shrm mod 3 part 1

8/9/2019 SHRM MOD 3 PART 1

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Making Human Resource

Management Strategic

Module 2 &3


2/25

LEARNING OBE!"I#ES

A$ter reading t%is c%ater 'ou s%ould (e

a(le to)E*lain %o+ a strategic aroac% to %uman

resource management can imro,e t%e

e$$ecti,eness o$ organi-ations.

/escri(e t%e strateg' $ormulation rocess.

/escri(e t+o generic cometiti,e (usinessstrategies t%at organi-ations use.


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LEARNING OBE!"I#ES

E*lain t%e uni,ersalistic and contingenc'

aroac%es to %uman resource strateg'0

including ke' c%aracteristics o$ t%e

commitment strateg'.

/escri(e $our %uman resource strategies t%at

organi-ations commonl' use.

E*lain %o+ %uman resource strategies and

cometiti,e (usiness strategies are aligned.


4/25

1%at is Strateg'

Strategycan (e ,ie+ed as a set o$coordinated c%oices and actions.

rom a Human resource management

ersecti,e0 t%ere are actuall' t+o t'es o$strateg'1. competitive business strategy0 +%ic% $ocuses

on c%oices and actions a(out %o+ to ser,e t%eneeds o$ customers

2. human resource strategy0 +%ic% $ocuses onc%oices and actions concerning t%e managemento$ eole +it%in t%e organi-ation


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Ho+ is !ometiti,e Business

Strateg' ormulated

B' constantl' scanning t%e (usiness

e*ternal and internal en,ironment.

Looking at)

Strengt%s

1eakness

Oortunities

"%reats


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Strateg' ormulation 4rocess


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!ometiti,e Strateg'

5nderstanding o$ e*ternal cometiti,e (usinessstrateg' %els a (usiness determine +%at goods andser,ices to ro,ide.

Guide c%oices a(out +%et%er to $ocus on lo+ering

costs or on ro,iding goods +it% suerior $eatures. 5nderstanding (road c%anges outside t%e organi-ation

is critical $or %uman resource strateg' as +ell. Organi-ations need in$ormation a(out demogra%ic

and cultural c%anges to $orecast %o+ man' +orkers+it% articular skills +ill (e a,aila(le in t%e $uture.


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Assessing Internal !aa(ilities

Strateg' $ormulation also re6uires assessment o$ an organi-ation7sinternal resources and caa(ilities

Human resource ractices can reresent a critical internal strengt%$or organi-ations. Suc% as8

a(ilit' to attract and kee %ig%96ualit' emlo'ees

!on,ersel'0 lack o$ e$$ecti,e %uman resource management canreresent a ma:or +eakness.

Gat%ering in$ormation a(out %uman resource caa(ilities is t%ere$orea ,ital art o$ an e$$ecti,e assessment o$ organi-ational strengt%s and+eaknesses.


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"%e Strategic #alue !%ain

Source) Rerinted +it% ermission o$ "%e ree 4ress0 a /i,ision o$ Simon & Sc%uster Adult 4u(lis%ing Grou0 $rom

!OM4E"I"I#E A/#AN"AGE) !reating and Sustaining Suerior 4er$ormance (' Mic%ael 4orter. !o'rig%t ;c< =>?@0=>>? (' Mic%ael E. 4orter. All rig%ts reser,ed.


10/25

B5SINESS S"RA"EGIES

"%ere are t+ostrategies ursued at t%e

(usiness le,el.

Cost leadership strategy

Organi-ations seek to (ecome lo+9cost

roducers o$ goods and ser,ices.

"%eir goal is to de,elo e$$icient roduction

met%ods t%at ena(le t%em to sell at a lo+er rice

t%an cometitors


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E$$ecti,e /ecision Making

Source) In$ormation $rom at%leen M. Eisen%ardt0 Strateg' as Strategic /ecision Making077 Sloan Management Re,ie+0 CD;=>>>


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B5SINESS S"RA"EGIES

Differentiation strategy

Organizations using this strategy seek to

produce goods and services that are

somehow superior to the goods and servicesprovided by competitors.

heir goal is to create uni!ue value for which

customers are willing to pay a higher price


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H5MAN RESO5R!E S"RA"EG

"+o (asic aroac%es to %uman resourcestrateg' "%e universalistic approachseeks to identi$' a

set o$ %uman resource ractices t%at is (ene$icial$or all organi-ations.

"%is aroac% %as identi$ied a (undle o$ ractices0la(eled t%e commitment strateg'0 t%at aear to (egenerall' (ene$icial.

4ractices in t%e commitment (undle communicate

t%e message t%at management cares a(outemlo'ees. "%e commitment strateg' also %els ensure t%at

emlo'ees %a,e t%e training and $reedom to ursueimortant :o( tasks.


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H5MAN RESO5R!E S"RA"EG

"%e contingency approachseeks to matc% %uman resourceractices +it% cometiti,e (usiness strategies.

"%is aroac% $ocuses on cost leaders%i ,ersus a $ocus ondi$$erentiation.

Organi-ations mainl' concerned +it% reducing costs em%asi-erocesses and general roles.

"%e' care$ull' rescri(e aroriate (e%a,iors $or er$orming+ork.

Anot%er di$$erence is +%et%er t%e organi-ation %as an internal oran e*ternal la(or orientation.

Organi-ations +it% an internal la(or orientation seek long9termrelations%is +it% emlo'ees0 +%ile organi-ations +it% ane*ternal la(or orientation seek $le*i(ilit' and do not make long9term commitments to emlo'ees.


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our Human Resource Strategies

"%ere are $our %uman resource

strategies commonl' used ('

organi-ations."oyal Soldier

#argain "aborer

Committed $%pert

&ree 'gent


16/25

Strategic rame+ork $or HR


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"%e Lo'al Soldier Strateg'

"%e Lo'al Soldier la(el em%asi-es %iring andretaining lo'al emlo'ees +%o do +%ate,er t%ecoman' asks o$ t%em.

Organi-ations +it% t%is strateg' design +ork so t%at

emlo'ees %a,e (road roles and er$orm a ,ariet' o$di$$erent tasks.

4eole are recruited and %ired (ecause t%e' $it t%eorgani-ation culture and (ecause o$ t%eir otential to(ecome lo'al emlo'ees.

E$$orts are made to satis$' t%e needs o$ emlo'eesand (uild a strong (ond t%at reduces t%e likeli%ood o$emlo'ee turno,er.


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"%e Lo'al Soldier Strateg'

!areers o$ten include a num(er o$ ,er' di$$erentositions0 +it% romotions o$ten made into ositionst%at are not closel' related to re,ious e*eriences.

4er$ormance araisals are designed to $acilitate

cooeration rat%er t%an cometition. !omensation includes long9term incenti,es and

(ene$its and is o$ten linked to t%e o,erall er$ormanceo$ t%e organi-ation.

5nions0 $re6uentl' %el (uild $eelings o$ unit'.


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#argain "aborer () strategy

"%e em%asis o$ t%is strateg' is o(taining emlo'ees+%o do not demand %ig% +ages.

Organi-ations +it% t%is strateg' design +ork so t%atmanagers can tig%tl' control emlo'ee e$$orts.

Eac% emlo'ee is gi,en clearl' de$ined tasks t%at can(e learned easil'. 4eole are recruited and %ired toer$orm simle tasks t%at do not re6uire clearl'de,eloed skills.

Little attention is aid to meeting t%e long9term needso$ emlo'ees. Organi-ations +it% t%is %umanresource strateg' don7t ro,ide careers +it% clearat%s $or romotion and ad,ancement.


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#argain "aborer () strategy

4er$ormance araisal $ocuses on da'9to9da'$eed(ack and rarel' incororates $ormalmeasures.

"raining is mostl' limited to on9t%e9:o(tec%ni6ues t%at teac% seci$ic met%ods $orcomleting articular tasks.

!omensation is $re6uentl' (ased on %ours+orked0 and (ene$its and long9term incenti,es

are minimal."%e lack o$ consistenc' among emlo'ees

tends to make unions some+%at rare.


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Committed $%pert () strategy

"%e rimar' o(:ecti,e o$ t%is strateg' is to %ire andretain emlo'ees +%o seciali-e in er$orming certaintasks.

Organi-ations using t%is strateg' design +ork so t%atemlo'ees %a,e a great deal o$ $reedom to inno,ateand to imro,e met%ods o$ comleting tasks.

4eole are recruited and %ired (ecause o$ t%eirotential $it +it% t%e organi-ational culture0 as +ell as

t%eir atitude $or (ecoming e*erts in articular areas.

"%ese organi-ations %ire eole earl' in t%eir careersand train t%em to (e e*erts in seci$ic $ields0 suc% asaccounting or sales.


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Committed $%pert () strategy

4er$ormance araisals are designed to(alance cooeration and cometition amongemlo'ees.

!areers generall' include numerousromotions into similar :o(s +it% increasingresonsi(ilit'.

Emlo'ees recei,e long9term training t%at

%els t%em de,elo strong e*ertise.!omensation is relati,el' %ig% and usuall'

includes a good (ene$its ackage t%at tiesemlo'ees to t%e organi-ation.


23/25

&ree 'gent () Strategy

he main emphasis associated with this strategy is hiring peoplewho have critical skills but who are not necessarily e%pected toremain with the organization for a long period of time.

*ork is designed so that employees have e%tensiveresponsibility within specific areas and substantial freedom todecide how to go about their work.

"ong+term commitments are avoided, and no efforts are made toencourage strong attachments between employees and theorganization.

-eople are recruited because they already have the skills ande%perience that they need to perform specific obs.

hey are not led to e%pect long+term careers in the organization.(igher+level positions are fre!uentlygiven to people fromoutside the organization.


24/25

&ree 'gent () Strategy

4er$ormance araisal $ocuses on outcomesand results.

"raining is rare.S%ort9term comensation is usuall' %ig%0 +%ic%

is necessar' i$ t%e organi-ation is to o(taineole +it% to skills.

4a' is linked seci$icall' to indi,idualer$ormance results.

Bene$its and long9term comensationackages0 +%ic% tie emlo'ees to t%eorgani-ation0 are a,oided.

5nions are rarel' seen in t%ese organi-ations.


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ALIGNMEN" O HR AN/ !OM4E"I"I#E

B5SINESS S"RA"EGIES

Organi-ations are likel' to %a,e %uman resourceractices t%at $it +it% t%eir cometiti,e (usinessstrategies.

Organi-ations +%ose %uman resource strategies

matc% t%eir cometiti,e strategies do indeed er$orm(etter.

Researc% suggests t%at organi-ations +it% a costleaders%i cometiti,e strateg' e*cel +%en t%e' $ollo+a Lo'al Soldier HR strateg'.

Organi-ations +it% a di$$erentiation cometiti,estrateg' e*cel +%en t%e' use a !ommitted E*ertstrateg'.

shrm mod 3 part 1

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