Human Resource Management - Chapter 3

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After studying this chapter, you should be able to: 1. Outline the steps in the strategic management process. 2. Explain and give examples of each type of companywide and competitive strategy. 3. Explain what a strategy-oriented human resource management system is and why it is important. 4. Illustrate and explain each of the seven steps in the HR Scorecard approach to creating human resource management systems.

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Human Resource Human Management Management ELEVENTH EDITION 1 G A R Y D E S S L E R Part 1 | Introduction Chapter 3 Strategic Human Resource Management Strategic and the HR Scorecard and © 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama All
After studying this chapter, you should be able to: 1. Outline the steps in the strategic management Outline process. process. 2. Explain and give examples of each type of Explain companywide and competitive strategy. companywide 3. Explain what a strategy-oriented human resource Explain management system is and why it is important. management 4. Illustrate and explain each of the seven steps in the Illustrate HR Scorecard approach to creating human resource management systems. management © 2008 Prentice Hall, Inc. All rights reserved. 3–2
The Strategic Management Process • Strategic Management  The process of identifying and executing the The organization’s mission by matching its capabilities with the demands of its environment. with • Strategy  A chosen course of action. • Strategic Plan  How an organization intends to balance its internal How strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term. advantage © 2008 Prentice Hall, Inc. All rights reserved. 3–3
Business Vision and Mission • Vision  A general statement of an organization’s intended general direction that evokes emotional feelings in organization members. organization • Mission  Spells out who the company is, what it does, and Spells where it’s headed. where © 2008 Prentice Hall, Inc. All rights reserved. 3–4
Types of Strategies Corporate-Level Strategies Vertical Geographic Diversification Consolidation Integration Expansion Strategy Strategy Strategy Strategy © 2008 Prentice Hall, Inc. All rights reserved. 3–5
Types of Strategies (cont’d) Business-Level/ Competitive Strategies Cost Leadership Differentiation Focus/Niche © 2008 Prentice Hall, Inc. All rights reserved. 3–6
Achieving Strategic Fit • The “Fit” Point of View (Porter)  All of the firm’s activities must be tailored to or fit All the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies. strategies. • Leveraging (Hamel and Prahalad) Leveraging  “Stretch” in leveraging resources—supplementing Stretch” what you have and doing more with what you have— what can be more important than just fitting the strategic can plan to current resources. plan © 2008 Prentice Hall, Inc. All rights reserved. 3–7
Strategic Human Resource Management • Strategic Human Resource Management  The linking of HRM with strategic goals and The objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. innovation Involves formulating and executing HR systems—HR Involves  policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims. to © 2008 Prentice Hall, Inc. All rights reserved. 3–8
Strategic Human Resource Challenges Basic Strategic Challenges Corporate Expanded role of Increased HR productivity and employees in the team involvement performance organization’s in design of improvement performance strategic plans efforts efforts © 2008 Prentice Hall, Inc. All rights reserved. 3–9
Human Resource Management’s Human Strategic Roles Strategic Strategic Planning Roles Strategy Strategy Execution Formulation Role Role © 2008 Prentice Hall, Inc. All rights reserved. 3–10
Creating the Strategic Human Resource Management System Components of a Strategic HRM System Human Resource Employee Human Resource Policies and Behaviors and Professionals Practices Competencies © 2008 Prentice Hall, Inc. All rights reserved. 3–11
KEY TERMS strategic plan strategic management vision mission SWOT analysis strategy strategic control competitive advantage leveraging strategic human resource management HR Scorecard metrics value chain analysis © 2008 Prentice Hall, Inc. All rights reserved. 3–12
Creating an HR Scorecard The 10-Step HR Scorecard Process Identify required HR policies 1 6 Define the business strategy and activities Outline value chain activities Create HR Scorecard 2 7 Choose HR Scorecard 3 8 Outline a strategy map measures Identify strategically required Summarize Scorecard 4 9 outcomes measures on digital dashboard Identify required workforce 5 10 Monitor, predict, evaluate competencies and behaviors © 2008 Prentice Hall, Inc. All rights reserved. 3–13