1. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–12–1 Learning Objectives  Explain strategic HR management and how it is linked to organizational strategies.  Describe how legal, political, cultural, and economic factors affect global HR management.  Discuss four dimensions of organizational effectiveness and how HR contributes to each.  Define HR planning and outline the HR planning process.  Discuss several ways of managing a surplus of human resources.  Identify why HR metrics must consider both strategic and operational HR measures.

2. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–22–2 Strategic HR Management Process Figure 2–1

3. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–32–3 Approaches to Improving Organizational Productivity Figure 2–3

4. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–42–4 Purpose of HR Planning Figure 2–4

5. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–52–5 HR Planning Process HR Strategies Overall Strategic Plan Human Resources Strategic Plan HR Activities

6. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–62–6 Making Downsizing More Effective Figure 2–9

7. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–72–7 Examples of Strategic and Operational HR Metrics Figure 2–10

8. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–82–8 Measures of Strategic HR Effectiveness Return on Investment (ROI)  Calculation showing the value of expenditures for HR activities. A = Operating costs for a new or enhance system for the time period B = One-time cost of acquisition and implementation C = Value of gains from productivity improvements for the time period

9. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–92–9 Assessing HR Effectiveness HR Audit  A formal research effort that evaluates the current state of HR management in an organization  Audit areas:  Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA)  Current job specifications and descriptions  Valid recruiting and selection process  Formal wage and salary system  Benefits  Employee handbook  Absenteeism and turnover control  Grievance resolution process  Orientation program  Training and development  Performance management system

10. Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–10 Estimating Internal Labor Supply for a Given Unit Figure 2–8