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
PresidentDouble sales
revenue $ 20 million
Vice President of Sales
Double Sales in Java, Sumatra, Kalimantan
Manager Sales, JavaAdd 10 new customers
Manager Sales, Sumatra
Hire 4 new sales people
Vice president of Production
Add one production line
Vice President of HRAdd and train 6 sales
people
Recruiting ManagerIdentify and attract
20 good sales candidates
Training ManagerTrain 6 new salesperson
The Planning Process• Set an objective• Make forecasts• Determine what courses of
action• Evaluate alternatives• Implement and evaluate the
planex : planning our budget, study, career, business
Business Plan (long term, strategic 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
How Managers Set Objectives ??
• S•M• A• R• T
SpecificMeasurableAttainable RelevantTimely
How Managers Set Objectives ??
How to set motivational goals?? Assign specific goals
Assign measurable goals
Assign challenging but doable goals
Encourage participation
Goals are only useful if employees are motivated
to achieve them
1. Set organizational goals
2. Set department goals3. Discuss department
goals4. Set individual goals5. Give feedback
Management by Objectives
Supervisor and subordinate jointly set goals for the latter
and periodically assess progress toward those goals
MBO
Peter Drucker
The downside is time consuming
Goals at each level will relate to those above and belowEmployee 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
The strategic management process
• Strategic plan = “where are we now as a business, where do we want to be and how should we get there?”
A
BSWOT
The strategic management process1Define the
current business and mission
2Perform external and internal audits
3Formulate new business and mission statements
4Translate the mission into goals
5Formulate strategies to achieve the strategic goals
6Implement the strategy
7Evaluate performance
Strategic PlanningStrategic
execution Strategic
evaluation
Types of strategiesCorporate wide
strategic planning
Competitive (or business unit) strategic planning
Functional (or departmental) strategic planning
Corporate wide
Competitive
Functional
Functional Competitiv
e
Corporate wide strategic planning“how many and what kind of business should we be
in?”
• 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
Translating strategy into HR policies and
practices• New strategy
– Produce new services– Capitalize on opportunities– Offer consistently high quality
services• 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