Strategy and Human Resource Management Ch 2 PDF

Strategy and Human Resource Management Chapter 2 1  Learning Agenda Linkages between firm’s mission, vision, and values, its strategy, and HR planning. How an organization’s external environment influences its strategic plannin...

Strategy and Human Resource Management Chapter 2 1  Learning Agenda Linkages between firm’s mission, vision, and values, its strategy, and HR planning. How an organization’s external environment influences its strategic planning. Why it is important for an organization to do an internal resource analysis. How to evaluate HR effectiveness. 2  Strategic Planning and Human Resources Strategic Planning Procedures for making decisions about the organization’s long-term goals and strategies Human Resources Planning (HRP) The process of anticipating and providing for the movement of people into, within, and out of an organization Strategic Human Resources Management (SHRM) The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals 3 Strategic Planning and HR Planning 1–4 Copyright © 2020 by Nelson Education Ltd. 4  Step 1: 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 headed 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 1–5 5 Google 6 6 7  Step 2: External Analysis Business Environment (Environmental Scanning) The systematic monitoring of the major external forces influencing the organization 1. Economic and ecological changes: general, regional, and global conditions 2. Technological changes: information technology and automation 3. Demographic changes and labour market trends: education, age, composition, literacy, immigration 4. Social changes: priorities toward work, childcare, eldercare 5. Legal and regulatory changes: laws and rulings 8  Step 2: External Analysis CompeAAve Environment A general rule of thumb about this analysis is that the more power each of these forces has , the less pro8table the industry will be 9  Step 3: Internal Analysis Core Capabilities (Competencies) Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers Can consist of a combination of three resources: (1) processes, (2) systems (technologies), and (3) people Competitive Advantage through People Four criteria: 1. The resources must be valuable. 2. The resources must be rare. 3. The resources must be difficult to imitate. 4. The resources must be organized. 1–10 10  ForecasAng: A CriAcal Element of HR Planning Forecasting involves: forecasting the demand for labour forecasting the supply of labour balancing supply and demand considerations Copyright © 2020 by Nelson Education Ltd. 11 Copyright © 2020 by Nelson Education Ltd. 19 12 ForecasAng a Firm’s Demand for Employees Quantitative Methods Forecasting Demand Qualitative Methods 13  ForecasAng a Firm’s Demand for Employees Quantitative approaches Trend Analysis  Forecasting labour demand based on an organizational index (such as sales) Qualitative approaches Management Forecasts  opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs 14 ForecasAng the Supply of Employees: Internal Labour Supply Staffing tables Markov analysis Skill/management inventories Replacement charts Succession planning 15  Internal Supply ForecasAng Tools Skill Inventories Files of personnel education, experience, interests, and skills that allow managers to quickly match job openings with employee backgrounds Can be obtained from HRIS Replacement Charts Listings of current jobholders and people who are potential replacements if an opening occurs Succession Planning The process of identifying, developing, and tracking key individuals for executive positions 16  Step 4: FormulaAng 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 Using the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses 17 Step 4: FormulaAng Strategy Growth and Mergers and Diversification Acquisitions Corporate Strategy Strategic Alliances and Joint Ventures 18  Business Strategy Value Creation  Low-cost strategy: competing on productivity and efficiency – Keeping costs low to offer an attractive price to customers (relative to competitors)  Differentiation strategy: competing on added value – Involves providing something unique and distinctive to customers that they value 19  Business Strategy Functional Strategy: Ensuring Alignment  Vertical Fit/Alignment – Focuses on the connection between the business objectives and the major initiatives in HR  Horizontal Fit/Alignment – Aligning HR practices with one another internally to establish a configuration that is mutually reinforcing 20  Step 5: Strategy ImplementaAon Strategies to deal with labour shortage Over-time Part-time employees Temporary staffing agencies New hire 21 The use of part- time employees helps contain labour costs at fast-food restaurants. 22  Step 5: Strategy ImplementaAon Strategies to deal with labour surplus Organizational Downsizing Layoff Decision & Layoff Strategy - Legal and collective bargaining implications Attrition Strategies - Hiring freeze Termination 23  Step 6: EvaluaAon and Assessment Benchmarking The process of comparing the organization’s processes and practices to those of other companies Human capital metrics  Assess aspects of the workforce (e.g., revenue per employee) HR metrics  Assess the performance of the HR function itself (e.g., absenteeism, employee turnover) 24  Ensuring Strategic Flexibility for the Future Organizational Capability Capacity of the organization to continuously act and change in pursuit of sustainable competitive advantage Coordination Flexibility The ability to rapidly reallocate resources to new or changing needs Resource Flexibility Having human resources who can do many different things in different ways 25