Technical and Strategic Human Resources Management Linking of Corporate Strategy to Functional Strategy

Content Chapter One HRM Definitions HRM Model Strategy: Definitions and Feature Level of Strategy Scheme of Strategy Formulation Chapter Two Technical of Strategic HRM SWOT/TOWS HRM

Human Resources Management The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising Dessler, 2005- Human resource (HR) management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals -Mathis, 2010- ......

HRM Model STRATEGIC HRM TECHNICAL HRM Policies Organizational Culture: Mission and Vision, Informal Procedures Organizational Strategies and Structure: Goals, Organizational chart Current Context (Political Climate, Gov’t Laws, Economy, etc.) Review & Evaluation of Human Resource Activities STRATEGIC HRM TECHNICAL HRM Adapted by team MSDM Performance Management Plan for Future Human Resource Needs Recruitment and Selection Training and Development Salary, Benefits, Bonus System Human Resource Functions Policies

Strategy: Definitions and Feature The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving). Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”. Strategy deals with long term developments rather than routine operations, i.e. it deals with probability of innovations or new products, new methods of productions, or new markets to be developed in future. A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives.

Level of Strategy Corporate Strategy Business Strategy Functional Strategy Organization Product HRM; Marketing; Finance; Logistic

Human Resource Practice Human Resource Capability Perform External Audit Human Resource Practice Recruitment -Training Performance management -Labor relation Employee relation -Job Analysis Job design -Selection Development -Pay structure Icentive -Benefits Implement Strategies Marketing, Finance, Accounting, R&D, HRD, and MIS Issues Human Resource Needs Skill Behaviour Culture Develop Vision and Mission Statements Establish Long-Term Objectives Generate, Evaluate, and Select Strategies Implement Strategies— Management Issues Human Resource Capability Skills Ability Knowledge Human Resource Action Behaviour Result (Productivity, absenteism, turnover) Perform Internal Audit Firm Performance Productivity Quality Profitability

Human Resource Management Functions 1ç Human Resource Management Human Resource Development Compensation Staffing Employee and Labor Relations Safety and Health

Strategy and the Basic HR Process Figure 1–8 © 2005 Prentice Hall Inc. All rights reserved.

Changing Roles of HR Management Strategic 20% Operational and Employee Advocate 30% Administrative 50% Strategic 60% Operational and Employee advocate 30% Administrative 10% HR Transformation PAST FUTURE

A Model of the Strategic Management Process Human Resources Management 12e Gary Dessler A Model of the Strategic Management Process Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Technical of Strategic HRM GAP ANALYSIS It’s start with… VISION ASSESSMENT GAP: BASIS FOR LONG-TERM STRATEGIC PLAN

Tools of Strategic Management QSPM SWOT Analysis SPACE BCG MATRIX IE MATRIX

SWOT Analysis HRM

SWOT Analysis SWOT Analysis is a simple tool for analysing your organisation's Strengths and Weaknesses, and the Opportunities and Threats in the external environment. It helps you build on your strengths, manage threats, and take advantage of new opportunities.   You can brainstorm a SWOT analysis at the beginning of your business plan, or use it to compare your operation to competitors.

A SWOT analysis can be used for: Workshop sessions Brainstorm meetings Problem solving Planning Product evaluation Competitor evaluation Personal Development Planning Decision making (with force field analysis)

INTERNAL’s PERSPECTIVE EXTERNAL’s PERSPECTIVE

Question Mark SWOT vs. TOWS

Elements of a SWOT Analysis Table: SWOT Matrix for strategy formulation ( Source: Koontz, 1993 )

Matrix Strategy Based on Organization Positions (SWOT) Weakness Strength Internal Fix-it Quadrant (WO) Retrenchment Enhancement Market Development Product Development Vertical Integration Related Diversification Future Quadrant (SO) Penetration Survival Quadrant (WT) Unrelated Diversification Divestiture Liquidation Harvesting External Fix-it Quadrant (ST) Status Quo Opportunities Threats

HR FRAMEWORK on SWOT Analysis Description: To strategically align all recruitment systems to ensure a TAT. Philosophy: We open the door for endless opportunities to team members who are competent and engaged. 1 TALENT MANAGEMENT Sourcing to Selection On- Boarding to Retirement Competency Management WORKPLACE LEARNING and DEVELOPMENT Foundation Training Domain/ Technical Training Leadership and Management Training 2 Description: To strategically align business requirements with the required Knowledge, Skills, Habits and Competencies of each team member into a viable and sustainable education programs. Philosophy: We sharpen the saw by ensuring that learning has an equivalent ROI. Business Goals Description: To strategically communicate and implement all people- policies and procedures. Philosophy: We support a work environment that has industrial harmony and peace. POLICIES and GOVERNANCE Statutory Documents and Records HR Quality Systems and Standards HR Services Community Relations 4 PERFORMANCE MANAGEMENT Career Planning and Organizational Development Performance Coaching and Mentoring Total Rewards System* *Compensation and Benefits 3 Description: To architect an infrastructure that will capitalize on performance maximization through a culture of coaching and mentoring. Philosophy: We enable managers become inspirational and situational leaders.

TALENT MANAGEMENT ASSESS ATTRACT RETAIN SELECT Branding Description: To strategically align all recruitment systems to ensure a TAT. Philosophy: We open the door for endless opportunities to team members who are competent and engaged. ATTRACT Branding From Referral to Loyalty “Family” Experience 1 ASSESS Robust Assessment Program (competencies management) Targeted Selection “Family”Experience 2 Business Goals RETAIN Inspirational On-Boarding Retention Programs (Fast-Wins) Retirement Programs (Longevity) 4 SELECT Industry Competitive Job-Offer Shared Responsibility with Operations “Family”Experience 3

WORKPLACE LEARNING AND DEVELOPMENT Description: To strategically align business requirements with the required Knowledge, Skills, Habits and Competencies of each team member into a viable and sustainable education programs. Philosophy: We sharpen the saw by ensuring that learning has an equivalent ROI. Trainers’ Bureau Curriculum Development FOUNDATION 3 Months (blended learning) Culture and Values Formation Basic Communication Basic Microsoft Suite Basic Systems program 1 DOMAIN/ TECHNICAL 3 Months (blended learning) Client- Specific Certification Process 2 Business Goals Performance Assessment and Succession Confirmation MANAGEMENT TRAINING TRACK 6 to 8 months (blended learning) Theoretical Preparedness per function Actual Performance per function Succession Planning 4 LEADERSHIP and MANAGEMENT 6 to 12 months (blended learning) Targeted Selection Interaction Management Basic Financial Management Basic HR Management Certification Process 3 External CCE

ORGANIZATIONAL DEVELOPMENT COACHING and MENTORING PERFORMANCE MANAGEMENT Description: To architect an infrastructure that will capitalize on performance maximization through a culture of coaching and mentoring. Philosophy: We enable managers become inspirational and situational leaders. CAREER PLANNING Job Evaluation Job Grading Career Maps (lateral, vertical, etc.) 1 ORGANIZATIONAL DEVELOPMENT Benchmarking of HR Best Practices HR Systems alignment and innovation Best Employer distinction 2 Business Goals TOTAL REWARDS Benchmarking of industry Salary and Benefits Structure 4 COACHING and MENTORING Culture building of coaches and mentors Performance Maximization through Motivation and Accountability 3

POLICIES and GOVERNANCE Description: To strategically communicate and implement all people- policies and procedures. Philosophy: We support a work environment that has industrial harmony and peace. EMPLOYEE DISCIPLINE ER/ IR Education Reformation Enablers 1 STATUTORY RECORDS Electronic and Hard copies Active and Alumni Employees Processing of statutory requirements 2 Business Goals COMMUNITY RELATIONS Government and Private Institutions CSR Activities 4 HR SERVICES Employee Activities Employee Grievances Surveys and FGDs 3

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