HR Strategy

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Human Resources Strategic Planning

HRM 329 week 3

people and planning… what a great combination

- anonymous

Claremont Graduate University School of Behavioral and Organizational Sciences

Human Resources Management Program

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Evidence-based change is a mind-set & approach to making HR decisions.

…the principles of evidence-based change must be combined with a change-management process to ensure a sustainable competitive advantage for an organization through HR.

More often than not, decisions about HR and people management are made on the basis of the instincts or uninformed preferences of the stakeholders.

The future of the HR profession lies in improving its ability to make decisions based on evidence.

The Five Principles of Evidence-Based Change

Greater strategy in leading-edge HR departments rely on the following 5 principals:

1.Logic-driven analytics – knowing the WHY behind WHAT you need. Different for different disciplines and roles

2.Segmentation – understanding the different roles. One cannot optimize if differences are not known first

3.Risk leverage – knowing when – and when not – to take risks.

4.Integration & synergy – it is important that HR practices work well together, in a unit and across the organization

5.Optimization – investing more where it will make a difference

Segmentation

…is about discovering the Strategic categories of employees and potential employees by understanding the most vital differences between them. These strategic categories are based on what the organization needs from the employees and potential employees (demand side) or on what the organization can offer to attract or motivate them (supply side).

Identifying theses differences allows an organization to craft unique deals that meet the needs of particular segments and to target those deals to the segments where they will have the biggest impact.

Segmentation is about leveraging your employees divisions to strategically get the best results (ex: exempt and nonexempt.

Class Presentation – 30% Students in self determined teams of 4+ will make one presentation per team to the class. The class will divide up based upon a major organization/company they select and believe has great issues or impact in the areas of strategy and HR throughout the United States or world.

The organizations should not be found in Hidden Value, Transformative HR or any organization we talk about in class.

Presentations will be on the last night of class. Groups should e-mail their PowerPoint presentations to the instructor at least 2 days prior to the day of the presentations. No exceptions. Each group will have 10 minutes to set up their presentation. The instructor will email, through Canvas, the PPT to each student prior to the day of class. The presentation, along with commentary, should have between 6- 12 PowerPoint slides and not exceed 20 minutes in length.

Class Presentations

Suggestions from the past (and only that): PricewaterhouseCoopers Starbucks Macy’s HP Nordstrom Coca Cola IBM Apple Microsoft Google General Electric McDonalds Intel Disney Patagonia

Class Presentation Groups

Jim Sinegal wasn’t just interested in taking care of the customers, he wants to take good care of his employees.

Strategically, what is the impact of this mindset?

Many Costco workers have been with the company since it was founded in 1983. Once hired, they rarely leave.

“Imagine that you have 120,000 loyal ambassadors out there who are constantly saying good things about Costco.”

How can human resources further support and impact Jim Sinegal (and Craig Jelinek’s) thought?

What other human resource value strategies are found at Costco and driven by the human resource department?

How is Desirability Determined…one thought

Trust and relationships are desired by ALL employees.

Reward & recognition Compensation outside the norm

Seniority Awards Open communication & transparency at all levels.

psst…if you don’t do it, someone else will.

…the Game Plan for Retaining Human Capital? an organization Cares & they Show it!

Strategic Human Resource Planning

Custom er Needs

Determining the Org Climate

Fulfilling Human Capital Needs

Acquiring Human Capital

On-boarding Human Capital

Developing Human

Retaining Human Capital

Metrics/Assessm ent

Key Strategies - Objectives - Allocation of Resources

Products, Program s, Services

Vision, Mission & Values

The SH

R P

Process

After examining and determining the organizational climate towards human capital, the next vital question to ask is:

Does our Human Resource Department align with the mission of our Organization?

Is the organizational focus the problem or is HR the problem…or both?

Is HR doing what they “think” is right and management “just better listen!” or Does HR desire to support the organizational strategy by fulfilling the human capital needs through solid, creative transactional processes, so as to create a competitive advantage?

If HR is to align with their organization and its mission, it becomes critical, regardless of size, to support the mission of the organization (when it is know) in 3 key areas:

• Providing strategic human resource planning • Promoting the growth, satisfaction and development of one’s employees • Providing support to ensure legal compliance

Fulfilling the Human Capital Needs

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What can we learn from SAS? The SAS business strategy is built on relationships.

Creating VALUE is a another key component to its success. The company business model is premised on long-term relationships; both external AND internal. Period.

Turnover is 17% less than the industry at 2%. This translates to a $100,000,000 savings annually.

A key strategy is to ”create a corporation where it is as much fun for the workers as it is for top management.”

From a human resource view; what and how does/can HR support the SAS culture?