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Strategic Human Resource
Management
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Overall Goal of Strategic Management for an Organization
Deploy & allocate resources ==> competitive advantage
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What is Strategic Management?
analyze competitive situation
develop strategic goals devise plan of action allocate resources implement plan evaluate results
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The Strategic Planning Process
An Overview
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Strategic Choice
Human Resource Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Productivity
Human Resource Actions
Behaviors
Results (Productivity, Absenteeism, Turnover)
Human Resource Capability
Skills
Abilities
Knowledge
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance Management
Job Analysis
Labor Relations
Employee Relations
Mission
Goals
Job DesignSelectionDevelopmentPay StructureIncentivesBenefits
Strategy Evaluation
SW
OT
Emergent Strategies
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Strategic Choice
Human Resource Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Productivity
Human Resource Actions
Behaviors
Results (Productivity, Absenteeism, Turnover)
Human Resource Capability
Skills
Abilities
Knowledge
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance Management
Job Analysis
Labor Relations
Employee Relations
Mission
Goals
Job DesignSelectionDevelopmentPay StructureIncentivesBenefits
Strategy Evaluation
SW
OT
Emergent Strategies
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Strategy Formulation Mission Goals External analysis Internal analysis Strategic choice
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S W O T Internal Strengths Internal Weaknesses External Opportunities External Threats
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Types of Strategies Corporate Business Functional
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Corporate Strategies Grand
Growth Retrenchment/turnaround Stability
Diversification Related Unrelated
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Business Strategies Adaptation Model
Defender Prospector Analyzer Reactor
Competitive Strategies Differentiation Cost Leadership Focus
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Strategic Human Resource Management
Definition: The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.
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Factors Influencing Functional Strategies Organizational Design
U-form, H-form, M-form, Flat Corporate Culture Technology Workforce Composition
Diversity, Labor Trends, Unionization
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Strategic Choice
Human Resource Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Productivity
Human Resource Actions
Behaviors
Results (Productivity, Absenteeism, Turnover)
Human Resource Capability
Skills
Abilities
Knowledge
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance Management
Job Analysis
Labor Relations
Employee Relations
Mission
Goals
Job DesignSelectionDevelopmentPay StructureIncentivesBenefits
Strategy Evaluation
SW
OT
Emergent Strategies
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HR Practices: Options for Fit with
Strategy
Job Analysis & Design Recruitment & Selection Training & Development Performance Appraisal Pay Systems Labor & Employee
Relations
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Job Analysis/Design
Few tasks – Many tasks
Simple tasks – Complex tasks
Few skills required – Many skills required
Specific job descriptions – General job descriptions
Recruitment/Selection
External sources – Internal sources
Limited socialization – Extensive socialization
Assessment of specific skills – Assessment of general skills
Narrow career paths – Broad career paths
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Training and Development
Focus on current job skills – Focus on future job skills
Individual orientation – Group orientation
Train few employees – Train all employees
Spontaneous, unplanned – Planned, systematic
Performance Management
Behavioral criteria – Results criteria
Developmental orientation – Administrative orientation
Short-term criteria – Long-term criteria
Individual orientation – Group orientation
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Pay Structure/Incentives/Benefits
Pay weighted on salary/benefits – pay weighted on incentives
Short-term incentives – Long-term incentives
Emphasis on internal equity – Emphasis on external equity
Individual incentives – Group incentives
Labor/Employee Relations
Collective bargaining – Individual bargaining
Top-down decision making – Participation in decision making
Formal due process -- No due process
View employees as expense – View employees as assets
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Strategic Choice
Human Resource Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Productivity
Human Resource Actions
Behaviors
Results (Productivity, Absenteeism, Turnover)
Human Resource Capability
Skills
Abilities
Knowledge
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance Management
Job Analysis
Labor Relations
Employee Relations
Mission
Goals
Job DesignSelectionDevelopmentPay StructureIncentivesBenefits
Strategy Evaluation
SW
OT
Emergent Strategies
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Business Strategies Adaptation Model
Defender Prospector Analyzer Reactor
Competitive Strategies Differentiation Cost Leadership Focus
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Strategic Choice
Human Resource Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Productivity
Human Resource Actions
Behaviors
Results (Productivity, Absenteeism, Turnover)
Human Resource Capability
Skills
Abilities
Knowledge
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance Management
Job Analysis
Labor Relations
Employee Relations
Mission
Goals
Job DesignSelectionDevelopmentPay StructureIncentivesBenefits
Strategy Evaluation
SW
OT
Emergent Strategies
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Agenda Item
Mini-Map
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A Word of Caution The terms “strategy” and
“planning” may be applied to EVERY function in a generic way … meaning that you will have a strategy and make a plan for each activity (like training, recruiting, etc.)
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A Word of Caution, con’d
For the purposes of your maps, use “strategy” and “planning” as HR FUNCTIONS Strategy=“corporate strategy” --
the relationship of the company’s strategy to HR activities
Planning=The supply and demand of employees