© 2008 Prentice Hall, Inc. © 2008 Prentice Hall, Inc. All rights reserved. All rights reserved. PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama 1 Human Resource Human Resource Management Management ELEVENTH EDITION ELEVENTH EDITION G A R Y D E S S L E R G A R Y D E S S L E R Strategic Human Resource Management Strategic Human Resource Management and the HR Scorecard and the HR Scorecard Chapter 3 Chapter 3 Part 1 | Introduction Part 1 | Introduction © 2008 Prentice Hall, Inc. All rights reserved. 3–2 After studying this chapter, you should be able to: 1. 1. Outline the steps in the strategic management Outline the steps in the strategic management process. process. 2. 2. Explain and give examples of each type of Explain and give examples of each type of companywide and competitive strategy. companywide and competitive strategy. 3. 3. Explain what a strategy-oriented human resource Explain what a strategy-oriented human resource management system is and why it is important. management system is and why it is important. 4. 4. Illustrate and explain each of the seven steps in the Illustrate and explain each of the seven steps in the HR Scorecard approach to creating human resource HR Scorecard approach to creating human resource management systems. management systems. © 2008 Prentice Hall, Inc. All rights reserved. 3–3 The Strategic Management Process The Strategic Management Process • Strategic Management Strategic Management  The process of identifying and executing the The process of identifying and executing the organization’s mission by matching its capabilities organization’s mission by matching its capabilities with the demands of its environment. with the demands of its environment. • Strategy Strategy  A chosen course of action. A chosen course of action. • Strategic Plan Strategic Plan  How an organization intends to balance its internal How an organization intends to balance its internal strengths and weaknesses with its external strengths and weaknesses with its external opportunities and threats to maintain a competitive opportunities and threats to maintain a competitive advantage over the long-term. advantage over the long-term. © 2008 Prentice Hall, Inc. All rights reserved. 3–4 Business Vision and Mission Business Vision and Mission • Vision Vision  A general statement of an organization’s intended A general statement of an organization’s intended direction that evokes emotional feelings in direction that evokes emotional feelings in organization members. organization members. • Mission Mission  Spells out who the company is, what it does, and Spells out who the company is, what it does, and where it’s headed. where it’s headed. © 2008 Prentice Hall, Inc. All rights reserved. 3–5 Types of Strategies Types of Strategies Diversification Strategy Geographic Expansion Strategy Vertical Integration Strategy Corporate-Level Strategies Consolidation Strategy © 2008 Prentice Hall, Inc. All rights reserved. 3–6 Types of Strategies (cont’d) Types of Strategies (cont’d) Cost Leadership Focus/Niche Business-Level/ Competitive Strategies Differentiation © 2008 Prentice Hall, Inc. All rights reserved. 3–7 Achieving Strategic Fit Achieving Strategic Fit • The “Fit” Point of View (Porter) The “Fit” Point of View (Porter)  All of the firm’s activities must be tailored to or fit All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies support its corporate and competitive strategies. strategies. • Leveraging (Hamel and Prahalad) Leveraging (Hamel and Prahalad)  “ “ Stretch” in leveraging resources—supplementing Stretch” in leveraging resources—supplementing what you have and doing more with what you have— what you have and doing more with what you have— can be more important than just fitting the strategic can be more important than just fitting the strategic plan to current resources. plan to current resources. © 2008 Prentice Hall, Inc. All rights reserved. 3–8 Strategic Human Resource Management Strategic Human Resource Management • Strategic Human Resource Management Strategic Human Resource Management  The linking of HRM with strategic goals and The linking of HRM with strategic goals and objectives in order to improve business performance objectives in order to improve business performance and develop organizational cultures that foster and develop organizational cultures that foster innovation and flexibility. innovation and flexibility.  Involves formulating and executing HR systems—HR Involves formulating and executing HR systems—HR policies and activities—that produce the employee policies and activities—that produce the employee competencies and behaviors that the company needs competencies and behaviors that the company needs to achieve its strategic aims. to achieve its strategic aims. © 2008 Prentice Hall, Inc. All rights reserved. 3–9 Strategic Human Resource Challenges Strategic Human Resource Challenges Corporate productivity and performance improvement efforts Increased HR team involvement in design of strategic plans Basic Strategic Challenges Expanded role of employees in the organization’s performance efforts © 2008 Prentice Hall, Inc. All rights reserved. 3–10 Human Resource Management’s Human Resource Management’s Strategic Roles Strategic Roles Strategy Execution Role Strategic Planning Roles Strategy Formulation Role [...]...Creating the Strategic Human Resource Management System Components of a Strategic HRM System Human Resource Professionals Human Resource Policies and Practices © 2008 Prentice Hall, Inc All Employee Behaviors and Competencies 3 11 KEY TERMS strategic plan strategic management vision mission SWOT analysis strategy strategic control competitive advantage leveraging strategic human resource management HR Scorecard... strategic human resource management HR Scorecard metrics value chain analysis © 2008 Prentice Hall, Inc All 3 12 Creating an HR Scorecard The 10-Step HR Scorecard Process 1 Define the business strategy 6 Identify required HR policies and activities 2 Outline value chain activities 7 Create HR Scorecard 3 Outline a strategy map 8 Choose HR Scorecard measures 4 Identify strategically required outcomes 9 Summarize... strategically required outcomes 9 Summarize Scorecard measures on digital dashboard 5 Identify required workforce competencies and behaviors 10 Monitor, predict, evaluate © 2008 Prentice Hall, Inc All 3 13 . resources. plan to current resources. © 2008 Prentice Hall, Inc. All rights reserved. 3 8 Strategic Human Resource Management Strategic Human Resource Management • Strategic Human Resource Management Strategic. Alabama 1 Human Resource Human Resource Management Management ELEVENTH EDITION ELEVENTH EDITION G A R Y D E S S L E R G A R Y D E S S L E R Strategic Human Resource Management Strategic Human Resource. competitive strategy. 3. 3. Explain what a strategy-oriented human resource Explain what a strategy-oriented human resource management system is and why it is important. management system is