Assignment 2- HR Management

LusCh02.pdf

Home >Human Resource Management homework help >Assignment 2- HR Management

Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon Chapter 2

Strategy-Driven Human Resource Management

Strategy and strategic planning in the 21st Century and the Environment

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-Driven Human Resource Management

Factors in Choosing a Strategy

Strategy-Driven Human Resource Management

Influences from outside the organization that managers cannot control.

Strategy-Driven Human Resource Management

Influences within the organization that managers can control.

Strategy-Driven Human Resource Management

Strategy and Strategic Planning 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.

Strategy-Driven Human Resource Management

Three Big Strategic Questions

 What is the present situation? – E.g., profits, customers, employees, technology, physical resources, etc.

 Where do we want to go? – What is the organization’s vision and mission?

 How do we plan to get there? – A plan that will allow the organization to reach the goals identified in the vision and mission, and that will create a sustainable competitive advantage.

Strategy-Driven Human Resource Management

Vision and Mission

Vision – What the organization expects to become at a particular point in time.

Mission – Specific expectations of what the organization will do in order to realize the vision.

Vision + Mission =

Focus on the direction for the organization and its people.

Strategy-Driven Human Resource Management

Types of Strategies

 Cost Leadership – Focuses on lowering organizational costs required to produce products or services

 Differentiation – Focuses on creating a distinctive impression of the product or service in customers’ minds.

 Focus or niche – Focuses on a specific portion of a larger market.

Strategy-Driven Human Resource Management

How Strategy Affects HRM

 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.

Strategy-Driven Human Resource Management

Strategic Analysis

Five-Force Competitive Analysis

Strategy-Driven Human Resource Management

Strategic Analysis

SWOT Analysis

Strategy-Driven Human Resource Management

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.

Strategy-Driven Human Resource Management

How HR Promotes Strategy

 By recruiting, selecting, training, evaluating, and interacting with employees, based on the organizational strategies.

 By evaluating objectives, competitors, organizational strengths and weaknesses, and many other industry and company characteristics based on the organizational strategies.

Strategy-Driven Human Resource Management

Organizational Structure Determines how an organization groups its resources to accomplish its mission.

 Complexity – the degree of vertical, horizontal and spatial differentiation within the organization.

 Formalization – the degree to which jobs are standardized within an organization.

 Centralization – the degree to which decision- making is concentrated within the organization.

The best structure is one that allows the firm to implement its strategies successfully.

Strategy-Driven Human Resource Management

How Structure Affects Employee Behavior

The way organizations combine complexity, formalization, and centralization affects employee autonomy.

How Structure Affects HRM

It affects the nature of job expertise, training, evaluation and appraisal of HR employees.

Strategy-Driven Human Resource Management

Organizational Culture

Refers to members’ shared values, beliefs, and assumptions about appropriate behavior.

 It affects how and why employees do what they do, because individuals typically adapt their actions to conform to those that the culture values.

Strategy-Driven Human Resource Management

Measurement tools for Strategic HRM Economic Value Added (EVA)

Return on Investment (ROI)

Balanced Scorecard (BSC)

HR Scorecard

Strategy-Driven Human Resource Management

Human Resource Information Systems (HRIS)

HRIS are database management systems that manage and manipulate data that influence organizational performance.

 E.g., 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 many other daily activities.