Meeting Present and Emerging Strategic Human

Resource Challenges

• 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

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

• Competitive Position: Cost,

•Quality, distinctive capabilities

•Decentralization•Downsizing•Organizational restructuring•Self-managed work teams•Small business growth•Technology•Outsourcing

Key HR Challenges for Today’s Managers:

Organizational

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

Individual Challenges

• Matching People and Organization

• Matching people and organizations

• Ethical dilemmas • Social responsibility• Productivity• Empowerment• Brain drain• Job insecurity

Key HR Challenges for Today’s Managers: Individual

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.

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.

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.

HR Strategy Leads to Improved Organizational

Performance

HR Strategies

Organizational Strategies

Organizational Characteristics

Organizational Capabilities

Environments

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

Porter’s Low-cost Leadership Strategy  

• Efficient production

• Explicit job descriptions

• Detailed work planning

• Emphasis on qualifications and skills

• Emphasis on job-specific training

• Emphasis on job-based pay

• Use of performance appraisal

Porter’s Focus Strategy

Low cost Differentiation

Miles and Snow Defender Strategy -- RECRUITING

• Internal recruitment

• HR makes selection decision

• Emphasis on qualifications and

skills

• Formal hiring and socialization

process

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

Miles and Snow Defender Strategy -- Compensation

• Fixed pay

• Job-based pay

• Seniority-based pay

• Centralized pay decisions

Miles and Snow Prospector Strategy --Compensation

• Variable pay

• Individual-based pay

• Performance-based pay

• Decentralized pay decisions

LEADERSHIPHow 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

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 BUSINESSHow HR can be a Strategic Partner

STRATEGIC THINKINGHow 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

PROCESS SKILLSHow 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

TECHNOLOGYHow 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

XYZ has a 1 billion budget and staff of 7,000.

To speed growth, XYZ announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, XYZ introduced specially trained

“black belts” to root out inefficiencies in departments. If you were a “black belt”, what would you look for?

Case