HUMAN RESOURCE MANAGEMENT

Global Edition 13e

Chapter 3: Human Resource Management Strategy and Analysis

Edited from online book presentations

Chapter 3-1
 Learning Objectives
1. Explain why strategic planning is important to all
managers.
2. Explain with examples each of the seven steps in
the strategic planning process.
3. List with examples the main generic types of
corporate strategies and competitive strategies.
4. Define strategic human resource management
and give an example of strategic human resource
management in practice.
5. Briefly describe three important strategic human
resource management tools.
6. Explain with examples why metrics are essential
for managing human resources.

Copyright © 2013 Pearson Education Chapter 3-2

Why Strategic Planning is Important
to all Managers

Copyright © 2013 Pearson Education Chapter 3-3

Goal-Setting and the Planning Process
•Basic planning process
1. setting objectives,
2. making basic planning forecasts,
3. reviewing alternatives (courses of
action),
4. evaluating which options are best, and
then
5. choosing and implementing your plan

Planning is “Goal-directed”

Copyright © 2013 Pearson Education Chapter 3-4

 Goal-Setting and the Planning Process
cont’d
• The hierarchy of goals

FIGURE 3–1: Sample Hierarchy of goals Diagram for a Company

Copyright © 2013 Pearson Education Chapter 3-5
Strategic Planning
• Strategic Plan:
is the company’s plan for how it will match its internal
strengths and weaknesses with external opportunities and
threats.
“A successful strategic plan helps ensure a
competitive advantage”
• Strategic Management:
is the process of identifying and executing the
organization’s strategic plan, by matching the company’s
capabilities with the demands of its environment

Copyright © 2013 Pearson Education Chapter 3-6

The Seven Steps in the Strategic
Management Process

Copyright © 2013 Pearson Education Chapter 3-7

FIGURE 3–2: The Strategic management Process

Copyright © 2013 Pearson Education Chapter 3-8

 Seven Steps
1. Define current business
2. Audits
3. New directions
4. Strategic goals
5. Formulate strategies
6. Implement
7. Evaluate

Copyright © 2013 Pearson Education Chapter 3-9

Seven Steps

FIGURE 3–3: Worksheet for Environmental Scanning

Copyright © 2013 Pearson Education Chapter 3-10
Review

1. Importance of strategic planning

2. Goal setting
3. Steps

Copyright © 2013 Pearson Education Chapter 3-11

The Main Generic Types of Corporate
Strategies and Competitive Strategies

Copyright © 2013 Pearson Education Chapter 3-12

FIGURE 3–5: Type of Strategy at Each Company
Level

Copyright © 2013 Pearson Education Chapter 3-13

 Types of Strategies

1. Corporate strategy
2. Competitive strategy
• Human resources as a competitive advantage
3. Functional strategy
• Strategic fit

Copyright © 2013 Pearson Education Chapter 3-14

 Corporate Strategies

1. Concentration
2. Diversification
3. Vertical integration
4. Consolidation
5. Geographic

Copyright © 2013 Pearson Education Chapter 3-15

 Competitive Strategies

1. Cost leadership
2. Differentiation
3. Focus

Copyright © 2013 Pearson Education Chapter 3-16

Management Roles in Strategic
Planning
1. Top Managers’ Role in
Strategic Planning
2. Departmental Managers’
Strategic Planning Roles
• Devise
• Support
• Execution

Copyright © 2013 Pearson Education Chapter 3-17

 Review

1. Types of strategies
• Corporate
• Competitive
• Functional
2. Managerial roles in strategic planning

Copyright © 2013 Pearson Education Chapter 3-18

Defining Strategic Human Resource
Management with an Example of
Strategic Human Resource
Management in Practice

Copyright © 2013 Pearson Education Chapter 3-19

Strategic Human Resource Management

FIGURE 3-6 Linking Company-Wide and HR Strategies

Copyright © 2013 Pearson Education Chapter 3-20
Strategic Human Resource Management

1. Defining strategic
human resource
management
2. Human resource
strategies and policies

Copyright © 2013 Pearson Education Chapter 3-21

Example
Shanghai Portman human resource strategy
was to produce the service-oriented
employee behaviors needed to improve the
hotel’s level of service
• Its HR policies therefore included:
1. Installing Ritz Carlton
• Human Resource system
2. top management personally interview each
candidate
3. Selecting only employees who cared for and
respected others

Copyright © 2013 Pearson Education Chapter 3-22

Three Important Strategic Human
Resource Management Tools

Copyright © 2013 Pearson Education Chapter 3-23

Strategic Human Resource Management
Tools

1. Strategy map
2. The HR scorecard
3. Digital dashboards

Copyright © 2013 Pearson Education Chapter 3-24

Strategic Human Resource Management
Tools

FIGURE 3-8 Strategy Map for Southwest Airlines

Copyright © 2013 Pearson Education Chapter 3-25
HR Metrics and Benchmarking

1. HR metrics
• Types of metrics
2. Benchmarking

Copyright © 2013 Pearson Education Chapter 3-26

Types of metrics

FIGURE 3-10 Metrics for the SHRM® 2011 2012 Customized Human
Capital Benchmarking Report Copyright © 2013 Pearson Education Chapter 3-27
Why Metrics are Essential for
Managing Human Resources

Copyright © 2013 Pearson Education Chapter 3-28

Strategy and Strategy-Based Metrics

1. Workforce/talent analytics
2. Data mining
3. HR audits
4. Evidence-based HR
• The scientific method
5. Why should a manager be scientific?

Copyright © 2013 Pearson Education Chapter 3-29

High-performance Work Systems

Copyright © 2013 Pearson Education Chapter 3-30