ENGEP305 HRM 1 – Class 2

Human Resource Management

Strategy and HRM Functions

Professor: Sebastián Ugarte

sugarte@unegocios.cl
Announcements/ Reminders
 It is highly important that you read the
syllabus on DocenciaWeb and the ppt
presentation from our 1st class.
 It has valuable information about
assessments and deadlines
 We are developing guidelines to provide
more information about the coursework
you will have to do
 Today we’ll have our first experience of
working into small groups.
 Session classroom:
https://fenuchile.webex.com/meet/sugarte
 Webex norms for attendance and
participation:
 At the beginning of each session each
student must “mute” her/his
microphone to avoid background noise.
Just turn it on when you are asked to do it,
please.
 The student, when connecting to the class,
will enter his/her full name in the Webex
chat followed by "present".
 For example, if the student Macarena León
was logged in, she would type "Macarena
León present".
 At the end of the class, before
disconnecting, the students will enter a
second message followed by "leaving", for
example, "Macarena León leaving".
 To keep records, type in the chat box after
making a contribution or at the end of the
class
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What is Strategy?

What are Strategic Goals?

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Declaration of an Organisation

Mission • Why we exist

Vision • What do we want to become

Values • What we believe in? What are the

acceptable “means”?

Strategy
• Medium-Long term course of action
• What is the competitive plan, the
differential factor

Source: (Collis & Rukstad, 2008)

Strategic HRM defined

Strategic HRM is the process of

defining how the organisation’s
goals will be achieved through
people by means of HR strategies
and integrated HR practices

There must be a connection

between the business strategy and
the HR strategy

(Source: Michael Armstrong) 4

Strategic Priorities

Innovation Brand Price Design Quality

Source: Adapted from Armin Trost

Given the chosen strategy of each company, should they
recruit, select, train, develop and reward their employees
in the same manner? Why or why not?
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An Animated Introduction to the Key HR Functions

https://www.youtube.com/watch?v=9MWFkH4xb3U

 What are the key HRM areas described in the video?

 What is the purpose of each area?
 Which area or process do you believe to be more challenging? Why?

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Cycle of HRM
HRM Planning

Organizational
Total Rewards Job Design
Development
(Compensation Staffing
& Benef.) Job Analysis Organisational Design

- Health and Safety Information - Recruitment

- Quality of Life Systems - Selection
- Induction
- Diversity

Managing
Developing
People’s
People
Performance

- Training & Development

- Inclusion 7
PAC Resources, Inc.

A Case Study in HR Practices

Our first attempt to break into small groups and work

actively online, in a similar way as we would do it face
to face…let’s make it work!
PAC Resources, Inc.-
A Case Study in HR Practices
 PAC Resources is a small manufacturing
company located in a mid-sized city in the
upper Midwest.
Eighty-three percent of PAC’s sales come
from building original specialty components
for one (troubled) manufacturer.

 PAC manufactures high-quality specialty

components for the computer industry.

 The company was founded in 1994 by

current CEO, David Dukakis. Cliff
McNamara acts as CFO

 Today, PAC employs 835 full-time workers.

 PAC sells its own products and has a small

customer base scattered throughout the
United States and Asia, but this generates
only a small percentage of PAC’s revenue.
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 PAC instituted a hiring freeze, and  With a history that has known only growth
marketing and sales budgets were directed and strong revenue, it will be a major
to increasing the company’s customer base. cultural change for PAC to respond to the
eroding economy and a possible decline in
 Though PAC remains non-union, three sales.
years ago the organization went through a
difficult period of employee unrest.
 There were complaints of poor management,
inconsistently enforced policies and unfair
practices regarding job changes and
movement of employees within the
organization.
 This brought in union organizers who
distributed leaflets and circulated
authorization cards inviting employees to join
them.
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The Human Resources Department
 Patricia Harris was HR director at PAC for  HR department employees feel their work is
eight years before she was fired in 2007 not supported by management and that
there is little feedback on progress toward
 Her management style—when she managed
at all—was divisive. goals
 There was little cooperation across functional
areas. Certainly things couldn’t get worse

 When Harris left, Ben Trudeau who was

manager of safety and security, was
promoted to HR Director
 Trudeau management style was the polar
opposite of Harris’s. Where she
micromanaged and criticized, Trudeau
believed in encouragement and
responsibility

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PAC Organigram

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PAC’s SWOT analysis

Strengths Weaknesses Opportunities Threats

• Niche market • Dependence on • Streamline labour • Possible

• Patents on one primary and cut costs unionization
specialty customer • Establish new • Economic
components • No experience in markets downturn
• Strong history of downsizing • Decreased
growth • Unethical product demand
• All products practices • Possible lawsuits
made in the US • Unhappy on the horizon
• Consistent employees
management
through Cliff
McNamara

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Your task
 You must form teams of 5 people
approx., according to the temporary
group allocation posted in
DocenciaWeb
 Each team will analyse one HR
functional area (Check the excel file
in DocenciaWeb)
 Human Resource Development
 Staffing (Recruitment & Selection)
 Compensation and Benefits
 The task is:
1. Describe the role and purpose of
the area reviewed
2. Identify the key issues
3. Propose opportunities for
improvement and support to the
business
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A guideline to work in small groups

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Activity: You must meet in small groups as shown in the following slide. The activity will be the same as a
face to face “Activity in class”, but online through the virtual meeting platform “Google Meet”. The first member
appearing on the list of the group will act as the “organiser”, he/she must enter the following link:
(https://meet.google.com/_meet?utm_campaign=DonanimHaber&utm_medium=referral&utm_source=DonanimHaber) and add to the platform
the rest of the members of the group by using the FEN email (Step 1 and 2). Members must accept the invitation
via email (Step 3). The other option is to copy the link (“copiar datos de acceso”) and share it with the team.
*Suggestion: You must write and share your discussions with the Group in a google doc/sheet (from google
drive) to leave evidence of your work, which could be shared with the rest of the class.
Step 1: Start or join a meeting Step 2: Organiser adds the members Step 3: Members accept via email
Groups

 Check the file uploaded to DocenciaWeb whose name is ”Temporary groups

section 1 and 2”

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Complementary slides

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 Strategic Management Process
• Strategic Management: The process of identifying and executing
the organisation’s mission by matching its capabilities with the
demands of its environment.

• It defines “the strategy” (A course of action).

 Step 1: Define the Business and Its Mission
 Step 2-3: Perform External and Internal Analyses (SWOT)
 Step 4: Translate the Mission into Strategies and Strategic Goals
 Step 5: Implement the Strategy
 Step 6: Evaluate Performance
Seven steps to being strategic in HR
Practice

Make evidence-

convincing based

business management
Act as
Case for
change
innovation
See the big agent
Appreciate picture
how HR
can add
Understand
value
the
Aware of business
business
context
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Developing an integrated HRM strategy

Organisational (Business) Strategy

Continuous Operational Customer Low
Innovation
Improvement effectiveness focus cost

HRM Strategy
Recruiting/ Talent management Performance
Total rewards Learning and development Management
Work
Labour Relations
environment

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Key Link: HRM Practices – Outcomes

Source: Wright, P. M. (2008). Human Resource Management: Adapting to the age of globalization. SHRM Report.
Measuring a Firm’s Strategic Alignment

 Strategy Mapping and the Balanced Scorecard

 Balanced Scorecard (BSC)
A measurement framework that helps managers translate strategic
goals into operational objectives

Financial People

Customer Processes

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Balanced Scorecard at Starbucks

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A Human Resource Management Department
Human
Resource
Management

Organisational Compensation & Personnel

Development Benefits Administration

Performance
Management Health & Safety

Organisational
Labour
Change and
Communications Relations

Recruitment & Work Law

Selection Administration

Training and
Career Payroll
Development 25
HR Management functions

Recruitment

• Identifying people with the potential to become

members of an organisation. Attracting and encouraging
them to apply for a position in the organisation

Selection

• Identifying from a pool of applicants those who are a

good fit with the position and the organisation so that
they can start working soon at the highest performance
level

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HR Management functions

Training
• Training programs focused on issues concerning short term
performance

Development
• Training programs focused on broadening an individual’s skills
for future responsibilities and jobs

Organisational Climate and Culture

• Aligning employees with the strategic goal of the company and
keeping them satisfied

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HR Management functions

Compensation
• What the organization gives its employees in return for their service
and contribution to the productivity of the institution.
• Includes both direct and indirect financial compensation as non-
economic compensation (i.e. flexible hours, parking spot, etc.)

Work Regulations
• Hiring and firing
• Health and safety insurances
• Managing retirement plans
• Managing sick leaves

Health and Safety

• Ensuring that there is a safe working environment to reduce risks of
accidents and maintaining employees’ health

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