Strategic Human Resource Management and the HR Scorecard

1、 2005 Prentice Hall Inc.All rights reserved.PowerPoint Presentation by Charlie CookThe University of West Alabamat e n t h e d i t i o n1.Outline the steps in the strategic management process.2.Explain and give examples of each type of companywide and competitive strategy.3.Explain what a high perfo

2、rmance work system is and why it is important.4.Illustrate and explain each of the seven steps in the HR Scorecard approach to creating HR systems. 2005 Prentice Hall Inc. All rights reserved.33HRs Strategic ChallengesStrategic plan A companys plan for how it will match its internal strengths and we

3、aknesses with external opportunities and threats in order to maintain a competitive advantage.Three basic challenges The need to support corporate productivity and performance improvement efforts. That employees play an expanded role in employers performance improvement efforts. HR must be more invo

4、lved in designingnot just executingthe companys strategic plan. 2005 Prentice Hall Inc. All rights reserved.34The Strategic Management ProcessStrategic management The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment.Strat

5、egy A strategy is a course of action. The companys long-tem plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. 2005 Prentice Hall Inc. All rights reserved.35Business Mission and Its VisionVision A genera

6、l statement of its intended direction that evokes emotional feelings in organization members.Mission Spells out who the company is, what it does, and where its headed. 2005 Prentice Hall Inc. All rights reserved.36Strategic Management Process (contd)Strategic management tasks Step 1: Define the Busi

7、ness and Its Mission Step 2: Perform External and Internal Audits Step 3: Translate the Mission into Strategic Goals Step 4: Formulate a Strategy to Achieve theStrategic Goals Step 5: Implement the Strategy Step 6: Evaluate Performance 2005 Prentice Hall Inc. All rights reserved.37Overview of Strate

8、gic ManagementFigure 31 2005 Prentice Hall Inc. All rights reserved.38A SWOT ChartFigure 32 SWOT AnalysisThe use of a SWOT chart to compile and organize the process of identifying companyStrengths,Weaknesses,Opportunities, and Threats. 2005 Prentice Hall Inc. All rights reserved.39Strategies in Brie

9、fFigure 33 Company Strategic Principle Dell Be direct eBay Focus on trading communities General Electric Be number one or number two in every industry in which we compete, or get out Southwest Airlines Meet customers short-haul travel needs at fares competitive with the cost of automobile travel Van

10、guard Unmatchable value for the investor-owner Wal-Mart Low prices, every day Source: Arit Gadiesh and James Gilbert, “Frontline Action,” Harvard Business Review, May 2001, p. 74. 2005 Prentice Hall Inc. All rights reserved.310Types of Strategic PlanningCorporate-level strategy Identifies the portfo

11、lio of businesses that, in total, comprise the company and the ways in which these businesses relate to each other. Diversification strategy implies that the firm will expand by adding new product lines. Vertical integration strategy means the firm expands by, perhaps, producing its own raw material

12、s, or selling its products direct. Consolidation strategy reduces the companys size Geographic expansion strategy takes the company abroad. 2005 Prentice Hall Inc. All rights reserved.311Types of Strategic Planning (contd)Business-level/competitive strategy Identifies how to build and strengthen the

13、 businesss long-term competitive position in the marketplace. Cost leadership: the enterprise aims to become the low-cost leader in an industry. Differentiation: a firm seeks to be unique in its industry along dimensions that are widely valued by buyers. Focus: a firm seeks to carve out a market nic

14、he, and compete by providing a product or service customers can get in no other way. 2005 Prentice Hall Inc. All rights reserved.312Types of Strategic Planning (contd)Functional strategies Identify the basic courses of action that each department will pursue in order to help the business attain its

15、competitive goals. 2005 Prentice Hall Inc. All rights reserved.313Relationships Among Strategies in Multiple- Business FirmsFigure 34 2005 Prentice Hall Inc. All rights reserved.314Achieving Strategic FitMichael Porter Emphasizes the “fit” point of view that all of the firms activities must be tailo

16、red to or fit its strategy, by ensuring that the firms functional strategies support its corporate and competitive strategies.Gary Hamel and C. K. Prahalad Argue for “stretch” in leveraging resourcessupplementing what you have and doing more with what you havecan be more important than just fitting

17、the strategic plan to current resources. 2005 Prentice Hall Inc. All rights reserved.315The Southwest Airlines Activity SystemFigure 35 Source: Reprinted by permission of Harvard Business Review. From “What is Strategy?” by Michael E. Porter, NovemberDecember 1996. Copyright 1996 by the President an

18、d Fellows of Harvard College, all rights reserved. 2005 Prentice Hall Inc. All rights reserved.316HR and Competitive AdvantageCompetitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. Superior human re

19、sources are an important source of competitive advantage 2005 Prentice Hall Inc. All rights reserved.317Strategic Human Resource ManagementStrategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cu

20、ltures that foster innovation and flexibility. Formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors the company needs to achieve its strategic aims. 2005 Prentice Hall Inc. All rights reserved.318Linking Corporate and HR StrategiesFigure

21、36 Source: 2003, Gary Dessler, Ph.D. 2005 Prentice Hall Inc. All rights reserved.319HRS Strategic RolesHR professionals should be part of the firms strategic planning executive team. Identify the human issues that are vital to business strategy. Help establish and execute strategy. Provide alternati

22、ve insights. Are centrally involved in creating responsive and market-driven organizations. Conceptualize and execute organizational change. 2005 Prentice Hall Inc. All rights reserved.320HR Involvement in MergersFigure 37 Source: Jeffrey Schmidt, “The Correct Spelling of M & A Begins with HR,”

23、HR Magazine, June 2001, p. 105. 2005 Prentice Hall Inc. All rights reserved.321HRs Strategy Execution RoleThe HR departments strategies, policies, and activities must make sense in terms of the companys corporate and competitive strategies, and they must support those strategies. 2005 Prentice Hall

24、Inc. All rights reserved.322HRs Strategy Formulation RoleHR helps top management formulate strategy in a variety of ways by. Supplying competitive intelligence that may be useful in the strategic planning process. Supplying information regarding the companys internal human strengths and weaknesses.

25、Build a persuasive case that shows howin specific and measurable termsthe firms HR activities can and do contribute to creating value for the company. 2005 Prentice Hall Inc. All rights reserved.323Creating a Strategy-oriented HR SystemComponents of the HR process HR professionals who have strategic

26、 and other skills HR policies and activities that comprise the HR system itself Employee behaviors and competencies that the companys strategy requires. 2005 Prentice Hall Inc. All rights reserved.324The Basic Architecture of HRFigure 38 Source: Adapted from Brian Becker et al., The HR Scorecard: Li

27、nking People, Strategy, and Performance (Boston: Harvard Business School Press, 2001), p. 12. 2005 Prentice Hall Inc. All rights reserved.325The High-Performance Work SystemHigh-performance work system (HPWS) practices. High-involvement employee practices (such as job enrichment and team-based organ

28、izations), High commitment work practices (such as improved employee development, communications, and disciplinary practices) Flexible work assignments. Other practices include those that foster skilled workforces and expanded opportunities to use those skills. 2005 Prentice Hall Inc. All rights res

29、erved.326Basic Model of How to AlignHR Strategy and Actionswith Business StrategyFigure 39 Source: Adapted from Garrett Walker and J. Randal MacDonald, “Designing and Implementing an HR Scorecard,” Human Resources Management 40, no. 4 (2001), p. 370.Translating Strategy into HR Policy and Practice 2

30、005 Prentice Hall Inc. All rights reserved.327The HR Scorecard ApproachHR scorecard Measures the HR functions effectiveness and efficiency in producing employee behaviors needed to achieve the companys strategic goals.Creating an HR scorecard Must know what the companys strategy is. Must understand

31、the causal links between HR activities, employee behaviors, organizational outcomes, and the organizations performance.Must have metrics to measure all the activities and results involved. 2005 Prentice Hall Inc. All rights reserved.328Strategic HR RelationshipsFigure 310 2005 Prentice Hall Inc. All

32、 rights reserved.329The HR Scorecard Approachto Formulating HR Policies,Activities, and StrategiesFigure 311 Source: Copyright Gary Dessler, Ph.D. 2005 Prentice Hall Inc. All rights reserved.330Using the HR Scorecard Approach Step 1: Define the Business Strategy Step 2: Outline the Companys Value Ch

33、ain Step 3: Identify the Strategically Required Organizational Outcomes Step 4: Identify the Required Workforce Competencies and Behaviors Step 5: Identify the Strategically Relevant HR System Policies and Activities Step 6: Design the HR Scorecard Measurement System Step 7: Periodically Evaluate the Measurement System 2005 Prentice Hall Inc. All rights reserved.331Outlining the Companys Value ChainValue chain analysis A tool for identifying, isolating, visualizing, and analyzing the firms most important activities and st