Chapter 3 Aligning HR with Strategy.pdf

Chapter 3 Aligning HR with Strategy  Understand the importance of strategic HR planning  Identify the risks associated with not planning  Discuss approaches to linking strategy and HR, including the barriers to becoming a strategic partner  List the characteristics of an effe...

Chapter 3 Aligning HR with Strategy  Understand the importance of strategic HR planning  Identify the risks associated with not planning  Discuss approaches to linking strategy and HR, including the barriers to becoming a strategic partner  List the characteristics of an effective HR strategy 2  An umbrella term that includes the following: Main HR philosophies that specify the values that inform an organization’s policies and practices Official HR policies that direct and partially constrain the development of specific practices Specific HR practices 3  Interrelated philosophies, policies, and practices to enable the achievement of the organizational strategy 4  ‫ وجهة نظر قائمه على املوارد‬: ‫نظريات اإلداره اإلستراتيجيه للموارد البشريه‬  A resource that provides a continuous competitive advantage, because its culture is respected, rare, and very difficult to replicate or substitute  Human resources can be difficult for competitors to replicate  The best human resources are unusual  The value of human resources can be hard to substitute ‫يجي صح وخطأ‬: ‫توقع‬ 5  The collective amount of employees’ traits, experience, knowledge, and commitment invested in the organization 6  Classical economists view the firm as having control over three types of resources in the production of goods and services: Land Labour or human capital Capital Copyright © 2019 by Nelson Education Ltd. 7  Human capital also includes:  Knowledge  Education  Vocational qualifications  Professional certifications  Work-related experience  Competence of an organization’s employees Copyright © 2019 by Nelson Education Ltd. 8  ‫القيمه املضافه لرأس املال البشري‬  The value added of human capital investments or the human capital return on investment (ROI) can be calculated: ‫املصروفات التشغيليه‬ ‫اجمالي تكاليف التعويضات‬ Copyright © 2019 by Nelson Education Ltd. 9  Different HR strategies are required to influence the diverse behaviours of employees  HR’s role is to reinforce certain behaviours via HR practices such as recruitment, selection, training, compensation, and performance Copyright © 2019 by Nelson Education Ltd. 10  HR planning is the most important long-term HR priority for organizations  Employees help an organization achieve success because they are its strategic resources  Results in improved goal achievement Copyright © 2019 by Nelson Education Ltd. 11  HR planning ensures that human assets are managed and matched to the organizational strategy  Keeping employees’ skills current  Ensuring employees’ skills will enable the organization to implement its strategy Copyright © 2019 by Nelson Education Ltd. 12  Strategic HRM can improve an organization’s performance  Focus employees on important missions and goals of the organization Copyright © 2019 by Nelson Education Ltd. 13  Aligning HR strategy with business strategy can be done in one of these ways: Start with organizational strategy and then create HR strategy Start with HR capabilities and then craft corporate strategies based on these capabilities Do a combination of both in a form of common relationship Copyright © 2019 by Nelson Education Ltd. 14  HR planning views HRM programs as smooth from corporate strategy Copyright © 2019 by Nelson Education Ltd. 15  Costs are an important element of this strategy, so labour costs are carefully controlled for all HR functions Copyright © 2019 by Nelson Education Ltd. 16  A differentiation strategy calls for innovation and creativity among employees  HRM is affected in fundamentally different ways in organizations that want to use employees’ brains rather than their limited (mainly manual) skills Copyright © 2019 by Nelson Education Ltd. 17  Organization cannot implement a strategy if it does not have the necessary human capital  Yet this “skills determine strategy” outlook relies too heavily on employee capabilities and not enough on environmental analysis Copyright © 2019 by Nelson Education Ltd. 18  Requires concurrent strategy formulation  HR professionals play a more strategic role, moving from outsider to insider status  HR managers must appreciate marketing, financial, and operational issues Copyright © 2019 by Nelson Education Ltd. 19  HR departments are restructuring in order to be able to do the basics right while enhancing the performance of business units and supporting strategic moves ‫وقفنا هنا‬ Copyright © 2019 by Nelson Education Ltd. 20  Firms with more than one business strategy are likely to have more than one approach to HR strategy  Different divisions are responsible for realizing different aspects of the strategy; employees in different divisions may be encouraged to display different behaviours through appropriate HR practices Copyright © 2019 by Nelson Education Ltd. 21  External fit: HR programs must align with or fit the overall strategy of the organization  Internal fit: HR must fit with other functional areas, such as marketing, and among all HR programs Copyright © 2019 by Nelson Education Ltd. 22  Measuring results to see if the goals have been achieved  This chain must be in place: HR program → employee human capital and behaviours → organizational strategy → organizational outcome Copyright © 2019 by Nelson Education Ltd. 23  Strategic HRM is a set of distinct but interrelated philosophies, policies, and practices with the goal of enabling the organization to achieve its strategy  Aligning HR strategy with the corporate strategy and with other functional strategies is important Copyright © 2019 by Nelson Education Ltd. 24