1. Week 1

2.  A strategy is something that allows a firm to gain a competitive advantage  Competitive Advantage-Superior marketplace position over other firms  Tactics are the means through which firms accomplish this  There are three primary business-level strategies  Cost leadership  Differentiation  Focus

4.  What makes a function strategic?  A function is strategic if it contributes to firm profitability by providing competitive advantage.  A function is administrative and a cost center if it is concerned mainly with compliance.  So, is HR strategic?  Why or why not?

5.  How could HR contribute to firm profitability?  Competitive advantage  Capital ▪ Human (people) ▪ Tangible (access to resources) ▪ Intangible (distribution networks)

6.  How do we get a competitive advantage from HR?  Through the A-S-A model  The highest level of human capital is not always the objective  The human capital needs of the organization must match the strategy of the organization

7.  Recruiting practices should match the strategy of the organization  High human capital needs-Recruit from best sources  Low human capital needs-Recruit from other sources  Recruitment practices should also match selection and retention practices

8.  Selection practices should match the strategy of the organization  High human capital needs-Select on talent (IQ, special skills, etc.)  Low human capital needs-Select on integrity

9.  Retention practices should match the strategy of the organization  High human capital needs-compensation and benefits should be high  Low human capital needs-compensation and benefits should be moderate. Quality of life and commitment should be emphasized

10.  All HR practices must match  Practice bundles, if appropriate, should lead to a competitive advantage

11.  Form groups  Choose well because this will be your group for the entire semester  Get acquainted  Read the Tanglewood Case  Discuss the issues