1. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 1 1 Meeting Present and Emerging Strategic Human Resource Challenges

2. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 2 How can HR influence firm performance? How can HR cope with workplace changes and trends? What are HR strategies that help a firm achieve competitive advantage? Challenges facing HR

3. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 3 Key HR Challenges for Today’s Managers: Environmental Rapid change Workforce diversity Globalization Internet revolution Legislation Evolving work and family roles Skill Shortages Rise of the service sector

4. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 4 Quality, distinctive capabilities Decentralization Downsizing Organizational restructuring Self-managed work teams Small business growth Technology Outsourcing Key HR Challenges for Today’s Managers: Organizational

5. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 5 Basic assumptions and beliefs shared by members of an organization… rules, norms behaviors philosophy dominant values feeling or climate Key HR Challenges for Today’s Managers: Cultural

6. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 6 Individual Challenges Matching People and Organization Ethical dilemmas Social responsibility Productivity Empowerment Brain drain Job insecurity Key HR Challenges for Today’s Managers: Individual

7. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 7 Mission Statement: Otis Elevator Our mission is to: provide any customer a means of moving people and things up, down and sideways over short distances with higher reliability than any similar enterprise in the world.

8. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 8 CODE OF ETHICS : As a member of the American Marketing Association, I recognize the significance of my professional conduct and responsibilities to society and to other members of my profession: 1. By acknowledging my accountability to society as a whole as well as to the organization for which I work. 2. By pledging my efforts to assure that all presentations of goods, services, and concepts be made honestly and clearly. 3. By striving to improve marketing knowledge and practice in order to better serve society.

9. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 9 Code of Ethics (cont’d) 4. By supporting free consumer choice in circumstances that are legal and are consistent with generally accepted community standards. 5. By pledging to use the highest professional standards in my work and in competitive activity. 6. By acknowledging the right of the American Marketing Association, through established procedure, to withdraw my membership if I am found to be in violation of ethical standards of professional conduct.

10. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 10 HR Strategy Leads to Improved Organizational Performance HR Strategies Organizational Strategies Organizational Characteristics Organizational Capabilities Environments

11. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 11 Porter’s Differentiation Strategy Efficient production Explicit job descriptions Detailed work planning Emphasis on technical skills Emphasis on job-specific training Emphasis on job-based pay Use performance appraisal

12. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 12 Porter’s Low-cost Leadership Strategy Efficient production Explicit job descriptions Detailed work planning Emphasis onqualifications and skills Emphasis on job-specific training Emphasis on job-based pay Use of performance appraisal

13. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 13 Porter’s Focus Strategy Low cost Differentiation

14. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 14 Miles and Snow Defender Strategy -- RECRUITING Internal recruitment HR makes selection decision Emphasis on qualifications and skills Formal hiring and socialization process

15. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 15 Miles and Snow Prospector Strategy -- RECRUITING External recruitment Supervisor makes selection decision Emphasis on applicant fit with culture Informal hiring and socialization process of new employees

16. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 16 Miles and Snow Defender Strategy -- Compensation Fixed pay Job-based pay Seniority-based pay Centralized pay decisions

17. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 17 Miles and Snow Prospector Strategy -- Compensation Variable pay Individual-based pay Performance-based pay Decentralized pay decisions

18. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 18 LEADERSHIP How HR can be a Strategic Partner Understand styles of leadership Display appropriate leadership Demonstrate leadership at all levels of performance – team, individual, unit or organization

19. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 19 HR must understand… internal / external customers key business disciplines business structure, vision, values, goals, strategies, finances competitors, products, technology and sources of competitive advantage KNOWLEDGE OF BUSINESS How HR can be a Strategic Partner

20. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 20 STRATEGIC THINKING How HR can be a Strategic Partner Understand strategic business planning Apply a systematic HR planning process Integrate HR systems to build capability and competitive advantage for the firm Develop and integrate department strategies within corporate framework

21. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 21 PROCESS SKILLS How HR can be a Strategic Partner Know management processes Know process skills: consulting, problem solving, evaluation and communication Understand organizational development Facilitate and manage change Manage under uncertainty and instability

22. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 22 TECHNOLOGY How HR can be a Strategic Partner Maintain HR documentation using knowledge management and technology Build firm’s capability using info systems Provide training in use of technology

23. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 1 - 23 3M has a $1 billion budget and staff of 7,000. To speed growth, 3M announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, 3M introduced specially trained “black belts” to root out inefficiencies in departments. If you were a “black belt”, what would you look for? Case