Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–12–1 Learning Objectives Explain strategic HR management and how it is linked to organizational strategies. Describe how legal, political, cultural, and economic factors affect global HR management. Discuss four dimensions of organizational effectiveness and how HR contributes to each. Define HR planning and outline the HR planning process. Discuss several ways of managing a surplus of human resources. Identify why HR metrics must consider both strategic and operational HR measures.
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–22–2 HR Management Activities Figure 1–2
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–32–3 Strategic HR Management Process Figure 2–1
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–42–4 Ford’s Plan Strengthen Brands Deliver innovative products Reduce costs Improve quality
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–52–5 Approaches to Improving Organizational Productivity Figure 2–3
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–62–6 TacticsTactics Differentiate brands Design, innovation, safety, technology Utilize global architectures Reduce material costs Introduce straightforward pricing Lean manufacturing system Reduce plant employment by 25,000-30,000, and cut 4,000 white collar jobs (cost-$250 million)
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–72–7 Purpose of HR Planning Figure 2–4
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–82–8 HR Planning Process HR Strategies Overall Strategic Plan Human Resources Strategic Plan HR Activities
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–92–9 Making Downsizing More Effective Figure 2–9
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–10 “Way Forward” War Room Team of several hundred workers Team of working on “plan” 9-10 cross-functional teams working on brands, revenue, purchasing, culture, capacity Sworn to secrecy Banned powerpoint slides Nearly-final review Nov. 14 Presented to Board Dec. 7
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–11 Examples of Strategic and Operational HR Metrics Figure 2–10
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–12 Measures of Strategic HR Effectiveness Return on Investment (ROI) Calculation showing the value of expenditures for HR activities. A = Operating costs for a new or enhance system for the time period B = One-time cost of acquisition and implementation C = Value of gains from productivity improvements for the time period
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–13 Assessing HR Effectiveness HR Audit A formal research effort that evaluates the current state of HR management in an organization Audit areas: Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA) Current job specifications and descriptions Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Grievance resolution process Orientation program Training and development Performance management system
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–14 Estimating Internal Labor Supply for a Given Unit Figure 2–8