terminated employees

5. Sample of Strategic Activities within HRM Domains
Performance Appraisal and
Management
• Types of standards set
• Types of performance review
• Processes used to ensure
feedback
• Sources of data for
measurement
Reward and Benefits Systems
• Types of financial incentives
• Linkage of rewards to strategic
plans
• Individual vs. group incentives
• Structure of nonfinancial
rewards

6. Sample of Strategic Activities within HRM Domains
Employee Training and
Organizational Development
• Desired outcomes of
development
• Types of participants in
development programs
• Content of programs and
integration with strategic
direction
• Delivery of programs
Health and Safety Issues
• Compliance with health and
safety (OSHA)
• Reduce stress
• Reduce illness and accidents

7. Sample of Strategic Activities within HRM Domains
(continued)
Employee/Employer
Relationships
• Types of information presented
• Types of communication
channels
• Design of communication
programs
Productivity Improvement
Programs
• TQM
• Design issues
• Assessments of
outcomes/deliverables
• Customer based focus

8. Analysis of SWOT
Organizational Environmental
Capabilities Conditions
Strengths Opportunities
Weaknesses Threats
Effective
Human Resource
Planning

9. A Diagnostic Framework: Internal and External Consistency
1. Organization’s strategy
Distinguish from competition
Intended competencies
Differentiating features
2. Skills, abilities, attitudes and
behaviors needed
3. Current or proposed policies on:
Recruitment
Selection
Compensation
Career development
Training
Employment security
Use of contract employees
Ownership
Performance appraisal
Division of labor
Organization of work
4. Coordination of 1, 2 and 3 with
organization’s strategy

10. HR Competencies Needed for Strategic Business Partners
HRM Design and Delivery
Competencies
• Organization design
• Staffing
• Employee training and
organization development
• Performance appraisal and
management
• Reward and benefits systems
• Employee/employer relationships
• Productivity improvement
• Health and safety
Business Competencies
• Financial or economic
• Strategic or product capabilities
• Technological
Management-of-Change
Competencies
• Contracting
• Diagnosing
• Intervening
• Implementing
• Evaluating
• Influencing

11. Seven Key Factors for Success in Making Change Happen
Key Success Factors for Change
Leading change (who)
Shared need (why)
Shaping a vision
(what)
Commitment
(who else)
Questions to Assess and Accomplish the Key Success
Factors for Change
Do we have a leader who champions?
who commits personally? who commits resources?
Do employees see the reason for and understand why the
change?
see how it will help them?
Do employees see the outcomes of change?
get excited and understand how customers are
affected?
Do the sponsors enlist support of all needed for the
change to happen?
build a responsibility matrix?

12. Seven Key Factors for Success in Making Change Happen
(continued)
Key Success Factors for
Change
Systems (how)
Monitoring (how measured)
Making it last (how long)
Questions to Assess and Accomplish the Key Success
Factors for Change
Do the sponsors link change to other HR systems?
recognize the implications of the change?
Do the sponsors measure the success?
benchmark progress and implement process?
Do the sponsors know how to start and keep it going?
have a plan of adaptation?

13. Human Resource Professional
Staff Advisor
Internal Consultant
Change Agent
Provider of Personnel Services Controller of
Organizational Design Personnel Policies
Staffing Auditing
Employee and Organizational Stabilizing
Development
Performance Appraisal
and Management
Reward and Benefits Systems
Employee/Employer
Relationships Liason Role
Productivity Improvement Coordination
Health and Safety Integration

14. HRM Activities and Sample Issues
Major Activities of HRM
Professionals
Organization Design
Job Design
Staffing
Recruiting/interviewing/hiring
Sample of Issues and Choices for
HRM Practices
Organization Design
How can we design jobs so that
individuals within the organization
work on tasks which are rewarding
and self-reinforcing
Staffing
What criteria do we set
Short term vs. long term
Full-time vs. part-time
Contract vs. leased
Job-focused vs. career focused
Customer perspective

15. The Competitive Advantage of Marriott Corporation
Objectives
1. Identify HRM practices to create “employer of choice.”
2. Connect “employer of choice” with “provider of choice.”

16. The Competitive Advantage of Marriott Corporation
Part A: Individual Analysis
Step 1: Generate a list of three HR actions to get to “employer of choice”
Step 2: Identify the top three actions and justify using:
• Marriott's competitive advantage
• Major HR issues
• Strategies
• Complete Form 2.2.1
• Complete Assessment Questions

17. The Competitive Advantage of Marriott Corporation
Part B: Group Analysis
Step 1: As a group:
• Identify competitive advantage of accounting
department
• Review individual 2.2.1 forms
• Reach consensus on top three issues
• Discuss how the activities could bring Marriott
“employer of choice” and develop HR competencies.
• Identify benefits/drawbacks of each recommendation
Step 2: Consensus recommendations to class

18. The Competitive Advantage of Marriott Corporation
Priority List
1. Survey new employees on job preferences
Justification: Relative importance of the various options
2. Study these data and run some cost figures
Justification: Which options financially feasible.
3. Increase the starting salary to the top of the competitive scale.
Justification: Direct compensation important
4. Look at indirect compensation
Justification: Total cost less than perceived value

19. The Competitive Advantage of Marriott Corporation
1. To what extent do your recommendations generalize to other
organizations other than Marriott?
Study preferences of potential employees generalizes to all
organizations
Recommendation for the travel package is unique to Marriott.

20. The Competitive Advantage of Marriott Corporation
2. What additional information would assist you in developing the
most valid list of HRM activities?
List of all HRM activities now implemented
Statistics on the success ratio and cost factors
Current compensation policy

21. The Competitive Advantage of Marriott Corporation
3. What other preparation could you have made for class discussion
on the Marriott Corporation?
Strategic plans
Marriott's competitive position
Interviews with Marriott employees

22. The Competitive Advantage of Marriott Corporation
4.What competitive advantage principle did you
consider in compiling your priority list?
Financial capability enhances the "organizational
capability" by:
attracting and retaining more effective employees

23. 1. What is meant by the term competitive advantage? Why is it
important for an organization?
• Strategies to exploit profitable opportunities
• Perceived customer value and uniqueness
• Maximizing return on investment
• Necessary to survive and prosper

24. 2. How can HRM activities be used to assist organizations in
becoming competitive?
• HRM activities:
Hire
Train
Motivate
Employee treatment
Employee commitment
• Competitive advantage through organizational capability
Manage organizational systems and people to match customer
and strategic needs
Flexibility/adaptability in dynamic/turbulent environment
Continuity and stability in more stable environments

25. 3. To what extent do you consider corporate social responsibility
when considering a product or service? Interview five friends to
determine if any of them have considered social issues such as the
environment or labor policies in their decision to purchase.
Customer value
Price
Quality
Convenience
Service
Dependability
Operational excellence
Customer intimacy
Product leadership
Diverse practices
Fair labor practices
Environmentally concerned

26. 4. Provide some recommendations for how general managers and
HRM professionals can acquire the skills they need to utilize HRM
programs effectively.
• Seminars, conferences/workshops, literature, networking
• Develop interpersonal and management skills
Self-paced learning
Case studies
Management games
Assessment centers

27. 5. Provide two examples of companies you are familiar with which are
not using their HRM programs to utilize HRM programs effectively.
Example of food manufacturing company in
SE U.S.
• Characteristics
Controls 65% of local market
Unionized
• Problems
Lack of HRM planning
Employees feel manipulated by
management
Low morale
Poor work scheduling
(no one has two consecutive days
off)
• Possible HRM activities
Cross training
Flextime
Job sharing
Compressed work weeks

28. 6. In the context of a SWOT analysis, evaluate the strategic state of
Personnel Assessment Systems. What additional data do you need as a
part of your SWOT analysis?
Strengths Opportunities
Scientifically valid testing International markets
Stable customers Mass marketing
Weakness Threat
Change in testing media (Internet) Behind on on-line testing
Additional data
“Mass market” test similar to “core business” test?
How far away PAS is from having web site?
Will test be offered in host country dialects?
What are the KASOC’s of the current personnel of PAS?