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Strategic Human Resource
Management Tools
-Miss. Sawant Sayali Pradiprao.
MBA II Roll no: 44 KBPIMSR, Satara. STRATEGIC HR TOOLS: Strategic Human Resource Management Tools, Managers use several tools to translate the company’s strategic goals into human resource management policies and practices. These tools include, STRATEGIC HRM TOOLS
STRATEGY MAP THE HR SCORECARD DIGITAL DASHBOARDS
STRATEGIC HRM TOOLS
• The strategy map provides an overview of how
each department’s performance contributes to achieving the company’s overall strategic goals. • Summarizes how each department’s performance contributes to achieving the company’s overall strategic goals. • It helps the manager and each employee visualize and understand the role his or her department plays in achieving the company’s strategic plan. Example: • a strategy-map example for Southwest Airlines. The top level target is to achieve its profitability, costs, and revenue goals. Then the strategy map shows the chain of activities that help Southwest Airlines achieve these goals. Like Wal-Mart, Southwest has a low-cost-leader strategy. • So, for example, to boost revenues and profitability Southwest must fly fewer planes (to keep costs down), maintain low prices, and maintain on-time flights. In turn (further down the strategy map), on-time flights and low prices require fast turnaround. This, in turn, requires motivated ground and flight crews. The resulting strategy map helps each department under stand what it needs to do to support Southwest’s low-cost strategy. STRATEGIC HRM TOOLS
• It refers to a process for assigning financial and non
financial goals to the human resource management- related chain of activities required for achieving the company’s strategic aims and for monitoring results . • Many employers quantify and computerize the strategy map’s activities. The HR scorecard helps them to do so. The HR scorecard is not a scorecard. • The idea is to take the strategy map and to quantify it. • Managers use special scorecard software to facilitate this. The computerized scorecard process helps the manager quantify the relationships between (1) the HR activities (amount of testing, training, and so forth), (2) the resulting employee behaviours (customer service, for instance), and (3) the resulting firm-wide strategic outcomes and performance (such as customer satisfaction and profitability). • The HR scorecard derives from the “balanced scorecard” planning approach, which aims to balance hard data such as financial measures with soft data such as customer satisfaction in assessing a company’s performance. STRATEGIC HRM TOOLS
• A digital dashboard presents the manager with desktop
graphs and charts, showing a computerized picture of how the company is doing on all the metric from the HR Scorecard process. • The saying “a picture is worth a thousand words” explains the purpose of the digital dashboard. • A digital dashboard presents the manager with desktop graphs and charts, showing a computerized picture of how the company is doing on all the metrics from the HR scorecard process. 8
Example: • As in the accompanying illustration, a top Southwest Airlines manager’s dashboard might display real-time trends for various strategy-map activities, such as fast turnarounds and on-time flights. This enables the manager to take corrective action. For example, if ground crews are turning planes around slower today, financial results tomorrow may decline unless the manager takes action Thank you..