Human Resource Management Strategy

and Performance

Dr. Wafaa Hashem

Gary Dessler.
16th edition
LEARNING OBJECTIVES:
When you finish studying this chapter, you should be able to:

 Give examples of each of the seven steps in the

strategic management process.
 List with examples the main types of strategies.
 Define strategic human resource management, and
give an example of strategic human resource
management in practice.
Give examples of what employers can do to have
high-performance systems.
 Explain how would you improve employee
engagement.
 Introduction:
To understand what human resource management is?
It’s useful to start with what managers do?
A manager is someone who is responsible for
accomplishing the organization’s goals, and who does so
by managing the efforts of the organization’s people.
Managing is to perform five basic functions:
 planning, organizing, staffing, leading, and controlling.
● Staffing: Determining what type of people should be
hired; recruiting prospective employees; selecting
employees; setting performance standards; compensating
employees; evaluating performance; counseling
employees; training and developing employees
Human resource management (HRM):

The process of acquiring, training, appraising,

and compensating employees, and of attending
to their labor relations, health and safety, and
fairness concerns.
Why Is Human Resource Management Important to
All Managers?
The HR concepts and techniques are important to all managers for
several reasons:
AVOID PERSONNEL MISTAKES First while managing. you don’t
want:
● To have your employees not doing their best.
● To hire the wrong person for the job.
● To experience high turnover.
● To have your company in court due to your discriminatory actions.
● To have an employee hurt due to unsafe practices.
● To let a lack of training undermine your department’s effectiveness.
● To commit any unfair labor practices.
Why Is Human Resource Management Important to
All Managers?

ALSO IMPROVING PROFITS AND PERFORMANCE:

More important, it can help ensure that you get results—
through people.
 Example: By hiring the right people and motivating
subordinates.
 The management planning process:
The basic management planning process consists of five
steps:
setting objectives
making basic planning forecasts
reviewing alternative courses of action
evaluating which options are best
and then choosing and implementing your plan.

A plan shows the course of action for getting from where

you are to the goal.
Planning is always “goal-directed”.
A strategic plan:
 Is the company’s overall plan for how it will
match its internal strengths and weaknesses
with its external opportunities and threats in
order to maintain a competitive position.

Strategy:
 A course of action the company can follow to
achieve its strategic aims.
 STRATEGIC MANAGEMENT:
The process of identifying and executing the organization’s strategic plan by matching
the company’s capabilities with the demands of its environment.

The strategic management process:

Step 1: De­fine the current business.
Step 2: Perform external and internal audits.
Step 3: Formulate a new direction.
Step 4: Translate the mission into strategic goals.
Step 5: Formulate strategies to achieve the strategic goals.
Step 6: Implement the strategies.
Step 7: Evaluate performance.
Vision statement: A general statement of the
firm’s intended direction; it shows, in broad terms,
“what we want to become.”
vision statement describes in broad terms what
the business should be.

Mission statement: Summarizes the answer to the

question, “What business are we in?” Or
summarizes what the company’s main tasks are
today.
Types/ levels of strategic planning:
corporate level strategic planning.
Business unit (or competitive) strategic planning.
 functional (or departmental) strategic planning.

The three standard competitive strategies:

cost leadership, differentiation, or focus.
Strategic Human Resource Management:
means formulating and executing human resource
policies and practices that produce the employee
competencies and behaviors the company needs to
achieve its strategic aims.
First, the manager formulates strategic plans and goals.
Next, he or she asks, “What employee skills and
behaviors will we need to achieve these plans and
goals?” And finally, he or she asks, “Specifically what
recruitment, selection, training, and other HR policies and
practices should we put in place to produce the required
employee skills and behaviors?”
Managers often refer to their specific HR policies and
practices as human resource strategies.
POLICIES AND PROCEDURES:
PROVIDE DAY-TO-DAY GUIDANCE
EMPLOYEES NEED TO DO THEIR JOBS IN A
MANNER THAT IS CONSISTENT WITH THE
COMPANY’S PLANS AND GOALS. POLICIES
SET BROAD GUIDELINES DESIGNING HOW
EMPLOYEES SHOULD ACT.
Strategic Human Resource Management Tools:
 Managers use several tools to translate the company’s strategic
goals into human resource management policies and practices.
These tools include the strategy map, the HR scorecard, and the
digital dashboard.
 Strategy Map Graphical tool that summarizes the chain of activities
that contribute to a company’s success, and so shows employees
the “big picture” of how their performance contributes to achieving
the company’s overall strategic goals
 HR Scorecard A process for assigning ­nancial and non­nancial 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 picture of where the company has been
and where it’s going, in terms of each activity in the strategy map.
 Strategic Human Resource Management Tools:
 Human resource metrics:
 The quantitative measurement of a human resource management
activity, such as employee turnover, hours of training per employee,
or qualified applicants per position. And also employee tenure, cost
per hire, and annual overall turnover rate.
 Benchmarking:
 The manager may want to benchmark the results—compare high
performing companies’ results to your own, to understand what
makes them better.
 HR audit:
 An HR audit is an analysis of the completeness, efficiency, and
effectiveness of the organization’s HR functions, including HR
policies, practices, processes, and relevant metrics.
 High-Performance Work Systems:
A high-performance work system (HPWS) is a set of
human resource management policies and practices that
together produce superior employee performance and
promote organizational effectiveness.
In other words, an aim of the high-performance recruiting,
screening, training, and other human resources practices
is to nurture an engaged, involved, informed, empowered,
and self-motivated workforce.
Employee Engagement Guide for Managers:
Employee Engagement and Performance
Employee engagement refers to being psychologically
involved in, connected to, and committed to getting one’s
jobs done. Engaged employees “experience a high level
of connectivity with their work tasks,” and work hard to
accomplish their task-related goals. Employee
engagement is important because it drives performance
and productivity
What Can Managers Do to Improve Employee
Engagement?

Steps managers can take to foster engagement is

making sure employees:
 (1) Understand how their departments contribute to the
company’s success.
(2) see how their efforts contribute to achieving the
company’s goals.
(3) get a sense of accomplishment from working at the
firm.
(4) And are highly involved— as when working in self-
managing teams.
How to Measure Employee Engagement:

“say, stay, and strive.”

First, How positively the employee speaks about the

company and recommends it to others.
Second, it looks at who stays with the company.
Third, it looks at “strive.” For instance, “do employees
take an active role in the overall success of the
organization by moving beyond just doing tasks to going
above and beyond?”.