Human Resource Management (Business Strategy) Prepared by Grace Amin, M.Psi, Psikolog

Questions Do you have any plans for 3 – 5 years later? What do you prepare to get that?

Does a company have any plan? Why strategic planning is important to all manager? Organizations exist to achieve some purpose, and if they fail to achieve their ends, to that extent they have failed Those aim or goals – and the hard work you put into accomplishing them – all depend on your company’s plan

In well run companies, the goals from the very top of the organization down to where you’re working should form a more or less unbroken chain (or “hierarchy”) CONTOH

President Double sales revenue $ 20 million Vice President of Sales Double Sales in Java, Sumatra, Kalimantan Manager Sales, Java Add 10 new customers Manager Sales, Sumatra Hire 4 new sales people Vice president of Production Add one production line Vice President of HR Add and train 6 sales people Recruiting Manager Identify and attract 20 good sales candidates Training Manager Train 6 new salesperson

The Planning Process Set an objective Make forecasts Determine what courses of action Evaluate alternatives Implement and evaluate the plan

Business Plan A comprehensive view of the firm’s situation today and of its company – wide and departmental goals and plans for the next 3 to 5 years Description of the business The marketing plan The financial plan The management &/ personnel plan

Putting together the business plan The MARKETING plan “the four Ps” = product, price, promotion, place The PERSONNEL / HR plan The PRODUCTION/OPERATIONS plan implementing the marketing plan The FINANCIAL plan the vehicle for doing so = the bottom line of planning The MARKETING plan “the four Ps” = product, price, promotion, place The PERSONNEL / HR plan The PRODUCTION/OPERATIONS plan implementing the marketing plan The FINANCIAL plan the vehicle for doing so = the bottom line of planning

How Managers Set Objectives ?? S M A R T Specific Measurable Attainable Relevant Timely

How to set motivational goals??  Assign specific goals  Assign measurable goals  Assign challenging but doable goals  Encourage participation

Management by Objectives Supervisor and subordinate jointly set goals for the latter and periodically assess progress toward those goals MBOMBO The downside is time consuming Goals at each level will relate to those above and below Employee participation

Management objectives grid Every manager needs a system for organizing how their subordinates’ goals dovetail with those of the company The goals of MOG – List department managers’ supporting goals – Clarify department manager own goals should be – Summarize subordinates goals – Track subordinates’ progress

1 Define the current business and mission 2 Perform external and internal audits 3 Formulate new business and mission statements 4 Translate the mission into goals 5 Formulate strategies to achieve the strategic goals 6 Implement the strategy 7 Evaluate performance Strategic Planning Strategic execution Strategic evaluation

Types of strategies Corporate wide strategic planning Competitive (or business unit) strategic planning Functional (or departmental) strategic planning

Corporate wide strategic planning Several standard corporate strategy possibilities: – Concentration (single business) strategy – Diversification – Vertical integration – Consolidation – Geographic expansion Several standard corporate strategy possibilities: – Concentration (single business) strategy – Diversification – Vertical integration – Consolidation – Geographic expansion The portfolio of business that comprise the company and the way in which these businesses relate to each other

Competitive strategy Standard competitive strategy – Cost leadership – Differentiation – Focusers HUMAN RESOURCES AS A COMPETITIVE ADVANTAGE Identifies how to build and strengthen the business’s long term competitive position in the marketplace

Functional strategy The broad activities that each department will pursue in order to help the business accomplish its competitive goals

Top Manager’s Role is devising a strategic plan Departmental Managers roles are : – Help devise the strategic plan – Formulate supporting, functional/ departmental strategies – Execute the plans

Strategic HRM Formulate business strategy Identify workforce requirements Formulate HR strategic policies and activities Develop detailed HR scorecard measures Formulating and executing HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims

Strategic HRM tools Strategy Map – “Big pictures” – how each department’s contributes to achieving company’s strategic goals The HR scorecard – Take the strategy map and to quantify it Digital Dashboards – Desktop graphs and charts

New strategy New employee competencies and behaviors New HR policies and practices – New training programs – Enriching work – Appropriate returns – Improved selection, orientation and dismissal procedures New strategy New employee competencies and behaviors New HR policies and practices – New training programs – Enriching work – Appropriate returns – Improved selection, orientation and dismissal procedures HIGH Performance work systems