Professional Documents
Culture Documents
Strategic plan A company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. Three basic challenges: 1. The need to support corporate productivity and performance improvement efforts. 2. Employees play an expanded role in employers' performance improvement efforts. 3. HR must be more involved in designing not just executingthe company's strategic plan.
Strategy
A strategy is a course of action. The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
A SWOT Chart
SWOT Analysis
The use of a SWOT chart to compile and organize the process of identifying company
Strengths, Weaknesses, Opportunities, and Threats. This ties to Step 2 on the previous slide.
Figure 32
Strategies in Brief
Company
Dell eBay General Electric every out Southwest Airlines needs automobile travel Vanguard owner Wal-Mart Unmatchable value for the investorLow prices, every day Meet customers short-haul travel at fares competitive with the cost of
Strategic Principle
Be direct Focus on trading communities Be number one or number two in industry in which we compete, or get
The HR Scorecard
HR scorecard
Measures the HR functions effectiveness and efficiency in producing employee behaviors needed to achieve the companys strategic goals.
Creating an HR scorecard
Must know what the companys strategy is. Must understand the causal links between HR activities, employee behaviors, organizational outcomes, and the organizations performance. Must have metrics to measure all the activities and results involved.
Summary
1) HR must take an active role in the overall, long term strategy of the firm 2) Knowledge of the strategic management process allows for more effective HR functioning 3) Know what your company/organization wants! Focus on it every day. 4) When possible, gather data frequently and uniformly (compare apples to apples, etc.) 5) Use an HR Scorecard to link HR to $$ outcomes, employee behavior, org growth, etc.