Meeting%20Present%20and%20Emerging%20Strategic%20Human%20Resource%20Challenges

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• Meeting Present and Emerging Strategic Human
  Resource Challenges

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Challenges

• Explain how a firms human resources influence
  its performance.
• Describe how firms can use HR initiatives to cope
  with workplace changes and trends such as a more
  diverse work force, the global economy,
  downsizing, and new legislation.
• Distinguish between the role of the HR department
  and the role of the firms managers in utilizing
  human resources effectively.
• Indicate how members of the HR department and
  managers within a company can establish a strong
  partnership.
• Formulate and implement HR strategies that can
  help the firm achieve a sustained competitive
  advantage.
• Identify HR strategies that fit corporate and
  business unit strategies.

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Key HR Challenges for Todays Managers
Environment

• Rapid Change
• Workforce Diversity
• Globalization
• Rise of Internet

• Legislation
• Evolving Work and Family Roles
• Skill Shortages and the Rise
• of the Service Sector

Organization

• Competitive Position Cost,
• Quality, Distinctive Capabilities
• Decentralization
• Downsizing
• Organizational Restructuring

• Self-Managed Work Teams
• Small Businesses
• Organizational Culture
• Technology
• Outsourcing

Individual

• Matching People and Organization
• Ethical Dilemmas and Social Responsibility
• Productivity
• Empowerment
• Brain Drain
• Job Insecurity

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Cultural Differences Between Hewlett-Packard and
Apollo
Cultural Element
Hewlett-Packard
Apollo
Behavioral regularities

• Planning and coordination
• Professional orientation
• People-minded style

• Crisis management
• Entrepreneurial orientation
• Rough-and-tumble style

Norms

• Carefully laid-out work
• objectives

• Pushing your own agenda

Dominant values

• Quality/reputation
• Components company

• Time-to-market
• Systems integrator

Philosophy

• Flexible bureaucracy
• Functional/matrix
• structure

• Ad-hoc-racy
• Functional/integrated
• structure

Rules of the game

• Problem solving
• Specialize
• Long tenure

• Winning is everything
• Be a generalist
• Job hoppers

Feeling or climate

• Strong engineering and
• marketing influence
• Polite/congenial
• Sing from the same hymnbook

• Strong RD and
• engineering influence
• Political/confrontational
• Mixed bag/misfits

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Code of Ethics of the American Marketing
Association
As a member of the American Marketing
Association, I recognize the significance of my
professional conduct and my responsibilities to
society and to other members of my profession
1. By acknowledging my accountability to society
as a whole as well as to the organization for
which I work. 2. By pledging my efforts to assure
that all presentations of goods, services, and
concepts be made honestly and clearly. 3. By
striving to improve marketing knowledge and
practice in order to better serve society. 4. By
supporting free consumer choice in circumstances
that are legal and are consistent with generally
accepted community standards.
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Code of Ethics of the American Marketing
Association (cont.)
5. By pledging to use the highest professional
standards in my work and in competitive
activity. 6. By acknowledging the right of the
American Marketing Association, through
established procedure, to withdraw my membership
if I am found to be in violation of ethical
standards of professional conduct.
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Blazing Graphics Mission Statement
Blazing Graphics will provide you with the most
effective visual communication attainable. We
will help you achieve all of your goals while
providing you with the greatest value both seen
and unseen. Here at Blazing Graphics we will
take the time to do things right. We do this by
controlling the entire graphic art process. This
enables us to better coordinate each job while
providing a higher level of service.
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Blazing Graphics Mission Statement (cont.)
Our mission is to ensure exceptional quality by
opening up communication between crafts normally
separated and at times adverse to one
another. Here at Blazing Graphics we have
committed ourselves and our resources to being on
the forefront of technology. Creative technical
know-how is the single most critical determinant
of economic competitiveness. Its our real
belief that together we can create an environment
that will be both personally and professionally
fulfilling for all the people who make up the
Blazing Community.
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Effective HR Strategy Formulation and
Implementation
Organizational Strategies
Environment
Consistency
Fit
Fit
Improved Firm Performance
HR Strategies
Consistency
Consistency
Fit
Fit
Organizational Characteristics
Organizational Capabilities
Consistency
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Selected HR Strategies That Fit Porters Three
Major Types of Business Strategies
Common Organizational Characteristics
Business Strategy
HR Strategies
Overall cost leadership

• Sustained capital investment and access to
  capital
• Intense supervision of labor
• Tight cost control requiring frequent, detailed
  control reports
• Low-cost distribution system
• Structured organization
• and responsibilities
• Products designed for ease in manufacture

• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on technical
• qualifications and skills
• Emphasis on job-specific
• training
• Emphasis on job-based pay
• Use of performance
• appraisal as a control device

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Selected HR Strategies That Fit Porters Three
Major Types of Business Strategies (cont.)
Common Organizational Characteristics
Business Strategy
HR Strategies
Differ- entiation

• Strong marketing abilities
• Product engineering
• Strong capability in basic research
• Corporate reputation for
• quality or technological
• leadership
• Amenities to attract highly skilled labor,
  scientists, or creative people.

• Emphasis on innovation
• and flexibility
• Broad job classes
• Loose work planning
• External recruitment
• Team-based training
• Emphasis on individual-
• based pay
• Use of performance appraisal as development tool

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Selected HR Strategies That Fit Porters Three
Major Types of Business Strategies (cont.)
Business Strategy
Common Organizational Characteristics
HR Strategies

• Combination of HR
• strategies above.

• Combination of cost-
• leadership and
• differentiation strategy
• directed at a particular
• strategic target.

Focus
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Selected HR Strategies That Fit Miles and Snows
Two Major Types of Business Strategies
Strategic HR Area
Defender Strategy
Prospector Strategy

• Innovation
• Flexibility
• Broad job classes
• Loose work planning
• External recruitment
• Supervisor makes selection decision
• Emphasis on fit of applicant with culture
• Informal hiring and socialization process of new
  employees

Work flows Staffing

• Efficient production
• Control emphasis
• Explicit job descriptions
• Detailed work planning
• Internal recruitment
• HR department makes selection decision
• Emphasis on technical qualifications and skills
• Formal hiring and socialization process

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Selected HR Strategies That Fit Miles and Snows
Two Major Types of Business Strategies (cont.)
Strategic HR Area
Defender Strategy
Prospector Strategy
Employee separations Performance appraisal

• Voluntary inducements to leave
• Hiring freeze
• Continuing concern for terminated employee
• Preferential rehiring policy
• Uniform appraisal procedures
• Used as control device
• Narrow focus
• High dependence on superior

• Layoffs
• Recruit as needed
• Individual on his/her own
• No preferential treatment for laid-off workers
• Customized appraisals
• Used as developmental tool
• Multipurpose appraisals
• Multiple inputs for appraisals

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Selected HR Strategies That Fit Miles and Snows
Two Major Types of Business Strategies (cont.)
Strategic HR Area
Defender Strategy
Prospector Strategy
Training Compensation

• Individual training
• On-the-job training
• Job-specific training
• Make skills
• Fixed pay
• Job-based pay
• Seniority-based pay
• Centralized pay decisions

• Team-based or cross-functional training
• External training
• Generic Training emphasizing flexibility
• Buy skills
• Variable pay
• Individual-based pay
• Performance-based pay
• Decentralized pay decisions

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Selected HR Strategies For Firms Low and High on
Different Environmental Characteristics
Environmental Dimension
Low
High
Degree of Uncertainty Volatility

• Detailed work planning
• Job-specific training
• Fixed pay
• High dependence on superior
• Control emphasis
• Efficient production
• Job-specific training
• Fixed pay

• Loose work planning
• Generic training
• Variable pay
• Multiple inputs for appraisals
• Flexibility
• Innovation
• Generic training
• Variable pay

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Selected HR Strategies For Firms Low and High on
Different Environmental Characteristics (cont.)
Environmental Dimension
Low
High
Magnitude of Change Complexity

• Broad job classes
• Informal hiring and socialization of new
  employees
• buy skills
• Customized appraisals
• Flexibility
• External recruitment
• Decentralized pay decisions
• Multiple inputs for appraisals

• Explicit job descriptions
• Formal hiring and socialization of new employees
• make skills
• Uniform appraisal procedures
• Control emphasis
• Internal recruitment
• Centralized pay decisions
• High dependence on superior

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Competencies Required of HR Department to Become
a Full Strategic Partner
Leadership

• Understand the nature and styles of leadership,
  and display appropriate leadership
  characteristics in performance of professional
  responsibilities.
• Demonstrate leadership at multiple performance
  levels
• Individual
• Team
• Unit or Organization

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Competencies Required of HR Department to Become
a Full Strategic Partner (cont.)
Knowledge of the Business

• Understand corporate business (structure, vision
  and values, goals, strategies, financial, and
  performance characteristics).
• Understand the units business, including special
  knowledge of competitors, products, technology,
  and sources of competitive advantage.
• Understand internal and external customers.
• Understand the environment (external and
  internal) of corporation and individual
  businesses.
• Understand key business disciplines
• Nature, scope, and HR implications of business
  globalization
• Information technology as it affects
  competitiveness and business processes

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Competencies Required of HR Department to Become
a Full Strategic Partner (cont.)
HR Strategic Thinking

• Understand the strategic business planning
  process.
• Understand and be able to apply a systematic HR
  planning process.
• Be able to select, design, and integrate HR
  systems or practices to build organizational
  mindset, capability, and competitive advantage
  for the business.
• Be able to develop and integrate business unit HR
  strategies within framework of corporate HR
  strategies.

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Competencies Required of HR Department to Become
a Full Strategic Partner (cont.)
Process Skills

• All HR professionals should be competent in key
  corporate processes and understand management
  processes critical to particular business units.
• Understand key process skills such as consulting,
  problem solving, evaluation/diagnosis, workshop
  design, and facilitation.
• Understand the basic principles, methodologies,
  and processes or organizational change and
  development.
• Facilitate and manage organizational change.
• Balance, integrate, and manage under conditions
  of uncertainty and paradox.

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Competencies Required of HR Department to Become
a Full Strategic Partner (cont.)
HR Technologies

• All HR professionals should have a generalist
  perspective on HR systems and practices as they
  relate to achievement of business competitive
  advantage.
• Generalists are capable of designing,
  integrating, and implementing HR systems to build
  organizational capability and create business
  competitive advantage.
• Specialists are capable of designing/delivering
  leading-edge practices to meet competitive
  business needs.
• All HR professionals are capable of measuring
  effectiveness of HR systems and practices.