bsad 310 spring 2017 - ch 2

Chapter 2:

Strategy-

Driven

Human

Resource

Management

Strategy and Strategic

Planning in the 21st Century

• Managers look at the organization, its environment today, and expected future goals.

• Managers must seek employees who embrace the organization’s ultimate strategic goals.

• Working in unison accomplishes a whole that is greater than the sum of its parts.

2Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.

Exhibit 2-1: Strategic Choice


Exhibit 2-2: External Influences

Managers Cannot Control


Exhibit 2-3: The Internal Environment


What Managers Can Control

What Is Strategy?

• Strategy

– Plan of action designed to achieve a particular set of objectives

– Looks at the external environment and the internal (organizational) environment to create strategic advantages

• Strategic Advantage

– Occurs when organizations analyze the environments better and react quicker than their competitors


Three Strategic Questions

• These questions may appear

simplistic, but they are the essence

of success:

– What is the present situation?

– Where do we want to go?

– How do we plan to get there?


Vision and Mission

• Vision: Provides a focus for the future

• Mission: Expectations of what the organization will do to realize the vision; the most successful businesses strive for a higher purpose.

Vision + Mission = Focus

• Focus on the direction for the organization and its people.


Objectives

• Objectives: Follow from the mission to

address strategic issues

– State what is to be accomplished in

singular, specific, measurable terms with a

target date

• Successful managers have a goal

orientation.


Types of Strategies

• Cost Leadership

– Focuses on lowering organizational costs required to create products or services.

• Differentiation

– Focuses on developing a distinctive impression of the product or service in customers’ minds.

• Focus or Niche

– Focuses on a specific portion of a larger market.


How Strategy Affects HRM

• HRM and Cost Leadership

– Maximizes employee efficiency and effectiveness

– Uses highly specialized jobs

– Requires employees to repeat the same task

• HRM and Differentiation

– Maximizes employee flexibility and adaptability

– Uses cross-functional teams

– Innovates and tries new processes in uncertain environments


How HR Promotes Strategy

• Through Employees– Recruiting

– Selecting

– Training

– Evaluating

– Interacting based on the organizational strategies

• Through the Organization– Evaluating objectives and company

characteristics

– Assessing competitors

– Analyzing strengths and weaknesses


Basics of Organizational

Structure• Structure determines how an organization

groups its resources to accomplish its mission.

• Basics of Organizational Structure

– Complexity: degree of vertical, horizontal, and spatial differentiation within the organization

– Formalization: degree to which jobs are standardized within an organization

– Centralization: degree to which decision-making is concentrated within the organization


Organizational Structure

Is There One “Best” Structure?

• The best organizational structure fits

the firm’s current competitive situation

and its internal capabilities and enables

successful strategy.


How Structure Affects

Employee Behavior and HRM• Employee Behavior

– The way organizations combine

complexity, formalization, and

centralization affects employee autonomy.

• HRM

– Structure affects the nature of job

expertise, training, evaluation, and

appraisal of HR employees


Organizational Culture

• What Is Organizational Culture?

– Employees’ shared values, beliefs, and

assumptions about appropriate behavior.

• Basics of Organizational Culture

– Every organization has a culture, and

success depends on the health and

strength of it.


How Culture Controls Employee

Behavior in Organizations

• Powerful Force

– Culture is a very powerful force in controlling how people act within its boundaries.

• Cultural Values

– HR is not to dictate and impose cultural values, but rather to redefine and shape the culture of an organization.

– Individuals typically adapt their actions to conform to those of the culture’s values.


Social Media and

Culture Management• Internal Environment

– Companies can monitor the internal

environment using social media venues.

• External Environment

– Companies can monitor their external

environment by accessing media links,

government web pages, and competitors’

sites.

– Social media can also be used to reach

communities that are generally hard to reach.


Exhibit 2-4: The Internal and

External Environment


An Introduction to

Data Analytics for HRM• What Is Data Analytics?

– Process of assessing large amounts of data, analyzing those data, and gaining insight into significant trends and patterns within organizations or industries

• Big Data

– Involves the collection of extremely large data sets to locate patterns that allow the making of Important organizational decisions


A Brief on Data Analytics

• Uses of Big Data

• Companies are using big data as

competitive weapons.

• Big data provides information that HR

managers can immediately act on.

• Big data allows the transformation of

pattern knowledge into improved

decision-making and performance.


HR Analytics

• Uses of Analytics Tools and Processes

– Talent Acquisition

– Management Training

– Management Development

– Work and Job Analysis

– Productivity

– Motivation

– Retention

– Engagement


HR Analytics and

Desired Outcomes• Organizational silos, skill shortages and

suspicion are preventing HR departments from effectively using talent analytics.

• The convergence of HRM and big data is sometimes called workforce science.

• With HR analytics, HR managers can gain their seat at the table when strategy is being discussed.


What Are Human Resource

Information Systems (HRIS)?• Human Resource Information Systems

are interacting database systems that “aim at generating and delivering HR information and allow us to automate some human resource management functions.”

• Some of the most common features in HRIS include modules for tracking attendance and leave, job, and pay history and logging appraisal scores and review dates.


How Does HRIS Assist in

Making Decisions?• HRIS are database management systems

that manage and manipulate data that influence organizational performance:– Attendance and leave tracking

– Job and pay history

– Job descriptions

– Appraisal scores and review date tracking

– Benefits enrollment and tracking

• Also used when considering promotions, transfers, team assignments, and other daily activities.


Measurement Tools for

Strategic HRM• Economic Value Added (EVA)

• Return on Investment (ROI)

• Balanced Scorecard (BSC)

• HR Scorecard


Trends and Issues in HRM

• Everything Old Is New Again

– Advances in computing power and storage

in past few years.

• Continuing Globalization Increases

Need for Strategic and HRM Planning

– As business in most industries continue to

globalize, competition will continue to

increase.


bsad 310 spring 2017 - ch 2

Business