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.

2007 Thomson/South-Western. All rights reserved.

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Corporate Strategy
Growth and Diversification Mergers and Acquisitions

Corporate Strategy

Strategic Alliances and Joint Ventures

2007 Thomson/South-Western. All rights reserved.

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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.

2007 Thomson/South-Western. All rights reserved.

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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.

2007 Thomson/South-Western. All rights reserved.

210

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

2007 Thomson/South-Western. All rights reserved.

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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

2007 Thomson/South-Western. All rights reserved.

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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

2007 Thomson/South-Western. All rights reserved.

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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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2005 Prentice Hall Inc. All rights reserved.

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.

2005 Prentice Hall Inc. All rights reserved.

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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.

2005 Prentice Hall Inc. All rights reserved.

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 Thank u

2005 Prentice Hall Inc. All rights reserved.

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