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    What Is Strategy ?: Human Resource Management

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    sameer99r
    This document discusses strategies and how human resource strategies should align with business strategies. It provides the following key points: 1) Strategy is defined as actions aimed at gaining a sustainable competitive advantage through concentration of resources on selected opportunities. 2) There are three levels of strategy - corporate, business, and functional - and HR strategies must link to and support the business strategy. 3) To ensure alignment, an organization should identify its business goals, workforce requirements, HR measures, and strategic HR policies and activities to deliver the needed competencies.

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    What Is Strategy ?: Human Resource Management

    Uploaded by

    sameer99r
    52 views7 pages
    This document discusses strategies and how human resource strategies should align with business strategies. It provides the following key points: 1) Strategy is defined as actions aimed at gaining a sustainable competitive advantage through concentration of resources on selected opportunities. 2) There are three levels of strategy - corporate, business, and functional - and HR strategies must link to and support the business strategy. 3) To ensure alignment, an organization should identify its business goals, workforce requirements, HR measures, and strategic HR policies and activities to deliver the needed competencies.

    Original Description:

    hr

    Original Title

    S-2 Strategic HRM

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    This document discusses strategies and how human resource strategies should align with business strategies. It provides the following key points: 1) Strategy is defined as actions aimed at gaining a sustainable competitive advantage through concentration of resources on selected opportunities. 2) There are three levels of strategy - corporate, business, and functional - and HR strategies must link to and support the business strategy. 3) To ensure alignment, an organization should identify its business goals, workforce requirements, HR measures, and strategic HR policies and activities to deliver the needed competencies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    52 views7 pages

    What Is Strategy ?: Human Resource Management

    Uploaded by

    sameer99r
    This document discusses strategies and how human resource strategies should align with business strategies. It provides the following key points: 1) Strategy is defined as actions aimed at gaining a sustainable competitive advantage through concentration of resources on selected opportunities. 2) There are three levels of strategy - corporate, business, and functional - and HR strategies must link to and support the business strategy. 3) To ensure alignment, an organization should identify its business goals, workforce requirements, HR measures, and strategic HR policies and activities to deliver the needed competencies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    1

    Human Resource Management


    Session - 2
    What is Strategy ?
    A coherent set of actions aimed at
    gaining a sustainable competitive
    advantage.
    Strategy is the concentration of
    resources on selected opportunities for
    competitive advantage
    William Henn.
    Strategy performs directional, coordinating,
    decision-making, and resource allocation
    functions.
    2
    Levels of Strategy
    Corporate
    Strategy
    Business
    Strategy
    Functional
    Strategy
    (for each
    function)
    Retrenchment
    Differentiation
    Linking Organizational Strategy and HR Strategies
    3
    Aligning HR strategy with Business Strategy
    FORMULATE BUSINESS STRATEGY
    What are the strategic goals of the business
    DEVELOP DETAILED HR SCORECARD MEASURES
    How can HR measure whether it is executing well for
    business in terms of producing the required workforce
    competencies and behaviors
    FORMULATE STRATEGIC HR POLICIES & ACTIVITIES
    Which HR strategies & practices will enable HR to produce
    these HR competencies and behaviors
    IDENTIFY WORKFORCE REQUIREMENTS
    What employee competencies & behaviors must HR deliver
    to reach these goals
    Illustration of Strategic Decisions & Implications
    .
    Add new types of equipment
    Growth through acquisition
    Take on additional indebtedness
    to prevent takeover
    Market products internationally
    Seek new location for
    manufacturing plant
    Pursue low cost competitive
    strategy
    Training
    Compensation (reduced)
    Outplacement (force reduction)
    Selection (from acquired firm)
    Training
    Compensation
    Outplacement (redundant workers)
    Selection
    Training
    Compensation
    Transfer Recruitment
    Selection Training
    Compensation Training
    Labor relations (give back)
    4
    .
    BUSINESS STRATEGY HR STRATEGIES
    COST LEADERSHIP
    Sustained capital investment
    Intense supervision of labor
    Tight cost control
    Structured organization
    Products designed for ease in mfg.
    Short-term focus and volumes
    Result-oriented
    DIFFERENTIATION
    Long-term focus
    Strong research capabilities
    Corporate reputation for quality
    Amenities to attract creative / skilled
    people
    Creative job behavior
    Moderate concern for quality and
    quantity.
    Efficiency focus & specialization
    Explicit job descriptions
    Detailed work planning
    Emphasis on technical skills
    Job-specific training
    Hierarchical job-based pay
    Performance appraisal as a control
    Limited employee participation
    Emphasis on innovation & flexibility
    Broad job classes
    Loose work-planning
    External recruitment
    Team-based training
    Emphasis on individual-based pay
    Use of Performance appraisal as a
    developmental tool.
    High employee participation.
    Fit between Business Strategy & HR Strategy
    Important tools in Strategic HRM
    Source: Brian Becker et al., The HR Scorecard: Linking People, Strategy, and Performance (Boston: Harvard Business School Press, 2001), p. 12.
    Strategy Map
    Graphical tool
    summarizing the
    chain of activities
    contributing to
    the firms
    success. It shows
    the big picture of
    linkages between
    performance and
    objectives.
    HR Scorecard
    Measures the value
    of HR function and
    its contribution to
    the firms financial
    success through HR
    audit. It assesses the
    maturity of HR
    systems, HR
    competencies,
    culture, business
    linkage and assigns
    a score to each of
    these.
    Digital Dashboard
    Graphics and
    charts monitoring
    organizational
    performance in
    terms of each
    activity displaying
    its causal linkage
    5
    Strategy Map for Southwest Airlines
    Strategy Map: Competency Skill Attainment Focus
    F
    i
    n
    a
    n
    c
    i
    a
    l
    C
    u
    s
    t
    o
    m
    e
    r
    O
    p
    e
    r
    a
    t
    i
    o
    n
    s
    S
    t
    r
    a
    t
    e
    g
    i
    c
    Increased shareholder
    value
    Revenue from current
    customers
    Service
    Partnership
    Provide target
    training & services
    Establish ongoing
    assessment of
    targeted employees
    Understand employee
    skill gaps
    Sales
    Competencies
    6
    Creating a HR Scorecard
    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
    Choose HR Scorecard measures
    Identify required HR policies
    and activities
    Summarize Scorecard measures
    on digital dashboard and
    monitor, predict, and evaluate
    The 10-Step HR Scorecard Process
    SAMPLE HR METRICS & THEIR CALCULATION
    HR Metric How to Calculate It
    Absence rate
    # of days absent in month
    100
    Average # of employees during month # of workdays
    Cost per hire
    Advertising + agency fees + employee referrals + travel cost of
    applicants and staff + relocation costs + recruiter pay and benefits
    Number of hires
    HR expense
    factor
    HR expense
    Total operating expense
    Time to fill Total days elapsed to fill job requisitions
    Number hired
    Turnover rate Number of separations during month
    100
    Average number of employees during month
    7
    HR Practice Measures
    HR Practice Possible Measures
    STAFFING
    Acceptance per offer ratio
    Number of applicants contacted versus reporting for interview
    Time to fill a job
    Cost of filling a job
    Percentage of internally filled jobs
    Performance of hired applicants
    Ratio of back-up talent
    TRAINING &
    DEVELOPMENT
    Cost per training hour
    Percentage of employees involved in training
    Number of courses taught by subject
    Payroll expense per employee
    Time for new program design
    Number of training days and programs held per year
    Training effectiveness assessment
    PERFORMANCE
    APPRAISAL
    Acceptance of appraisal process by employees
    Percentage of employees receiving performance appraisal
    Average merit increase granted by performance classification
    Extent to which measurement systems are seen as credible
    HR Practice Measures
    HR Practice Possible Measures
    SAFETY &
    HEALTH
    Lost work days
    Cost of injuries
    Incidence of injuries
    Trends in workforce illness
    HR
    PROFESSIONALS
    HR Competencies
    HR FUNCTION
    Ratio of total employees to HR professionals
    (measure of productivity)
    Ration of rupees spent on HR function to total sales
    Administrative costs (efficiency of HR function)
    Performance against the annual budget of HR
    department.

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