man 4320 spring, 2011 strategic staffing ch 2 - final

5/27/2018 MAN 4320 Spring, 2011 Strategic Staffing Ch 2 - Final

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Strategic Staffing

Chapter 2Business and Staffing

Strategies

Jean Phillips & Stanley Gully

Copyright 2009 Pearson Education,

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Why Does One Company Succeed and Another Fail?

Staffing plays a central role in creating andenhancing any organizations competitiveadvantage


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Resource-Based View of the Firm

Proposes that a companys resources and

competencies (including its talent) can

produce a sustained competitive advantage

by creating value for customers by:

Lowering costs

Providing something of unique value

Or some combination of the two


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Resource-Based View of the Firm

Focuses attention on the quality of the skills of a companysworkforce at various levels, and on the quality of themotivational climate created by management.

Human resource management is valued not only for its

role in implementinga given competitive scenario butalso for its role in generating strategic capability.

Staffing has the potential to create organizations that aremore intelligent and flexible than their competitors, andthat exhibit superior levels of cooperation and operation.


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Five Requirements of a Competitive

Advantage


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Business Strategy

Definition: how a company will compete in itsmarketplace

Competitive advantage: anything that gives a

firm an edge over rivals in attractingcustomers and defending itself againstcompetition To have a competitive advantage a company must be able

to give customers superior value for their money(acombination of quality, service, and acceptable price)


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Components of Business Strategy

Business strategy involves the issue of how to

compete, but also encompasses:

The strategies of different functional areas in the firm

How changing industry conditions such as deregulation,

product market maturity, and changing customer

demographics will be addressed

How the firm as a whole will address the range of strategic

issues and choices it faces


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Some Sources of Competitive

Advantage Innovation: developing new products, services, and

markets and improving current ones

Cost: be the lowest-cost provider

Service: provide the best customer support before,during, or after the sale

Quality: provide the highest quality product orservice

Branding: develop the most positive image


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Sources of Competitive Advantage

Distribution: dominate distribution channels

to block competition

Speed: excel at getting your product or

service to consumers quickly

Convenience: be the easiest for customers to

do business with

First to market: introduce products and

services before competitors


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Three Types of Business Strategy

1. Cost leadership strategy: be the lowest cost

producer for a particular level of product

quality (Wal-Mart, Dell, FedEx)

Competitive advantage based on operational excellence:

maximizing the efficiency of the manufacturing or

product development process to minimize costs

This can only be achieved with trainable and flexible

employeeswho avoid waste and lower production costs

Look for adaptable, trainable employees that can follow

standard procedures!


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2.Differentiation strategy: developing a

product or service that has unique

characteristics valued by customers and for

which the firm may be able to charge a

premium price: (Rolex, Lexus, Johnson &

Johnson, Nike, 3M, Apple)

Competitive advantage based onproduct innovation Look for creative, high tolerance for ambiguity,

entrepreneurial mindset


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3.Specialization strategy: focus on a narrowmarket segment or niche and pursue either adifferentiation or cost leadership strategy

within that market segment (Starbucks, RedLobster, Seiko) Competitive advantage based on customer intimacy: deliver

unique and customizable products or services to meet theircustomers needsand increase customer loyaltyaim for

team players with good people skills Consulting, retail and banking strive for customer intimacy

Look for networking, customer relation skills,


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4. Growth Strategy

Definition: company expansion organically(happening as theorganization expands from within by opening new locations)or through mergers and acquisitions

Success depends on the firms ability to find and retain theright number and types of employees to sustain its intended

growth. Organic growth requires an investment in recruiting,

selecting, and training the right people to expand thecompanys operations.

Mergers and acquisitions expand an organizations business

and can also be a way to acquire the quality and amount oftalent a firm needs to execute its business strategy.

Copyright 2009 Pearson Education,Inc.

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Organizational Life Cycle and Strategy Choice

Intro-Growth-Maturity-Declinelife cycle

Strategy during introphase

Attracting top talent is a priority

Company must meet market compensation rates


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Strategy during growthphase New and growing firms often pursue innovation or

differentiation strategies to distinguish themselves fromtheir competition.

Because they are less established and thus higher-riskemployers, they often need to invest more money andresources in staffing to attract the talent they need togrow.

Because they lack a strong internal talent pool andneed to add new employees as they grow, theyfrequently need to hire from outside the organizationand tend to have an external talent focus.


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Strategy during maturity phase when products

and services have fully evolved, and the

products market share has become established

The focus shifts to maintaining or obtaining further marketshare through cost leadership, often by streamlining operations

and focusing on efficiency.

Because mature companies have a larger pool of internal talent

from which to draw, the talent focus becomes more internal.

Requires more adaptable and mobile employees as company

may restructure


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Strategy choice during declinephase whenmarkets are shrinking and businessperformance is weakening Can pursue a cost-leadership strategy and allow the

decline to continue until the business is no longerprofitable

Focus on reducing labor and other costs

Can try to make changes to revive the product or service

If it chooses to try to change its product or service, thefirm typically adopts a specialization or differentiationstrategy

This can change the talent mix needed


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Talent Philosophy

A system of beliefs about how employees

should be treated

How should the organization think about its

employees?expendable or investment?


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HR and Staffing Strategies

Human resource strategy: the linkage of theentire human resource function with the firmsbusiness strategyin order to improve business

strategy execution Strategic HR mgmt aligns goals and values of company

with those of employees.

Staffing strategy: the constellation of priorities,

policies, and behaviors used to manage the flowof talent into, through, and out of anorganization over time


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The Firms Commitment to Diversity

A firm can proactively recruit a diverse mix of

workers and strive to incorporate diversity

into its workplace--- or it can more passively

allow diversity to happen on its own.

Well managed, heterogeneous groups

outperform homogeneous groups in problem

solving, innovation, and creative solutionbuilding.


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Applicants and Employees as Either Assets or Investors

If applicants and employees are thought of asassets, the staffing focus is on managing costsand controlling the asset. (acquire employeescheaply and quicklygood for low-cost

strategy) By contrast, if applicants and employees are

thought of as investorsrather than expenses,the focus is on establishing a mutually beneficial

relationship in which the company invests intheir resources. (provide return on personalinvestment in the company)


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The Firms Commitment to Ethical

Behavior

A firm with a talent philosophy focused on

maintaining high ethical standards will be

more forthcoming and communicate more

clearly with applicants and build trust amongemployees.


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Nine Elements of Staffing Strategy

1. Do we want a core or flexible workforce?

Core employees consist of workers considered to becentral to what the organization does or produces.

Flexible workers or contingency workers have lessjob security.

2. Do we prefer to hire internally or externally?

3. Do we want to hire for or train needed skills?

4. Do we want to replace or retain our talent?

5. What levels of which skills do we need where?


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Nine Elements of Staffing Strategy

6. Will we staff proactively or reactively? Job-Oriented Staffing: recruit when you need to fill a job

opening

Talent-oriented staffing: recruit and hire when no specific jobopening (labour market tight)

7. Which jobs should we focus on?

8. Is staffing treated as an investment or a cost?

9. Will staffing be centralized or decentralized? Centralized: All staffing activities channeled through 1 unit

(economies of scale, uniform procedures) Decentralized: Different units house own staffing activities

(specialized hiring, more responsive)

Combinedsome staffing function shared, others decent.


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Competitive Talent Advantage

Human capital advantage: Hiring and retainingoutstanding people that produces a stockof exceptional

talent

Human process advantage: superior work

processes create a competitive advantage.

The firms work gets done in a superior way.

Copyright 2009 Pearson Education,I

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man 4320 spring, 2011 strategic staffing ch 2 - final

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