Strategic Human Resource Management in a Changing Environment

1. Strategic Human Resource Managementin a Changing Environment 1

2. Human Resource Management • Products and services of HRM for personnel • organizational restructuring • job designing • personnel planning • recruiting • hiring • evaluating • training • developing • promoting • compensating • terminating

3. High-Performance Work Systems (HPWS) • Characteristics of HPWS • evaluate large numbers of highly qualified applicants for each strategic position • use validated selection and promotion models/procedures • implement extensive cross training and development of new employees • use formal performance appraisal and management • use multi-source (360 degree) performance appraisal and feedback • link merit increases to formal appraisal processes • above-market compensation for key positions • high percentage of entire workforce included in incentive system • high difference in pay between high and low performers • high percentage of workforce working in self-managed, project-based work teams • low percentage of employees covered by union contract • high percentage of jobs filled from within

4. Sustained Competitive Advantage • Keys to sustained competitive advantage • building and sustaining core competencies within the organization • maintaining flexibility • react quickly to the changing global marketplace and the advances in technology

5. Discrepancies Between Academic Research Findings and HRM Practice Source: H. J. Bernardin. “A Survey of Human Resource Practices,” Working Paper, 2005

6. Major Domains of HRM • Four major domains of HRM • acquiring human resource capability • developing human resource capability • rewarding and compensating human resources • managing human resources and enhancing productivity and quality of worklife

7. Major Activities of HR Management • Organizational Design • human resource planning • job analysis • job design • information systems • Staffing • recruiting/interviewing/hiring • affirmative action • promotion/transfer/separation • outplacement services • induction/orientation • employee selection methods

8. Major Activities of HR Management • Employee Training and Organizational Development • management/supervisory development • career planning/development • employee assistance/counseling programs • attitude surveys • training delivery options • diversity programs • Performance Management and Appraisal • management appraisal/management by objectives • productivity/enhancement programs • customer-focused performance appraisal • multi-rater systems

9. Major Activities of HR Management • Reward Systems, Benefits, and Compliance • safety programs/OSHA compliance • health/medical services • complaint/disciplinary procedures • compensation administration • wage/salary administration • insurance benefits administration • unemployment compensation administration • pension/profit-sharing plans • labor relations/collective bargaining

10. Major Trends Affecting HRM • Five major trends enhancing the importance of human resource management. • increased globalization of the economy • technological changes, challenges, and opportunities • need for flexible response to changing business environments • increase in litigation related to HRM • changing characteristics of the workforce

11. “Management by Measurement” System • “Management by measurement” system—ensuring all functional business units subscribe to guidelines for sound, strategic measurement • criteria to measure • performance (e.g., individual, team, unit) • quantity, quality, timeliness, cost-effectiveness, effects on others • productivity • customer satisfaction • absenteeism • turnover/retention/tenure/intentions to stay/leave • employee theft

12. “Management by Measurement” System • criteria to measure (continued) • violence in the workplace • job stress (e.g., role conflict, ambiguity) • job satisfaction/motivation/attitudes/commitment • creativity • perceived fairness (procedural, interactional) • error rates • accidents, health-related variables (worker stress, injuries) • organizational citizenship behavior

13. The Workforce Scorecard • Huselid, Becker, and Beatty (2005) state that a workforce that can execute strategy is the most critical and underperforming asset in most organizations. • three challenges organizations must take on to maximize workforce potential • call for the development of a “workforce scorecard” to determine how well the workforce executes strategy • outlines three challenges that face a successful workforce measurement and management system

14. Competitive Advantage • Competitive advantage—the ability of an organization to formulate strategies that place it at a favorable position relative to other companies in the industry • three major principles determine the extent of a business’s competitive advantage • customer value • uniqueness

15. Competitive Advantage & Customer Value • Customer value—customers feel that they receive more value from their transaction with an organization than from its competitors • factors in understanding the customer’s needs and expectations • particular product or service • tangible variables—corporate responsibility, environmental impacts, diversity policies, political issues, and affiliation with other products or services

16. Competitive Advantage & Uniqueness • Uniqueness—offering a product or service that your competitor cannot easily imitate or copy • four mechanisms for offering uniqueness • financial or economic capability—a business receives special access to financial funding or is able to produce a good or service cheaper than someone else • strategic or product capability—a business needs to offer a product or service that differentiates it from other products or services • technological or operational capability—a business can have a distinct way of building or delivering its product or service • organizational capability—the business’s ability to manage organizational systems and people in order to match customer and strategic needs