Dessler hrm12e ppt_03

GARY DESSLER

HUMAN RESOURCE MANAGEMENT Global Edition 12e

Chapter 3

The Manager’s Role in Strategic Human Resource Management

PowerPoint Presentation by Charlie CookThe University of West AlabamaCopyright © 2011 Pearson Education

Part 1 Introduction

Copyright © 2011 Pearson Education 3–2

WHERE WE ARE NOW…WHERE WE ARE NOW…


1.1. Explain why strategic planning is important to all Explain why strategic planning is important to all managers.managers.

2.2. Outline the basic steps in the management planning Outline the basic steps in the management planning process.process.

3.3. List the main contents of a typical business plan.List the main contents of a typical business plan.

4.4. Answer the question, “What should a manager do to set Answer the question, “What should a manager do to set ‘smart’ motivational goals?”‘smart’ motivational goals?”

5.5. Explain with examples each of the seven steps in the Explain with examples each of the seven steps in the strategic planning process.strategic planning process.

6.6. List with examples the main generic types of corporate List with examples the main generic types of corporate strategies and competitive strategies.strategies and competitive strategies.

LEARNING OUTCOMESLEARNING OUTCOMES


7.7. Define strategic human resource management and give Define strategic human resource management and give an example of strategic human resource management an example of strategic human resource management in practice.in practice.

8.8. Briefly describe three important strategic human Briefly describe three important strategic human resource management tools.resource management tools.

9.9. Explain with examples why metrics are essential for Explain with examples why metrics are essential for identifying and creating high-performance human identifying and creating high-performance human resource policies and practices.resource policies and practices.

LEARNING OUTCOMES (cont’d)LEARNING OUTCOMES (cont’d)


Why Strategic Planning Is Why Strategic Planning Is ImportantImportantTo All ManagersTo All Managers• The firm’s strategic plan guides much of what is done by The firm’s strategic plan guides much of what is done by

all to accomplish organizational goals.all to accomplish organizational goals.• Decisions made by managers depend on the goals set at Decisions made by managers depend on the goals set at

each organizational level in support of higher level goals. each organizational level in support of higher level goals.


FIGURE 3–1 Sample Hierarchy of Goals Diagram for a Company


Fundamentals of Management Fundamentals of Management PlanningPlanning

1

2

3

4

5

The Planning Process

Make forecasts and check assumptions.

Set an objective.

Determine/develop alternative courses of action.

Evaluate the alternatives.

Implement and evaluate your plan.


FIGURE 3–2 Business Plan Table of Contents


FIGURE 3–3 Acme Consulting Profit and Loss


Specific

Measureable

Attainable

Relevant

Timely

How Managers Set Objectives: How Managers Set Objectives: SMART GoalsSMART Goals

S

M

A

R

T


How to Set Motivational GoalsHow to Set Motivational Goals

Assign specific

goals

Assign measurable

goals

Assign challenging but doable

goals

Motivational Goal Setting

Encourage employee

participation


Using Management by Objectives Using Management by Objectives (MBO)(MBO)

1

2

3

4

5

The MBO Process

Set departmental (supporting) goals.

Set overall organizational goals.

Discuss departmental goals with subordinates.

Set individual goals and timetables.

Give feedback on progress toward goal.


The Strategic Management ProcessThe Strategic Management Process• StrategyStrategy

A course of action the organization intends to pursue to achieve A course of action the organization intends to pursue to achieve its strategic aims.its strategic aims.

• Strategic PlanStrategic Plan How an organization intends to match its internal strengths and How an organization intends to match its internal strengths and

weaknesses with its external opportunities and threats to weaknesses with its external opportunities and threats to maintain a competitive advantage over the long term.maintain a competitive advantage over the long term.

• Strategic ManagementStrategic Management The process of identifying and executing the organization’s The process of identifying and executing the organization’s

mission by matching its capabilities with the demands of its mission by matching its capabilities with the demands of its environment.environment.

• LeveragingLeveraging Capitalizing on a firm’s unique competitive strength while Capitalizing on a firm’s unique competitive strength while

underplaying its weaknesses.underplaying its weaknesses.


Business Vision and MissionBusiness Vision and Mission• VisionVision

A general statement of an organization’s intended direction that A general statement of an organization’s intended direction that evokes emotional feelings in organization members.evokes emotional feelings in organization members.

• MissionMission Spells out who the firm is, what it does, and where it’s headed.Spells out who the firm is, what it does, and where it’s headed.


FIGURE 3–4 Management Objectives Grid

Company-Wide or Departmental Objective:Double sales revenue to $16 million in fiscal year 2011


FIGURE 3–5 The Strategic Management Process


FIGURE 3–6 Worksheet for Environmental Scanning


FIGURE 3–7 SWOT Matrix, with Generic Examples


FIGURE 3–8 Type of Strategy at Each Company Level


Types of Corporate StrategiesTypes of Corporate Strategies

Concentration

Vertical integration

Diversification

Corporate Strategy Possibilities

Consolidation

Geographic expansion


Types of Competitive StrategiesTypes of Competitive Strategies

Cost leadership Differentiation

Business-LevelCompetitive Strategies

Focus/Niche


Achieving Strategic FitAchieving Strategic Fit• The “Fit” Point of View (Porter)The “Fit” Point of View (Porter)

All of the firm’s activities must be tailored to or fit the chosen All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional strategies support its strategy such that the firm’s functional strategies support its corporate and competitive strategies.corporate and competitive strategies.

• Leveraging (Hamel and Prahalad) Leveraging (Hamel and Prahalad) ““Stretch” in leveraging resources—supplementing what you Stretch” in leveraging resources—supplementing what you

have and doing more with what you have—can be more have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.important than just fitting the strategic plan to current resources.


FIGURE 3–9 Southwest Airlines’ Activity System


Departmental Managers’ Departmental Managers’ Strategic Planning RolesStrategic Planning Roles

Help devise the strategic

plan

Formulate supporting, functional/

departmental strategies

Department Managers and Strategy Planning

Execute the strategic

plans


Strategic Human Resource Strategic Human Resource ManagementManagement• Strategic Human Resource ManagementStrategic Human Resource Management

The linking of HRM with strategic goals and objectives in order The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational to improve business performance and develop organizational cultures that foster innovation and flexibility.cultures that foster innovation and flexibility.

Involves formulating and executing HR systems—HR policies Involves formulating and executing HR systems—HR policies and activities—that produce the employee competencies and and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.behaviors that the company needs to achieve its strategic aims.


FIGURE 3–10 Linking Company-Wide and HR Strategies


FIGURE 3–11 Basic Model of How to Align HR Strategy and Actions with Business Strategy


Strategic HRM ToolsStrategic HRM Tools

Strategy map HR scorecard

Strategic HRM Tools

Digital dashboard


FIGURE 3–13 Strategy Map for Southwest Airlines


FIGURE 3–14 The Basic HR Scorecard Relationships

HR activities

Organizational performance

Emergent employee behaviors

Strategically relevant organizational

outcomes

Achieve strategic goals


Creating an HR ScorecardCreating an HR Scorecard

1

2

3

4

5

Outline value chain activities

Define the business strategy

Outline a strategy map

Identify strategically required outcomes

Identify required workforce competencies and behaviors

6

7

8

9

10

Create HR Scorecard

Identify required HR policies and activities

Choose HR Scorecard measures

Summarize Scorecard measures on digital dashboard

Monitor, predict, evaluate

The 10-Step HR Scorecard Process


FIGURE 3–15 Three Important Strategic HR Tools

HR ScorecardStrategy Map Digital Dashboard

A process for managing employee performance and for

aligning allemployees with key

objectives, by assigning financial and nonfinancial

goals, monitoring andassessing

performance, and quickly taking

corrective action.

A graphical tool that summarizes the chain

of activities that contribute to a

company's success,and so shows

employees the "big picture" of how their

performancecontributes to achieving the

company's overall strategic goals.

An information technology tool that

presents the manager with desktop graphs and charts, so he or she gets a picture of where the company has been and where it's going, in terms of each activity in the

strategy map.


Building A High-Performance Work Building A High-Performance Work SystemSystem• High-Performance Work System (HPWS)High-Performance Work System (HPWS)

A set of human resource management policies and practices A set of human resource management policies and practices that promote organizational effectiveness.that promote organizational effectiveness.

• High-Performance Human Resource Policies High-Performance Human Resource Policies and Practicesand Practices Emphasize the use of relevant HR metrics.Emphasize the use of relevant HR metrics.

Set out the things that HR systems must do to become an Set out the things that HR systems must do to become an HPWS.HPWS.

Foster practices that encourage employee self-management.Foster practices that encourage employee self-management.

Practice benchmarking to set goals and measure the notable Practice benchmarking to set goals and measure the notable performance differences required of an HPWS.performance differences required of an HPWS.


TABLE 3–1 Comparison of Selected Human Resource Practices in High-Performance and Low-Performance Companies


K E Y T E R M S

business plan

management by objectives (MBO)

strategic plan

strategy

strategic management

vision statement

mission statement

corporate-level strategy

competitive strategy

competitive advantage

functional strategies

offshoring

strategic human resource

management

strategy map

HR Scorecard

digital dashboard

high-performance work system

human resource metric

value chain

HR audit


FIGURE 3–16 Simple Value Chain for “The Hotel Paris”


FIGURE 3A-1 Simple Value Chain for “The Hotel Paris”


FIGURE 3A-2 Revenue per FTE (by Industry)


FIGURE 3A-3 2007 Target Bonus Percentage for Executives (Percent of Total Compensation, by Organizational Size)


FIGURE 3A-4 Sample Metrics from SHRM Measurements Library


FIGURE 3A-5 Highlights of SHRM® Customized Benchmarking Service


FIGURE 3A-6 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]


FIGURE 3A-7 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]


TABLE 3–2 Examples of HR System Activities the Hotel Paris Can Measure as Related to Each Chapter in This Book


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means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Printed in the United States of America.

Dessler hrm12e ppt_03

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