diagnostic model a way to assess organizational behavior

7/31/2019 Diagnostic Model a Way to Assess Organizational Behavior

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A Way to Assess Organizational Behavior


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Actually Strategic Human ResourcesManagement (SHRM)

The pattern of human resources deployments andactivities that enable an organization to achieve itsstrategic goals

Strategy formulationproviding input as to what ispossible given the types and numbers of peopleavailable.

Strategy implementationmaking primary resourceallocation decisions about structure, processes, andhuman resources.


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Strategic Analysis What human resources are needed to do job and

what are available?

Strategic Formulation What structure is required and necessary in support

of human resources?

Strategic Implementation How will the human resources be allocated?

Human Resources

Planning

Strategic

Planning


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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 strategicintent

Core Values The strong and enduring beliefs and principles that

the company uses as a foundation for its decisions


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Environmental Scanning

The systematic monitoring of the major externalforces influencing the organization.

1. Economic factors: general and regional conditions2. Competitive trends: new processes, services, and

innovations

3. Technological changes: robotics and officeautomation

4. Political and legislative issues: laws andadministrative rulings

5. Social concerns: child care and educational priorities

6. Demographic trends: age, composition, and literacy


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Cultural Audits Audits of the culture and quality of work life in an

organization.

How do employees spend their time?

How do they interact with each other?

Are employees empowered?

What is the predominant leadership style of

managers?How do employees advance within theorganization?


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Core Competencies Integrated knowledge sets within an organization

that distinguish it from its competitors and delivervalue to customers.

Sustained competitive advantage throughpeople is achieved if these human resources:1. Are valuable.

2. Are rare and unavailable to competitors.

3. Are difficult to imitate.4. Are organized for synergy.


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Strategy Formulation Moving from simple analysis to devising a coherent

course of action.

SWOT analysis A comparison ofstrengths, weaknesses,opportunities, and threatsfor strategy formulationpurposes.

Use the strengths of the organization to capitalize

on opportunities, counteract threats, and alleviateinternal weaknesses.


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Value Creation What the firm adds to a product or service by virtue

of making it; the amount of benefits provided bythe 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 tocustomers (relative to competitors).

Differentiation strategy: compete on added value

Involves providing something unique and distinctive tocustomers that they value.


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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 establisha configuration that is mutually reinforcing.


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Core knowledge workers

Employees who have firm-specific skills that are

directly linked to the companys strategy.

Example: Senior software programmer

Traditional job-based employees

Employees with skills to perform a predefined jobthat are quite valuable to a company, but notunique.

Example: Security guard


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Contract labor

Employees whose skills are of less strategic valueand generally available to all firms.

Example: General electrician

Alliance/partners

Individuals and groups with unique skills, butthose skills are not directly related to a companyscore strategy.

Example: Independent product label designer


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Source: McKinsey & Company


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Taking Action: Reconciling Supply andDemand Balancing demand and supply considerations

Forecasting business activities (trends)

Locating applicants Organizational downsizing

Reducing headcount

Making layoff decisions

Seniority or performance?

Labor agreements


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Evaluation and Assessment Issues Benchmarking: The process of comparing the

organizations processes and practices with thoseof other companies

Human capital metrics Assess aspects of the workforce

HR metrics

Assess the performance of the HR function itself


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Strategy Mapping and the Balanced Scorecard Balanced Scorecard (BSC)

A measurement framework that helps managerstranslate strategic goals into operational objectives

financial

customer

processes

learning


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Organizational Capability

Capacity of the organization to act and change inpursuit 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 differentthings in different ways.

diagnostic model a way to assess organizational behavior

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