1. Web-Based Instruction Specialist Training Program Samsung 1 Issues of Strategic HRM 1Copyright © Doo H. Lim Review SHRM Conference Day 3 Doo Hun Lim University of Tennessee Korea Management Association

2. Web-Based Instruction Specialist Training Program Samsung 2 Issues of Strategic HRM 2Copyright © Doo H. Lim 2005 SHRM Themes or Trends u Value matters u Adaptation to survive u Strategic HR to business strategy (strategic partnership) u HR roles & competencies u Softside of Human Resources (self- motivation, self-leadership).

3. Web-Based Instruction Specialist Training Program Samsung 3 Issues of Strategic HRM 3Copyright © Doo H. Lim 2005 SHRM Themes or Trends u Leadership u HR Technology trends u Strategic HR u Adaptation and value-driven HR

4. Web-Based Instruction Specialist Training Program Samsung 4 Issues of Strategic HRM 4Copyright © Doo H. Lim Challenges Facing HR Today War for Talent Aging Workforce Off-shoring/Outsourcing Rising Healthcare Costs Managing Diversity

5. Web-Based Instruction Specialist Training Program Samsung 5 Issues of Strategic HRM 5Copyright © Doo H. Lim War for Talent "Research shows the impact that effective top leadership has on shareholder value -- it goes up by almost 11 per cent"

6. Web-Based Instruction Specialist Training Program Samsung 6 Issues of Strategic HRM 6Copyright © Doo H. Lim Future Talent Shortage “The United States could experience a labor shortage of 35 million workers [by the year 2030]. "

7. Web-Based Instruction Specialist Training Program Samsung 7 Issues of Strategic HRM 7Copyright © Doo H. Lim Aging Workforce “The number of people aged 55 and older will increase to 73% by 2020, while the number of younger workers will grow only 5%. (U.S. Census Bureau)"

8. Web-Based Instruction Specialist Training Program Samsung 8 Issues of Strategic HRM 8Copyright © Doo H. Lim Off-Shoring is Accelerating “The number of people aged 55 and older will increase to 73% by 2020, while the number of younger workers will grow only 5%. (U.S. Census Bureau)"

9. Web-Based Instruction Specialist Training Program Samsung 9 Issues of Strategic HRM 9Copyright © Doo H. Lim Outsourcing Trends u According to an Accenture survey of European and North American executives, more than 80% of respondents expressed a commitment to permanently outsourcing at least one key business function. u IDC, a Massachusetts-based Market Research firm, stated that companies spent $56 billion on IT outsourcing in 2000 and expect spending to top $100 billion by 2005. u Forrester Research predicts that 2.2 million white-collar positions will shift abroad by 2015.

10. Web-Based Instruction Specialist Training Program Samsung 10 Issues of Strategic HRM 10Copyright © Doo H. Lim Other Trends u Rapidly rising healthcare cost u General Motors now spends about $1,500 on health care for every car it produces. u Diversity in the workplace u By 2050, 85 percent of the entrants into the work force will be people of color and women. The best of those entrants will be looking for companies with effective diversity programs.

11. Web-Based Instruction Specialist Training Program Samsung 11 Issues of Strategic HRM 11Copyright © Doo H. Lim Some Questions to HR u Should HR have a role in business strategy development? u Is the role of HR to ensure the organization has the necessary talent required to execute its business strategy? u Is HR responsible for optimizing healthcare costs/benefits? u Is HR responsible for ensuring that employee effort is aligned with the interests of the business, its customers and shareholders? u Does HR have a responsibility to help identify opportunities to outsource/offshore key processes?

12. Web-Based Instruction Specialist Training Program Samsung 12 Issues of Strategic HRM 12Copyright © Doo H. Lim Value-based Management u Value creation u Process deconstruction u Competitiveness

13. Web-Based Instruction Specialist Training Program Samsung 13 Issues of Strategic HRM 13Copyright © Doo H. Lim Value Driven Competition u Whose value? Customer ValueShareholder Value Average value? vs. Most common value? Segment of one IT impact Change in value focus Balancing internal to external value IR activity

14. Web-Based Instruction Specialist Training Program Samsung 14 Issues of Strategic HRM 14Copyright © Doo H. Lim Value Based Management u Shareholder value – Market value (TSR, TBR) IndicatorIndicators Value Ratio CVA EVA CFROI ROGI ROE ROA...

15. Web-Based Instruction Specialist Training Program Samsung 15 Issues of Strategic HRM 15Copyright © Doo H. Lim Implication for HR Strategies u Value driven people u Value driven organizational structure and culture

16. Web-Based Instruction Specialist Training Program Samsung 16 Issues of Strategic HRM 16Copyright © Doo H. Lim Process Deconstruction u Value chain – value adding process within an organization u Value chain deconstruction u Traditional value chain – integrated u Contemporary value chain – web u Why deconstruction?

17. Web-Based Instruction Specialist Training Program Samsung 17 Issues of Strategic HRM 17Copyright © Doo H. Lim Types of Process Deconstruction u Layer master u Orchestrator u Market maker u Personal agent

18. Web-Based Instruction Specialist Training Program Samsung 18 Issues of Strategic HRM 18Copyright © Doo H. Lim Implications for HR Strategies u Transparent HR policies and practices u Localization of HRM u Globalization of HRM u HR legal arrangement for new biz pattern u Required competencies for new employees u Creativity u Challenge

19. Web-Based Instruction Specialist Training Program Samsung 19 Issues of Strategic HRM 19Copyright © Doo H. Lim Sustaining for Competitiveness u Cost competitiveness u Time competitiveness

20. Web-Based Instruction Specialist Training Program Samsung 20 Issues of Strategic HRM 20Copyright © Doo H. Lim Cost Competitiveness u Experience curve u Unit production cost is reduced 20~30% when the total production doubles its number. -> cost competitiveness u Factors contributing to this effect u Fixed cost reduction – equipment, marketing cost, R & D, infrastructure (IT), training, etc. u Variable cost reduction – materials, labor, energy

21. Web-Based Instruction Specialist Training Program Samsung 21 Issues of Strategic HRM 21Copyright © Doo H. Lim Implications for HR Strategies u Innovation in production technology u Organizational flexibility for process reengineering u HR cost reduction u Recruit skilled workforce u Train and develop competitive workforce

22. Web-Based Instruction Specialist Training Program Samsung 22 Issues of Strategic HRM 22Copyright © Doo H. Lim Time Competitiveness u Time is money u Time reduction helps: u Improve productivity u Obtain price competitiveness based upon reduced time value u Reduce risk by shortening time for product needs forecasting (for seasonal products. i.e. cloths, shoes, etc.) u Expand market share

23. Web-Based Instruction Specialist Training Program Samsung 23 Issues of Strategic HRM 23Copyright © Doo H. Lim Examples of Time Based Competition u FedEx u Customer assembling products u Sony

24. Web-Based Instruction Specialist Training Program Samsung 24 Issues of Strategic HRM 24Copyright © Doo H. Lim Implications for HR Strategies u Forecasting of HR demand and supply u Information free flow system and culture -> information creation, sharing, application u Promoting OODA work flow u Observation u Orientation u Decision u Action u Empowerment for speedy decision making

25. Web-Based Instruction Specialist Training Program Samsung 25 Issues of Strategic HRM 25Copyright © Doo H. Lim Wrap Up u Questions u Concerns