dessler ch3 (1)

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

1

Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

© 2008 Prentice Hall, Inc. © 2008 Prentice Hall, Inc. All rights reserved.All rights reserved.

Strategic Human Resource Management Strategic Human Resource Management and the HR Scorecardand the HR Scorecard

Chapter 3Chapter 3

Part 1 | IntroductionPart 1 | Introduction

© 2008 Prentice Hall, Inc. All rights reserved. 3–2

The Strategic Management ProcessThe Strategic Management Process• Strategic ManagementStrategic Management

The process of identifying and executing the The process of identifying and executing the organization’s mission by matching its capabilities organization’s mission by matching its capabilities with the demands of its environment.with the demands of its environment.

• StrategyStrategy A chosen course of action.A chosen course of action.

• Strategic PlanStrategic Plan How an organization intends to balance its internal How an organization intends to balance its internal

strengths and weaknesses with its external strengths and weaknesses with its external opportunities and threats to maintain a competitive opportunities and threats to maintain a competitive advantage over the long-term.advantage over the long-term.


Business Vision and MissionBusiness Vision and Mission• VisionVision

A general statement of an organization’s intended A general statement of an organization’s intended direction that evokes emotional feelings in direction that evokes emotional feelings in organization members.organization members.

• MissionMission Spells out who the company is, what it does, and Spells out who the company is, what it does, and

where it’s headed.where it’s headed.


FIGURE 3–1 The Strategic Management Process


FIGURE 3–2 A SWOT Chart


FIGURE 3–3 Strategies in a Nutshell

Source: Arit Gadiesh and James Gilbert, “Frontline Action,” Harvard Business Review, May 2001, p. 74.


Types of StrategiesTypes of Strategies

Diversification Strategy

Geographic Expansion Strategy

Vertical Integration Strategy

Corporate-Level Strategies

ConsolidationStrategy


Types of Strategies (cont’d)Types of Strategies (cont’d)

Cost Leadership Focus/Niche

Business-Level/Competitive Strategies

Differentiation


Achieving Strategic FitAchieving Strategic Fit• The “Fit” Point of View (Porter)The “Fit” Point of View (Porter)

All of the firm’s activities must be tailored to or fit All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies support its corporate and competitive strategies.strategies.

• Leveraging (Hamel and Prahalad) Leveraging (Hamel and Prahalad) ““Stretch” in leveraging resources—supplementing Stretch” in leveraging resources—supplementing

what you have and doing more with what you have—what you have and doing more with what you have—can be more important than just fitting the strategic can be more important than just fitting the strategic plan to current resources.plan to current resources.


Strategic Human Resource ManagementStrategic Human Resource Management• Strategic Human Resource ManagementStrategic Human Resource Management

The linking of HRM with strategic goals and objectives in order to The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures improve business performance and develop organizational cultures that foster innovation and flexibility.that foster innovation and flexibility. Involves formulating and executing HR systems—HR policies and Involves formulating and executing HR systems—HR policies and

activities—that produce the employee competencies and behaviors activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.that the company needs to achieve its strategic aims.

People are the strategic asset of an organization. People have core People are the strategic asset of an organization. People have core competencies, the basis of competitive advantage. Human competencies, the basis of competitive advantage. Human resource is the combination of talent and skills, some of them are resource is the combination of talent and skills, some of them are inform and others can acquired through learning and education. inform and others can acquired through learning and education. The SHRM focuses on people management programs, and long-The SHRM focuses on people management programs, and long-term solution, and stresses organizational development term solution, and stresses organizational development interventions, achieving employees organizational fit, and other interventions, achieving employees organizational fit, and other aspects that ensure employees add value to the organization. aspects that ensure employees add value to the organization.


FIGURE 3–6 Linking Company-Wide and HR Strategies

Source: © Gary Dessler, Ph.D., 2007.

Differences between strategic human resource management and Differences between strategic human resource management and human resource management. human resource management. • 1.1. SHRM is based entirely on a SHRM is based entirely on a

soft HRM approach that views soft HRM approach that views employees as humans and precious employees as humans and precious resources.resources.

• 2.2. Strategic human resource Strategic human resource management focuses on business-level management focuses on business-level outcomes. outcomes.

• 3.3. SHRM is proactive in nature SHRM is proactive in nature and it sets the trend in the market.and it sets the trend in the market.

• 4.4. SHRM looks to develop SHRM looks to develop overall strategic competencies of the overall strategic competencies of the organization from the HR perspective.organization from the HR perspective.

• 5.5. SHRM operate at the higher SHRM operate at the higher levels of management.levels of management.

• 6.6. Understanding the operational Understanding the operational dimensions of the organization is the dimensions of the organization is the basic necessity for strategic HR.basic necessity for strategic HR.

• 7.7. Gaining competitive Gaining competitive advantage out of human resources is advantage out of human resources is the basis of SHRM.the basis of SHRM.

• 1.1. HRM is based mainly on a HRM is based mainly on a hard HRM approach that views hard HRM approach that views employees as tools of production and employees as tools of production and headcount resources.headcount resources.

• 2.2. Human resource Human resource management focuses on HR management focuses on HR outcomes. outcomes.

• 3.3. HRM is reactive in nature HRM is reactive in nature and it follows the trend in the market.and it follows the trend in the market.

• 4.4. HRM aims at developing HRM aims at developing functional competencies pertaining to functional competencies pertaining to human resources aspects. human resources aspects.

• 5.5. HRM function at relatively HRM function at relatively lower levels of the organization.lower levels of the organization.

• 6.6. Understanding the Understanding the operational aspects of the organization operational aspects of the organization is not a priority area for HR managers.is not a priority area for HR managers.

• 7.7. Managing employees is the Managing employees is the primary aim of HRMprimary aim of HRM



Report: HR entering strategic territory

HRM Asia –

21 Sep 2015

HR job scopes are now deemed to be more than just administrative functions.

HR is increasingly seen to play an important role in business growth.

According to Micheal Page report titled, “Putting People First – How HR is at the Forefront of Business Growth and Transformation”, HR is expanding its strategic roles beyond administrative functions.

Eighty percent of HR leaders said that they have “strategically significant responsibilities”. Among their responsibilities are talent acquisition (86%), HR policies (83%), employee relations (81%) and training and development (79%).

Only 60% of respondents reported that payroll or staff administration is within their scope of responsibility.

The report also stated that the top priorities among HR professionals globally are talent management (33%), training and development (33%) and talent acquisition(32%).

HR, are you doing enough in engagement? HRM Asia - 28 Sep 2015


Study reveals that HR is the least likely to have a positive impact on employee engagement levels.

Only a shockingly low three percent of respondents have cited that HR has the biggest positive impact on their levels of engagement.

This is according to a study titled Oracle Simply Talent, which was recently unveiled by Oracle.

The Oracle Simply Talent study deduced that 42% of employees across Europe think their peers have the most positive effect on how engaged they feel at work, well clear of line managers (21%) and business unit managers (seven percent).

Alarmingly, only three percent of respondents have claimed HR has the biggest positive effect on their engagement levels.

Conversely, in terms of negatively affecting employee engagement, workers in European firms think the senior leadership team (19%) and line managers (11%) are the most responsible.


Creating an HR ScorecardCreating an HR Scorecard

1

2

3

4

5

Outline value chain activities

Define the business strategy

Outline a strategy map

Identify strategically required outcomes

Identify required workforce competencies and behaviors

6

7

8

9

10

Create HR Scorecard

Identify required HR policies and activities

Choose HR Scorecard measures

Summarize Scorecard measures on digital dashboard

Monitor, predict, evaluate

The 10-Step HR Scorecard Process

• A value chain is the full range of activities — A value chain is the full range of activities — including design, production, marketing and including design, production, marketing and distribution — businesses go through to bring a distribution — businesses go through to bring a product or service from conception to delivery. product or service from conception to delivery. For companies that produce goods, the value For companies that produce goods, the value chain starts with the raw materials used to chain starts with the raw materials used to make their products, and consists of everything make their products, and consists of everything that is added to it before it is sold to consumers. that is added to it before it is sold to consumers.



FIGURE 3–A4Strategy Map for Southwest Airlines

Source: Adapted from “Creating a Strategy Map,” Ravi Tangri, [email protected].


FIGURE 3–A5 HR Scorecard Process for Hotel Paris International Corporation*

*Note: An abbreviated example showing selected HR practices and outcomes aimed at implementing the competitive strategy, “To use superior guest services to differentiate the Hotel Paris properties and thus increase the length of stays and the return rate of guests, and thus boost revenues and profitability and help the firm expand geographically.”

Can colours affect productivity at the office? Can colours affect productivity at the office? HRM Asia - 02 Oct 2015HRM Asia - 02 Oct 2015


Colours are reportedly able affect our mood and emotions. So should employees be encouraged to have colourful workspaces which can boost their creativity, productivity and happiness?

An online article on Inc.com highlights some of the best office colours which can help employees improve their day in the office, whether it is to focus on finishing a big project or uplift their mood at work.

BluePsychologist Sally Augustin, who is also the founder of consulting firm Design With Science said shades of teal and aqua are soothing and bring out a sense of trust. Hence, they are suitable in detail-oriented offices, such as those in the legal or accounting industry.

WhiteTo promote creativity, a white workspace can create a sense of spaciousness when paired with lots of natural light, said designer Kerrie Kelly.


How to improve performance at work... by eating HRM Asia - 18 Sep 2015

If you thought potatoes, white bread and pasta can boost your energy at work, you are wrong.

Do you find yourself yawning after lunch, or feeling lethargic by the afternoon?

You might find the root cause in the type of food you ate during lunch.

According to an online article on The Daily Mail, having low energy affects many aspects of the job. Just some of them include motivation, mood and work performance.

Essentially, diet not only affects weight but also the brain.

If you have been consuming jacket potatoes, white bread or pasta, it's time you save those meals on non-working days.

The article stated that these foods makes one’s body waste energy in digesting and as a result, leaves one feeling exhausted during work hours.

Turning to sugar for an energy boost is also not advisable.