Strategic Human Resource Management This course in a nutshell

Business Strategies Adaptation Model Competitive Strategies Defender Prospector Analyzer Reactor Competitive Strategies Differentiation Cost Leadership Focus

HR Practices: Options for Fit with Strategy Job Analysis & Design Recruitment & Selection Training & Development Performance Appraisal Pay Systems Labor & Employee Relations Job analysis & design -- narrow sets of tasks, limited sets of skills complex array of tasks, multiple high-level skills Recruitment & selection -- internal, supervisor, fit, informal external, HR, qualifications, formal Training & development -- individual, OJT, job-specific, buy team, external, generic, make Performance appraisal -- customized, developmental, multipurpose, multiple inputs uniform, control, narrow-focus, supervisory Pay systems --fixed, job-based, seniority, centralized variable, individual-based, performance, decentralized Labor/employee relations --top-down, adversarial bottom-up, enlightened

Simple tasks – Complex tasks Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

Combining Strategy & HR Choices From Human Resource Management: Gaining a Competitive Advantage, by Noe, Hollenbeck, Gerhart & Wright, McGraw-Hill, 4th edition, 2003, pages 70-71

Business Strategies Cost Leadership Competitive Strategies Differentiation Cost Leadership

Simple tasks – Complex tasks Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions repetitive roles independent autonomous Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

comfort with stability high concern for quantity Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions short-term focus Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths promote internally risk averse

Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic define required skills  train Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic behavioral performance management Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

Pay Structure/Incentives/Benefits performance- based compensation internally consistent pay Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives high differentials superiors/ subordinates Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives worker participation seek ideas – improve efficiency Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

Business Strategies Differentiation Competitive Strategies Cost Leadership

Simple tasks – Complex tasks broadly defined jobs general job descriptions Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions develop new ideas balance process with results Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

Simple tasks – Complex tasks risk taker highly creative Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions cooperative moderate concern for quality long term focus tolerate ambiguity recruit externally Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

Training and Development focus = cooperation Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic broad career paths limited socialization Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

Training and Development results based performance management Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic evals encourage risk taking Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives external equity market driven Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets