has 3240 chapter 01
TRANSCRIPT
© 2001 by Prentice Hall 1-1
11Meeting Present and
Emerging Strategic Human Resource
Challenges
© 2001 by Prentice Hall 1-2
Challenges Explain how a firm’s human resources influence its performance.
Describe how firms can use HR initiatives to cope with workplace changes and trends such as a more diverse work force, the global economy, downsizing, and new legislation.
Distinguish between the role of the HR department and the role of the firm’s managers in utilizing human resources effectively.
Indicate how members of the HR department and managers within a company can establish a strong partnership.
Formulate and implement HR strategies that can help the firm achieve a sustained competitive advantage.
Identify HR strategies that fit corporate and business unit strategies.
© 2001 by Prentice Hall 1-3
Key HR Challenges for Today’s Managers
Environment• Rapid Change• Workforce Diversity• Globalization• Rise of Internet
• Legislation• Evolving Work and Family Roles• Skill Shortages and the Rise
of the Service Sector
Organization• Competitive Position: Cost,
Quality, Distinctive Capabilities• Decentralization• Downsizing• Organizational Restructuring
• Self-Managed Work Teams• Small Businesses• Organizational Culture• Technology• Outsourcing
Individual• Matching People and Organization• Ethical Dilemmas and Social Responsibility• Productivity• Empowerment• Brain Drain• Job Insecurity
© 2001 by Prentice Hall 1-4
Blazing Graphics’ Mission Statement
Blazing Graphics will provide you with the most effective visual communication attainable. We will help you achieve all of your goals while providing you with the greatest value both seen and unseen.
Here at Blazing Graphics we will take the time to do things right. We do this by controlling the entire graphic art process. This enables us to better coordinate each job while providing a higher level of service.
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Blazing Graphics’ Mission Statement (cont.)
Our mission is to ensure exceptional quality by opening up communication between crafts normally separated and at times adverse to one another.
Here at Blazing Graphics we have committed ourselves and our resources to being on the forefront of technology.
Creative technical know-how is the single most critical determinant of economic competitiveness.
It’s our real belief that together we can create an environment that will be both personally and professionally fulfilling for all the people who make up the Blazing Community.
© 2001 by Prentice Hall 1-6
Effective HR Strategy Formulation and Implementation
OrganizationalStrategies
OrganizationalStrategies
OrganizationalCharacteristics
OrganizationalCharacteristics
OrganizationalCapabilities
OrganizationalCapabilities
EnvironmentEnvironment
HR Strategies
Consistency
Consistency
Co
nsi
sten
cy
Co
nsisten
cy
ImprovedFirm
Performance
ImprovedFirm
Performance
FitFit
FitFit
FitFit
FitFit
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Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies
BusinessStrategy
Common OrganizationalCharacteristics HR Strategies
Overallcostleadership
• Sustained capital investment and access to capital• Intense supervision of
labor• Tight cost control
requiring frequent, detailed control reports• Low-cost distribution
system• Structured organization
and responsibilities• Products designed for
ease in manufacture
• Efficient production• Explicit job descriptions• Detailed work planning• Emphasis on technical
qualifications and skills• Emphasis on job-specific
training• Emphasis on job-based
pay• Use of performance
appraisal as a control device
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Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.)
BusinessStrategy
Common OrganizationalCharacteristics HR Strategies
Differ-entiation
•Strong marketing abilities•Product engineering•Strong capability in basic research•Corporate reputation forquality or technologicalleadership•Amenities to attract highly skilled labor, scientists, or creative people.
• Emphasis on innovationand flexibility• Broad job classes• Loose work planning• External recruitment• Team-based training• Emphasis on individual-
based pay• Use of performance
appraisal as development tool
© 2001 by Prentice Hall 1-9
Selected HR Strategies That Fit Porter’s Three Major Types of Business Strategies (cont.)
BusinessStrategy
Common OrganizationalCharacteristics HR Strategies
Focus •Combination of cost-leadership and differentiation strategy directed at a particular strategic target.
• Combination of HR strategies above.
© 2001 by Prentice Hall 1-10
Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies
StrategicHR Area Defender Strategy Prospector Strategy
Work flows
Staffing
• Efficient production• Control emphasis• Explicit job descriptions• Detailed work planning
• Internal recruitment• HR department makes
selection decision• Emphasis on technical
qualifications and skills• Formal hiring and
socialization process
• Innovation• Flexibility• Broad job classes• Loose work planning
• External recruitment• Supervisor makes
selection decision• Emphasis on fit of
applicant with culture• Informal hiring and
socialization process of new employees
© 2001 by Prentice Hall 1-11
Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.)
Employeeseparations
Performanceappraisal
• Voluntary inducements to leave• Hiring freeze• Continuing concern for
terminated employee• Preferential rehiring
policy
• Uniform appraisal procedures• Used as control device• Narrow focus• High dependence on
superior
• Layoffs• Recruit as needed• Individual on his/her own• No preferential treatment
for laid-off workers
• Customized appraisals• Used as developmental
tool• Multipurpose appraisals• Multiple inputs for
appraisals
StrategicHR Area Defender Strategy Prospector Strategy
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Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies (cont.)
Training
Compensation
• Individual training• On-the-job training• Job-specific training• “Make” skills
• Fixed pay• Job-based pay• Seniority-based pay• Centralized pay
decisions
• Team-based or cross-functional training• External training• Generic Training
emphasizing flexibility• “Buy” skills
• Variable pay• Individual-based pay• Performance-based pay• Decentralized pay
decisions
StrategicHR Area Defender Strategy Prospector Strategy
© 2001 by Prentice Hall 1-13
Selected HR Strategies For Firms Low and High on Different Environmental Characteristics
Degree ofUncertainty
Volatility
• Detailed work planning• Job-specific training• Fixed pay• High dependence on
superior
• Control emphasis • Efficient production• Job-specific training• Fixed pay
• Loose work planning• Generic training• Variable pay• Multiple inputs for
appraisals
• Flexibility• Innovation• Generic training• Variable pay
EnvironmentalDimension Low High
© 2001 by Prentice Hall 1-14
Selected HR Strategies For Firms Low and High on Different Environmental Characteristics (cont.)
Magnitudeof Change
Complexity
• Broad job classes• Informal hiring and
socialization of new employees• “buy” skills• Customized appraisals
• Flexibility• External recruitment• Decentralized pay
decisions• Multiple inputs for
appraisals
EnvironmentalDimension
• Explicit job descriptions• Formal hiring and
socialization of new employees• “make” skills• Uniform appraisal
procedures• Control emphasis• Internal recruitment• Centralized pay
decisions• High dependence on
superior
Low High
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Competencies Required of HR Department to Become a Full Strategic Partner
Leadership
• Understand the nature and styles of leadership, and display appropriate leadership characteristics in performance of professional responsibilities.• Demonstrate leadership at multiple performance levels:
•Individual•Team•Unit or Organization
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Competencies Required of HR Department to Become a Full Strategic Partner (cont.)
Knowledge of the Business
• Understand corporate business (structure, vision and values, goals, strategies, financial, and performance characteristics).• Understand the unit’s business, including special
knowledge of competitors, products, technology, and sources of competitive advantage.• Understand internal and external customers.• Understand the environment (external and internal) of
corporation and individual businesses.• Understand key business disciplines• Nature, scope, and HR implications of business
globalization• Information technology as it affects
competitiveness and business processes
© 2001 by Prentice Hall 1-17
Competencies Required of HR Department to Become a Full Strategic Partner (cont.)
• Understand the strategic business planning process.• Understand and be able to apply a systematic HR
planning process.• Be able to select, design, and integrate HR systems or
practices to build organizational mindset, capability, and competitive advantage for the business.• Be able to develop and integrate business unit HR
strategies within framework of corporate HR strategies.
HR Strategic Thinking
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Competencies Required of HR Department to Become a Full Strategic Partner (cont.)
• All HR professionals should be competent in key corporate processes and understand management processes critical to particular business units.• Understand key process skills such as consulting,
problem solving, evaluation/diagnosis, workshop design, and facilitation.• Understand the basic principles, methodologies, and
processes or organizational change and development. • Facilitate and manage organizational change.• Balance, integrate, and manage under conditions of
uncertainty and paradox.
Process Skills
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Competencies Required of HR Department to Become a Full Strategic Partner (cont.)
• All HR professionals should have a generalist perspective on HR systems and practices as they relate to achievement of business competitive advantage.• Generalists are capable of designing, integrating, and
implementing HR systems to build organizational capability and create business competitive advantage.• Specialists are capable of designing/delivering leading-
edge practices to meet competitive business needs.• All HR professionals are capable of measuring
effectiveness of HR systems and practices.
• All HR professionals should have a generalist perspective on HR systems and practices as they relate to achievement of business competitive advantage.• Generalists are capable of designing, integrating, and
implementing HR systems to build organizational capability and create business competitive advantage.• Specialists are capable of designing/delivering leading-
edge practices to meet competitive business needs.• All HR professionals are capable of measuring
effectiveness of HR systems and practices.
HR Technologies
© 2001 by Prentice Hall 1-20
Relationship of HR Department and managers
a. HR responsible for developing programs; management responsible for implementation
b. Each accountable for assisting the other!
© 2001 by Prentice Hall 1-21
Companies can foster effective partnership
Formal HR skills training for managers Managerial experience as part of training for
HR professionals Position HR staff as internal consultants Implement incentives for HR and managers
to work together Involve top operational managers in
development of HR strategies Involve senior HR executive(s) as equal
partners in corporate strategic planning
© 2001 by Prentice Hall 1-22
Companies can foster effective partnership
Establish ongoing evaluation process
Predetermined goals (specific, measurable, related to corporate goals)
Data gathering systems Evaluate both process and outcomes
—relate to goals!
© 2001 by Prentice Hall 1-23
Recap Chapter 1
HR includes a long list of functions There are strategic choices in each of these
functional areas that should be made in a way that supports the mission and overall strategic plan
Environmental factors and organizational characteristics impact the most effective mix of HR strategies
HR professionals and operating management must collaborate on both strategy development and implementation of HR processes