Presentation on theme: "Chapter #3 Strategic HRM and the HR Scorecard. HR must develop systems that support the firm’s mission statement – strategic goals and direction – By."— Presentation transcript:
HR must develop systems that support the firm’s mission statement – strategic goals and direction – By hiring, firing, training etc.
Steps in the Strategic Process Step 1 Vision, mission Step 2SWOT Step 3 Translate mission to goals Step 4 Formulate strategy to achieve goals Step 5 Implement strategy Step 6 Evaluate performance
Levels of Strategic Planning – Corporate level Diversification Vertical integration Consolidation Geographic Expansion Business level – Define competitive advantage Cost Leadership – Wal*mart Differentiation - Volvo Focuser - Ferrari
Strategic Fit Structure must follow strategy – All activities must support strategy – Look page #78
HR provides competitive advantage Hiring right Training Motivating Inspiring commitment Policies and practices
HR strategic role cont. To identify the human issues vital to business strategy U of Michigan study HR is a partner not a cost center – Study of CEO’s HR execs need strategic skills and business knowledge!!!!!!!
High Performance Work Systems Idea is to create HPWS HR must understand what competencies are need and know how to train and hire to acquire them. LOOK # 85 (Comparing high and low performance)
The HR Scorecard Approach Creates bottom line value Measurable Metrics (quantitative standards
You must have 3 types of information Know strategic goals Match employee behavior to goal attainment Must have metrics or standards to measure by Look # 88
Seven Step Approach Step 1 - Define business strategy Step 2 Outline value chain Step 3 Identify outcomes or org. goals Step 4 Identify competencies needed Step 5 Identify polices, training programs Step 6 Design a measuring system Step 7 Continually evaluate ( Page # 92)