Part 1

1. Part 1 The Human Resource Environment

2. Chapter Objectives After reading this chapter, you should be able to: Strategic Human Resource Management 2 1. Describe the differences between strategy formulation and strategy implementation. 2. List the components of the strategic management process. 3. Discuss the role of the HR function in strategy formulation. 4. Describe the linkages between HR and strategy formulation. 5. Discuss the more popular typologies of generic strategies and the various HR practices associated with each. 6. Describe the different HR issues and practices associated with various directional strategies. 7. List the competencies the HR executive needs to become a strategic partner in the company.

3. What Is Strategic Management? 2-2 • Strategic Management-Process for analyzing a company’s competitive situation, developing the company’s strategic goals, and devising a plan of action and allocating resources that will increase the likelihood of achieving these goals. • Strategic HRM- is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals. Irwin/McGraw-Hill

4. Strategic Management Process 2-3 Irwin/McGraw-Hill

5. The Role of HR in Strategy Formulation 2-4 Administrative Linkage One-Way Linkage Strategic Planning Strategic Planning HR Function HR Function Irwin/McGraw-Hill

6. The Role of HR in Strategy Formulation 2-5 Administrative Linkage Two-Way Linkage One-Way Linkage Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function Irwin/McGraw-Hill

7. The Role of HR in Strategy Formulation 2-6 Administrative Linkage One-Way Linkage Two-Way Linkage Integrative Linkage Strategic Planning Strategic Planning Strategic Planning Strategic Planning HR Function HR Function HR Function HR Function Irwin/McGraw-Hill

8. Strategy Formulation 2-7 Mission - reason for being Irwin/McGraw-Hill

9. Strategy Formulation 2-8 Mission Goals - what it hopes to achieve - reason for being Irwin/McGraw-Hill

10. Strategy Formulation 2-9 External Analysis - opportunities - threats Mission Goals - what it hopes to achieve - reason for being Internal Analysis - strengths - weaknesses Irwin/McGraw-Hill

11. Strategy Formulation 2-10 External Analysis - opportunities - threats Mission Goals Strategic Choice - what it hopes to achieve - reason for being - ways to fulfill goals and mission Internal Analysis - strengths - weaknesses Irwin/McGraw-Hill

12. Strategy Formulation 2-11 External Analysis - opportunities - threats Mission Goals Strategic Choice - what it hopes to achieve - reason for being - ways to fulfill goals and mission Internal Analysis - strengths - weaknesses HR Input Irwin/McGraw-Hill

13. Strategy Implementation 2-12 HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits HR Needs Strategic Choice - skills - behaviors - culture HR Capability HR Actions - behaviors - results - skills - abilities - knowledge Irwin/McGraw-Hill

14. Strategy Implementation 2-13 HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits Firm Performance HR Needs Strategic Choice - skills - behaviors - culture - productivity - quality - profitability HR Capability HR Actions - behaviors - results - skills - abilities - knowledge Emergent Strategies Irwin/McGraw-Hill

15. Product Life Cycle and Operating Strategies 2-14 Maturity Growth Formation Sales Porter Strategies Differentiation Cost Leadership Irwin/McGraw-Hill

16. HR Needs in Strategic Types 2-15 HR Role Differentiation Cost Leadership Focus of firm Employee role Training Staffing Compensation Performance management - creative, risk-taking - broader tasks creative risk-takers - broad career paths - recruit more from outside - external pay equity - results-oriented - efficiency - specific & repetitive - specific/short-term skills - promote internally - internal pay equity - behavior-oriented Irwin/McGraw-Hill

17. Product Life Cycle andDirectional Strategies 2-16 Concentration Growth Sales Downsizing Irwin/McGraw-Hill

18. HR needs in Directional Strategies 2-17 Growth HR Role Internal External Focus of firm Training Staffing Compensation Performance management - build on strengths - varied needs - hire and promote - incentive targets - behavior & results-oriented - acquire companies - conflict resolution - integrate new cultures acquire new skills - standardize practices - standardize practices Irwin/McGraw-Hill

19. HR needs in Directional Strategies 2-18 Downsizing Concentration HR Role Focus of firm Training Staffing Compensation Performance management - things they do best - sharpen current skills - promote from within - internal pay equity - behavior-oriented - retrenchment - replace depleted skills - need for flexibility, keep morale up - tie to company success - performance-based Irwin/McGraw-Hill

20. Human Resource Competencies 2-19 Professional & Technical Knowledge Business Competence HR Professional Integration Competence Ability to Manage Change Irwin/McGraw-Hill