HR Strategy
HR Strategy
V.P. Manufacturing
V.P. Finance
V.P. Marketing
Director Employment
Recruiting Supervisor
Orientation Supervisor
Training Supervisor
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Business Level Redesign the production line, based on the latest technology available, creating new technologies when needed.
HR Level Redefine the role of management and workers based on the concepts of teamwork and involvement.
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Organizational HR Strategy
Corporate Strategy
HR Strategy
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Organizational HR Strategy
Separation Strategies
Layoff Termination Early Retirement Quits
Placing
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Definition
Peter Drucker says the prime task of strategic
management is thinking through the overall mission of a business:
. . . that is, of asking the question, "What is our Business?" This leads to the setting of objectives, the development of strategies, and the making of today's decisions for tomorrow's results. This clearly must be done by a part of the organization that can see the entire business; that can balance objectives and the needs of today against the needs of tomorrow; and that can allocate resources of men and money to key results.
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Four Topics
1. What is an HR strategy? 2. Is there one best HR strategy? 3. High performance work practices or high commitment practices. 4. Possible contingent factors.
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1. What is an HR strategy?
Make workforce strategies integral to company
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What is an HR strategy?
HR strategy is a set of HR policies and practices (the actions) designed and implemented by the firm to help overcome the obstacles it sees as standing in the way of its achieving its HR or organizational objectives (like minimizing unit labour costs)
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Wage Cutting
Restructuring Collective Bargaining Automation
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Supervisory Style
Organizational Culture Change Market Expansion/ Retrenchment Mergers/Acquisitions
Stock Offerings
Logo/Name Change
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4. 5. 6. 7.
decision making Comparatively high pay Extensive training Low-status distinctions and barriers Extensive sharing of financial performance information throughout the org.
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1,4, and 6 designed to motivate employees 2 and 5 to secure competence 3 and 7 designed to do both. A strategy has to have both a consistency and an interdependence between the constituent parts If one item is neglected (2, 3, 5 wont compensate enough for a very low value of 1) there will be a disproportionate failure.
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According to PFEFFER
Universities are making systematic and huge
mistakes with their HR. Competence and motivation may be achieved through a variety of different policy routes Academics develop their competence through paying for their own training, attending seminars, conferences Motivation is based on:- nature of the work, transfer their skills from one employer to another.
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Differentiation Strategies
Focus Strategies
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Differentiation
Distinguish products and services in order to charge a premium price
Generic Strategies
Cost Leadership Strategies Pursued in conjunction with differentiation
Economies of scale Capacity utilization achieved Linkages with suppliers and distributors Several example firms that are well known for their low-cost leadership strategies are Wal-Mart, McDonald's, Black and Decker, Lincoln Electric
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Generic Strategies
Differentiation Strategies Greater product flexibility
Greater compatibility Lower costs Improved service Greater convenience More features Firms pursuing a differentiation strategy include Dr. Pepper, Jenn-Air, The Limited, BMW, GradyWhite, Ralph Lauren, Maytag, and Cross.
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Generic Strategies
Focus Strategies Industry segment of sufficient size
Good growth potential Not crucial to success of major competitors Firms pursuing a focus strategy include Midas, Red Lobster, Long John Silver, Sprint, MCI, Coors, and Schwinn
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Tutorial Question
Even though HRM may not necessarily
be anything new, it nevertheless has a positive impact on performance Discuss.
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Answer
First debate whether HRM is
something NEW or Not? Second whether it has a positive impact on performance or Not?
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Cont
Once showed the awareness of these issues,
explore the empirical evidence Refer authors like Huselid, Arthur, Ichniowski et al., Guest After referring them, arrive to the conclusion which approach was best supported: Universalism or Situational Contingencies? What about the relationship between HRM and performance The relationship emerges in specific context or broader?
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