2. Learning Objectives
1. Explain why strategic planning is important to all
managers.
2. Explain with examples each of the seven steps in
the strategic planning process.
3. List with examples the main generic types of
corporate strategies and competitive strategies.
4. Define strategic human resource management
and give an example of strategic human
resource management in practice.
3. Learning Objectives
4. Briefly describe three important strategic
human resource management tools.
5. Explain with examples why metrics are
important for managing human resources.
4. 1. Explain why strategic planning is
important to all managers.
5. The Strategic Management Process
The Shanghai Portman Hotel
• Strategically they set the goal of making their
hotel outstanding by offering superior
customer service.
• To achieve this, the hotel employees would
have to exhibit new skills and behavior, for
instance, in terms of how they treated and
responded to guests.
6. The Strategic Management Process
The Shanghai Portman Hotel
• To produce this employee skills and behaviors,
the management formulated new human
resources management plans and policies.
7. Goal Setting and the Planning Process
• Setting objectives
• Basic planning forecasts
• Reviewing alternative courses of action
• Evaluation of options
• Choosing and implementation of plan.
*A plan shows getting from where you are to where
you want to go.
9. Strategic Planning
Strategy
A course of action the company can pursue to
achieve its strategic aims.
Strategic Plans
The company’s plan for how it will match its
internal strengths and weaknesses with the
external opportunities and threats in order to
maintain a competitive advantage.
10. Strategic Planning
Strategic Management
The process of identifying and executing the
organization’s strategic plan by matching the
company’s capabilities with the demands of
its environment.
11. 2. Explain with examples each of
the seven steps in the strategic
planning process.
17. Competitive Strategy/
Business Unit
• Competitive Strategy
– A strategy the identifies how to build and
strengthen the business long term competitive
position in the market place.
• Competitive advantage
– Any factors that allow an organization to
differentiate its products or service from those of
its competitors to increase market share.
20. Functional Strategy
• A strategy that identifies the broad activities
that each department will pursue in order to
help the business accomplish its competitive
goals.
• Strategic Fit
– Porter said that each departments functional
strategy must fit and support the company’s aim.
22. Top Management’s Role in StratMAn
• Devise strategic plan
• Determines the direction of the business.
• Responsible for achievement of company
aims.
23. Departmental Managers’ Role
• They help devise the strategic plan.
• They formulate supporting,
functional/departmental strategies.
• They execute the plans.
24. 4. Define the Strategic Human
Resource Management and give an
example of Human Resource
Management in Practice.
25. Strategic Human Resource
Management
• Formulating and executing human resource
policies and practices that produce employee
competencies and behaviors the company
needs to achieve its strategic aims.
29. 5. Briefly describe three important
strategic human resource
management tools.
30. Strategy Map
• A graphical tool that summarizes the chain of
activities that contribute to a company’s
success and so shows employees the “big
picture” of how each employee and
department’s performance contributes to
achieving the company’s overall strategic
goals.
32. HR Scorecard
• A process for managing employee
performance and for alignment of all
employees with key objectives of assigning
financial and non financial goals or metrics to
the human resource management related
chain of activities required for achieving the
company’s strategic aims and for monitoring
the results.
35. Digital Dashboard
• Presents the manager with desktop graphs
and charts so he gets a picture of where the
company is ad where it is going tin terms of
each activity in the strategy map.
37. HR Metrics and Benchmarking
• Measuring performance is an integral part of
Strategic HRM.
• Management translates workforce
requirement to measurable worker
competencies and behavior.
• Formulation of supportive HR strategies,
policies, and practices to produce intended
workforce competencies.
39. Benchmarking
• Comparing the practices of high performing
companies to your own, in order to
understand what they do that makes them
better.
40. 6. Explain with examples why
metrics are important for
managing human resources.
41. Strategy and Strategy Based Metrics
• Strategy-based metrics
– Metrics that focus on measuring activities that
contribute to achieving a company’s strategic aim.
• Examples:
– Measuring customer service quality, customer
engagement, sales pitch success, employee
process knowledge.
– Action plans to improve performance of
workforce.
42.
43. Workforce/Talent Data Mining and
Analytics
• The use of applications to analyze human
resources data and draw conclusion from it.
• Data mining is the technique used to search
for relevant data (new, hidden, unexpected
patterns).
46. HR Audit
• An analysis by which an organization measures
where it currently stands and determines what is
has to accomplish to improve its hr function.
– Roles, head count, legal issues, recruitment,
compensation, employee relations, benefits, payroll,
documentation and record keeping, training and
development, employee communications, internal
communications, termination and transition policies
and practices.
47. Evidenced Based HR and Scientific
Approach
• Be objective in gathering and interpreting
data.
• Use of experimentation.
• This approach will allow managers to have
better decision making.
48. High Performance Work System
• A set of human resource management policies
and practices that promote organization or
superior employee effectiveness.
• 4 Principles
– Egalitarianism and engagement
– Shared information
– Knowledge and talent development
– Performance-reward linkage
49. Egalitarianism and Engagement
• Sense of being members, not just workers, in an
organization
• Egalitarian work environments eliminate status and
power differences
• Increase collaboration and teamwork
• Productivity improves through working together
• Employee engagement: Involving employees in
decision-making and giving them the power
• Engaged employees: performing at high levels, are
enthusiastic about what they do, and look for
better, more efficient ways of doing things
50. Shared Information
• The principal of shared information is critical to the
success of employee empowerment and
involvement initiatives in organizations
• In the past employees traditionally were not given and
did not ask information about the organizations
• Information helps employees make good suggestions
for improving the business and to cooperate in major
organizational changes
• The principal of shared information typifies a shift in
the relationship between employer and employee
in organizations
51. Knowledge and Talent Development
• Knowledge development: the twin sister of information
sharing
• “The only thing you get when you empower dummies, is
bad decisions faster.”
• The number of jobs requiring little knowledge and skill is
declining
• The number of jobs requiring greater knowledge and skill is
growing
• High-performance work systems depend on the shift from
touch labor to knowledge work
• Employees today need a broad range of skills
• Knowledge and skill requirements must also change rapidly
52. Performance-Reward Linkage
• People may intentionally or unintentionally
pursue outcomes that are beneficial to
them but not necessarily to the organization
as a whole
• When companies reward their employees
based on their performance, workers
naturally pursue outcomes that are mutually
beneficial to themselves and the
organization
53. You are now able to:
1. Explain why strategic planning is important to all
managers.
2. Explain with examples each of the seven steps in
the strategic planning process.
3. List with examples the main generic types of
corporate strategies and competitive strategies.
4. Define strategic human resource management
and give an example of strategic human
resource management in practice.
54. You are now able to:
4. Briefly describe three important strategic
human resource management tools.
5. Explain with examples why metrics are
important for managing human resources.
56. The Strategic Human Resource
Manager: Roles and Competencies
Presented by
JC Guiyab, RN
Part Two
57. Yesterday and Today
• Managers are focused on transactional HR
activities like payroll, hiring, compensation and
benefits.
• Role expanded to testing and training and dealing
with unions that began in the 1930s.
• 60s began the role of helping the company avoid
and manage discrimination claims.
• Today HR managers are dealing with
globalization, increased demand of profit from
operations, and technology.
58. The Role and Competencies of the
Strategic HR Manager
60. The use new ways to provide
transactional services
61. They Take an Integrated, Talent
Management Approach
to Managing Human Resources
• Talent management is the goal-oriented and
integrated process of planning, recruiting,
developing, managing, and compensating
employees. It involves instituting a
coordinated process for identifying, recruiting,
hiring, and developing high-potential
employees.
62. They Take an Integrated, Talent Management
Approach
to Managing Human Resources
64. They Manage Employee Engagement
• The Institute for Corporate Productivity
defines engaged employees as those who are
mentally and emotionally invested in their
work and in contributing to an employer s
success.
69. They Add Value
• Adding value means helping the firm and its
employees gain in a measurable way from the
human resource manager’s actions.
• Putting in place a high-performance work
system is one way to add value.
70. They Have New Competencies
1. Talent Managers/Organization Designers, with a
mastery of traditional human resource management
tasks such as acquiring, training, and compensating
employees
2. Culture and Change Stewards, able to create human
resource practices that support the firms cultural
values.
3. Strategy Architects, with the skills to help establish
the company s overall strategic plan, and to put in
place the human resource practices required to
support accomplishing that plan
71. They Have New Competencies
4. Operational Executors, able to anticipate, draft,
and implement the human resource practices
(for instance in testing and appraising) the
company needs to implement its strategy
5. Business Allies, competent to apply business
knowledge (for instance in finance, sales, and
production) that enable them to help functional
and general managers to achieve their
departmental goals
72. They Have New Competencies
6. Credible Activists, with the leadership and
other competencies that make them both
credible (respected, admired, listened to) and
active (offers a point of view, takes a position,
challenges assumptions.)
Start the report with CHARADE… for two groups… play charade… ask what they did to win…
Ask the class to provide examples of possible hr mgt plans and policies.
Ask first the steps of the planning process to the class before discussion.
Ask: Why do you think STRATEGY is becoming a hot trend, why don’t we just use a simple PLAN?
Step 1 is knowing your identity. Who you are selling or servicing to, what products or services you provide etc… Apple VS Samsung.
Step 2 do SWOT analysis
Step 3 is mission/ vision. Vision is what you want to become. Mission is summarizes the things need to be done now. Ask the audience to define each. And give examples.
Step 4 is how to do it. Ask audience to give examples of what actions they need to take to implement or plan for action.
Step 5 is choosing a strategy and course of action
Corporate Strat– What business are we in?
Business Strat – How are we going to compete?
Function Strat– how do we support the business’s competitive strategy.. This where we insert Strat Human Resource Management.
For example, with a concentration (single business) corporate strategy, the
company offers one product or product line, usually in one market. WD-40
Company (which makes a spray hardware lubricant) is one example.
* A diversification corporate strategy implies that the firm will expand by adding
new product lines. PepsiCo is diversified. Over the years, PepsiCo added chips
and Quaker Oats. Such related diversification means diversifying so that a firms
lines of business still possess a logical fit. Conglomerate diversification means
diversifying into products or markets not related to the firms current businesses
or to one another.
* A vertical integration strategy means the firm expands by, perhaps, producing its
own raw materials, or selling its products direct. Thus, Apple opened its own
Apple stores.
* With consolidation strategy, the company reduces its size.
* With geographic expansion, the company grows by entering new territorial markets,
for instance, by taking the business abroad, as PepsiCo also did.
Competitive- It identifies, for instance, how
Pizza Hut will compete with Papa Johns or how Walmart competes with Target.
Ask this question to the class and require them to provide their POV on the topic.
Example: Highly skilled manpower with certifications from TESDA.
For example, the business s competitive strategy should mold the firms human
resource management policies and practices. As an example, the Portland hotel wants
to differentiate itself with exceptional service, and so needs to select and train
employees who are exceptionally customer oriented.Walmart s low cost competitive
strategy translates into human resource management policies that many view as
low-pay and antiunion.
For example, the business s competitive strategy should mold the firms human
resource management policies and practices. As an example, the Portland hotel wants
to differentiate itself with exceptional service, and so needs to select and train
employees who are exceptionally customer oriented.Walmart s low cost competitive
strategy translates into human resource management policies that many view as
low-pay and antiunion.
Remind the class about the SWOT analysis. Show that this should not be a finite model by drawing a line from organization performance to company strat situation.
Scorecards are tailored based on the current strategies of the HR department.
Employers increasingly use workforce analytics (or talent analytics ) software applications
to analyze their human resources data and to draw conclusions from it.30
For example, a talent analytics team at Google analyzed data on employee backgrounds,
capabilities, and performance. The team was able to identify the factors
(such as an employee feeling underutilized) likely to lead to the employee leaving. In a
similar project, Google analyzed data on things like employee survey feedback
and performance management scores to identify the attributes of successful Google
managers. Microsoft identified correlations among the schools and companies
employees arrived from and the employee s subsequent performance. This enabled
Microsoft to improve its recruitment and selection practices.3
Evidence-based human
resource management is the use of data, facts, analytics, scientific rigor, critical evaluation,
and critically evaluated research/case studies to support human resource
management proposals, decisions, practices, and conclusions.