STRATEGIC HUMAN RESOURCE

MANAGEMENT AND THE HR

SCORECARD

1–1

Mohammad Ali Jaafar PhD. Systems Management

Reference Book:

Gary Dessler, Human Resource Management,

Eleventh Edition

Mohammad Ali Jaafar, PhD Sysytems Mgmt.

Chapter 3

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–2

After studying this chapter, you should be able to:

1. Outline the steps in the strategic management

process.

2. Explain and give examples of each type of

companywide and competitive strategy.

3. Explain what a strategy-oriented human resource

management system is and why it is important.

4. Illustrate and explain each of the seven steps in the

HR Scorecard approach to creating human resource

management systems.

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–3

• Strategic Management

The process of identifying and executing the

organization’s mission by matching its capabilities

with the demands of its environment.

• Strategy

A chosen course of action.

• Strategic Plan

How an organization intends to balance its internal

strengths and weaknesses with its external

opportunities and threats to maintain a competitive

advantage over the long-term.

The Strategic Management Process

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–4

• Vision

A general statement of an organization’s intended

direction that evokes emotional feelings in

organization members.

• Mission

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

where it’s headed.

Business Vision and Mission

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–5

Diversification

Strategy

Geographic

Expansion

Strategy

Vertical

Integration

Strategy

Corporate-Level

Strategies

Consolidation

Strategy

Types of Strategies

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Cost Leadership Focus/Niche

Business-Level/

Competitive

Strategies

Differentiation

Types of Strategies

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• The “Fit” Point of View (Porter)

All of the firm’s activities must be tailored to or fit

the chosen strategy such that the firm’s functional

strategies support its corporate and competitive

strategies.

• Leveraging (Hamel and Prahalad)

“Stretch” in leveraging resources—supplementing

what you have and doing more with what you have—

can be more important than just fitting the strategic

plan to current resources.

Achieving Strategic Fit:

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–8

• Strategic Human Resource Management

The linking of HRM with strategic goals and

objectives in order to improve business performance

and develop organizational cultures that foster

innovation and flexibility.

Involves formulating and executing HR systems—HR

policies and activities—that produce the employee

competencies and behaviors that the company needs

to achieve its strategic aims.

Strategic Human Resource Management:

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–9

Corporate

productivity and

performance

improvement

efforts

Increased HR

team involvement

in design of

strategic plans

Basic Strategic

Challenges

Expanded role of

employees in the

organization’s

performance

efforts

Strategic Human Resource Challenges:

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–10

Strategy

Execution

Role

Strategic

Planning

Roles

Strategy

Formulation

Role

Human Resource Management’s Strategic Roles:

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Human Resource

Professionals

Employee

Behaviors and

Competencies

Components of a

Strategic HRM System

Human Resource

Policies and

Practices

Creating the Strategic Human Resource Management System:

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–12

K E Y T E R M S

strategic plan

strategic management

vision

mission

SWOT analysis

strategy

strategic control

competitive advantage

leveraging

strategic human resource management

HR Scorecard

metrics

value chain analysis

Mohammad Ali Jaafar, PhD Sysytems Mgmt. 3–13

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

Creating an HR Scorecard

GARY DESSLER BOOK,

HUMAN RESOURCE MANAGEMENT, ELEVENTH EDITION

Mohammad Ali Jaafar, PhD Systems Mgmt. 1–14

REFERNCES