Chapter 1: Meeting Present and
Emerging Strategic Human Resource
Challenges
[Link] Managerial Perspective
Human Resources (HR) People who work in an
organization.
Human Resource Strategy A firms deliberate use of
human resources to help it gain or maintain an edge
against its competitors in the marketplace. The grand
plan or general approach an organization adopts to
ensure that it effectively uses its people to accomplish
its mission.
Human Resource Tactic A particular HR policy or
program that helps to advance a firms strategical goal.
Even in tough economic times the need for talented
employees is high
Human Resources = Value of employees
2. Human Resource Management:
The Challenges
[Link] of Employees
Manager
Line Employee
Staff Employee
Senior Employee
Junior Employee
Exempt Employees
Nonexempt Employees
2.2. Key HR Challenges for Managers
2.2. Key HR Challenges: Environmental
Are the forces external to the [Link] influence
organizational performance but are largely beyond
managements control. Managers, therefore, need to
monitor the external environment constantly for
opportunities and threats. They must also maintain
the flexibility to react quickly to challenges.
Rapid Change
The Internet Revolution
Workforce Diversity
Globalization
Legislation
Evolving Work and Family Roles
Skill Shortages
Rise of the Service Sector
Natural Disasters
2.2. Key HR Challenges: Organizational
Are concerns or problems internal to a firm.
Effective managers spot organizational issues and
deal with them before they become major
problems.
Competitive Position
Decentralization
Downsizing
Organizational Restructuring
Self-Managed Work Teams
The Growth of Small Businesses
Organizational Culture
Technology
Internal and Data Security
Outsourcing
Product Integrity
2.2. Key HR Challenges: Individual
Human resource issues at the individual level
address the decisions most pertinent to specific
employees. These individual challenges almost
always reflect what is happening in the larger
organization.
Matching People and Organizations
Ethics and Social Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity
3. Planning and Implementing Strategic
HR Policies
To be successful, firms must closely align their
HR strategies and programs (tactics) with
environmental opportunities, business
strategies, and the organizations unique
characteristics and distinctive competence.
Strategic human resource (HR) planning
The process of formulating HR strategies and
establishing programs or tactics to
implement them.
[Link] Benefits of Strategic HR
Planning
The process of formulating HR strategies and
establishing programs or tactics to implement them
is called strategic human resource (HR) planning .
When done correctly, strategic HR planning
provides many direct and indirect benefits for the
company.
Encouraging Proactive Behavior
Communicating Company Goals
Stimulating Critical Thinking and Ongoing Examination of
Assumptions
Identifying Gaps Between Current Situation and Future
Vision
Encouraging Line Managers Participation
Identifying HR Constraints and Opportunities
Creating Common Bonds
[Link] Challenges of Strategic HR
Planning
In developing an effective HR strategy, the
organization faces several important challenges.
Maintaining a Competitive Advantage
Reinforcing Overall Business Strategy
Avoiding Excessive Concentration on Day-to-Day
Problems
Develop HR Strategies Suited to Unique Organizational
Features
Coping with the Environment
Securing Management Commitment
Translating the Strategic Plan into Action
Combining Intended and Emergent Strategies
Accommodating Change
3.3. Strategic HR Choices
A firms strategic HR choices are the options it
has available in designing its human resources
system.
Work Flows
Staffing
Employee Separations
Performance Appraisal
Training and Career Development
Compensation
Employee Rights
Employee and Labor Relations
International Management
4. Selecting HR Strategies to
increase firm Performance
To increase firm performance
HR strategies should fit with other
aspects of the organization
4.1. Fit with Organizational
Strategies
Corporate Strategies
Evolutionary
Steady State
Porters Business Unit Strategies
Cost leadership
Differentiation
Focus
Miles and Snows Business Strategies
Defender
Prospector
4.2. Fit with Environment
In addition to reinforcing overall organizational strategies, HR
strategies should help the organization better exploit environmental
opportunities or cope with the unique environmental forces that
affect it.
4.3. Fit with Organizational
Characteristics
To be effective, HR strategies must be
tailored to the organizations personality.
Production Process
Firms Market Posture
Firms Overall Managerial Philosophy
Firms Organizational Structure
Firms Organizational Culture
4.4. Fit with Organizational
Capabilities
A firms organizational capabilities include its
distinctive competencies , those characteristics
that give the firm a competitive edge.
Distinctive Competencies
Competitive edge
HR Strategies should:
Help firm exploit its competencies
Assist the firm to help use its HR skills
5. Human Resources and Managers:
A Partnership
Role of HR Department is to support the
managers HR responsibilities
HR Audit:
Conduct periodically
Evaluates how effective firm is at using
human resources
Often is an opportunity to evaluate the
human resource department as well
6. Summary and Conclusions
Many challenges in HRM
Plan and Implement HR in a strategic
manner
Policies and procedures should be congruent
Select strategies that increase performance
HR department and management share an
important partnership