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Chapter #3

Strategic HRM and the HR Scorecard

training etc.HR must develop systems  that support the firm’s mission statement – strategic goals and direction – By hiring. . firing.

mission SWOT Translate mission to goals Formulate strategy to achieve goals Implement strategy Evaluate performance .Steps in the Strategic Process  Step 1  Step 2  Step 3  Step 4  Step 5  Step 6 Vision.

Volvo  Focuser .Ferrari .Levels of Strategic Planning – Corporate level  Diversification  Vertical integration  Consolidation  Geographic Expansion  Business – level Define competitive advantage  Cost Leadership – Wal*mart  Differentiation .

Strategic Fit  Structure must follow strategy – All activities must support strategy – Look page #78 .

HR provides competitive advantage  Hiring right  Training  Motivating  Inspiring commitment  Policies and practices .

HR strategic role cont.  To identify the human issues vital to business strategy U of Michigan study  HR – is a partner not a cost center Study of CEO’s HR execs need strategic skills and business knowledge!!!!!!! .

 LOOK # 85 (Comparing high and low performance) .High Performance Work Systems  Idea is to create HPWS  HR must understand what competencies are need and know how to train and hire to acquire them.

The HR Scorecard Approach    Creates bottom line value Measurable Metrics (quantitative standards .

You must have 3 types of information     Know strategic goals Match employee behavior to goal attainment Must have metrics or standards to measure by Look # 88 .

training programs Design a measuring system Continually evaluate ( Page # 92) . goals Identify competencies needed Identify polices.Define business strategy Outline value chain Identify outcomes or org.Seven Step Approach  Step 1  Step 2  Step 3  Step 4  Step 5  Step 6  Step 7 .