Human Resource Management

Chapter 3
Human Resource Strategy &
Analysis
By Dr. Chen Ho @IBT/MCU
September 29, 2022
 After studying this chapter,
you should be able to:
1. Explain, with examples, each of the steps in the strategic
planning process.
2. Define strategic HRM and give an example of strategic human
resource management in practice.
3. Explain with examples why metrics are essential for managing
human resources.  
4. Answer the question “What are high-performance work system?”
system?
and give examples of how they differ from non-high-
performance ones.
5. Answer the question (with examples “Why is employee
engagement important?”
important?
6. Describe how you would execute a program to improve
employee engagement.
As Zappos’s website says,
“This ain’t your mama’s HR!”
Strategy
 A strategy is a course of action.
 The company’s long-term plan for how it will balance
its internal strengths & weaknesses with its external
opportunities & threats to maintain a competitive
advantage.
Three basic questions:
1. Current business position?
2. Future business position?
3. How to reach the future business position?
The Strategic Management Process
Decisions on:
 Products and services to provide
 Where to sell them
 Product/Services differences from competitors
 Examples:
 Rolex sells high-priced quality watches vs. Swatch sells
inexpensive but stylish watches
 Ritz-Carton Hotel v.s. Ramada Inn
 Southwest Airlines v.s. Singapore Airlines
 Apple v.s. Samsung v.s. Huawei
Usage of SWOT analysis: Examples
Develop strategies accordingly!
 Analyze
situations
inside out!
 Step 3: Formulate a New Business
Mission and Its Vision

Vision
 A general statement of its intended direction that
evokes emotional feelings in organization members.
Mission
 Spells out who the company is, what it does, and
where it is headed.
Mission Statement
“ 一念三化” (One key concept expressed three ways)
人之兒女，己之人女 Providing an educational setting
which attends to all students with parental care,
support and guidance.
• 卓越化 Excellence in teaching and learning
• 專業化 Theory-based, application-oriented
education to prepare learners with professionalism
• 國際化 Broad worldviews for internationalization.
If the company’s mission is “to make quality
products”, what does this mission mean, for each
department, in terms of how to improve quality?
“Connecting people”
“Improving people’s lives through meaningful
innovation.“
“…dedication to the highest quality of Customer Service
delivered with a sense of warmth, friendliness, individual
pride, and Company Spirit.”
Strategy: A course of action
Shows how company will move
from the present business to
the new business
Simple to understand
Step 6: Implement the Strategies

Implementation = putting into action

 Hiring people
 Building plants adding new product lines

Involves management functions:

 Plan
 Organize
 Staff
 Lead
 Control
 Step 7: Evaluate Performance

Strategic Control necessary

 Process of accessing progress towards
strategic goals and taking corrective
actions
 Managers study new situations and
make adjustments
Type of Strategy at Each Company Level
 Don’
t for
to w ge
ork o t
assig n
nmen
t#
3!

 Corporate Strategy
– Company-wide
– Identifies the portfolio of businesses that, in total,
comprise the company and the ways in which these
businesses relate to each other.
Philips Diversification Strategy
Corporate Strategies:
 Concentration strategy limits the firm to one line of
business
 Diversification strategy implies that the firm will expand
by adding new product lines.
 Vertical integration strategy means the firm expands by,
perhaps, producing its own raw materials, or selling its
products direct. Horizontal integration?
 Consolidation strategy reduces the company’s size
 Geographic expansion strategy takes the company
abroad.
Business-level/competitive strategy
– Identifies how to build and strengthen the business’s
long-term competitive position in the marketplace.
Competitive Strategies:
Figure 3.3
Relationships Among Strategies in Multi-Business Firms
Functional strategies
 Identify the basic courses of action that each
department will pursue in order to help the
business attain its competitive goals.
 HR
 Finance
 Sales/Marketing
 IT
 Production/Manufacturing
Formulating and executing human
resource policies and practices that
produce the employee competencies and
behaviors that the company needs to
achieve its strategic aims
Effective HR managers are able to:
 Handle a larger portfolio
 Work closely with top management to
formulate and implement company’s
strategic plans
 Two basic planning roles:
 Strategy Formulation
 Strategy Execution HRBP
 Stan Shih
Founder of Acer
 Acer Group - Overview
 The Acer Group is a family of four brands.

 This unique multi-brand strategy allows each brand to

offer a unique set of brand characteristics that targets different
customer needs in the global PC market.
 Today, the Acer Group still strives to break the barriers between
people and technology.
 It ranks No. 2 for total PC shipments and No. 2 for notebooks,
and has a global workforce of 7,000 employees. Estimated
revenues in 2009 reached US$17.9 billion.
Gianfranco Lanci, former
president of Acer Inc. since
2005, company CEO in June
2008. Left in February, 2011.
 Under his performance-driven
leadership, Lanci‘s focus is to
enhance the Acer Group’s
presence globally under a new
multi-brand strategy --
following the acquisitions of
Gateway and Packard Bell.
Gianfranco Lanci J. T. Wang
The Ex-Acer President and Chairman, Acer Inc.
CEO
 Oliver Ahrens
J. M. Tu, CFO
President of Acer China
Longo Toyota dealership in El Monte,
California uses human resource
policies and practices to encourage
hiring and developing salespeople
who speak languages from Spanish
and Korean to Tagalog and Arabic.
With a 60-person sales force that
speaks more than 20 languages,
languages
Longo’s staff offers a powerful
competitive advantage for serving El
Monte’s highly diverse customer
base. 3-34
3-35
Strategy Map
A graphical tool
that summarizes the
chain of activities
that contribute to a
company’s success
The Balanced Scorecard
 A process for assigning financial and
nonfinancial goals or metrics to the
human resource management–related chain
of activities required for achieving the
company’s strategic aims and for monitoring
results
Digital Dashboard
 Presents the manager with desktop graphs
and charts, so he or she gets a computerized
picture of where the company
stands on all the
metrics from the HR
Scorecard process
 HR Metrics & Benchmarking

HR metrics
 Types of metrics

Benchmarking and needs analysis

High-Performance
Work System
Let’s
te l
story l the
o ne
a ft e r
one!
Discussion:
1.Why people leave their jobs?
2.Why the grass is greener at the other side?
3.Is an exit interview helpful? Yes or no and why?
4.How would non-compete agreements help prevent
losing talents?
5.Is promoting Adrienne a good approach? What are
the possible consequences?
6.How can Sambian discover what's really driving
people out the door? Another company-wide survey?
Week Date Cases
10 Nov 10 #1: Recruitment of a star
#2: Navy SEALs – Selecting & training for an elite fighting
11 Nov 17
force
12 Nov 24 #3: Gap Inc. Refashioning performance management
13 Dec 1 #4: The Ottawa Voyageurs
#5: Employment Vignettes
14 Dec 8
#6: Cirque du Soleil
#7: A popular HR chief burned to death: People
management dynamics at the Indian subsidiary of
15 Dec 15
Suzuki Ltd.
#8: Suicides at France Télécom
 Next week (10/5)
 Preview Chapter 4
 Reading: “Old hand or new blood?”
 Project reviews:
。 X-Culture: Start working with your team members and
choose a client and its challenge.
。 Hult Prize: Attend the orientation on 9/30. Form your
team and register. Review challenge contents and a
coach.
。 Other off-campus competitions: Register and keep
teacher posted of your progress. Find a professor to be
your coach.
Keep up the spirits!
See you next week!