© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–1.

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© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–1 Strategy and Strategic Planning Strategy The proposition an organization follows for how to compete successfully and thereby survive and grow. Strategic Planning The process of defining organizational strategy and allocating resources toward its achievement.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–2 FIGURE 2–1 Strategic Planning Process

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–3 FIGURE 2–3 Strategic Human Resource Management

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–4 HR Effectiveness and Financial Performance EffectivenessEffectiveness  The extent to which goals have been met. EfficiencyEfficiency  The degree to which operations are done in an economical manner.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–5 Environmental Analysis Environmental ScanningEnvironmental Scanning  The assessment of internal and external environmental conditions that affect the organization HR Planning Legislative/Political Influences Economic Conditions Geographic and Competitive Concerns Demographic Changes

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–6 FIGURE 2–4 HR Factors in the SWOT Analysis

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–7 FIGURE 2–5 Areas of External Environmental Scan

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–8 FIGURE 2–6 Strategic Approaches to International Staffing

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–9 HR Planning in Mergers and Acquisitions Cultural CompatibilityCultural Compatibility  The extent to which such factors as decision-making styles, levels of teamwork, information-sharing philosophies, and the formality of the two organizations are similar. HR’s Role in Mergers and AcquisitionsHR’s Role in Mergers and Acquisitions  Communicating decisions  Revising the organization structure  Merging HR activities

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–10 Managing a Talent Surplus Reduction in Work Hours or Compensation Attrition and Hiring Freezes Voluntary Separation Programs Workforce Downsizing Workforce Reductions

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–11 Managing a Talent Shortage Use overtime Implement alternative work arrangements Outsource work Bring back recent retirees Use contingent workers Reduce turnover Tactics to Reduce a Talent Shortage

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.2–12 Legal Considerations for Workforce Reductions Workforce Adjustments Severance benefits COBRA coverage OWBPA Warn Act