Copyright © 2016 Pearson Education, Inc. 3-1

Chapter 3 Human Resource Strategy and Analysis 3-2 Copyright © 2016 Pearson Education, Inc.

Learning Objectives 1.Explain with examples each of the steps in the strategic management process. 2.Define strategic human resource management in practice. 3.Explain with examples why metrics are important for managing human resources. Copyright © 2016 Pearson Education, Inc. 3-3

Learning Objectives (cont.) 4.Answer the question “What are high- performance work systems?” and give examples of how they differ from non- high-performance ones. 5.Answer the question (with example) “Why is employee engagement important? 6.Describe how you would execute a program to improve employee engagement. Copyright © 2016 Pearson Education, Inc. 3-4

Explain with examples each of the steps in the strategic management process Copyright © 2016 Pearson Education, Inc. 3-5

The Strategic Management Process Strategic Plan The Basic Management Planning Process o Goals o Forecasts o Plan o Hierarchy of goals Policies & Procedures Copyright © 2016 Pearson Education, Inc. 3-6

Hierarchy of Goals Copyright © 2016 Pearson Education, Inc. 3-7

Strategic Planning Copyright © 2016 Pearson Education, Inc. 3-8 Strategy Strategic Management Strategic Management Process Vision & Mission Statement

The Strategic Management Process Copyright © 2016 Pearson Education, Inc. 3-9

Worksheet for Environmental Scanning Copyright © 2016 Pearson Education, Inc. 3-10

SWOT Matrix Example Copyright © 2016 Pearson Education, Inc. 3-11

Types of Strategies Corporate-Level Strategy Competitive Strategy o Cost leadership o Differentiation o Focus Competitive Advantage Functional Strategy Copyright © 2016 Pearson Education, Inc. 3-12

Type of Strategy at Each Company Level Copyright © 2016 Pearson Education, Inc. 3-13

Managers’ Role in Strategic Planning Copyright © 2016 Pearson Education, Inc Devise a Plan Obtain Competitive Intelligence Participate in Communication Identify Strengths & Weaknesses

Define strategic human resource management and give an example of strategic human resource management in practice Copyright © 2016 Pearson Education, Inc. 3-15

What is Strategic Human Resource Management? Copyright © 2016 Pearson Education, Inc Ensure employee competencies & behaviors HR strategies, policies, & practices Formulate strategic plans

HR Strategy Model Copyright © 2016 Pearson Education, Inc. 3-17

Strategic Human Resource Management Tool Copyright © 2016 Pearson Education, Inc Strategy Map

The HR Scorecard Copyright © 2016 Pearson Education, Inc Metrics Digital Dashboard

Three Important Strategic HR Tools Copyright © 2016 Pearson Education, Inc. 3-20

HR Metrics & Benchmarking Copyright © 2016 Pearson Education, Inc Types of Metrics Benchmarking Strategy-Based Metrics Analytics & Data Mining

Metrics/Benchmarking Report Copyright © 2016 Pearson Education, Inc. 3-22

HR as a Profit Center Copyright © 2016 Pearson Education, Inc Human capital facts Analytical HR Human capital investment analysis Workforce forecasts Talent value model Talent supply chain

Using HR Audits Copyright © 2016 Pearson Education, Inc. 3-24

Evidence-Based HR Copyright © 2016 Pearson Education, Inc Objective Experimentation Predict

Building High-Performance Work Systems Copyright © 2016 Pearson Education, Inc High-Performance Work System High Performance Work Practices o Paid more o Trained more o Sophisticated recruitment o More self-managed work teams Human Resource Metric

Comparison of High-Performance vs. Low-Performance Copyright © 2016 Pearson Education, Inc. 3-27

Employee Engagement Copyright © 2016 Pearson Education, Inc Why is employee engagement important? The employee engagement problem What can managers do? How to measure employee engagement

Employer Actions for More Engagement Copyright © 2016 Pearson Education, Inc. 3-29

Employee Engagement Guide Copyright © 2016 Pearson Education, Inc How Kia Motors Improved Performance The Challenges

The New HRM Strategy for Kia Copyright © 2016 Pearson Education, Inc. 3-31

Summary 1.Strategic planning is important to all managers 2.Each function or department needs its own functional strategy 3.The manager will want to gather and analyze data prior to making decisions 4.High-performance work system is a set of HRM policies 5.Employee engagement is important 6.HR Strategy involves six steps Copyright © 2016 Pearson Education, Inc. 3-32

Copyright © 2016 Pearson Education, Inc. 3-33