1. WELCOME TO HA255 SEMINAR #6 ORGANIZATIONAL STRATEGY & STRATEGIC HUMAN RESOURCE MANAGEMENT KU Instructor: John E. Long, MS, CMM

2. PLANNING METHODS  Financial Planning (evolved in the 1950s and earlier)  using budgets to assist management to implement Or. Strategies and operational activities  Long Range Planning (1960s)  Management focuses the energies of the Org. on an integrated approach to attain corp. goals/objectives and focus on manager functions (marketing, production, finance, HR)  Strategic Planning  examining past trends to make projections/predictions regarding future trends  Strategic Management  strategies developed and executed by managers by utilizing Org. resources to enhance Org. performance  Supported by strategic thinking – a synthesis of intuitive, innovative and creative thinking  Competitive Analysis – performance improvement possible from changes in competitive strategies in an Org’s. business units

3. TYPES OF STRATGIES / SBUs  Build – add service/business areas to increase market share  Hold – maintain current market share  Harvest – increase short-term cash flow from a service, regardless of what happens to that service  Divest – terminate a service and/or abandon a market  Cost leadership – become the low cost leader in an area  Differentiation – offering a unique service  Focus – providing service to a market segment or group  Strategic Business Units (SBUs): single business or collection of related businesses; has distinct mission, has own competitors; has a responsible manager; one or more program & financial units; can benefit from strategic planning; can be planned independently of others businesses

4. Formulating Organizational Strategy  Identify the Mission, the direction that the Org. is headed  Product Definition and Positioning in the Market  Defining the Market for the Product/Service  Distinct Competence – advantage over competitors  External Assessment – Identify Consumer Groups, Analyze Competitors, Industry Analysis, and Environmental Analysis  Internal Assessment – understanding the attributes of the Org that are of strategic importance (8 bullets on page 47)  Portfolio Assessment  Boston Consulting Group Business Grid  Product Life Cycle Matrix: Development Stage Growth Stage Maturity Stage Decline Stage

5. Strategic Management of HR  The Strategic Management of Human Resources is concerned with designing and implementing internally consistent policies and practices to achieve an organization’s business goals  Recruitment & Selection  Development  Appraisal  Compensation

6. WHAT ARE COMPETENCIES  Harvard psychologist David McClelland pioneered the development of a competency based methodology to HR management (early 1970s)  Competence – an underlying characteristic of a person which enables them to deliver superior performance in a given job, role or situation  Competency – the more generic underlying personal characteristics that contribute to successful performance  Consist of Clusters of knowledge, attitudes and skills that affect an individual’s ability to perform  Determined by identifying the behaviors that are exhibited by high performers and the underlying clusters  Figure 5.1 on page 81 - Competencies for Effective Performance

7. TYPES OF COMPETENCIES  Technical Competencies – those that are specific to a particular job family  Core Competencies – broad Org. requirements that reflect Org. goals and strategies to respond to changing environments  Job Family Competencies – apply to broad group of jobs  Level Competencies – apply to particular jobs (or level) in a job family  Organizational Core Competencies – successful Orgs. Develop core competencies that address the key technologies and work skills necessary for success in a changing environment

8. DEVELOPING COMPETENCY MODELS  Figure 5.2 on page 84 – the Role of Competencies in Strategic HR Planning  The degree of responsibility, autonomy and technical expertise are key concerns for competency models for Healthcare Professionals  Figure 5.3 on page 89: The National Center for Healthcare Leadership (NCHL) Health Leadership Competency Model  Transformation  Execution  People

9. COMPETENCY TRENDS  Trend #1: Demand for more Participative Competency Approaches  Trend #2: Models are relevant to rapidly changing organizations  Trend #3: Increasing emphasis on emerging competencies  Trend #4: Growing emphasis on team and process competencies  Trend #5: Growing transition to an organizational learning perspective