Human Resource Management 2023-02-19

HCMC University of Technology & Education

Faculty of Foreign Languages

Unit 2
HUMAN RESOURCE MANAGEMENT
HRM Strategy & Performance
Lecturer: Tin T. Dang, PhD
Email: tin.dang@hcmute.edu.vn

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Objectives
▪ Give examples of each of the seven steps in the
strategic management process.
▪ List with examples the main types of strategies
▪ Define strategic human resource management, and
give an example of strategic human resource
management in practice
Objectives
▪ Give at least five examples of HR metrics
▪ Give five examples of what employers can do to have
high-performance systems
▪ Explain how you would design a program to improve
employee engagement.

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Outline
1 Strategic management process

2 Types of strategies

3 Strategic HRM 3 Strategic HRM

Definition – Features – Process – Tools
4 HR metrics, benchmarking & data analytics

5 Employee engagement & performance

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3. Strategic HRM 3. Strategic HRM: Features

Definition dynamic, not static

Formulating and executing human resource policies

aligned with the company’s
and practices that produce the employee competencies HR STRATEGIES
needs
and behaviors the company needs to achieve its
strategic aims.
supportive of the company’s
strategic priorities
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3. Strategic HRM: Process 3. Strategic HRM: Sustainability

Strategic & Legal
Environment Financial stable cash flows
Recruitment &
Placement
Required Human recreation corners
Company’s
Employee HR Policies & Training & STRATEGIC GOAL
Strategic
Goals
Competencies Practices Development SUSTAINABILITY
& Behaviors flexible work
Environmental
Compensation arrangements

Employee Relations Talent incentive systems

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3. Strategic HRM: Tools 3. Strategic HRM: Tools

strategy map Strategy Map

STRATEGIC GOAL A strategic planning tool that shows the “big picture” of
TRANSLATION HR scorecard how each department’s performance contributes to
TOOLS achieving the company’s overall strategic goals.

digital dashboard
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3. Strategic HRM: Strategy Map 3. Strategic HRM: Strategy Map

Strategy in Brief Required HR Required Internal Business Customer-Based
Policies and Organizational & Processes Results
Practices Employee
Capabilities Minimize plane
Low fares
turnaround on ground
Low cost leader, Supportive, high- Highly engaged
high-quality performance HR flight & ground
customer service, practices crews Fly fewer planes More customers
operational
efficiency
Minimize meals & On-time flights
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frills 14

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3. Strategic HRM: Strategy Map 3. Strategic HRM: Strategy Map

Vision: Transforming society through the provision of ultra-high speed mobile info services
Customer-Based Strategic/Financial
Results Goals/Results Mission: The number one provider of ultra-high speed mobile networks & content to the UK
Increase Decrease
Low fares Lower costs Financial Revenue Increase Operating
Profit
Goal Per User Costs

Improve Improve Improve

Customer Clarity of Market End User
Fly Offering Perception Experience
fewer More customers Profitability
Improve Improve
Improve
planes Internal Offering
Selection
Info
Easy of Use
for End
Processes Services Users

On-time flights Increased revenues Organizational Improve Improve

Improve
Knowledge Content
15 Capacity & Skills Supply
Technology 16

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3. Strategic HRM: Strategy Map 3. Strategic HRM: Tools

Discussion HR Scorecard

You should have known that the market share of be is A process for assigning financial and nonfinancial
currently quite small in comparison to Grab in goals or metrics to the HRM–related chain of activities
Vietnam. Design a strategy map to increase the market required for achieving the company’s strategic aims
share of be. and for monitoring results.

OVER
9 mins
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3. Strategic HRM: HR Scorecard Process 3. Strategic HRM: HR Scorecard Process

1. Outline value chain activities 6. Identify required HR policies and activities
2. Define the business strategy 7. Create HR Scorecard
3. Outline a strategy map 8. Choose HR Scorecard measures
4. Identify strategically required outcomes 9. Summarize Scorecard measures on digital dashboard
5. Identify required workforce competencies and 10.Monitor, predict, and evaluate.
behaviors
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3. Strategic HRM: HR Scorecard Process 3. Strategic HRM: Balanced Scorecard

1. Outline value chain activities 6. Identify required HR policies and activities ▪ Customer satisfaction rate ▪ Return on investment
▪ Customer retention ▪ Cash flow
▪ Delivery & quality ▪ Financial results
2. Define the business strategy 7. Create HR Scorecard performance Customer
Financial
Relationship

3. Outline a strategy map 8. Choose HR Scorecard measures Vision & Strategy

Internal Training & ▪ Job satisfaction
▪ Activities per function Processes Growth
4. Identify strategically required outcomes 9. Summarize Scorecard measures on digital dashboard ▪ Employee turnover
▪ Process alignment &
automation ▪ Specialist knowledge
& skills
5. Identify required workforce competencies & behaviors 10. Monitor, predict, and evaluate ▪ Training opportunities
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3. Strategic HRM: Balanced Scorecard 3. Strategic HRM: Balanced Scorecard

Vision: Transforming society through the provision of ultra-high speed mobile info services
Mission: The number one provider of ultra-high speed mobile networks & content to the UK Discussion
▪ Net profit  5% per year
Financial ▪ Operating costs  3% per year
▪ Revenue in target markets  12% per year Look at your strategy map for be again and design a
Customer
▪ % Market share index  3% per year scorecard for it. Justify the balance of your design.
▪ % Customer satisfaction index  5% next period then stable

▪ New products as % of sales 12% this year

Internal
▪ Brand awareness score  5% per year
Processes
▪ End-user experience score > 90% every reporting period

Organizational
▪ Employee development plans 95% in place OVER
5 mins
▪ Technology training index 90% efficient
Capacity 23 24
▪ Info efficiency index 95%

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3. Strategic HRM: Balanced Scorecard 3. Strategic HRM: Tools

Discussion Digital Dashboard

Use your understanding of , design a scorecard to
evaluate the performance of the employees to reduce
operation costs and increase profits.
OVER
5 mins
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Presenting the manager with desktop graphs and
charts, and shows a computerized picture of where
the company stands on all those metrics from the HR
scorecard process.
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3. Strategic HRM: Digital Dashboard Customer

Satisfaction
3. Strategic HRM: Digital Dashboard
Products
Expenses
Sold

Commission
Revenue
Manpower

Performance
Revenue
Curve Target
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3. Strategic HRM: Case Study (p. 78)

PepsiCo wants to achieve financial performance while also

achieve human sustainability, environmental sustainability, and Metrics, benchmarking
talent sustainability. PepsiCo’s HR managers can help the
company achieve these goals by instituting flexible work
arrangements to reduce commuting or using incentive systems
4 & data analytics
to motivate employees.
Design a tool to evaluate the process that these HR managers
used to formulate their strategic plan?
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4. Metrics, benchmarking & data analytics 4. Metrics, benchmarking & data analytics
Organizational Data Tuition/Education Data
HR metrics
HR Department Data Employment Data
The quantitative gauge of a HR management activity,
such as employee turnover, hours of training per Metrics
Metrics
Expectations for Revenue and
employee, or qualified applicants per position. HR Expense Data
Organizational Hiring

Compensation Data Metrics for More Profitable

Organizations
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4. Metrics, benchmarking & data analytics 4. Metrics, benchmarking & data analytics
Employment Data Compensation Data
Benchmarking
Number of Positions Filled Annual Salary Increase

Time-to-Fill
Salaries as a Percentage of ▪ Comparing high-performing companies’ results
Operating Expense
from the metrics to one’s own company to
Cost-Per-Hire
Target Bonus for Non-
Executives
understand what makes them a better position.
Employee Tenure Target Bonus for Executives ▪ Using comparable data by industry, employer size,
company revenue, and geographic region.
Annual Overall Turnover
Rate 33 34

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4. Metrics, benchmarking & data analytics 4. Metrics, benchmarking & data analytics
Overall efficiency Adding to & reviewing cart Checkout & payment 18.9%
E-commerce Retail Conversion Rate, 2018

Median
90th percentile

7.7%
5.4% 5.2%
4.0% 4.0%

desktop web mobile web mobile app

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Human Resource Management
4. Metrics, benchmarking & data analytics
Audit
HR audit is an analysis of the completeness,
efficiency, and effectiveness of the organization’s HR
functions, including its HR policies, practices,
processes, and relevant metrics.
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4. Metrics, benchmarking & data analytics
4. Compensation: Policies, incentives, survey
procedures, and so on
5. Employee relations: Union agreements,
performance management, and disciplinary
6. Mandated benefits: Social security, workers’
compensation, unemployment insurance…
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4. Metrics, benchmarking & data analytics
10. Training and development: New employee
orientation, development, technical and safety,
career planning, and so on
11. Employee communications: Employee
handbook, newsletter, recognition programs
12. Termination & transition policies and
practices.
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Developed by Tin T. Dang, PhD
2023-02-19
4. Metrics, benchmarking & data analytics
1.Roles & headcount: Job descriptions, and
employees categorized by exempt/nonexempt
and full- or part-time)
2.Compliance: With federal, state, and local
employment-related legislation
3.Recruitment & selection: Use of selection
tools, background checks, and so on) 38
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4. Metrics, benchmarking & data analytics
7. Group benefits: Insurance, time off, flexible
benefits, and so on
8. Payroll: Such as legal compliance
9. Documentation & record keeping: Storage of
CVs, applications, offer letters, job descriptions,
performance evaluations, payroll change notices,
and employee handbook 40
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4. Metrics, benchmarking & data analytics
Data analytics
Using statistical & mathematical analysis to find
relationships and make predictions.
For example, Shopee uses algorithms to predict
which items you’re most likely to buy based on things
like the items that you’ve already bought and
similarities between you and other groups.
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4. Metrics, benchmarking & data analytics 4. Metrics, benchmarking & data analytics

Data mining Big data

Sifting through huge amounts of employee data to Analyzing greater volume and variety of data
identify correlations and use them to improve the
Processing data right after the data is generated,
employee-selection and other practices.
even in real-time
Working with data to identify new, hidden, or
Capitalizing on the huge variety of data available.
unexpected patterns in data.
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4. Metrics, benchmarking & data analytics 4. Metrics, benchmarking & data analytics

OVER
5 mins
Discussion Discussion
You work for a foreign language center and would like
to predict the types of customers who would continue
to study at your center after the first course. What
information that you would like to collect? Construct
your estimated model and explain it.
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OVER
5 mins
You work for a e-commerce company and would like to
offer the free delivery service to your customers if their
order can cost a minimum amount of money. What
data do you need to collect to decide this minimum
amount? Explain your model.
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4. Metrics, benchmarking & data analytics

OVER
5 mins
Discussion Employee engagement
An online movie platform would like to decide what
advertisements to show to the viewers during a movie
to ensure that the viewers can stay with the ads. What
5 & performance
Definition – Problem – Measurement

information should this company collect? Explain your

model.
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5. Employee engagement & performance 5. Employee engagement & performance

Engaged employees
Employee engagement
▪ Experiencing a high level of connectivity with their
Psychologically involved in, connected to, and work tasks
committed to getting one’s jobs done
▪ Working hard to accomplish their task-related
goals.

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5. Employee engagement & performance 5. Employee engagement & performance

productivity satisfaction Discussion

sales retention Work in pair or group of three, design an employee

Employee
Employee engagement program for a 5-year-old retail company
product Engagement
Engagement of 300 workers. A quarter of them is on a part-time
absenteeism
quality contract.

safety revenue OVER

5 mins
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5. Employee engagement & performance 5. Employee engagement & performance: Advice

engaged
working with
30%
▪ Offering support & coaching to eliminate active
passion disengagement
▪ Getting employees understand the contributions of their
Engagement
not-engaged checking out 50% departments to the company’s success
Problem
▪ Getting employees see how their efforts contribute to
achieving the company’s goals
acting out ▪ Giving employees a sense of accomplishment
disengaged 20%
unhappiness
▪ Getting employees involved when working in teams.
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5. Employee engagement & performance
how positively the employee speaks about the
company and recommends it to others
who stays with the company and why
who takes an active role in the overall success
of the org. by moving beyond just doing tasks
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HRM
More discussions are on the LMS!
Tin T. Dang, PhD
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Developed by Tin T. Dang, PhD
2023-02-19
5. Employee engagement & performance
Discussion
OVER
5 mins
As the leader of a sales team, you are assigned to
supervise a new employee. He is not collaborative with
you very much and does not seem to like the company
either. Regardless of his negative attitude, you still
offer a lot of supportive supervision. However, his job
commitment is very low and this reduces the revenue
of the team. What should you do? 56
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