Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 1 | Introduction

Chapter 3

Strategic Human Resource Management and the

HR Scorecard

2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
The Strategic Management Process
Strategic Management
The process of identifying and executing the
organizations mission by matching its capabilities
with the demands of its environment.
Strategy
A chosen course of action.
Strategic Plan
How an organization intends to balance its internal
strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage over the long-term.

2008 Prentice Hall, Inc. All rights reserved.

Business Vision and Mission
Vision
A general statement of an organizations intended
direction that evokes emotional feelings in
organization members.
Mission
Spells out who the company is, what it does, and
where its headed.

2008 Prentice Hall, Inc. All rights reserved.

The Strategic Management Process
Defining the business and developing a mission
Evaluating the firms internal and external
strengths, weaknesses, opportunities and
threats.
Formulating a new business direction.
Translating the mission into strategic goals.
Formulating strategies or courses of action.
Implementing and evaluating the strategic plan.

2008 Prentice Hall, Inc. All rights reserved.

 Types of Strategies

Corporate-Level
Strategies

Vertical Geographic
Diversification Consolidation
Integration Expansion
Strategy Strategy
Strategy Strategy

2008 Prentice Hall, Inc. All rights reserved.

CORPORATE STRATEGY
Corporate-level Strategy - identifies the portfolio
of businesses that, in total, comprise the
company and how these businesses relate to
each other.
Concentration Corporate Strategy.
Diversification Corporate Strategy.
Vertical Integration Strategy.
Consolidation Strategy.
Geographic Expansion

2008 Prentice Hall, Inc. All rights reserved.

 Types of Strategies (contd)

Business-Level/
Competitive
Strategies

Cost Leadership Differentiation Focus/Niche

2008 Prentice Hall, Inc. All rights reserved.

CORPORATE STRATEGY
Competitive Strategy - identifies how to build and
strengthen the businesss long-term competitive
position in the marketplace.
Cost leadership - low cost leader in an industry.
Differentiation - unique in its industry.
Focusers - carves out a market niche.

2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC FIT
The Fit Point of View (Porter)
All of the firms activities must be tailored to or fit
the chosen strategy such that the firms functional
strategies support its corporate and competitive
strategies.

2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HUMAN RESOURCE MANAGEMANT

Strategic Human Resource Management

The linking of HRM with strategic goals and
objectives in order to improve business
performance and develop organizational cultures
that foster innovation and flexibility.
Involves formulating and executing HR systemsHR policies
and activitiesthat produce the employee competencies and
behaviors that the company needs to achieve its strategic
aims.

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2008 Prentice Hall, Inc. All rights reserved.

 STRATEGIC HR TOOLS

STRATEGIC HRM TOOLS

THE HR DIGITAL
STRATEGY MAP
SCORECARD DASHBOARDS

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2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS

Strategy MAP- The strategy map provides an

overview of how each departments performance
contributes to achieving the companys overall
strategic goals.

2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS

HR scorecard- It refers to a process for

assigning financial and non financial goals to the
human resource management-related chain of
activities required for achieving the companys
strategic aims.

2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS

Digital Dashboards- A digital dashboard presents

the manager with desktop graphs and charts,
showing a computerised picture of how the
company is doing on all the metric from the HR
Scorecard process.

2008 Prentice Hall, Inc. All rights reserved.

 HUMAN RESOURCE AUDITS

Strategic
Planning
Roles

WHERE IT HOW TO
CURRENTLY IMPROVE HR
STANDS FUNCTION

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2008 Prentice Hall, Inc. All rights reserved.

 KEY TERMS

strategic plan
strategic management
vision
mission
SWOT analysis
strategy
strategic control
competitive advantage
leveraging
strategic human resource management
HR Scorecard
metrics
value chain analysis
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2008 Prentice Hall, Inc. All rights reserved.

GROUP WORK
DEVELOPING AN HR STRATEGY FOR STARBUCKS
By 2010, Starbucks was facing serious challenges. Sales per store were
stagnant or declining, and its growth rate and profitability were down. Many
believed that its introduction of breakfast foods had diverted its baristas from
their traditional jobs as coffee-preparation experts. McDonalds and Dunkin
Donuts were introducing lower priced but still high-grade coffees. Starbucks
former CEO stepped back into the companys top job. You need to formulate a
new direction for his company.
Purpose: The purpose of this exercise is to give you experience in developing
an HR strategy, in this case, by developing one for Starbucks.
Instructions: Set up groups of 4/5 people. You are already quite familiar with
what its like to have a cup of coffee or tea in Starbucks or similar coffee shops.
You need to develop an outline for an HR strategy for Starbucks Corp.

Your outline should include three basic elements:

1.A basic business/competitive strategy for Starbucks.
Workforce requirements (in terms of employee competencies and behaviours)
this strategy requires.
Specific HR policies and the activities necessary to produce these workforce
requirements.
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