WELCOME TO HA255SEMINAR #6

ORGANIZATIONAL STRATEGY & STRATEGIC HUMAN RESOURCE

MANAGEMENT

KU Instructor: John E. Long, MS, CMM

PLANNING METHODS

Financial Planning (evolved in the 1950s and earlier) using budgets to assist management to implement Or. Strategies

and operational activities Long Range Planning (1960s)

Management focuses the energies of the Org. on an integrated approach to attain corp. goals/objectives and focus on manager functions (marketing, production, finance, HR)

Strategic Planning examining past trends to make projections/predictions regarding

future trends Strategic Management

strategies developed and executed by managers by utilizing Org. resources to enhance Org. performance

Supported by strategic thinking – a synthesis of intuitive, innovative and creative thinking

Competitive Analysis – performance improvement possible from changes in competitive strategies in an Org’s. business units

TYPES OF STRATGIES / SBUs

Build – add service/business areas to increase market share

Hold – maintain current market share Harvest – increase short-term cash flow from a service,

regardless of what happens to that service Divest – terminate a service and/or abandon a market Cost leadership – become the low cost leader in an

area Differentiation – offering a unique service Focus – providing service to a market segment or group

Strategic Business Units (SBUs): single business or collection of related businesses; has distinct mission, has own competitors; has a responsible manager; one or more program & financial units; can benefit from strategic planning; can be planned independently of others businesses

Formulating Organizational Strategy

Identify the Mission, the direction that the Org. is headed Product Definition and Positioning in the Market Defining the Market for the Product/Service Distinct Competence – advantage over competitors External Assessment – Identify Consumer Groups, Analyze

Competitors, Industry Analysis, and Environmental Analysis Internal Assessment – understanding the attributes of the

Org that are of strategic importance (8 bullets on page 47) Portfolio Assessment

Boston Consulting Group Business Grid Product Life Cycle Matrix:

Development Stage Growth Stage Maturity Stage Decline Stage

Strategic Management of HR

The Strategic Management of Human Resources is concerned with designing and implementing internally consistent policies and practices to achieve an organization’s business goals Recruitment & Selection Development Appraisal Compensation

WHAT ARE COMPETENCIES

Harvard psychologist David McClelland pioneered the development of a competency based methodology to HR management (early 1970s)

Competence – an underlying characteristic of a person which enables them to deliver superior performance in a given job, role or situation

Competency – the more generic underlying personal characteristics that contribute to successful performance Consist of Clusters of knowledge, attitudes and skills that affect

an individual’s ability to perform Determined by identifying the behaviors that are exhibited by high

performers and the underlying clusters Figure 5.1 on page 81 - Competencies for Effective

Performance

TYPES OF COMPETENCIES

Technical Competencies – those that are specific to a particular job family

Core Competencies – broad Org. requirements that reflect Org. goals and strategies to respond to changing environments

Job Family Competencies – apply to broad group of jobs

Level Competencies – apply to particular jobs (or level) in a job family

Organizational Core Competencies – successful Orgs. Develop core competencies that address the key technologies and work skills necessary for success in a changing environment

DEVELOPING COMPETENCY MODELS

Figure 5.2 on page 84 – the Role of Competencies in Strategic HR Planning

The degree of responsibility, autonomy and technical expertise are key concerns for competency models for Healthcare Professionals

Figure 5.3 on page 89: The National Center for Healthcare Leadership (NCHL) Health Leadership Competency Model Transformation Execution People

COMPETENCY TRENDS

Trend #1: Demand for more Participative Competency Approaches

Trend #2: Models are relevant to rapidly changing organizations

Trend #3: Increasing emphasis on emerging competencies

Trend #4: Growing emphasis on team and process competencies

Trend #5: Growing transition to an organizational learning perspective