Management TWELFTH EDITION
G A R Y D E S S L E R 
B I J U V A R K K E Y 
Copyright © 2011 Dorling Kindersley (India) !t" #td
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e
Management
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–2
 $&ter reading this chapter you should -e a-le to. $&ter reading this chapter you should -e a-le to.
1"1" /utline the steps in the strategic management/utline the steps in the strategic management
process"process"
2"2" plain and gi!e eamples o& each type o&plain and gi!e eamples o& each type o&
companyide and competiti!e strategy"companyide and competiti!e strategy"
3"3" plain hat a strategy4oriented human resourceplain hat a strategy4oriented human resource
management system is and hy it is important"management system is and hy it is important"
5"5" Illustrate and eplain each o& the eight steps in the HRIllustrate and eplain each o& the eight steps in the HR
corecard approach to creating human resourcecorecard approach to creating human resource
management systems"management systems"
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–3
+he trategic Management rocess+he trategic Management rocess
6 trategic Managementtrategic Management +he process o& identi&ying and eecuting the+he process o& identi&ying and eecuting the
organi%ation,s mission -y matching its capa-ilitiesorgani%ation,s mission -y matching its capa-ilities
ith the demands o& its en!ironment"ith the demands o& its en!ironment"
6 trategytrategy  $ chosen course o& action" $ chosen course o& action"
6 trategic lantrategic lan Ho an organi%ation intends to -alance its internalHo an organi%ation intends to -alance its internal
strengths and ea7nesses ith its eternalstrengths and ea7nesses ith its eternal
opportunities and threats to maintain a competiti!eopportunities and threats to maintain a competiti!e
ad!antage o!er the long4term"ad!antage o!er the long4term"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–4
8usiness 9ision and Mission8usiness 9ision and Mission
6 9ision9ision  $ general statement o& an organi%ation,s intended $ general statement o& an organi%ation,s intended
direction that e!o7es emotional &eelings indirection that e!o7es emotional &eelings in
organi%ation mem-ers"organi%ation mem-ers"
6 MissionMission pells out ho the company is hat it does andpells out ho the company is hat it does and
here it,s headed"here it,s headed"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–5
FIGURE 3–5 The Strategic anage!ent Proce""
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–#
FIGURE 3–$ % S&'T Chart
Strengths
Threats
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–$
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–0
+ypes o& trategies+ypes o& trategies
i-er"iication
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–7
+ypes o& trategies (continued)+ypes o& trategies (continued)
Co"t ,eader"hip Focu"8.iche
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–19
 $chie!ing trategic :it $chie!ing trategic :it
+he ;:it< oint o& 9ie (orter) consists o& the+he ;:it< oint o& 9ie (orter) consists o& the
idea that each department,s strategy needs to &itidea that each department,s strategy needs to &it
the parent -usiness,s competiti!e aims"the parent -usiness,s competiti!e aims"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–11
trategic Human Resource Managementtrategic Human Resource Management
6 trategic Human Resource Managementtrategic Human Resource Management
+he lin7ing o& HRM ith strategic goals and+he lin7ing o& HRM ith strategic goals and
o-=ecti!es in order to impro!e -usiness per&ormanceo-=ecti!es in order to impro!e -usiness per&ormance
and de!elop organi%ational cultures that &osterand de!elop organi%ational cultures that &oster
inno!ation and &lei-ility"inno!ation and &lei-ility"
In!ol!es &ormulating and eecuting HR systems>HRIn!ol!es &ormulating and eecuting HR systems>HR
policies and acti!ities>that produce the employeepolicies and acti!ities>that produce the employee
competencies and -eha!iors that the company needscompetencies and -eha!iors that the company needs
to achie!e its strategic aims"to achie!e its strategic aims"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–12
FIGURE 3–# ,in+ing Co!pan&ide and :R Strategie"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–13
Creating the trategic Human ResourceCreating the trategic Human Resource
Management ystemManagement ystem
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–14
FIGURE 3–19
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–15
FIGURE 3–12 Three I!portant Strategic :R Too)"
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–1#
Measuring HR,s Contri-utionMeasuring HR,s Contri-ution
6 +he HR corecard+he HR corecard
hos the Auantitati!e standards orhos the Auantitati!e standards or
;metrics< the &irm uses to measure;metrics< the &irm uses to measure
HR acti!ities"HR acti!ities"
organi%ational outcomes o& thoseorgani%ational outcomes o& those
employee -eha!iors"employee -eha!iors"
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–1$
Creating an HR corecardCreating an HR corecard
1
2
3
4
5
/utline a strategy map
Identi&y strategically reAuired
competencies and -eha!iors
and acti!ities
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–10
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–17
Fi-e Sa!p)e :R etric" :R etric= :o/ to Ca)cu)ate It
%>"ence rate B o& days a-sent in month 100
 $!erage B o& employees during month B o& or7days
Co"t per hire  $d!ertising agency &ees employee re&errals tra!el cost o&  applicants and sta&& relocation costs recruiter pay and -ene&its
Eum-er o& hires
:R e(pen"e actor 
HR epense
Ti!e to i)) +otal days elapsed to &ill =o- reAuisitions
Eum-er hired
Turno-er rate Eum-er o& separations during month 100
 $!erage num-er o& employees during month Sources: Ro-ert Frossman ;Measuring 'p< HR Magazine Ganuary 2000 pp" 2 3J eter 9" #e 8lanc aul Mul!ey and Gude +" Rich ;Impro!ing the Return on
Human Capital. Ee Metrics< Compensation and enefits Re!ie"  Ganuary*:e-ruary 2000 pp" 1320 +homas " Murphy and ourushe Land!a7ili
;Data and Metrics4Dri!en $pproach to Human Resource ractices. 'sing
Customers mployees and :inancial Metrics< Human Resource Management 3 no" 1 (pring 2000) pp" 310J HR Planning  Commerce Clearing House Incorporated Guly 1N 1OP SHRM#$% &''' Cost Per Hire and Staffing Metrics
Sur!ey  "shrm"org" ee also HRM Research ;200O trategic HR
Management ur!ey Report< ociety &or Human Resource Management""
 
 $uthori%ed adaptation &rom the 'nited tates edition o& Human
Resource Management 12*e 3–29
K @ + R M
strategic planstrategic plan
strategic managementstrategic management
HR corecardHR corecard