Meeting Present and Emerging Strategic Human
Resource Challenges
• How can HR influence firm performance?
• How can HR cope with workplace changes and trends?• What are HR strategies that help a firm achieve competitive
advantage?
Challenges facing HR
Key HR Challenges for Today’s Managers: Environmental
• Rapid change• Workforce diversity• Globalization• Internet revolution• Legislation• Evolving work and family roles• Skill Shortages • Rise of the service sector
• Competitive Position: Cost,• Quality, distinctive capabilities
• Decentralization• Downsizing• Organizational restructuring
• Self-managed work teams• Small business growth• Technology• Outsourcing
Key HR Challenges for Today’s Managers:
Organizational
Basic assumptions and beliefs shared by members of an organization…
• rules, norms• behaviors• philosophy• dominant values• feeling or climate
Key HR Challenges for Today’s Managers: Cultural
Individual Challenges
• Matching People and Organization• Matching people and
organizations• Ethical dilemmas • Social responsibility• Productivity• Empowerment• Brain drain• Job insecurity
Key HR Challenges for Today’s Managers: Individual
Strategic HR Choices – Options Available in Designing an HR
SystemWork Flows
Staffing
Employee Separations
Performance Appraisal
Training and Career Development
Compensation
Employee Relations
Employee Rights
International Management
HR Strategy Leads to Improved Organizational
Performance
HR Strategies
Organizational Strategies
Organizational Characteristics
Organizational Capabilities
Environments
Porter’s Differentiation Strategy
HR Strategies:• Emphasis on innovation and
flexibility• Broad job classes• Loose work planning• External recruiting• Team based training• Emphasis on individual-based pay• Use performance appraisal as a
developmental tool
Porter’s Low-cost Leadership Strategy
HR Strategies:• Efficient production• Explicit job descriptions• Detailed work planning• Emphasis on qualifications and
skills• Emphasis on job-specific training• Emphasis on job-based pay• Use of performance appraisal as a
control device
Porter’s Focus Strategy
Low cost Differentiation
Miles and Snow
Defender – conservative business units that prefer to maintain a secure position in a relatively stable product or service area
Prospector – emphasize growth and innovation, development of new products
Miles and Snow Defender Strategy -- RECRUITING
• Internal recruitment• HR makes selection decision• Emphasis on qualifications and
skills• Formal hiring and socialization
process
Miles and Snow Prospector Strategy -- RECRUITING
• External recruitment• Supervisor makes selection decision• Emphasis on applicant fit with culture• Informal hiring and socialization
process of new employees
Miles and Snow Defender Strategy -- Compensation
• Fixed pay• Job-based pay• Seniority-based pay• Centralized pay decisions
Miles and Snow Prospector Strategy --Compensation
• Variable pay• Individual-based pay• Performance-based
pay• Decentralized pay
decisions
HR Best Practices• Employment security• Selectivity in recruiting• High wages• Incentive pay• Employee ownership• Information sharing• Participation and empowerment• Self managed teams• Training and skill development• Cross-utilization and cross training• Promotion from within
HR Department and Managers
“The role of a company’s HR department is to support, not supplant managers’ HR responsibility”
“Every manager is an HR manager”
HR must understand…• internal / external customers
• key business disciplines
• business structure, vision, values, goals, strategies, finances
• competitors, products, technology and sources of competitive
advantage
KNOWLEDGE OF BUSINESSHow HR can be a Strategic Partner
STRATEGIC THINKINGHow HR can be a Strategic Partner
• Understand strategic business planning
• Apply a systematic HR planning process
• Integrate HR systems to build capability and competitive advantage for the firm
• Develop and integrate department strategies within corporate framework
PROCESS SKILLSHow HR can be a Strategic
Partner• Know management processes• Know process skills: consulting,
problem solving, evaluation and communication
• Understand organizational development
• Facilitate and manage change• Manage under uncertainty and
instability
TECHNOLOGYHow HR can be a Strategic Partner• Maintain HR documentation
using knowledge management and technology
• Build firm’s capability using info systems
• Provide training in use of technology
XYZ has a 1 billion budget and staff of 7,000.
To speed growth, XYZ announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, XYZ introduced specially trained
“black belts” to root out inefficiencies in departments. If you were a “black belt”, what would you look for?
Case