Human Resource


Part 1 | Introduction

Chapter 3

Strategic Human Resource Management and the
HR Scorecard

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama

The Strategic Management Process • Strategic Management  The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment. • Strategic Plan  How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term. • Strategy  A chosen course of action. Inc. All rights reserved. 2 © 2008 Prentice Hall. .

3 © 2008 Prentice Hall.Business Vision and Mission • Vision  A general statement of an organization’s intended direction that evokes emotional feelings in organization members. and where it’s headed. Inc. All rights reserved. what it does. . • Mission  Spells out who the company is.

. • Translating the mission into strategic goals. 4 © 2008 Prentice Hall. weaknesses. All rights reserved. opportunities and threats. • Formulating strategies or courses of action.The Strategic Management Process • Defining the business and developing a mission • Evaluating the firm’s internal and external strengths. • Formulating a new business direction. Inc. • Implementing and evaluating the strategic plan.

. Inc. Types of Strategies Corporate-Level Strategies Vertical Geographic Diversification Consolidation Integration Expansion Strategy Strategy Strategy Strategy 5 © 2008 Prentice Hall. All rights reserved.

• Consolidation Strategy. • Diversification Corporate Strategy. comprise the company and how these businesses relate to each other.identifies the portfolio of businesses that. Inc. . • Geographic Expansion 6 © 2008 Prentice Hall.CORPORATE STRATEGY • Corporate-level Strategy . • Concentration Corporate Strategy. • Vertical Integration Strategy. All rights reserved. in total.

Types of Strategies (cont’d) Business-Level/ Competitive Strategies Cost Leadership Differentiation Focus/Niche 7 © 2008 Prentice Hall. All rights reserved. . Inc.

All rights reserved. . 8 © 2008 Prentice Hall.identifies how to build and strengthen the business’s long-term competitive position in the marketplace. • Focusers .carves out a market niche.low cost leader in an industry. Inc. • Differentiation .CORPORATE STRATEGY • Competitive Strategy . • Cost leadership .unique in its industry.

STRATEGIC FIT • The “Fit” Point of View (Porter)  All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies. . 9 © 2008 Prentice Hall. All rights reserved. Inc.

Inc.STRATEGIC HUMAN RESOURCE MANAGEMANT • Strategic Human Resource Management  The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. All rights reserved. 10 © 2008 Prentice Hall. .  Involves formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.


Inc. . All rights reserved.STRATEGIC HRM TOOLS • Strategy MAP.The strategy map provides an overview of how each department’s performance contributes to achieving the company’s overall strategic goals. 8 © 2008 Prentice Hall.

8 © 2008 Prentice Hall.It refers to a process for assigning financial and non financial goals to the human resource management-related chain of activities required for achieving the company’s strategic aims. .STRATEGIC HRM TOOLS • HR scorecard. All rights reserved. Inc.

A digital dashboard presents the manager with desktop graphs and charts.STRATEGIC HRM TOOLS • Digital Dashboards. showing a computerised picture of how the company is doing on all the metric from the HR Scorecard process. All rights reserved. . Inc. 8 © 2008 Prentice Hall.

All rights reserved. Inc. HUMAN RESOURCE AUDITS Strategic Planning Roles WHERE IT HOW TO CURRENTLY IMPROVE HR STANDS FUNCTION 12 © 2008 Prentice Hall. .

All rights reserved. . Inc. KEY TERMS strategic plan strategic management vision mission SWOT analysis strategy strategic control competitive advantage leveraging strategic human resource management HR Scorecard metrics value chain analysis 14 © 2008 Prentice Hall.

GROUP WORK DEVELOPING AN HR STRATEGY FOR STARBUCKS By 2010. •Workforce requirements (in terms of employee competencies and behaviours) this strategy requires. Starbucks was facing serious challenges. Sales per store were stagnant or declining. Purpose: The purpose of this exercise is to give you experience in developing an HR strategy. Many believed that its introduction of breakfast foods had diverted its “baristas” from their traditional jobs as coffee-preparation experts. Instructions: Set up groups of 4/5 people.A basic business/competitive strategy for Starbucks. in this case. •Specific HR policies and the activities necessary to produce these workforce requirements. and its growth rate and profitability were down. You are already quite familiar with what it’s like to have a cup of coffee or tea in Starbucks or similar coffee shops. 16 . You need to develop an outline for an HR strategy for Starbucks Corp. by developing one for Starbucks. Starbucks’ former CEO stepped back into the company’s top job. Your outline should include three basic elements: 1. You need to formulate a new direction for his company. McDonald’s and Dunkin Donuts were introducing lower priced but still high-grade coffees.