Professional Documents
Culture Documents
Strategic Management
Strategic Human Resource Management
Involves aligning initiatives involving how people are managed with organizational mission & objectives
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Models of Strategy
Industrial Organization (O/I) Model
External environment is primary determinant of organizational strategy rather than internal decisions of managers Environment presents threats & opportunities All competing organizations control or have equal access to resources Resources are highly mobile between firms Organizational success is achieved by
Offering goods & services at lower costs than competitors Differentiating products to bring premium prices
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Models of Strategy
ResourceResource-Based View (RBV)
An organizations resources & capabilities, not external environmental conditions, should be basis for strategic decisions Competitive advantage is gained through acquisition & value of organizational resources Organizations can identify, locate & acquire key valuable resources Resources are not highly mobile across organizations & once acquired are retained Valuable resources are costly to imitate & non-substitutable non14
Contrasting the Two Approaches Research provides support for both positions What drives strategy?
I/O: External considerations RBV: Internal considerations
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Exhibit 3-1 3-
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Mission Statement Explains purpose & reason for existence Usually very broad No more than a couple of sentences Serves as foundation for everything organization does
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Organization Self-Assessment SelfIdentify primary strengths & weaknesses Find ways to capitalize on strengths Find ways to improve or minimize weaknesses Examine resources
Physical Human Technological Capital
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Internal Methods
Penetration of existing markets Developing new markets Developing new products or services for existing or new markets
External Methods
Acquiring other organizations Vertical integration
HR Issues
Planning for new hiring Alerting current employees Ensuring quality & performance standards are maintained
HR Issues
Merging organizations Dismissing redundant employees
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Corporate Strategies: Stability Maintaining status quo due to limited environmental opportunities for gaining competitive advantage Few employees will have opportunities for advancement Critical that management identify key employees & develop specific HR retention strategies to keep them
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Downsizing or streamlining organization in costcost-cutting attempt to adjust to competitive environment Few opportunities & many environmental threats Important to develop HR practices to manage survivors
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Organization offers employees incentives & compensation for creativity HR strategy focuses on external hiring of unique individuals & on retaining creative employees
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Benefits of a Strategic Approach to HR Facilitates development of high-quality highworkforce through focus on types of people & skills needed Facilitates cost-effective utilization of labor, costparticularly in service industries where labor is generally greatest cost Facilitates planning & assessment of environmental uncertainty & adaptation of organization to external forces
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Reading 3.1
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Reading 3.1
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Reading 3.1
Human Resources & Resource Based View Dynamic capability construct illustrates interdependent interplay between workforce & core competence as it changes over time
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Reading 3.2
Distinctive Human Resources Flexibility dimension associated with prospectors Established markets category linked to classifications like defenders Employment practices are difficult to change & transfer Core competencies should drive business strategy & not vice versa
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Reading 3.2
Distinctive Human Resources If competencies are available to everyone on open market, how can they generate a unique competency & competitive advantage for any one firm?
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Reading 3.3
Policies
Expressions of shared values & guidelines for action on employeeemployee-related business issues
Programs
Coordinated & strategized approaches to initiate, disseminate, & sustain strategic organizational change efforts necessitated by strategic business needs
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Reading 3.3
Practices
HR practices motivate behaviors that allow individuals to assume roles consistent with organizations strategic objectives Three categories of roles:
Leadership Managerial Operational
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Reading 3.3
Processes
Continuum of participation by all employees in specific activities to facilitate formulation & implementation of other activities
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Reading 3.3
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