Presentation on theme: "Strategic Planning & Human Resources The Diagnostic Model"— Presentation transcript:
1 Strategic Planning & Human Resources The Diagnostic Model
2 Strategic Planning & Organizational Behavior Procedures for making decisions about the organization’s long-term goals and strategiesOrganizational Behavior - Human Resources Planning (HRP)Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.
3 Organizational Behavior Actually Strategic Human Resources Management (SHRM)The pattern of human resources deployments and activities that enable an organization to achieve its strategic goalsStrategy formulation—providing input as to what is possible given the types and numbers of people available.Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.
4 OB and Strategic Planning Strategic AnalysisWhat human resources are needed to do job and what are available?Strategic FormulationWhat structure is required and necessary in support of human resources?Strategic ImplementationHow will the human resources be allocated?Human Resources PlanningStrategic Planning
5 Linking Strategic Planning and Organizational Behavior
6 1. Mission, Vision, and Values The basic purpose of the organization as well as its scope of operationsStrategic VisionA statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intentCore ValuesThe strong and enduring beliefs and principles that the company uses as a foundation for its decisions
7 2. THE DIAGNOSTIC MODEL F E E D B A C K World ASSESS ENVIRONMENT SET OBJECTIVESAPPLYHUMANRESOURCEACTIVITIESEVALUATERESULTSEXTERNALCONDITIONSWorldConditionsEconomicGovernmentRegulationsUnionsTechnologyORGANIZATIONALNature of theOrganizationWorkEMPLOYEEAbilities (KSA)MotivationInterestsEFFICIENCYOrganizationEmployeeEQUITYPLANNINGSTAFFINGDEVELOPMENTEMPLOYEE/UNIONRELATIONSCOMPENSATIONEFFICIENCYEQUITY2. THE DIAGNOSTIC MODELGeorge MilkovichJohn Boudreau
8 2. Diagnostic Model - External Environmental Scanning Environmental Scanning (Assess Environment)The systematic monitoring of the major external forces influencing the organization.Economic factors: general and regional conditionsCompetitive trends: new processes, services, and innovationsTechnological changes: robotics and office automationPolitical and legislative issues: laws and administrative rulingsSocial concerns: child care and educational prioritiesDemographic trends: age, composition, and literacy
10 Scanning the Internal Environment Cultural AuditsAudits of the culture and quality of work life in an organization.How do employees spend their time?How do they interact with each other?Are employees empowered?What is the predominant leadership style of managers?How do employees advance within the organization?
11 4. Determining Required Employee Skill Mix Core CompetenciesIntegrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.Sustained competitive advantage through people is achieved if these human resources:Are valuable.Are rare and unavailable to competitors.Are difficult to imitate.Are organized for synergy.
12 5. Formulating Strategy – (Setting Objectives) Strategy FormulationMoving from simple analysis to devising a coherent course of action.SWOT analysisA comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes.Use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses.
13 Corporate Strategy Corporate Strategy Growth and Diversification Mergers and AcquisitionsCorporate StrategyStrategic Alliances and Joint Ventures
14 Setting Business Strategy Value CreationWhat the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted.Low-cost strategy: competing on productivity and efficiencyKeeping costs low to offer an attractive price to customers (relative to competitors).Differentiation strategy: compete on added valueInvolves providing something unique and distinctive to customers that they value.
15 Functional Strategy: Ensuring Alignment External Fit (or External Alignment)Focuses on the connection between the business objectives and the major initiatives in HR.Internal Fit (or Internal Alignment)Aligning HR practices with one another to establish a configuration that is mutually reinforcing.
16 Forecasting involves: 6. Applying Human Resource Activities Forecasting: A Critical Element of PlanningForecasting involves:forecasting the demand for laborforecasting the supply of laborbalancing supply and demand considerations.
17 Model of HR Forecasting FORECASTING DEMANDConsiderationsProduct/service demandTechnologyFinancial resourcesAbsenteeism/turnoverOrganizational growthManagement philosophyTechniquesTrend analysisManagerial estimatesDelphi techniqueBALANCING SUPPLY AND DEMAND(Shortage) RecruitmentFull-timePart-timeRecallsTechniquesStaffing tablesMarkov analysisSkills inventoriesManagement inventoriesReplacement chartsSuccession planningExternal ConsiderationsDemographic changesEducation of the workforceLabor mobilityGovernment policiesUnemployment rate(Surplus) ReductionsLayoffsTerminationsDemotionsRetirementsFORECASTING SUPPLY
18 Applying Human Resource Activities: Determining Types of Employees Core knowledge workersEmployees who have firm-specific skills that are directly linked to the company’s strategy.Example: Senior software programmerTraditional job-based employeesEmployees with skills to perform a predefined job that are quite valuable to a company, but not unique.Example: Security guard
19 Applying Human Resource Activities: Determining Types of Employees Contract laborEmployees whose skills are of less strategic value and generally available to all firms.Example: General electricianAlliance/partnersIndividuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.Example: Independent product label designer
21 7. Strategy Implementation Taking Action: Reconciling Supply and DemandBalancing demand and supply considerationsForecasting business activities (trends)Locating applicantsOrganizational downsizingReducing “headcount”Making layoff decisionsSeniority or performance?Labor agreements
22 8. Evaluation and Assessment Evaluation and Assessment IssuesBenchmarking: The process of comparing the organization’s processes and practices with those of other companiesHuman capital metricsAssess aspects of the workforceHR metricsAssess the performance of the HR function itself
23 Measuring Strategic Alignment Strategy Mapping and the Balanced ScorecardBalanced Scorecard (BSC)A measurement framework that helps managers translate strategic goals into operational objectivesfinancialcustomerprocesseslearning
25 Ensuring Strategic Flexibility for the Future Organizational CapabilityCapacity of the organization to act and change in pursuit of sustainable competitive advantage.Coordination flexibilityThe ability to rapidly reallocate resources to new or changing needs.Resource flexibilityHaving human resources who can do many different things in different ways.