Hr Strategyngf

7/25/2019 Hr Strategyngf

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HUMAN RESOURCE

MANAGEMENT STRATEGY


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HUMAN RESOURCE MANAGEMENT

STRATEGY

The Meaning of StrategyA critical factor that affects Firm PerformanceA factor that contributes to CompetitiveAdvantage in marketsHaving a long-term focusPlans that involve the top executives and/or boardof directors of the firm

A general framework that provides a perspective

for selecting specific policies and procedures


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STRATEGY

Why is HR critical to firm performance?85% of all firms in the US are service firms.Service is delivered by people.

Low quality HR leads to low quality customerservice.In the 21st century effective knowledgemanagement translates into competitiveadvantage and profits.

Knowledge comes from a firms people.


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STRATEGY

What is unique about Human ResourceManagement?

HR is multidisciplinary: It applies the disciplinesof Economics (wages, markets, resources),

Psychology (motivation, satisfaction), Sociology(organization structure, culture) and Law (min.wage, labor contracts, EEOC)

HR is embedded within the work of all managers,and most individual contributors due to the needof managing people (subordinates, peers andsuperiors) as well as teams to get things done.


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HR STRATEGY: STRATEGIC FIT

Training Rewards

Corporate Strategy

Business Strategy

HR Strategy

HR System(Performance Mgmt.)


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HR STRATEGY: HR SYSTEM

INTERNAL FIT

HR Strategy

Performance Management System

Goal Setting

Performance

Measurement

Coaching

Rewards

Appeal

Performance Evaluation


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HR STRATEGY: CONTEXT OF HR

SYSTEM

1. The Five Factors Influencing the HR System External Environment

Social: social values, roles, trends, etc.

Political: political forces, changes. Ex. Bush

presidency and its agenda for Social Security.

Legal: laws, court decisions, regulatory rules.

Economic: product, labor, capital, factor markets.


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SYSTEM

2. The Workforce Demographics


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SYSTEM

3. Organization Culture Weak vs. Strong culture

Type of culture


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SYSTEM

4. Organization Strategy What are a firms distinctive competencies?

What is the basis that competitive strategy be

sustained?

What are a firms strategic objectives?

Compare corporate and Business strategies.


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SYSTEM

5. Technology of Production & Organization of

Work Physical layout/employee proximity

Required employee skills

Ease of monitoring employees input


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SYSTEM

Critical Thinking Questions:

1. Should a company monitor the HR environment

and imitate Best Practices of HR from

successful firms? What caveats would you want

to apply to applying Best HR Practices?

2. Give an example of a type of Organizational

Culture that would reinforce strategy: What

type of HR practices would fit with this culture?

3. What type of HR practices would fit with jobs

with tasks that are highly ambiguous,

uncertain and creative? What about

predictable, routine and certain tasks?


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HR STRATEGY: STRATEGIC ROLES

Distribution of Task Outcomes: 3 Possibilities

1. Foot soldier: low upside, low downside of

performance variance

2. Guardian: low upside, high downside ofperformance variance

3. Star: high upside, low downside of

performance variance


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HR STRATEGY: STRATEGIC ROLES

Critical Thinking Questions:

1. Which Roles are Strategic? Foot soldier,

guardian or star?

2. What are the advantages of focusing on footsoldiers with the company HR policies?

3. What are the liabilities of stars? When is it

advantageous to cultivate and sustain stars?


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HR STRATEGY: CONSISTENCY

Consistency is an important quality related to the

implementation of HR policies. Employees

should receive a clear, undiluted message of what

behaviors are important and desirable. When

there is a fit between HR systems, employees arelikely to receive consistent feedback. The 3 types

of consistency are

1. Singleemployee consistency

!. "mongemployee consistency

#. Temporal consistency


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HR STRATEGY: CONSISTENCY

Critical Thinking Questions

1.Are there circumstances when it is effective to

have inconsistent HR policies? Give an

example.

2. Does an emphasis on temporal consistency

create a barrier for change when change is

necessary?

3. What impact (if any) would consistency have on

the organization culture?

Hr Strategyngf

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