Professor Nancy Papalexandris Lecture 1 Human Resource Management Practices Strategic Role of Human...

Professor Nancy PapalexandrisProfessor Nancy Papalexandris

Lecture 1Lecture 1

• Human Resource Management Practices

• Strategic Role of Human Resource Management

1-22


Human Resource Management

HRM Definition:

The policies, practices, and systems that influence employee’s behavior, attitudes and performance


Human Resource Management

HRM Mission:

To obtain develop, compensate, integrate and maintain the necessary personnel for the accomplishment of the organizations’ goals and objectives.


Sustainable Competitive Advantage

EmployeesWho Add Value

EmployeesWho Are Rare

Culture ThatCan’t be Copied


Human Resource ManagementMain Practices

Personnel Management

Human Resource Planning

Recruitment & Selection

Training & Development

Labour Relations

Health & Safety

Rewards

Job Analysis & Job Description

Performance Appraisal


Human Resource ManagementAdditional Practices

HumanResource

Management

Corporate Social

Responsibility

Total Quality Management

Organisational Culture & Climate

Teambuilding &Empowerment

Organisational Change

Leadership Style

Knowledge Management

HR Outsourcing


Questions Used to Determine If Human Resources Are Playing a Strategic Role in the

Business

1. What is HR doing to provide value-added services to internal clients?

2. What can the HR department add to the bottom line?

3. How are you measuring the effectiveness of HR?

4. How can we reinvest in employees?

5. What HR strategy will we use to get the business from point A to point B?

6. What makes an employee want to stay at our company?

7. How are we going to invest in HR so that we have a better HR department than our competitors?

8. From an HR perspective, what should we be doing to improve our marketplace position?

9. What’s the best change we can make to prepare for the future?

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HRM and its Link With Various Stakeholders

Stockholders and Investors

• Return to sales• Return to assets• Return to

investments

Strategic Partners

(Suppliers, Joint Ventures, Unions)

• Fair treatment• Mutual benefit

The Organization• Productivity• Profits• Survival

Customers• Quality service• Quality products• Fair price• Innovation

Employees• Compensation• Satisfaction• Empowerment• Job security

Human Resource Human Resource ManagementManagement

Society

• Legal compliance

• Social responsibility

• Ethical management practices


How is the HRM Function Changing ? From Personnel to HRM

Time spent on administrative tasks is decreasing.

HR roles as a business partner, change agent, and employee advocate are increasing.

HR managers are challenged to shift focus from current operations to future strategies and prepare line managers to develop and implement HR practices.


HRM Important Challenges

– Employee engagement – Self-service – giving employees online access

to information about HR issues– Outsourcing – the practice of having another

company provide services to save money and spend more time on strategic business issues.

– Evidence-based HR – demonstrating that human resource practices have a positive influence on the company’s bottom line or key stakeholders (HR audit).

– Strategic Role of HR


Strategic Human Resource ManagementStrategic Human Resource Management

1.1.Linking business strategy with Linking business strategy with HR practicesHR practices

2.2.A set of planned HR activities A set of planned HR activities helping the organization to helping the organization to reach its strategic goalsreach its strategic goals

3.3.Designing an appropriate Designing an appropriate Human Resource Strategy to Human Resource Strategy to achieve the best possible achieve the best possible employee performance. employee performance.


Strategy Formulation

ExternalAnalysis•OpportunitiesOpportunities•ThreatsThreats

StrategicStrategicChoiceChoiceGoalsGoals

InternalAnalysis•StrengthsStrengths•WeaknessesWeaknesses

MissionMission


Strategy Formulation

Mission is a statement of the organization's reasons for being.

Goals are what the organization hopes to achieve in the medium-to long-term future.

External analysis examines the organization's operating environment to identify strategic opportunities and threats.

Internal analysis identifies the organization's strengths and weaknesses.

Strategic choice is the organization's strategy, which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals.


Strategic Implementation

HR PracticesHR Practices•Recruiting•Training•Performance management •Labor relations •Employee relations•Job analysis•Job design •Selection•Development •Pay structure•Incentives•Benefits

FirmFirmPerformancePerformance•Productivity•Quality•Profitability

HumanHumanResourceResourceActionsActions•Behaviors•Results -productivity -absenteeism - turnover

HumanHumanResourceResourceCapabilityCapability•Skills,•Abilities•Knowledge

HumanHumanResourceResourceNeedsNeeds•Skills•Behavior•Culture

StrategicStrategicChoiceChoice


Strategic Types

Porter's Strategies

…competitive advantage stems from a company’s ability to create value in two

ways…

Cost leadership

Differentiation


HRM Needs According to Strategic Types

Different strategies require different types of employees.

Cost strategy firms seek efficiency, carefully define needed employee skills and use worker participation to seek cost-saving ideas.

Differentiation firms need creative risk takers.


Strategic Decisions and their Implications for HRM

STRATEGIC DECISIONS IMPLICATIONS FOR HR MANAGEMENT

Add new types of equipment • Training

Grow through acquisition • Selection (from acquired firm)• Training• Compensation• Outplacement (redundant workers)

Take on additional debtto prevent takeover

• Compensation (reduced)• Outplacement


Strategic Decisions and their Implications for HRM

STRATEGIC DECISIONS IMPLICATIONS FOR HR MANAGEMENT

Market products internationally • Selection• Training • Compensation

Seek new location for manufacturing plant

• Transfer• Recruitment• Selection• Training

Pursue low-cost competitive strategy

• Compensation (incentives)• Labor relations (agreement)• Training


Questions Used to Determine If Human Resources Are Playing a Strategic Role in the

Business

1. What is HR doing to provide value-added services to internal clients?

2. What can the HR department add to the bottom line?3. How are you measuring the effectiveness of HR?4. How can we reinvest in employees?5. What HR strategy will we use to get the business from point A to

point B?6. What makes an employee want to stay at our company?7. How are we going to invest in HR so that we have a better HR

department than our competitors?8. From an HR perspective, what should we be doing to improve our

marketplace position?9. What’s the best change we can make to prepare for the future?

Professor Nancy Papalexandris Lecture 1 Human Resource Management Practices Strategic Role of Human...

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