Chapter 2 - SHRM - Allignment Strategy and HR Belcourt.7ed - ch02

(20 minutes a session of purposeful processing (i.e.
study) is optimum for concentration, comprehension,

retention & retrieval – So you are due a Pit Stop and
Reflection !)
1. Check and double check your understanding of Take 10 !
what you have read and or seen - close everything
& write in you own words on a blank sheet or
screen
2. Define in your own words' key concepts and

terms, in writing or verbally or on a voice recorder on
your phone.
3. Take and retake the Quizzes until you have

achieved full mastery. Retrieval Practice !
4. Reflect to yourself and ask how can I use this

information in my work and in my life ??
Do Everything That Works Well for You to Consolidate &
Store Your New Learning in your Memory ! !
Copyright © 2019 by Nelson Education Ltd. 3
Aligning HR with
Strategy

 Understand the importance of strategic HR
planning
 Identify the risks associated with not
planning
 Discuss approaches to linking strategy and
HR, including the barriers to becoming a
strategic partner
 List the characteristics of an effective HR
strategy
 An ‘umbrella’ term that encompasses the
following:
• Overarching HR philosophies that specify
the values that inform an organization’s
policies and practices
• Formal HR policies that direct and partially
constrain the development of specific
practices
• Specific HR practices

 HR Video Series and Blogs:
 1. Strategic HRM and HR Planning (16 mins) (Rewatch)
 https://www.youtube.com/watch?v=8mwCiDKgNd4
 2. Porter's Generic Strategies: How to Stay Competitive
(3.5 mins)
 https://youtu.be/_p8dIU09vH0
 3. Resource Based View (RBV) of the Firm by Jay
Barney who developed the concept. (4.2 mins)
https://youtu.be/-KN81_oYl1s
 4. Human Capital Theory (7 mins)
https://youtu.be/M_5NcLazCwQ
 5. Be a Strategic Human Resource Partner (Dave Ulrich
– Ulrichisation – 8 mins) https://youtu.be/7cHY_z7T1lg
Strategic Planning
 Procedures for making decisions about the
organization’s long-term goals and strategies
Human Resources Planning (HRP)

 Process of anticipating and providing for the
movement
of people into, within, and out of an organization.
Copyright © 2014 by Nelson Education Ltd.

Strategic Human Resources Management
(SHRM): The pattern of human resources
deployments and activities that enable an
organization to achieve its strategic goals
 Strategy formulation—providing input as to what
is possible given the types and numbers of people
available.
 Strategy implementation—making primary resource
allocation decisions about structure, processes, and
human resources.
Copyright © 2014 by Nelson Education Ltd. 1–11

Strategic Analysis
 What human resources are needed and what are
available?
Strategic Formulation
 What is required and necessary in support of human
resources?
Strategic Implementation
 How will the human resources be allocated?
Human Resources Strategic

Planning Planning
Copyright © 2014 by Nelson Education Ltd. 1–12

 Interrelatedphilosophies, policies, and
practices to enable the achievement of
the organizational strategy

Step 1: Mission, Vision,
and Values
Mission
• The basic purpose of the organization as well as its
scope of operations
Strategic Vision
• A statement about where the company is going and
what it can become in the future; clarifies the long-term
direction of the company and its strategic intent
Core Values
• The strong and enduring beliefs and principles that the
company uses as a foundation for its decisions
1–14
14
Step 2: Environmental Analysis
Environmental Scanning
• The systematic monitoring of the major external forces
influencing the organization.
1. Economic factors: general, regional, and global conditions
2. Industry and competitive trends: new processes, services,
and innovations
3. Technological changes: information technology and automation
4. Government and legislative issues: laws and administrative
rulings
5. Social concerns: child care and educational priorities
6. Demographic and labor market trends: age, composition, literacy,
and immigration
1–15
15
Step 2: Environmental Analysis
1–16
16
7
17
Step 3: Internal Analysis
Culture Capabilities
Internal
Analysis
Composition
1–18
18
Step 4: Formulating Strategy
Growth and Mergers and

Diversification Acquisitions
Corporate
Strategy
Strategic Alliances
and Joint Ventures
1–19
19
Step 4: Formulating Strategy
Strategy Formulation
• Moving from simple analysis to devising a coherent
course of action
SWOT analysis
• A comparison of strengths, weaknesses, opportunities,
and threats for strategy formulation purposes
• Use the strengths of the organization to capitalize on
opportunities, counteract threats, and alleviate internal
weaknesses.
1–20
20
Step 5: Strategy Implementation
Taking Action: Reconciling Supply and Demand

– Balancing demand and supply considerations
• Forecasting business activities (trends)
• Locating applicants
– Organizational downsizing, outsourcing, offshoring
• Reducing “headcount”
– Making layoff decisions
• Seniority or performance?
• Collective agreements
1–21
21
Step 6: Evaluation and Assessment
Evaluation and Assessment Issues

– Benchmarking: The process of comparing the
organization’s processes and practices to those of
other companies
– Human capital metrics
• Assess aspects of the workforce
– HR metrics
• Assess the performance of the HR function itself
1–22
22
Reflection !)
screen

your phone.


 A resource that provides a sustained
competitive advantage, because its culture is
valuable, rare, and very difficult to imitate or
substitute
 Human resources can be difficult for
competitors to imitate
 The best human resources are rare
 The value of human resources can be hard to
substitute
 The contingency perspective is
explained by the ‘human capital’ and
‘behavioural’ theories
 Refers to the need to modify HR
strategies relative to an organization’s
business and corporate strategies

 The term ‘human capital’ refers to:
The collective sum of employees’
attributes, experience, knowledge,
skills and commitment invested in the
organization
Human capital is the stock of habits, knowledge,
social and personality attributes embodied in
the ability to perform labour so as to produce
economic value. Human capital is unique and
differs from any other capital. It is needed for
companies to achieve goals, develop and remain
innovative Copyright © 2019 by Nelson Education Ltd. 30
 Classical economists view the firm as having
control over three types of resources in the
production of goods and services:
• Land
• Labour or human capital
• Capital

 Human capital also includes:
 Knowledge
 Education
 Vocational qualifications
 Professional certifications
 Work-related experience
 Skills and competence of an organization’s
employees

 The value added of human capital
investments or the human capital return on
investment (ROI) can be calculated:

 Different HR strategies are required to
influence the diverse behaviours of
employees
 HR’s role is to reinforce certain behaviours
via HR practices such as recruitment,
selection, training, compensation, and
performance

 Do different organizational
contexts require stronger links
between the business strategy
and HR strategy ?
 Compare the differences between
how a factory making cakes and a
factory making medical devices
might approach the development
of its business and HR Strategies

Reflection !)
screen

your phone.


 HR planning is the most important long-term
HR priority for Canadian organizations
 Employees help an organization achieve
success because they are its strategic
resources
 Strategic HR planning results in improved
goal attainment

 HR planning ensures that human assets are
managed and matched to the organizational
strategy
 Ensuring employees’ skills are kept current
 Ensuring employees’ skills will enable the
organization to implement its strategy

 Strategic HRM can improve an
organization’s performance
 It helps to focus employees on the
important missions and goals of the
organization

 Aligning HR strategy with business strategy
can be done in one of three ways:
• Start with organizational strategy and then
create HR strategy
• Start with HR competencies and then craft
corporate strategies based on these
competencies
• Do a combination of both in a form of
reciprocal relationship
 HR planning views HRM programs as
flowing from corporate strategy

 Costsare an important element of this
strategy, so labour costs are carefully
controlled for all HR functions

A differentiation strategy calls for
innovation and creativity among
employees
 HRM is affected in fundamentally
different ways in organizations that
want to use employees’ brains rather
than their limited manual skills
 An organization cannot implement a
strategy if it does not have the
necessary human capital
 Yet this “skills determine strategy”
outlook relies too heavily on employee
capabilities and not enough on
environmental analysis

 A reciprocal inter-dependency exists
between HR strategy and business strategy
 Both strategies influence each other
 Changes to one type of strategy will require
changes to the other type
 HR should build its strategy by
acknowledging the main issues facing the
business

Reflection !)
screen

your phone.


 Requires concurrent strategy
formulation
 HR professionals play a more strategic
role, moving from ‘outsider’ to ‘insider’
status
 HR managers must appreciate
marketing, financial, and operational
issues
 CEOs say they want HR people to be
‘business people’ first, then HR leaders
 CEOs wish that HR executives would be less

concerned with narrow HR policies and
processes and focus on answering the
question, “Do we have the organization
design and people to achieve our plan?”

 The definition of a HR business partner is an experienced
human resource professional who works directly with an
organization's senior leadership to develop and direct an
HR agenda that closely supports organizational goals.
 Rather than working primarily as part of the internal human
resources department, the HR business partner works
closely with senior leadership, perhaps sitting on the board
of directors or collaborating regularly with the C-suite.
 Placing a human resources professional in close contact
with executive leadership makes HR a part of the
organizational strategy.
 The business partner model for human resources is
becoming more and more popular among business
organizations.
Copyright © 2016 by Nelso
Education Ltd. 58
 HRdepartments are restructuring in
order to be able to do the basics right
while enhancing the performance of
business units and supporting strategic
moves

 Corporate HR:
• HR Director is on the Executive Team
 Services:
• Three levels of service for:- compensation and
benefits administration, training and education
administration, staffing administration, and
records management
- Tier One – automated (by computer/telephone)
- Tier Two – a call centre
- Tier Three – highly skilled professionals

 Solutions:
• HR subject-matter experts who are responsible for creating
solutions to organizational problems and for preparing the
organization to achieve its strategic goals/objectives
 Organization Capability Consultants:

• HR professionals in this unit are dispersed throughout the
organization, providing guidance and assistance to operating
units, with the goal of improving the effectiveness of the
organization

 Firms with more than one business strategy
are likely to have more than one approach to
HR strategy
 Different divisions are responsible for
realizing different aspects of the
organization’s strategy; therefore,
employees in different divisions may be
encouraged to display different behaviours
through appropriate HR practices

 ‘External’ Fit: HR programs must align with or
fit the overall strategy of the organization
 ‘Internal’ Fit: HR must fit with other

functional areas, such as marketing; HR
programs must also be consistent with each
other

The One Size Fits All !!!

 Measuring results to see if the goals have
been achieved
 This chain must be in place:-

HR program → employee human capital and
behaviours
→ organizational strategy → organizational
outcome

Reflection !)
screen

your phone.


 Strategic HRM is a set of distinct but inter-
related philosophies, policies, and practices
with the goal of enabling the organization to
achieve its strategy
 Aligning HR strategy with the corporate

strategy and with other functional/business
strategies is important

Reflection !)
screen

your phone.


 When you enter the BOR you must
immediately follow the ISS protocol before
your start the activity or discussion.
 I – INTRODUCE – greet the other students

in the room and introduce yourself and
share some information about your life and
your work.
 S - SCRIBE – Agree and appoint a Scribe or
writer who will record and takes key notes
about your BOR discussion. This must be
recorded on a Word document or a PP
slide.
 S – SPOKESPERSON – Agree and appoint a
student in the BOR who will speak on behalf
of the BOR when enter back into the main
classroom using the notes recorded by the
Scribe and the Word or PP slide which must
be shared in the main room.
 See the link below
 https://study.sagepub.com/ree
s3e/student-
resources/chapter-2/case-
studies
 Each break out room to answer
one Question
 InnoCentive Case Study - 5Qs
 Q1 – LT1 Q2 - LT2
 Q3 – LT3, Q4 – LT4 and Q5 – LT5 and LT6
 Egg 2.0 Case Study - 3Q

 Q1 – LT1 and LT2 Q2 – LT3 and LT4
 Q3 - LT 5 and LT5
 See the Case Study in Chapter
2 of the Core Textbook by
Beclourt
 Case Study – Linking HR
Practices to Performance (2Qs)
 Each break out room to answer
one Question
 Q1 – LT1 and LT2 and LT3
 Q2 – LT4 and LT5 and LT6

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(20 minutes a session of purposeful processing (i.e.

study) is optimum for concentration, comprehension,

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

Copyright © 2019 by Nelson Education Ltd. 2

Copyright © 2019 by Nelson Education Ltd. 7

Human Resources Planning (HRP)

Copyright © 2014 by Nelson Education Ltd.

Copyright © 2014 by Nelson Education Ltd. 1–11

Human Resources Strategic

Copyright © 2014 by Nelson Education Ltd. 1–12

Copyright © 2019 by Nelson Education Ltd. 13

Growth and Mergers and

Taking Action: Reconciling Supply and Demand

Evaluation and Assessment Issues

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

Copyright © 2019 by Nelson Education Ltd. 28

Copyright © 2019 by Nelson Education Ltd. 32

Copyright © 2019 by Nelson Education Ltd. 33

Copyright © 2019 by Nelson Education Ltd. 34

Copyright © 2019 by Nelson Education Ltd. 36

Copyright © 2016 by Nelson Education Ltd. 37

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

Copyright © 2019 by Nelson Education Ltd. 39

Copyright © 2019 by Nelson Education Ltd. 41

Copyright © 2019 by Nelson Education Ltd. 42

Copyright © 2019 by Nelson Education Ltd. 48

Copyright © 2019 by Nelson Education Ltd. 49

Copyright © 2019 by Nelson Education Ltd. 51

Copyright © 2019 by Nelson Education Ltd. 52

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

 CEOs wish that HR executives would be less

Copyright © 2019 by Nelson Education Ltd. 57

Copyright © 2019 by Nelson Education Ltd. 59

Copyright © 2019 by Nelson Education Ltd. 60

 Organization Capability Consultants:

Copyright © 2019 by Nelson Education Ltd. 61

Copyright © 2019 by Nelson Education Ltd. 62

 ‘Internal’ Fit: HR must fit with other

Copyright © 2019 by Nelson Education Ltd. 63

Copyright © 2016 by Nelson Education Ltd. 67

 This chain must be in place:-

Copyright © 2019 by Nelson Education Ltd. 71

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

 Aligning HR strategy with the corporate

Copyright © 2019 by Nelson Education Ltd. 87

2. Define in your own words' key concepts and

3. Take and retake the Quizzes until you have

4. Reflect to yourself and ask how can I use this

 I – INTRODUCE – greet the other students

 Egg 2.0 Case Study - 3Q

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