Strategic Human Resource Management

1. Strategic Human Resource Management This course in a nutshell

2. Business Strategies • Adaptation Model • Defender • Prospector • Analyzer • Reactor • Competitive Strategies • Differentiation • Cost Leadership • Focus

3. HR Practices: Options for Fit with Strategy • Job Analysis & Design • Recruitment & Selection • Training & Development • Performance Appraisal • Pay Systems • Labor & Employee Relations

4. Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

5. Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

6. Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

7. Combining Strategy & HR Choices From Human Resource Management: Gaining a Competitive Advantage, by Noe, Hollenbeck, Gerhart & Wright, McGraw-Hill, 4th edition, 2003, pages 70-71

8. Business Strategies • Competitive Strategies • Differentiation • Cost Leadership

9. Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions repetitiveroles independent autonomous Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

10. comfortwith stability high concern for quantity Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions short-term focus Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths promote internally risk averse

11. Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic define requiredskills  train Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

12. Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic behavioral performance management Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

13. performance- based compensation internally consistent pay Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives high differentials superiors/ subordinates Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

14. Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives worker participation seek ideas – improve efficiency Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets

15. Business Strategies • Competitive Strategies • Differentiation • Cost Leadership

16. broadly defined jobs general job descriptions Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions develop new ideas balance process with results Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

17. risk taker highly creative Job Analysis/Design Few tasks – Many tasks Simple tasks – Complex tasks Few skills required – Many skills required Specific job descriptions – General job descriptions cooperative moderate concern for quality long term focus tolerate ambiguity recruit externally Recruitment/Selection External sources – Internal sources Limited socialization – Extensive socialization Assessment of specific skills – Assessment of general skills Narrow career paths – Broad career paths

18. focus = cooperation Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic broad career paths limited socialization Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

19. results based performance management Training and Development Focus on current job skills – Focus on future job skills Individual orientation – Group orientation Train few employees – Train all employees Spontaneous, unplanned – Planned, systematic evals encourage risk taking Performance Management Behavioral criteria – Results criteria Developmental orientation – Administrative orientation Short-term criteria – Long-term criteria Individual orientation – Group orientation

20. Pay Structure/Incentives/Benefits Pay weighted on salary/benefits – pay weighted on incentives Short-term incentives – Long-term incentives Emphasis on internal equity – Emphasis on external equity Individual incentives – Group incentives external equity market driven Labor/Employee Relations Collective bargaining – Individual bargaining Top-down decision making – Participation in decision making Formal due process -- No due process View employees as expense – View employees as assets