Meeting Present and Emerging Strategic Human Resource Challenges

Challenges facing HR How can HR influence firm performance? How can HR cope with workplace changes and trends? What are HR strategies that help a firm achieve competitive advantage?

Key HR Challenges for Todays Managers: Environmental

Rapid change Workforce diversity Globalization Internet revolution Legislation Evolving work and family roles Skill Shortages Rise of the service sector

Key HR Challenges for Todays Managers: Organizational

Competitive Position: Cost,

Quality, distinctive capabilities Decentralization Downsizing Organizational restructuring Self-managed work teams Small business growth Technology Outsourcing

Key HR Challenges for Todays Managers: Cultural

Basic assumptions and beliefs shared by members of an organization rules, norms behaviors philosophy dominant values feeling or climate

Key HR Challenges for Individual Challenges Todays Managers: Individual

Matching People and Organization

Matching people and organizations Ethical dilemmas Social responsibility Productivity Empowerment Brain drain Job insecurity

Mission Statement: Otis Elevator

Our mission is to: provide any customer a means of moving people and things up, down and sideways over short distances with higher reliability than any similar enterprise in the world.

CODE OF ETHICS: As a member of the American

Marketing Association, I recognize the significance of my professional conduct and responsibilities to society and to other members of my profession:

1. By acknowledging my accountability to society as a whole as well as to the organization for which I work. 2. By pledging my efforts to assure that all presentations of goods, services, and concepts be made honestly and clearly. 3. By striving to improve marketing knowledge and practice in order to better serve society.

Code of Ethics

(contd)

4. By supporting free consumer choice in circumstances that are legal and are consistent with generally accepted community standards. 5. By pledging to use the highest professional standards in my work and in competitive activity. 6. By acknowledging the right of the American Marketing Association, through established procedure, to withdraw my membership if I am found to be in violation of ethical standards of professional conduct.

HR Strategy Leads to Improved Organizational Performance

Organizational Strategies

Organizational Capabilities

HR Strategies
Organizational Characteristics

Environments

Porters Differentiation Strategy Efficient production Explicit job descriptions Detailed work planning Emphasis on technical skills Emphasis on job-specific training Emphasis on job-based pay

Use performance appraisal

Porters Low-cost Leadership Strategy

Efficient production Explicit job descriptions Detailed work planning Emphasis on qualifications and skills Emphasis on job-specific training Emphasis on job-based pay Use of performance appraisal

Porters Focus Strategy

Low cost Differentiation

Miles and Snow Defender Strategy -- RECRUITING

Internal recruitment HR makes selection decision Emphasis on qualifications and skills Formal hiring and socialization process

Miles and Snow Prospector Strategy -- RECRUITING

External recruitment Supervisor makes selection decision Emphasis on applicant fit with culture Informal hiring and socialization process of new employees

Miles and Snow Defender Strategy -Compensation

Fixed pay Job-based pay Seniority-based pay Centralized pay decisions

Miles and Snow Prospector Strategy -Compensation

Variable pay Individual-based pay Performance-based pay Decentralized pay decisions

LEADERSHIP How HR can be a Strategic Partner

Understand styles of leadership Display appropriate leadership Demonstrate leadership at all levels of performance team, individual, unit or organization

KNOWLEDGE OF BUSINESS How HR can be a Strategic Partner

HR must understand
internal / external customers key business disciplines business structure, vision, values, goals, strategies, finances competitors, products, technology and sources of competitive advantage

STRATEGIC THINKING How HR can be a Strategic Partner

Understand strategic business planning Apply a systematic HR planning process Integrate HR systems to build capability and competitive advantage for the firm Develop and integrate department strategies within corporate framework

PROCESS SKILLS How HR can be a Strategic Partner

Know management processes Know process skills: consulting, problem solving, evaluation and communication Understand organizational development Facilitate and manage change Manage under uncertainty and instability

TECHNOLOGY How HR can be a Strategic Partner

Maintain HR documentation using knowledge management and technology Build firms capability using info systems Provide training in use of technology

Case
XYZ has a 1 billion budget and staff of 7,000. To speed growth, XYZ announced a series of performance objectives for individual business chiefs who before enjoyed much free rein. In addition, XYZ introduced specially trained black belts to root out inefficiencies in departments. If you were a black belt, what would you look for?