Week 1 Discussion
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cf_HRM599_wk1_ch2.pptxStrategy-Driven Human Resource Management
Chapter 2
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Strategy and Strategic Planning
Looks at the organization, its environment today, and expected future goals.
Managers must seek employees who embrace the organization’s ultimate strategic goals.
Working in unison accomplishes a whole that is greater than the sum of its parts.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Strategy and strategic planning deal with looking at the organization and its environment--today and in the expected future--and determining what the organization wants to do to meet the requirements of that expected future.
Strategy and strategic planning in the 21st century and the environment
A time-worn business axiom is: “When you fail to plan you plan to fail.” Is there be any greater justification for being PROACTIVE?
Managers must provide the right combination of people in the organization who are accomplishing their designated goals in order for an organization to flourish and achieve its ultimate strategic goals.
Working in unison accomplishes a whole that is greater than the sum of its parts.
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Strategic Choice
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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External Influences Managers Cannot Control
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Internal Influences Managers Can Control
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Strategy and Strategic Planning
Strategy
Looks at the external environment and the internal (organizational) environment to create strategic advantages.
Strategic planning
Occurs when organizations analyzes the environments better and react quicker than their competitors.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Strategy is a plan of action to achieve a particular set of objectives.
It looks at the external environment and the internal (organizational) environment in order to create strategic advantage.
Strategic advantage occurs when the organization analyzes the environment better and reacts quicker than its competitors.
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Three Strategic Questions
These questions may appear simplistic, but they are the essence of business success:
What is the present situation?
Where do we want to go?
How do we plan to get there?
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Vision and Mission
Vision
Provides a focus for the future.
Mission
Expectations of what the organization will do to realize the vision. The most successful businesses strive for a higher purpose.
Vision + Mission
Focus on the direction for the organization and its people
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Types of Strategies
Cost leadership
Focuses on lowering organizational costs required to create products or services.
Broad differentiation
Focuses on developing a distinctive impression of the product or service in customers’ minds.
Focus or niche
Focuses on a specific portion of a larger market.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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HRM and cost leadership--maximize employee efficiency and effectiveness through highly specialized jobs that require people to repeat the same task-
HRM and differentiation--maximize employee flexibility and adaptability through jobs that require cross-functional teams to innovate and try new processes in uncertain environments.
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How Strategy Affects HRM
HRM and cost leadership
Maximize employee efficiency and effectiveness.
Highly specialized jobs.
Requires employees to repeat the same task.
HRM and differentiation
Maximize employee flexibility and adaptability.
Cross-functional teams.
Innovate and try new processes in uncertain environments.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Michael Porter’s Five-Forces Competitive Analysis
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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SWOT Analysis
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Designing a strategy
Set objectives
Objectives state what is to be accomplished in singular, specific, and measurable terms with a target date.
Create a strategy--weave objectives into a cohesive organizational plan.
Implement, monitor, and evaluate strategies
Controlling is the process of establishing and implementing mechanisms to ensure that objectives are achieved. What gets measured and rewarded gets done!
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Designing a Strategy
Set objectives
Create a strategy
Implement, monitor, and evaluate strategies
Controlling is the process of establishing and implementing mechanisms to ensure that objectives are achieved.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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How HR Promotes Strategy
Through employees
Recruiting
Selecting
Training
Evaluating
Interacting based on the organizational strategies
Through the organization
Evaluating objectives and company characteristics
Assessing competitors
Analyzing strengths and weaknesses
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Organizational Structure
Determines how an organization groups its resources to accomplish its mission.
Complexity: degree of vertical, horizontal, and spatial differentiation within the organization.
Formalization: degree to which jobs are standardized within an organization.
Centralization: degree to which decision-making is concentrated within the organization.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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The best structure is one that allows the firm to marshal its resources and implement its strategies successfully.
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How Structure Affects Employee Behavior and HRM
Employee behavior
The way organizations combine complexity, formalization, and centralization affects employee autonomy.
HRM
Affects the nature of job expertise, training, evaluation, and appraisal of HR employees.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Organizational Culture
Employees’ shared values, beliefs, and assumptions about appropriate behavior.
HR is not to dictate and impose cultural values, but rather to redefine and shape the culture of an organization.
Individuals typically adapt their actions to conform to those that the culture values.
Social media is one mechanism that manages organizational culture.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Refers to members’ shared values, beliefs, and assumptions about appropriate behavior. The role of Human Resources is not to dictate and impose cultural values but to redefine and shape the culture of an organization.
It affects how and why employees do what they do, because individuals typically adapt their actions to conform to those that the culture values.
Social media is one of the mechanisms that we now use to both monitor and--at least partially--control organizational environments. Parsons, A. (2013). Using social media to reach consumers: A content analysis of official Facebook pages. Academy of marketing studies Journal, 17(2), 27.
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Culture Artifacts and Levels of Culture
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Human Resource Information Systems (HRIS)
HRIS are database management systems that manage and manipulate data that influence organizational performance, like:
Attendance and leave tracking
Job and pay history
Job descriptions
Appraisal scores and review date tracking
Benefits enrollment and tracking
Also used when considering promotions, transfers, team assignments, and other daily activities.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Measurement Tools for Strategic HRM
Economic Value Added (EVA)
Return on Investment (ROI)
Balanced Scorecard (BSC)
HR Scorecard
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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