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Human Resource Management Strategy

HR Management MBAO 6030

MBAO 6030 Human Resource Strategy

Human Resource Management Strategy The Meaning of “Strategy”  A critical factor that affects Firm Performance  A factor that contributes to Competitive Advantage in markets  Having a long-term focus  Plans that involve the top executives and/or board of directors of the firm  A general framework that provides a perspective for selecting specific policies and procedures MBAO 6030 Human Resource Strategy .

MBAO 6030 Human Resource Strategy .  Service is delivered by people.Human Resource Management Strategy Why is HR critical to firm performance?  85% of all firms in the US are service firms.  In the 21st century effective knowledge management translates into competitive advantage and profits.  Knowledge comes from a firm’s people.  Low quality HR leads to low quality customer service.

and most individual contributors due to the need of managing people (subordinates. Sociology (organization structure. culture) and Law (min. markets. labor contracts. satisfaction). peers and superiors) as well as teams to get things done. EEOC) HR is embedded within the work of all managers. wage.Human Resource Management Strategy What is unique about Human Resource Management?   HR is multidisciplinary: It applies the disciplines of Economics (wages. resources). MBAO 6030 Human Resource Strategy . Psychology (motivation.

) Rewards MBAO 6030 Human Resource Strategy .HR Strategy: Strategic Fit Corporate Strategy Business Strategy HR Strategy HR System Training (Performance Mgmt.

HR Strategy: HR System Internal Fit HR Strategy Goal Setting Appeal Performance Measurement Coaching Rewards Performance Evaluation Performance Management System MBAO 6030 Human Resource Strategy .

Ex. capital. Bush presidency and its agenda for Social Security. The “Five Factors” Influencing the HR System      External Environment Social: social values. changes. etc. MBAO 6030 Human Resource Strategy . regulatory rules. trends. court decisions. labor. factor markets. Economic: product.HR Strategy: Context of HR System 1. Political: political forces. Legal: laws. roles.

HR Strategy: Context of HR System 2. The Workforce  Demographics MBAO 6030 Human Resource Strategy .

Organization Culture   Weak vs. Strong culture “Type” of culture MBAO 6030 Human Resource Strategy .HR Strategy: Context of HR System 3.

HR Strategy: Context of HR System 4. Organization Strategy     What are a firm’s distinctive competencies? What is the basis that competitive strategy be sustained? What are a firm’s strategic objectives? Compare corporate and Business strategies. MBAO 6030 Human Resource Strategy .

Technology of Production & Organization of Work    Physical layout/employee proximity Required employee skills Ease of monitoring employees’ input MBAO 6030 Human Resource Strategy .HR Strategy: Context of HR System 5.

HR Strategy: Context of HR System Critical Thinking Questions: 1. uncertain and creative? What about predictable. What type of HR practices would fit with jobs with tasks that are highly ambiguous. routine and certain tasks? MBAO 6030 Human Resource Strategy . Give an example of a type of Organizational Culture that would reinforce strategy: What type of HR practices would fit with this culture? 3. Should a company monitor the HR environment and imitate “Best Practices” of HR from successful firms? What caveats would you want to apply to applying Best HR Practices? 2.

“Guardian”: low upside.HR Strategy: Strategic Roles Distribution of Task Outcomes: 3 Possibilities 1. low downside of performance variance MBAO 6030 Human Resource Strategy . high downside of performance variance 3. “Foot soldier”: low upside. low downside of performance variance 2. “Star”: high upside.

What are the advantages of focusing on foot soldiers with the company HR policies? 3. Which Roles are Strategic? Foot soldier. guardian or star? 2. What are the liabilities of stars? When is it advantageous to cultivate and sustain stars? MBAO 6030 Human Resource Strategy .HR Strategy: Strategic Roles Critical Thinking Questions: 1.

When there is a fit between HR systems. Single-employee consistency 2. The 3 types of consistency are… 1. employees are likely to receive consistent feedback. undiluted message of what behaviors are important and desirable. Temporal consistency MBAO 6030 Human Resource Strategy . Employees should receive a clear. Among-employee consistency 3.HR Strategy: Consistency Consistency is an important quality related to the implementation of HR policies.

Are there circumstances when it is effective to have inconsistent HR policies? Give an example.HR Strategy: Consistency Critical Thinking Questions 1. What impact (if any) would consistency have on the organization culture? MBAO 6030 Human Resource Strategy . Does an emphasis on temporal consistency create a barrier for change when change is necessary? 3. 2.