Professional Documents
Culture Documents
Management
SECTION 1
Nature of
Human
Resource
Management
TENTH EDITON
Robert L. Mathis
John H. Jackson
Chapter 2
Strategic
StrategicHuman
Human Resource
Resource
Management
Management
PowerPoint
Presentation
by Charlie Cook
Learning
Learning Objectives
Objectives
After you have read this chapter, you
should be able to:
Discuss why human resources can be a core
competency for organizations.
Define HR planning, and outline the HR
planning process.
Specify four important HR benchmarking
measures.
Identify factors to be considered in
forecasting the supply and demand for
human resources in an organization.
2002 Southwestern College
22
Learning
Learning Objectives
Objectives (contd)
(contd)
Discuss several ways to manage a surplus of
human resources.
Identify what a human resource information
system (HRIS) is and why it is useful when
doing HR planning.
23
Human
Human Resources
Resources as
as aa Core
Core Competency
Competency
Core Competency
A unique capability in the organization that
creates high value and that differentiates the
organization from its competition.
24
Possible
PossibleHR
HRAreas
Areasfor
for Core
CoreCompetencies
Competencies
Figure 21
25
HR-Based
HR-Based Core
Core Competencies
Competencies
Organizational Culture
The shared values and beliefs of the workforce
Productivity
A measure of the quantity and quality of work
done, considering the cost of the resources
used.
A ratio of the inputs and outputs that indicates
the value added by an organization.
26
Customer
Customer Service
ServiceDimensions
Dimensions
Figure 22
27
Factors
FactorsThat
ThatDetermine
DetermineHR
HRPlans
Plans
Figure 23
28
Linkage
Linkageof
ofOrganizational
Organizationaland
andHR
HRStrategies
Strategies
Figure 24
29
Human
Human Resource
Resource Planning
Planning
HR Planning Responsibilities
Top HR executive and subordinates gather
information from other managers to use in
the development of HR projections for top
management to use in strategic planning and
setting organizational goals
210
Typical
Typical Division
Divisionof
ofHR
HRResponsibilities
Responsibilities
in
inHR
HRPlanning
Planning
Figure 25
211
Human
Human Resource
Resource Planning
Planning (contd)
(contd)
212
HR
HRPlanning
PlanningProcess
Process
Figure 26
213
HR
HR Planning
Planning Process
Process
HR Strategies
The means used to anticipate and manage the
supply of and demand for human resources.
Provide overall direction for the way in which HR
activities will be developed and managed.
Overall
Strategic Plan
Human Resources
Strategic Plan
HR Activities
2002 Southwestern College
214
Benefits
Benefits of
of HR
HR Planning
Planning
215
Scanning
Scanning the
the External
External Environment
Environment
Environmental Scanning
The process of studying the environment of
the organization to pinpoint opportunities
and threats.
216
Employers
EmployersUse
Useof
ofPart-Time
Part-TimeWorkers
Workers
Figure 27
217
Internal
Internal Assessment
Assessment of
of the
the
Organizational
Organizational Workforce
Workforce
Auditing Jobs and Skills
What jobs exist now?
How many individuals are performing each
job?
How essential is each job?
What jobs will be needed to implement future
organizational strategies?
What are the characteristics of anticipated
jobs?
218
Internal
Internal Assessment
Assessment of
of the
the
Organizational
Organizational Workforce
Workforce
Organizational Capabilities Inventory
HRIS databasessources of information
about employees knowledge, skills, and
abilities (KSAs)
Components of an organizational capabilities
inventory
Workforce and individual demographics
Individual employee career progression
Individual job performance data
219
Forecasting
Forecasting HR
HR Supply
Supply and
and Demand
Demand
Forecasting
The use of information from the past and
present to identify expected future
conditions.
Forecasting Methods
Judgmental
Estimatesasking managers opinions, top-down or
bottom-up
Rules of thumbusing general guidelines
Delphi techniqueasking a group of experts
Nominal groupsreaching a group consensus in open
discussion
220
Forecasting
Forecasting HR
HR Supply
Supply and
and Demand
Demand
Forecasting Periods
Short-termless than one year
Intermediateup to five years
Long-rangemore than five years
221
Forecasting
Forecasting
Methods
Methods
Figure 28
222
Forecasting
Forecasting HR
HR Supply
Supply and
and Demand
Demand
223
Forecasting
Forecasting HR
HR Supply
Supply and
and Demand
Demand
224
Forecasting
Forecasting HR
HR Supply
Supply and
and Demand
Demand
Manager
Supervisor
Line Worker
Exit
.15
.10
.20
Manager
.85
.15
.00
Supervisor
.00
.70
.15
Line Worker
.00.
.05
.65
225
Estimating
EstimatingInternal
Internal Labor
Labor Supply
Supplyfor
for aaGiven
Given Unit
Unit
Figure 29
226
Managing
Managing Human
Human Resource
Resource
Surplus
Surplus or
or Shortage
Shortage
227
Managing
Managing Human
Human Resource
Resource
Surplus
Surplus or
or Shortage
Shortage
Workforce Realignment
Downsizing, Rightsizing, and Reduction
in Force (RIF) all mean reducing the number
of employees in an organization.
Causes
Economicweak product demand, loss of market
share to competitors
Structuraltechnological change, mergers and
acquisitions
228
Managing
Managing Human
Human Resource
Resource
Surplus
Surplus or
or Shortage
Shortage
Negative consequences
Cannibalization of HR resources
Loss of specialized skills and experience
Loss of growth and innovation skills
Managing survivors
Provide explanations for actions and the future
Involve survivors in transition/regrouping activities
229
Managing
Managing Human
Human Resource
Resource
Surplus
Surplus or
or Shortage
Shortage
Downsizing approaches
Attrition and hiring freezes
Not replacing departing employees and not hiring new
employees/
Layoffs
Employees are placed on unpaid leave until called back
to work when business conditions improve.
Employees are selected for layoff on the basis of their
seniority or performance or a combination of both.
230
Managing
Managing Human
Human Resource
Resource
Surplus
Surplus or
or Shortage
Shortage
231
Dealing
Dealing with
with Downsizing
Downsizing
232
Assessing
Assessing HR
HR Effectiveness
Effectiveness
233
Overview
Overviewof
ofthe
the
HR
HREvaluation
Evaluation
Process
Process
Figure 210
234
Assessing
Assessing HR
HR Effectiveness
Effectiveness
HR Audit
A formal research effort that evaluates the
current state of HR management in an
organization
Audit areas:
235
Using
Using HR
HR Research
Research for
for Assessment
Assessment
HR Research
The analysis of data from HR records to
determine the effectiveness of past and
present HR practices.
Primary Research
Research method in which data are gathered
first-hand for the specific project being
conducted.
Secondary Research
Research method using data already gathered
by others and reported in books, articles in
professional journals, or other sources.
236
HR
HR Performance
Performance and
and Benchmarking
Benchmarking
Benchmarking
Comparing specific measures of performance
against data on those measures in other
best practice organizations
Common Benchmarks
Total compensation as a percentage of net
income before taxes
Percent of management positions filled
internally
Dollar sales per employee
Benefits as a percentage of payroll cost
237
Doing
Doing the
the Benchmarking
Benchmarking Analysis
Analysis
C
ROI
AB
A = Operating costs for a new or enhance system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period
238
HR
HRBusiness
BusinessPerformance
Performance Calculations
Calculations
Source: Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.
Figure 211a
239
HR
HRBusiness
BusinessPerformance
Performance Calculations
Calculations
Source: Adapted from Jac Fitz-Enz, Top 10 Calculations for Your HRIS, HR Focus, April 1998, S-3.
Figure 211b
240
Doing
Doing the
the Benchmarking
Benchmarking Analysis
Analysis
Utility analysis
Analysis in which economic or other
statistical models are built to identify the
costs and benefits associated with specific
HR activities
241
Human
Human Resource
Resource Information
Information Systems
Systems
Uses of HRIS
Automation of payroll and benefit activities
EEO/affirmative action tracking
242
Uses
Usesof
ofan
anHR
HR
Information
Information
System
System(HRIS)
(HRIS)
Figure 212
243
Designing
Designing and
and Implementing
Implementing an
an HRIS
HRIS
244
Accessing
Accessing the
the HRIS
HRIS
Intranet
An organizational (internal) network that
operates over the Internet.
Extranet
An Internet-linked network that allows
employees access to information provided by
external entities.
245