The Managers Role in Strategic Human Resource Management

Chapter 3

After reading this chapter, you should be able to:

Outline the steps in the strategic management process !"plain and gi#e e"amples of each type of company$ide and competiti#e strategy !"plain $hat a strategy%oriented human resource management system is and $hy it is important &llustrate and e"plain each of the eight steps in the HR Scorecard approach to creating human resource management systems

The Strategic Management 'rocess

 Strategic Management

The process of identifying and

Strategy

e"ecuting the organi(ations mission by matching its capabilities $ith the demands of its en#ironment

Strategic 'lan

A chosen course of action Ho$ an organi(ation intends to

*usiness +ision and Mission +ision

A general statement of an

balance its internal strengths and $ea)nesses $ith its e"ternal opportunities and threats to maintain a competiti#e ad#antage o#er the long% term

Mission

organi(ations intended direction that e#o)es emotional feelings in organi(ation members

 Spells out $ho the company is, $hat it

does, and $here its headed

FIGURE 35 The Strategic Management Process

FIGURE 35 The Strategic Management Process

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35


FIGURE 38 Relationships mong Strategies in M!ltiple"#!siness Firms

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37

Types of Strategies Types of Strategies 3continued4 Achie#ing Strategic 8it The 98it: 'oint of +ie$ 3'orter4 consists of the idea that each departments strategy needs to fit the parent businesss competiti#e aims

 Strategic Human Resource Management Strategic Human Resource Management

The lin)ing of HRM $ith strategic

goals and ob;ecti#es in order to impro#e business performance and de#elop organi(ational cultures that foster inno#ation and fle"ibility
&n#ol#es

formulating and e"ecuting HR systems<HR policies and acti#ities<that produce the employee competencies and beha#iors that the company needs to achie#e its strategic aims
FIGURE 3$ %in&ing Compan'"(i)e an) *R Strategies

FIGURE 3+, Strateg' Map -or So!th.est irlines

,reating the Strategic Human Resource Management System

FIGURE 3+, Strateg' Map -or So!th.est irlines

,opyright - ./00 1orling 2indersley 3&ndia4 '#t 5td Authori(ed adaptation from the 6nited States edition of Human Resource Management, 0.7e

Source: Adapted from 9,reating a Strategy Map,: Ra#i Tangri, Team=Team,HR>SA5&S com 3+/

FIGURE 3+0 Three Important Strategic *R Tools

FIGURE 3+0 Three Important Strategic *R Tools

,opyright - ./00 1orling 2indersley 3&ndia4 '#t 5td Authori(ed adaptation from the 6nited States edition of Human Resource Management, 0.7e

Source: Adapted from *rian *ec)er et al , The HR Scorecard: Linking People, Strategy, and Performance 3*oston: Har#ard *usiness School 'ress, .//04, p 0. 3+5

Measuring HRs ,ontribution

 The HR Scorecard

Sho$s the ?uantitati#e standards, or

,reating an HR Scorecard

9metrics: the firm uses to measure HR acti#ities Measures the employee beha#iors resulting from these acti#ities Measures the strategically rele#ant organi(ational outcomes of those employee beha#iors

FIGURE 3+/ Simple 1al!e Chain -or 2The *otel Paris3 Fi4e Sample *R Metrics
Simple 1al!e Chain -or 2The *otel Paris3

FIGURE 3+/

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3+8

2!> T!RMS

strategic plan strategic management #ision mission S@OT analysis strategy strategic control competiti#e ad#antage strategic human resource management HR Scorecard metrics #alue chain analysis