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Strategic Human Resources Management

Kong Haiyan

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Class Activities

• Introduction

• Group discussion (Role play)

• Evaluation (Brainstorming)

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Instructional ObjectivesBy the end of class today, you will be able to:

• Grasp the concepts of strategy, strategic plan• Understand the strategic HR management• Explain the HRM’s strategic roles• Illustrate and explain the basic model of

aligning HR strategy with business strategy

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Introduction Outline

• Key terms

• The strategic management

• Strategic HR management

• HRM’s strategic role

• The 10-step HR scorecard process

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Key Terms

• Strategic plan

• strategy

• Strategic management

• Vision

• Mission

• SWOT analysis

• Strategic control

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Key Terms

• Competitive advantage

• Leveraging

• Strategic human resource management

• Metrics

• Value chain analysis

• Value chain

• Strategy map

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1.Strategic Management

Strategic plan:

A company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

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1.Strategic Management

Strategy:

A company’s long-term plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

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1.Strategic Management

Strategic management:

The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment.

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2.Strategic HR Management

Strategic HR management:

formulating and executing HR systems-HR policies and activities-that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

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3.HR Management’s Strategic Roles

1. The strategy execution role

战略执行角色1. The strategy formulation role

战略规划角色

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3.HR Management’s Strategic Roles

1)The strategy execution role Strategy execution is traditionally the

heart of the HRM’s strategic job. Top management formulates the

company’s corporate and competitive strategies

Then, the HR manager designs strategies, policies, and practices that make sense in terms of the company’s cooperate and competitive strategies.

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3.HR Management’s Strategic Roles

1)The strategy execution role The essence of Dell’s competitive strategy

has always been to be a low-cost leader HRM use various HR strategies to support

the company’s low-cost aims

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3.HR Management’s Strategic Roles

1)The strategy execution role

Dell delivers most of its human resources services, not through a conventional HR department, but via the Web.

A Manager Tools section on Dell’s intranet contains about 30 automated Web applications (including executive search report, hiring tools, and automated employee referrals)

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3.HR Management’s Strategic Roles

1)The strategy execution role The intranet also lets Dell employees

administer their own 401 plans, check job postings, and monitor their total compensation statements.

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3.HR Management’s strategic roles

1)The strategy formulation role Recently, HRM’s role in executing

strategy has expanded to include working with top management to formulate the company’s strategic plan

From execution role– formulation role

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3.HR Management’s Strategic Roles

1)The strategy formulation role Opportunities and threats

The HR manager is in a unique position to supply competitive intelligence that may be useful in the strategic planning process

Details regarding competitor’s incentive plans, survey data from employees that elicit information about customer complaints, etc.

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3.HR Management’s Strategic Roles

1)The strategy formulation role Strengths and weaknesses

HR management also supports strategy formulation by providing internal human strengths and weakness.

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3.HR Management’s Strategic Roles

1)The strategy formulation role

Before the new strategic planning, HR should input the data, such as

Are the workforces suitable for the new technology

How many were computer literate How long it will take to train the employees

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3.HR Management’s Strategic Roles

1)The strategy formulation role

Before the new strategic planning, HR should input the data, such as

It should be nice to train the current workers or recruit new staff outside

All this provide necessary data for strategic planning

Some firms, even build new strategies around HR strengths.

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4.Creating the Strategic HRM System

It’s useful to focus on 3 main components:

HR professionals HR policies and practices Employees behaviors and competencies

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4.Creating the Strategic HRM System

HR professionals

The person who hopefully have the strategic and other skills required to build the strategy-oriented HR system

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4.Creating the Strategic HRM System

HR policies and practices

How the company recruits, selects, trains and rewards employees

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4.Creating the Strategic HRM System

Employees behaviors and competencies

These are required for the company’s strategy requires, and that hopefully emerge from the HR system’s policies and practices

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5. The Basic Model of Aligning HR Strategy with Business Strategy

Step 1: Formulate business strategy

Step 2: Identify workforce requirement

Step 3: Formulate HR strategic policies and activities

Step 4: Develop detailed HR scorecard measures

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Class Work.Developing A HR Strategy for Starbucks

The outline should include 4 basic elements:1.A basic business/competitive strategy2. Identifying workforce requirement3. Specific HR policies and the activities

necessary to produce fees workforce requirements

4. Suggestions for metrics they could use to measure the success of the HR strategy

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Thank You

Q & A