A Way to Assess Organizational Behavior

Actually Strategic Human Resources Management (SHRM)
◦ The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals
 Strategy formulation—providing input as to what is possible given the types and numbers of people available.
 Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.

 Strategic Analysis ◦ What human resources are needed to do job and what are available?  Strategic Formulation ◦ What structure is required and necessary in support of human resources?  Strategic Implementation ◦ How will the human resources be allocated? Human Resources Planning Strategic Planning .

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clarifies the longterm direction of the company and its strategic intent  Core Values ◦ The strong and enduring beliefs and principles that the company uses as a foundation for its decisions . Mission ◦ The basic purpose of the organization as well as its scope of operations  Strategic Vision ◦ A statement about where the company is going and what it can become in the future.

FEEDBACK ASSESS ENVIRONMENT EXTERNAL CONDITIONS SET OBJECTIVES EFFICIENCY • Organization • Employee EQUITY • Organization • Employee APPLY HUMAN RESOURCE ACTIVITIES PLANNING STAFFING DEVELOPMENT EMPLOYEE/UNION RELATIONS COMPENSATION EVALUATE RESULTS • EFFICIENCY EQUITY World Conditions • Economic Conditions • Government Regulations • Unions • Technology ORGANIZATIONAL CONDITIONS • Nature of the Organization • Nature of the Work EMPLOYEE CONDITIONS • Abilities (KSA) • Motivation • Interests THE DIAGNOSTIC MODEL George Milkovich John Boudreau .

Demographic trends: age. Social concerns: child care and educational priorities 6. Environmental Scanning ◦ The systematic monitoring of the major external forces influencing the organization. Political and legislative issues: laws and administrative rulings 5. composition. 1. Economic factors: general and regional conditions 2. Competitive trends: new processes. services. and innovations 3. and literacy . Technological changes: robotics and office automation 4.

Culture Competencies Internal Analysis Composition .

How do employees spend their time? How do they interact with each other? Are employees empowered? What is the predominant leadership style of managers? How do employees advance within the organization? . Cultural Audits ◦ Audits of the culture and quality of work life in an organization.

Are 4. Are 2. Are valuable. difficult to imitate. Are 3.  Sustained competitive advantage through people is achieved if these human resources: 1. rare and unavailable to competitors. organized for synergy. Core Competencies ◦ Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. .

 SWOT analysis ◦ A comparison of strengths. and alleviate internal weaknesses. counteract threats. . weaknesses. ◦ Use the strengths of the organization to capitalize on opportunities. Strategy Formulation ◦ Moving from simple analysis to devising a coherent course of action. opportunities. and threats for strategy formulation purposes.

Growth and Diversification Mergers and Acquisitions Corporate Strategy Strategic Alliances and Joint Ventures .

. the amount of benefits provided by the product or service once the costs of making it are subtracted. ◦ Low-cost strategy: competing on productivity and efficiency  Keeping costs low to offer an attractive price to customers (relative to competitors). ◦ Differentiation strategy: compete on added value  Involves providing something unique and distinctive to customers that they value. Value Creation ◦ What the firm adds to a product or service by virtue of making it.

 Internal Fit (or Internal Alignment) ◦ Aligning HR practices with one another to establish a configuration that is mutually reinforcing. . External Fit (or External Alignment) ◦ Focuses on the connection between the business objectives and the major initiatives in HR.

forecasting the supply of labor c. Forecasting involves: a. balancing supply and demand considerations. forecasting the demand for labor b. .

FORECASTING DEMAND Considerations • • • • • • Product/service demand Technology Financial resources Absenteeism/turnover Organizational growth Management philosophy Techniques • Trend analysis • Managerial estimates • Delphi technique BALANCING SUPPLY AND DEMAND (Shortage) Recruitment • Full-time • Part-time • Recalls Techniques • • • • • • Staffing tables Markov analysis Skills inventories Management inventories Replacement charts Succession planning External Considerations • • • • • Demographic changes Education of the workforce Labor mobility Government policies Unemployment rate (Surplus) Reductions • • • • Layoffs Terminations Demotions Retirements FORECASTING SUPPLY .

but not unique.  Example: Senior software programmer  Traditional job-based employees ◦ Employees with skills to perform a predefined job that are quite valuable to a company. Core knowledge workers ◦ Employees who have firm-specific skills that are directly linked to the company’s strategy.  Example: Security guard .

but those skills are not directly related to a company’s core strategy.  Example: General electrician  Alliance/partners ◦ Individuals and groups with unique skills. Contract labor ◦ Employees whose skills are of less strategic value and generally available to all firms.  Example: Independent product label designer .

Source: McKinsey & Company .

 Taking Action: Reconciling Supply and Demand ◦ Balancing demand and supply considerations  Forecasting business activities (trends)  Locating applicants ◦ Organizational downsizing  Reducing “headcount” ◦ Making layoff decisions  Seniority or performance?  Labor agreements .

 Evaluation and Assessment Issues ◦ Benchmarking: The process of comparing the organization’s processes and practices with those of other companies ◦ Human capital metrics  Assess aspects of the workforce ◦ HR metrics  Assess the performance of the HR function itself .

 Strategy Mapping and the Balanced Scorecard ◦ Balanced Scorecard (BSC)  A measurement framework that helps managers translate strategic goals into operational objectives     financial customer processes learning .

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. ◦ Coordination flexibility  The ability to rapidly reallocate resources to new or changing needs. ◦ Resource flexibility  Having human resources who can do many different things in different ways. Organizational Capability ◦ Capacity of the organization to act and change in pursuit of sustainable competitive advantage.

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