1. Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon
Chapter 2

2. Video The HR Perspective
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Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

3. Strategy-Driven Human Resource Management
Strategy and strategic planning in the 21st Century and the Environment
Strategy and strategic planning deal with looking at the organization and its environment – today and in the expected future – and determining what the organization wants to do to meet the requirements of that expected future.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

4. Strategy-Driven Human Resource Management
Factors in Choosing a Strategy
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

5. Strategy-Driven Human Resource Management
Influences from outside the organization that managers cannot control.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

6. Strategy-Driven Human Resource Management
Influences within the organization that managers can control.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

7. Strategy-Driven Human Resource Management
Strategy and Strategic Planning
Strategy is a plan of action to achieve a particular set of objectives.
It looks at the external environment and the internal (organizational) environment in order to create strategic advantage.
Strategic advantage occurs when the organization analyzes the environment better and reacts quicker than its competitors.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

8. Strategy-Driven Human Resource Management
Three Big Strategic Questions
What is the present situation? – E.g., profits, customers, employees, technology, physical resources, etc.
Where do we want to go? – What is the organization’s vision and mission?
How do we plan to get there? – A plan that will allow the organization to reach the goals identified in the vision and mission, and that will create a sustainable competitive advantage.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

9. Strategy-Driven Human Resource Management
Vision and Mission Vision – What the organization expects to become at a particular point in time. Mission – Specific expectations of what the organization will do in order to realize the vision. Vision + Mission = Focus on the direction for the organization and its people.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

10. Strategy-Driven Human Resource Management
Types of Strategies
Cost Leadership – Focuses on lowering organizational costs required to produce products or services
Differentiation – Focuses on creating a distinctive impression of the product or service in customers’ minds.
Focus or niche – Focuses on a specific portion of a larger market.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

11. Strategy-Driven Human Resource Management
How Strategy Affects HRM
HRM and Cost Leadership – maximize employee efficiency and effectiveness through highly specialized jobs that require people to repeat the same task.
HRM and Differentiation – maximize employee flexibility and adaptability through jobs that require cross-functional teams to innovate and try new processes in uncertain environments.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

12. Strategy-Driven Human Resource Management
Strategic Analysis Five-Force Competitive Analysis
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

13. Strategy-Driven Human Resource Management
Strategic Analysis SWOT Analysis
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

14. Strategy-Driven Human Resource Management
Designing a Strategy
Set objectives
Objectives state what is to be accomplished in singular, specific, and measurable terms with a target date.
Create a strategy – weave objectives into a cohesive organizational plan.
Implement, Monitor and Evaluate Strategies –
Controlling is the process of establishing and implementing mechanisms to ensure that objectives are achieved.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

15. Strategy-Driven Human Resource Management
How HR Promotes Strategy
By recruiting, selecting, training, evaluating, and interacting with employees, based on the organizational strategies.
By evaluating objectives, competitors, organizational strengths and weaknesses, and many other industry and company characteristics based on the organizational strategies.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

16. Strategy-Driven Human Resource Management
Organizational Structure
Determines how an organization groups its resources to accomplish its mission.
Complexity – the degree of vertical, horizontal and spatial differentiation within the organization.
Formalization – the degree to which jobs are standardized within an organization.
Centralization – the degree to which decision- making is concentrated within the organization.
The best structure is one that allows the firm to implement its strategies successfully.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

17. Strategy-Driven Human Resource Management
How Structure Affects Employee Behavior The way organizations combine complexity, formalization, and centralization affects employee autonomy. How Structure Affects HRM It affects the nature of job expertise, training, evaluation and appraisal of HR employees.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

18. Strategy-Driven Human Resource Management
Organizational Culture
Refers to members’ shared values, beliefs, and assumptions about appropriate behavior.
It affects how and why employees do what they do, because individuals typically adapt their actions to conform to those that the culture values.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

19. Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

20. Strategy-Driven Human Resource Management
Measurement tools for Strategic HRM
Economic Value Added (EVA)
Return on Investment (ROI)
Balanced Scorecard (BSC)
HR Scorecard
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

21. Strategy-Driven Human Resource Management
Human Resource Information Systems (HRIS)
HRIS are database management systems that manage and manipulate data that influence organizational performance.
E.g., attendance and leave tracking, job and pay history, job descriptions, appraisal scores and review date tracking, benefits enrollment and tracking.
Also used when considering promotions, transfers, team assignments and many other daily activities.
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.