Professional Documents
Culture Documents
RESOURCE MANAGEMENT
1
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DISCUSSION
2
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HUMAN RESOURCE MANAGEMENT
3
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HUMAN RESOURCE MANAGEMENT
4
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STRATEGY
5
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STRATEGY
6
At the core, its is the debate between best fit and best
practice
Used for gaining a competitive advantage
Innovation
Offer something new; different from competitors
Quality Enhancement
Products and services
Cost Reduction
Attempt to be the lowest cost provider
Optimal strategy depends on the wants and nature of
competitors
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TYPES OF STRATEGY
7
Business
Examines correspondence between each firm’s
competitive strategy and its system of high performance
work practices
Operations
An internal approach; connected to the work organization
inside a firm
Resource View
Views human resources as sources of sustained
competitive advantage
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STRATEGIC HRM
8
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HR PRACTICES LINKED WITH
COMPETITIVE STRATEGY
9
Recruitment
Training
Career Path
Promotions
Socialization
Openness
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HIGH PERFORMANCE PRACTICES
10
Features
Comprehensive selection/recruitment procedures
Incentive compensation
Extensive employee involvement/training
Expected Results
Improve knowledge, skills, and abilities of employees
Increase motivation
Reduce shirking
Enhance retention of quality employees (reduce tenure of
non-performers)
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HIGH COMMITMENT PRACTICES
11
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CONCLUSION
12
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CONCLUSION
13
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A Strategic Management
Approach to Human Resource
Management
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A Diagnostic HRM
15 Framework
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Diagnostic Model for Human Resource
Management
16
1. Diagnosis 2. Prescription
4. Evaluation 3. Implementation
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External Environmental Influences
18
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HRM Activities That Can Enhance and
Sustain Competitive
19 Advantage
1. Employment security
8. Teams and job
2. Selectivity in
recruiting redesign
9. Training as skill
3. High wages
development
4. Incentive pay
10. Cross-utilization and
5. Employee ownership cross training
6. Information sharing 11. Symbolic
7. Participation and egalitarianism
empowerment
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HRM Activities That Can Enhance and
Sustain Competitive
20 Advantage
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Internal Environmental
21 Influences
Strategy
Goals
Organization culture
Nature of the task
(job)
Work group
Leader’s style and
experience
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Key Factors in the Nature
22 of the Task (Job):
Degree of knowledge and ability to use information
technology
Degree of empowerment
Degree of physical exertion required
Degree of environmental unpleasantness
Physical location of work
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Key Factors in the Nature
23 of the Task (Job):
Time dimension of work
Task identity
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Three Levels of Strategy
24
Strategic
(long term)
Managerial
(medium term)
Operational
(short term)
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Human Resource Activities by Level of Strategy
LEVEL Employee Rewards Appraisal Development
25
Selection and (Pay and
Placement Benefits)
Strategic Specify the character- Establish reward Determine the Plan development
(long term) istics of people program that will be level type of experiences for staff
needed to run competitive with perform-ance
business over long domestic and inter- crucial for the
term national competitors growth of the firm
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Human Resource Activities by Level of Strategy
26
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Human Resource Activities by Level of Strategy
27
LEVEL Employee Rewards Appraisal Developmen
Selection and (Pay and t
Placement Benefits)
Operation Prepare staffing plans Administer wage Use annual or Use specific job-
al (short and salary program more frequent skill training
term) appraisal system
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Strategic Challenges Facing HRM
28
Diversity:
Building A
Technology Competitive
Workforce
Organizational
Contingent
Caliber of the Restructuring
Workers
Workforce and
Downsizing
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Trends of the Technology
29 Revolution
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People and the HRM 30Diagnostic Framework
Employees’
Abilities of
Attitudes and
Employees
Preferences
Motivation of Personality of
Employees Employees
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Desirable End Results
31
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Summary
32
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Summary
33
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Mentoring and Leadership
34
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Are you a leader?
35
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Are you a mentor?
36
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Mentoring: we are all teachers
37
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5 Myths about Mentoring
38
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The Mentoring Relationship
39
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Mentoring techniques
40
Mentor yourself.
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Mentoring and Leadership
41
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Mentoring options: getting started
42
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43
Compensation
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The Importance of Compensation
44
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Theory Behind Compensation
45
Equity Theory
Comparing inputs and outputs of a similar co-worker
Expectancy Theory
People are motivated by intrinsic and extrinsic outcomes they
desire.
People will only be motivated if outcome is possible.
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Equity Theory
46
Internal equity
Comparison of my input / reward ratio with that of similar
others.
Employees may seek to address imbalance by changing their
inputs.
Fairness of pay differentials between different jobs in the
organization can be established by job ranking, job
classification, point systems and factor comparisons.
External equity
Fairness of organizational compensation levels relative to
similar jobs in other organizations.
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“Monkeys Demand Equal Pay”
47
But it was a different story when one monkey was given something
better -- namely, a grape. Then, the other monkey often pitched a fit --
either throwing the token, refusing to eat the cucumber or giving it to
the other monkey.
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Equity Theory
48
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Types of Base Pay Systems
49
Job-based
Pay the job (not the person)
Skills / knowledge-based
Pay the person (not the job)
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When to Use a Job-based Pay Policy
50
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Individual-based Compensation
51
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Pricing Jobs
52
KSA’s
Non-quantitative methods
Job Ranking (create hierarchy of jobs)
Quantitative Methods
Point factor systems
Market pricing
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Compensable Factors
53
Characteristics in the job that the organizational
values and that help achieve its objectives
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Pricing Jobs
54
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Variable Pay Incentives
55
Corporation – ESOP’s
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Pay for Performance Requires
56
1. Definition of performance
How are we going to measure and compare people?
2. Distribution of performance
Can we distinguish high and low performers?
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Key Strategic Issues in Compensation
57
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New Thinking for the New Millennium
58
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59
COMPENSATION
AND REWARDS
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Compensation
60
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Forms Of Compensation (Cont’d)
63
Nonfinancial Compensation
- Satisfaction person receives from psychological & or
physical environment in which person works. For
examples, skills variety, experiences, good working
conditions, flextime
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Objectives in 64
compensation
management
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Objectives in compensation management
(Cont’d)
65
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Acquire qualified personnel
66
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Retain current
67 employees
Employees may quit when compensation levels are
not competitive, resulting in higher turnover.
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Ensure68 equity
Compensation management strives(berjuang) for
internal and external equity. Internal equity requires
that pay be related to the relative worth of a job so
that similar jobs get similar pay. External equity
means paying workers what comparable workers are
paid by other firms in the labor market.
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Reward desired
69 behaviour
Pay should reinforce desired behaviours and act as
an incentive for those behaviours to occur in the
future.
Effective compensation plans reward performance,
loyalty, experience, responsibility, and other
behaviours.
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Facilitate understanding
71
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It is based on Compensation policies
Organizational level Ability to pay
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Compensation policies
74
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Organizational
75 level
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Ability to pay
76
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Employee will be pay based on labor market
conditions:
78
It includes:
1. Compensation surveys- what are other firms
paying?, geographic area of survey.
2. Cost of living- when prices rise over a period of
time.
3. Labor Unions- mandatory collective bargaining
management & unions as wages, hours & other
terms and conditions of employment, cost of living
(COLA) allowance has been disappearing.
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Employee will be pay based on labor market
conditions (Cont’d):
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Job itself continues to be factor.
Organizations pay for value they attach to certain
duties, responsibilities, and other job related
factors as working conditions.
E.g, professional positions different level of salary
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Employees may83demands for their
salaries based on:
Performance
Competencies
Skills
Experiences
Seniority
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What is Training?
Training - a planned effort by a company to facilitate
employees’ learning of job-related competencies.
Competencies include knowledge, skills or behavior critical for
successful job performance.
The goal of training is for employees to master the
competencies and apply them to their day-to-day
activities.
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What is Training? (cont.)
85
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What is Training? (cont.)
High-leverage training
Is linked to strategic business goals and objectives.
Uses an instructional design process to ensure that
training is effective.
Compares or benchmarks the company's training
programs against training programs in other companies.
Creates working conditions that encourage continuous
learning.
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What is Training? (cont.)
Continuous learning - requires employees to
understand the entire work system, including the
relationships among their jobs, their work units,
and the company.
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What is Training? (cont.)
Managers take an active role in:
Identifying training needs.
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What is Training? (cont.)
Today, training is being evaluated on how
training addresses business needs related to
learning, behavior change, and performance
improvement.
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What is Training? (cont.)
There is a greater emphasis on:
Providing educational opportunities for all employees.
Performance improvement as an ongoing process than a
one-time training event.
Demonstrating to executives, managers, and trainees the
benefits of training.
Learning as a lifelong event.
Training being used to help attain strategic business
objectives.
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Designing Effective Training
91
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92
Figure 1.1 - Training Design Process
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Designing Effective Training (cont.)
93
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Designing Effective Training (cont.)
94
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Table 1.1 - Forces Influencing
Working and Learning
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Forces Influencing Working and
Learning
Economic cycles
Provide an opportunity for companies to take a closer look
at training and development to identify those activities
that are critical for supporting the business strategy as
well as those mandated by law.
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Forces Influencing Working and
Learning (cont.)
Globalization
Provide training and development opportunities for global
employees.
Provide cross-cultural training to prepare employees and
their families to understand the culture and norms of the
country to which they are being relocated and assists in
their return to their home country after the assignment.
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Examples of
Intangible Assets
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Forces Influencing
99
Working and
Learning (cont.)
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Forces Influencing Working and
Learning (cont.)
The value of intangible assets and human
capital has the following implication:
Employee engagement - the degree to which
employees are fully involved in their work and the
strength of their commitment to their job and the
company.
Companies measure employees' engagement levels
with attitude or opinion surveys.
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Forces Influencing Working and
Learning (cont.)
The value of intangible assets and human capital
has the following implication:
Change - the adoption of a new idea or behavior by a
company.
Learning organization - embraces a culture of lifelong
learning, enabling all employees to continually acquire
and share knowledge.
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How Managing Cultural Diversity can Provide Competitive
Advantage
102
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Forces Influencing Working and
Learning (cont.)
Talent management - attracting, retaining,
developing, and motivating highly skilled
employees and managers.
It is becoming increasingly more important
because of:
occupational and job changes.
retirement of baby boomers.
skill requirements.
the need to develop leadership skills.
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Forces Influencing
104
Working and
Learning (cont.)
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Forces Influencing
105
Working and
Learning (cont.)
Core values of TQM
Methods and processes are designed to meet the needs of
internal and external customers.
Every employee in the company receives training in quality,
which is designed into a product or service to prevent errors
from occurring rather than being detected and corrected.
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Forces Influencing 106
Working and
Learning (cont.)
Core values of TQM
The company promotes cooperation with vendors, suppliers,
and customers to improve quality and hold down costs.
Managers measure progress with feedback based on data.
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Forces Influencing 107
Working and
Learning (cont.)
Customer service and quality emphasis
The Malcolm Baldrige National Quality Award , created
by public law, is the highest level of national recognition for
quality that a U.S. company can receive.
The ISO 9000 is a family of standards that include
requirements for dealing with how to establish quality
standards and how to document work processes to help
companies understand quality system requirements.
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Categories and Point Value for the Malcolm
Baldrige National Quality Award Examination
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Forces Influencing Working and
Learning (cont.)
Customer service and quality emphasis
Six Sigma process - a process of measuring, analyzing,
improving, and then controlling processes once they have
been brought within the narrow six sigma quality
tolerances or standards.
Training can help companies meet the quality challenge by
teaching employees statistical process control and
engaging in “lean” processes.
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Forces Influencing Working and
Learning (cont.)
Customer service and quality emphasis
Lean thinking - involves doing more with less effort,
equipment, space, and time, but providing customers with
what they need and want.
ISO 10015 - a quality management tool designed to
ensure that training is linked to company needs and
performance.
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Forces Influencing Working and
Learning (cont.)
New technology
Is changing the delivery of training and makes training
more realistic.
Allows training to occur at any time and any place.
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Forces Influencing Working and
Learning (cont.)
Provides the ability to access experts and share learning
with others.
Provides the possibility of creating a learning environment
with many positive features such as feedback, self-pacing,
and practice exercises.
Allows companies greater use of alternative work
arrangements.
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Forces Influencing Working and
Learning (cont.)
High performance models of work systems
Work teams - involve employees with various skills who
interact to assemble a product or provide a service.
Cross training - training employees in a wide range of
skills so they can fill any of the roles needed to be
performed on the team.
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Forces Influencing Working and
Learning (cont.)
High performance models of work systems
Virtual teams - teams that are separated by time,
geographic distance, culture, and/or organizational
boundaries and that rely almost exclusively on technology
to interact and complete their projects.
Use of new technology and work designs are
supported by human resource management
practices.
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Snapshot of Training Practices
115
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Snapshot of Training Practices (cont.)
116
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Comparison of BEST Award Winners and Benchmark
Companies
117
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Characteristics of BEST Award Winners
118
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Snapshot of Training Practices (cont.)
119
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Snapshot of Training Practices (cont.)
120
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Implementing Strategies:
Management & Operations Issues
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Ch 7 -121
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Strategy Formulation vs. Implementation
123
Strategy Formulation (SF) Strategy Implementation
Positioning forces (SI)
before the action Managing forces during
Focus on effectiveness the action
Primarily intellectual Focus on efficiency
Requires good intuitive Primarily operational
and analytical skills Requires special
motivation and
Requires coordination
leadership skills
among a few people Requires coordination
among many people
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Nature of Strategy Implementation
SI problems can arise because of the shift in
responsibility, especially if SF decisions come as a
surprise to middle- and lower-level managers.
Shift in responsibility
Therefore, it is essential to involve divisional and
functional managers in SF.
Divisional or
Functional
Strategists Managers
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Ch 7 -124
Management Issues Central to Strategy
Implementation
125
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Purpose of Annual Objectives
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Ch 7 -126
Resource Allocation
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
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Ch 7 -127
Managing Conflict
Conflict – a disagreement between two or more parties.
Interdependency of objectives and competition for limited
resources can cause conflict.
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Ch 7 -128
MATCHING STRUCTURE WITH STRATEGY
129
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Basic Forms of Structure
Functional Structure
Divisional Structure
Strategic Business Unit Structure (SBU)
Matrix Structure
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Ch 7 -131
Functional Structure
132
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Functional Structure
133
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Divisional Structure
134
By customer
By process
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Divisional Structure
135
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Strategic Business Unit Structure (SBU)
136
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Creating a Strategy-Supportive Culture
138
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Human Resource Concerns
Assessing staffing needs and costs.
Selection Methods.
Employee Training.
Motivating Employees – Developing
Performance Incentives; Work-Life
Balance Issues; etc.
Selecting Appropriate Leadership Styles.
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Ch 7 -139
Mergers, Acquisitions, and Strategic
Human Resource Management
3-140
The Strategic Management Process
3-141
Steps in Strategic Management
3-142
Step 1: Define the current business
3-143
Step 2: Perform External and Internal
Situational Audits
3-144
Step 3: Formulate a New Business Direction
3-145
Step 4: Translate the Mission into Strategic
Goals
3-146
Step 5: Formulate Strategies to Achieve the
Strategic Goals
Easily communicated
3-147
Step 6: Implement the Strategies
3-148
Step 7: Evaluate Performance
3-149
Types of Strategies
3-150
Corporate Strategy
Top-level, company-wide
Identifies the portfolio of existing business
segments
Strategic possibilities include the following:
Diversification or vertical integration
Consolidation
Geographic expansion
3-151
Competitive Strategy
3-152
Competitive Advantage
3-153
Functional Strategies
3-154
3-155
The Importance of Leverage
Leverage means
supplementing what you
have and doing more
with what you’ve got!
Human resources can be
a crucial competitive
advantage!
3-156
HRM Creates Competitive Advantage
3-157
Four Important Strategic HR Issues
3-158
Four Important Strategic HR Issues, cont.
3. HR units must be more involved in designing –
not just executing – the strategic plan
4. HR managers must understand how to create
value
3-159
What Roles Does HR Play?
Strategy
execution
Strategy
formulation
SWOT analysis
3-160
Specific HRM M&A Roles
3-161
Specific HRM M&A Roles, cont.
Measure synergies
3-162
163
Thank you
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