CHAPTER 2

Strategic Human Resource Management

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategy Formulation

Mission
- reason for being

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategy Formulation

Mission
- reason for being

Goals
- what it hopes to achieve

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Internal Analysis
- strengths - weaknesses

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Strategic Choice
- ways to fulfill goals and mission

Internal Analysis
- strengths - weaknesses

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Strategic Choice
- ways to fulfill goals and mission

Internal Analysis
- strengths - weaknesses

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

HR Input

The Role of HR in Strategy Formulation

Administrative Linkage

Strategic Planning

HR Function

SOURCE: Adapted from K. Golden and V. Ramanujam, Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process, Human Resource Management 24 (1985): 429-451.

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage

Strategic Planning

Strategic Planning

HR Function

HR Function

SOURCE: Adapted from K. Golden and V. Ramanujam, Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process, Human Resource Management 24 (1985): 429-451.

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage Two-Way Linkage

Strategic Planning

Strategic Planning

Strategic Planning

HR Function

HR Function

HR Function

SOURCE: Adapted from K. Golden and V. Ramanujam, Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process, Human Resource Management 24 (1985): 429-451.

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage Two-Way Linkage Integrative Linkage

Strategic Planning

Strategic Planning

Strategic Planning

Strategic Planning

HR Function HR Function HR Function HR Function

SOURCE: Adapted from K. Golden and V. Ramanujam, Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process, Human Resource Management 24 (1985): 429-451.

Strategic HR Management

Strategic Choice

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategic HR Management

HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits

Strategic Choice

HR Needs - skills - behaviors - culture

HR Capability - skills - abilities - knowledge

HR Actions - behaviors - results

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Strategic HR Management

HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits Firm Performance - productivity - quality - profitability

Strategic Choice

HR Needs - skills - behaviors - culture

HR Capability - skills - abilities - knowledge

HR Actions - behaviors - results

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Emergent Strategies

Product Life Cycle and Operating Strategies

Growth Maturity

Sales

Formation

Porter strategies

Differentiation

Cost Leadership

HR needs in Strategy Formulation

HR Role
Focus of firm

Differentiation
- creative, risk-taking

Cost Leadership
- efficiency

Employee role
Training Staffing Compensation Performance management

- broader tasks creative risk-takers - broad career paths

- recruit more from outside - external pay equity - results-oriented

- specific & repetitive

- specific/short-term skills - promote internally - internal pay equity - behavior-oriented

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Product Life Cycle and Directional Strategies

Concentration

Sales
Downsizing

HR needs in Directional Strategies

HR Role
Internal Focus of firm - build on strengths

Growth
External - acquire companies

Training
Staffing Compensation Performance management

- varied needs
- hire and promote - incentive targets - behavior & results-oriented

- conflict resolution
- integrate new cultures acquire new skills - standardize practices - standardize practices

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

HR needs in Directional Strategies

HR Role

Concentration

Downsizing

Focus of firm

- things they do best

- retrenchment

Training
Staffing Compensation Performance management

- sharpen current skills - promote from within

- internal pay equity - behavior-oriented

- replace depleted skills

- need for flexibility, keep morale up - tie to company success - performance-based

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997

Human Resource Competencies

Business Competence

Professional & Technical Knowledge

HR Professional

Integration Competence

Ability to Manage Change

IRWIN a Times Mirror Higher Education Group, Inc., company, 1997