Strategy and Human Resources Planning
Managing Human Resources
Bohlander
Snell
14th edition
PowerPoint Presentation by Charlie Cook The University of West Alabama
2007 Thomson/South-Western. All rights reserved.
Corporate Strategy and Human resources
Managing Human Resources Presented by
Bohlander
Snell
DINU
14th edition
PowerPoint Presentation by Charlie Cook The University of West Alabama
Human Resource Management Strategy
The Meaning of Strategy A critical factor that affects Firm Performance A factor that contributes to Competitive Advantage in markets Having a long-term focus Plans that involve the top executives and/or board of directors of the firm A general framework that provides a perspective for selecting specific policies and procedures
MBAO 6030 Human Resource Strategy
HRP and Strategic Planning
Strategic Analysis
What human resources are needed and what are available?
Strategic Formulation
What is required and necessary in support of human resources?
Strategic Implementation
How will the human resources be allocated?
Human Resources Planning
Strategic Planning
2007 Thomson/South-Western. All rights reserved.
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Figure 21
Linking Strategic Planning and Human Resources
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Step One: Mission, Vision, and Values
Mission
The basic purpose of the organization as well as its scope of operations
Strategic Vision
A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent
Core Values
The strong and enduring beliefs and principles that the company uses as a foundation for its decisions
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Step Four: Formulating Strategy
Strategy Formulation
Moving from simple analysis to devising a coherent course of action.
SWOT analysis
A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes. Use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses.
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Corporate Strategy
Growth and Diversification Mergers and Acquisitions
Corporate Strategy
Strategic Alliances and Joint Ventures
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Business Strategy
Value Creation
What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted. Low-cost strategy: competing on productivity and efficiency
Keeping costs low to offer an attractive price to customers (relative to competitors).
Differentiation strategy: compete on added value
Involves providing something unique and distinctive to customers that they value.
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Functional Strategy: Ensuring Alignment
External Fit (or External Alignment)
Focuses on the connection between the business objectives and the major initiatives in HR.
Internal Fit (or Internal Alignment)
Aligning HR practices with one another to establish a configuration that is mutually reinforcing.
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Highlights in HRM 4
Source: Company document.
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Figure 28
The 7-S Model
Source: McKinsey & Company
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Step Five: Strategy Implementation
Taking Action: Reconciling Supply and Demand
Balancing demand and supply considerations Forecasting business activities (trends) Locating applicants Organizational downsizing Reducing headcount Making layoff decisions Seniority or performance? Labor agreements
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Step Six: Evaluation and Assessment
Evaluation and Assessment Issues
Benchmarking: The process of comparing the organizations processes and practices with those of other companies Human capital metrics
Assess aspects of the workforce
HR metrics
Assess the performance of the HR function itself
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Measuring Strategic Alignment
Strategy Mapping and the Balanced Scorecard
Balanced Scorecard (BSC)
A measurement framework that helps managers translate strategic goals into operational objectives
financial customer processes learning
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Achieving Strategic Fit
Michael Porter
Emphasizes the fit point of view that all of the firms activities must be tailored to or fit its strategy, by ensuring that the firms functional strategies support its corporate and competitive strategies.
Gary Hamel and C. K. Prahalad
Argue for stretch in leveraging resources supplementing what you have and doing more with what you havecan be more important than just fitting the strategic plan to current resources.
2005 Prentice Hall Inc. All rights reserved.
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HR and Competitive Advantage
Competitive advantage
Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. Superior human resources are an important source of competitive advantage
2005 Prentice Hall Inc. All rights reserved.
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Linking Corporate and HR Strategies
Source: 2003, Gary Dessler, Ph.D.
Figure 36
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HRS Strategic Roles
HR professionals should be part of the firms strategic planning executive team.
Identify the human issues that are vital to business strategy.
Help establish and execute strategy.
Provide alternative insights.
Are centrally involved in creating responsive and market-driven organizations.
Conceptualize and execute organizational change.
2005 Prentice Hall Inc. All rights reserved.
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HRs Strategy Execution Role
The HR departments strategies, policies, and activities must make sense in terms of the companys corporate and competitive strategies, and they must support those strategies.
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HRs Strategy Formulation Role
HR helps top management formulate strategy in a variety of ways by.
Supplying competitive intelligence that may be useful in the strategic planning process. Supplying information regarding the companys internal human strengths and weaknesses. Build a persuasive case that shows howin specific and measurable termsthe firms HR activities can and do contribute to creating value for the company.
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Thank u
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