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

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

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

Factors Influencing Functional Strategies Organizational Design U-form, H-form, M-form, Flat Corporate Culture Technology Workforce Composition Diversity, Labor Trends, Unionization

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

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

Business Strategies Adaptation Model Defender Prospector Analyzer Reactor Competitive Strategies Differentiation Cost Leadership Focus

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