Week 6 - Discussion Strategic HR Mgmt- Due by Thurs @ 5pm CST
ldbechet
hrmg_4201_week06_chapter14ppt.pptxAligning Strategy with Practice
Chapter 14
Learning Objectives
After reading this chapter you should be able to:
Explain the concepts of vertical and horizontal alignment.
Identify the specific human resource practices that fit within each of the basic HR strategies.
Understand how basic competitive and HR strategies can vary, what role human resources can play in strategy formulation, and why human resource management is important for small organizations.
Describe how the field of human resource management is likely to change in upcoming years.
How Can Alignment of HR Practices Make an Organization Effective?
Each human resource practice is in alignment when it is in its proper place relative to other practices and strategic objectives.
Two Types of Alignment
Vertical
Horizontal
Each human resource practice is in alignment when it is in its proper place relative to other practices and strategic objectives.
There are two basic forms of alignment that are commonly discussed as part of strategic management.
Vertical
Horizontal
WHAT ARE TWO BASIC FORMS OF STRATEGIC ALIGNMENT? (LO1)
Figure 14.1 Vertical and Horizontal Alignment
Vertical Alignment
Refers to the positioning of an organization’s human resource management strategy to support the competitive business strategy.
For example the organization might be out of vertical alignment if it seeks to differentiate its products through innovation but adopts a Bargain Laborer HR strategy
Horizontal Alignment
This alignment is concerned with the coordination of parts within the organization.
In human resource management, horizontal alignment refers to the fit of specific practices with other practices.
The selection practice of hiring team players aligns with the performance appraisal practice of reducing competition among employees.
The other form of fit, known as horizontal alignment, concerns the coordination of parts within the organization.
In the specific case of human resource management, horizontal alignment refers to the fit of specific practices with other practices.
The selection practice of seeking employees who are likely to be team players aligns with the performance appraisal practice of reducing competition among employees, for example.
In contrast, practices would not be horizontally aligned if the selection practice focused on hiring team players but the performance appraisal practice emphasized competition and individual achievement.
The selection practice of seeking employees who are likely to be team players aligns with the performance appraisal practice of reducing competition among employees,
HOW DO HR PRACTICES ALIGN WITH ONE ANOTHER? (LO2)
Core Human Resource Practices
Core Human Resource Practices
HR Practices
WHAT ARE SOME OTHER HR ISSUES? (LO3)
Turnaround Strategy
Companies using this strategy lay off employees and look for new approaches to production.
This strategy is compatible with an external labor orientation.
Low performers are dismissed, and new employees are hired for their ability to change the way work is accomplished.
A Free Agent HR strategy adopted with part of a competitive strategy emphasizes the need to turn around low organizational performance quickly.
Turnaround strategy
Companies using this strategy employees lay off employees and look for new approaches to production are implemented.
This strategy is usually compatible with an external labor orientation.
Low performers are dismissed, and new employees are hired for their ability to change the way work is accomplished.
A Free Agent HR strategy adopted with the emphasizes the need to turn around low organizational performance quickly.
Other HR Issues
Global Expansion Strategy
Focuses specifically on growing an organization’s presence in foreign countries.
This strategy requires organizations to attract and select workers who are quite different from those already employed.
The human resource approach most closely aligned with the global expansion competitive strategy is the Free Agent HR strategy.
Other HR Issues
Growth Strategy
Is adopted by companies seeking to expand into new markets.
Growth may occur through acquisitions and mergers.
human resource management focus will be on reducing barriers to effective integration of organizational cultures.
HR in Small Business
In small firms the emphasis on recruiting, selection, performance appraisals, training, and compensation grow at a faster rate than other firms.
Effective human resource management helps small organizations innovate.
In small firms the emphasis on recruiting, selection, performance appraisals, training, and compensation grow at a faster rate than other firms.
Effective human resource management helps small organizations innovate.
What Might the Future of HR Look Like?
The field of human resource management is continually changing.
The emphasis has moved away from personnel management designed to ensure compliance with legal requirements toward a strategic model that links the management of people to competitive objectives.
Challenges Facing HR
Future Trends in HR
Increase emphasis on sustainability
Growth of social networking
Balance of work and family
Volatile economic conditions
Adaptation to healthcare legistlation
