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Competitive Environment. Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation.

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Presentation on theme: "Competitive Environment. Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation."— Presentation transcript:

1 Competitive Environment

2 Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

3 Context HR best practices (e.g., performance appraisal, selection systems) exist at a general level The particular way in which best practices are applied depends on an organization’s unique strategy and characteristics Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

4 Context Primary HR practices focus on: Hiring the right people Placing them in the right jobs or teams Training them to be effective Motivating them to work harder Retaining and rewarding them Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

5 Context Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

6 Context When it creates value, an HR system provides a competitive advantage by being inimitable: 1.Causal ambiguity: competitors don’t know which particular HR practice caused what benefit Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

7 Context HR strategy is influenced by four primary factors: 1.The purpose and mission of the organization 2.The top management team Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

8 Strategies Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

9 Strategies Corporate strategy determines what businesses the firm will operate, there are four major corporate strategies: Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

10 Strategies Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

11 Strategies Business strategy deals with how firms will compete in business markets, there are four major strategies: 1.Strategies within the adaptation model match business strategy to the conditions of the business’ environment/market Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

12 Strategies 3.Cost leadership strategy requires HR to find employees that will work for low costs, and train employees to be efficient and produce high output Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

13 Strategies Functional strategy refers to the specific strategy used by a given function (e.g., HR, marketing, etc.) within an organization, HR functional strategy has three components: 1. Staffing involves forecasting labor needs, recruiting qualified applicants, and selecting the best applicants; it must fit with corporate and business strategies Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

14 Strategies 2.Development involves managing employee performance (e.g., standards, sanctions, feedback), which includes training KSAs, career/succession planning, and productivity- enhancing interventions (e.g., job re-design) Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

15 Strategies In order to affect firm performance, HR systems and practices must be designed and administered such that all organizational members view them (HR systems/practices) the same way To create shared meaning, HR systems must be: Distinct (visible, easy to understand, legitimate) Consistent (always lead to same outcome, valid) Consensual (communicated by all managers) (Bowen & Ostroff, 2004) Week : Context ∙ Strategies ∙ Implementation ∙ Evaluation

16 Strategies Culture arises with human interaction, and is shaped by leaders, shared experiences, and external pressures. It evolves as a company brings in new people and develops new services Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

17 ACTIVITY Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

18 Implementation & Evaluation Interpersonal processes have a major effect on the implementation of an HR strategy, people need to be motivated to enact a new strategy Psychological contracts are employee’s expectation of what s/he will contribute to the organization and what the organization will return Read both the implementation and evaluation sections on your own (focus on the above) Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

19 ACTIVITY Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation


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