Presentation on theme: "Meeting Present and Emerging Strategic Human Resource Challenges"— Presentation transcript:
1 Meeting Present and Emerging Strategic Human Resource Challenges
2 Challenges facing HRHow can HR influence firmperformance?How can HR cope withworkplace changes and trends?What are HR strategies thathelp a firm achieve competitiveadvantage?
3 Key HR Challenges for Today’s Managers: Environmental Rapid changeWorkforce diversityGlobalizationInternet revolutionLegislationEvolving work and family rolesSkill ShortagesRise of the service sectorEnvironmental challenges are the forces external to the firm. They influence organizational performance but are largely beyond management’s control. Managers need to monitor the external environment constantly for opportunities and threats. This slide demonstrates how a variety of environmental factors impact the organization.
4 Key HR Challenges for Today’s Managers: Organizational Competitive Position: Cost,Quality, distinctive capabilitiesDecentralizationDownsizingOrganizational restructuringSelf-managed work teamsSmall business growthTechnologyOutsourcing
5 Key HR Challenges for Today’s Managers: Cultural Basic assumptions and beliefs shared by members of an organization…rules, normsbehaviorsphilosophydominant valuesfeeling or climateThe term organizational culture refers to the basic assumptions and beliefs shared by members of an organization. These beliefs operate unconsciously, are taken for granted, and are typically very apparent to someone outside the organization. This slide illustrates the key elements of organizational culture, and the ways in which these elements differ between two organizations.
6 Individual Challenges Key HR Challenges forToday’s Managers: IndividualMatching People and OrganizationMatching people and organizationsEthical dilemmasSocial responsibilityProductivityEmpowermentBrain drainJob insecurity
7 Strategic HR Choices – Options Available in Designing an HR System Work FlowsStaffingEmployee SeparationsPerformance AppraisalTraining and Career DevelopmentCompensationEmployee RelationsEmployee RightsInternational Management
8 HR Strategy Leads to Improved Organizational Performance Organizational StrategiesOrganizational CapabilitiesHR StrategiesThe success of HR strategies depends on the situation or context in which they are used. An HR strategy’s effect on firm performance is always dependent on how well it fits with other factors. This slide depicts the key factors that firms should consider in determining which HR strategies will have positive impact on firm performance: organizational strategies, environment, organizational characteristics, and organizational capabilities.Organizational CharacteristicsEnvironments
9 Porter’s Differentiation Strategy HR Strategies:Emphasis on innovation and flexibilityBroad job classesLoose work planningExternal recruitingTeam based trainingEmphasis on individual-based payUse performance appraisal as a developmental toolA differentiation business strategy attempts to achieve a competitive advantage by creating a product or service that is perceived as unique. Approaches to differentiation can take may forms, among them: design or brand image; technology; features; customer service; and dealer networks.
10 Porter’s Low-cost Leadership Strategy HR Strategies:Efficient productionExplicit job descriptionsDetailed work planningEmphasis on qualifications and skillsEmphasis on job-specific trainingEmphasis on job-based payUse of performance appraisal as a control deviceThe overall cost leadership strategy is aimed at gaining a competitive advantage through lower costs. Cost leadership requires aggressive construction of efficient plant facilities, intense supervision of labor, vigorous pursuit of cost reductions, and tight control of distribution costs and overhead.
11 Porter’s Focus Strategy Low costDifferentiationA focus strategy relies on both a low-cost position and differentiation, with the objective of serving a narrow target market better than other firms. The HR strategies likely to fit the focus strategy best would be somewhere in the middle of those described for low-cost producers and differentiators.
12 Miles and SnowDefender – conservative business units that prefer to maintain a secure position in a relatively stable product or service areaProspector – emphasize growth and innovation, development of new products
13 Miles and Snow Defender Strategy -- RECRUITING Internal recruitmentHR makes selection decisionEmphasis on qualifications and skillsFormal hiring and socialization process
14 Miles and Snow Prospector Strategy -- RECRUITING External recruitmentSupervisor makes selection decisionEmphasis on applicant fit with cultureInformal hiring and socialization process of new employees
15 Miles and Snow Defender Strategy -- Compensation Fixed payJob-based paySeniority-based payCentralized pay decisions
16 Miles and Snow Prospector Strategy --Compensation Variable payIndividual-based payPerformance-based payDecentralized pay decisions
17 HR Best Practices Employment security Selectivity in recruiting High wagesIncentive payEmployee ownershipInformation sharingParticipation and empowermentSelf managed teamsTraining and skill developmentCross-utilization and cross trainingPromotion from within
18 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”
19 KNOWLEDGE OF BUSINESS How HR can be a Strategic Partner HR must understand…internal / external customerskey business disciplinesbusiness structure, vision, values,goals, strategies, financescompetitors, products, technologyand sources of competitive advantage
20 STRATEGIC THINKING How HR can be a Strategic Partner Understand strategic business planningApply a systematic HR planning processIntegrate HR systems to build capability and competitive advantage for the firmDevelop and integrate department strategies within corporate framework
21 PROCESS SKILLS How HR can be a Strategic Partner Know management processesKnow process skills: consulting, problem solving, evaluation and communicationUnderstand organizational developmentFacilitate and manage changeManage under uncertainty and instability
22 TECHNOLOGY How HR can be a Strategic Partner Maintain HR documentation using knowledge management and technologyBuild firm’s capability using info systemsProvide training in use of technology
23 Case 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?Students should identify many of the concepts presented in this chapter, including individual challenges, organizational challenges, cultural challenges, ethical dilemmas and environmental challenges.