Chapter1 Post

8/11/2019 Chapter1 Post

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CHAPTER ONE

Meeting Present and Emerging

Strategic Human Resource Challenges


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Chapter Objectives

Review Key EnvironmentalChallenges (external)

Review Key OrganizationalChallenges (internal)

Review IndividualChallenges

Discuss Planning andImplementing HR Policiesfrom a Strategic Prospective

Link HR Strategies andFirms Performance

Briefly Look at Best HRPractices

Review Key Terms Brain Drain

Decentralization

Downsizing

Environmental Challenges

Exempt Employees (salaried)

Human Resource Strategies (HRS)

Human Resource Tactic

Human Resources (HR)

Line Employees Managers

Nonexempt Employees

Outsourcing

Staff Employees


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Key Terms

Human Resources (HR) -people who work in anorganization (personal/associates/employees)

Human Resource Strategies (HRS)the deliberate

use a companys human resources to gain acompetitive advantage in the marketplace

Human Resource Tacticspolicies or procedures

put in place to gain that advantage


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More Terms

Managersperson who is in charge of others and is responsiblefor the timelyand correctexecution of actions that promote his or

hers unitssuccess

Line Employeesemployees that directly produces a companys

goods or delivers a companysservices Staff Employees- employees that support the line employees

Exempt Employees (salaried) employees that do not receive

extra pay for overtime (work beyond 40-hours per week)

Nonexempt Employees workers that do receive overtimecompensation


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Environmental Challenges

Environmental Challenges:forces external to a firminfluence behavior but largely beyond managements

control

Rapid Change

The Internet Revolution

Workforce Diversity

Globalization

LegislationWork/Life Balance

Skill Shortages & the Rise of the Service Sector

Natural Disasters


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Organizational Challenges

Organizational Challenges concerns that are internal to acompany effective mangers identify these issues and deal withthem before they become a major issue for the company. Thisrequires a company be proactiverather than reactivewhen dealingwith HR issues

Competitive Position Decentralization

Downsizing

Organizational Restructuring

Self-Managed Work Teams

The Growth of Small Businesses

Organizational Culture

Technology

Data Security

Outsourcing


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Individual Challenges

Individual Challengesaddress the issues relevant toindividual employees

Matching People and Organizations

Ethics and Social Responsibility

Productivity

Empowerment

Brain Drain

Job Insecurity


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Strategic Human Resource Planning

To be successful firms must align their HRstrategies with:

Their organizations overall strategies

The environmentTheir organizations characteristics

Their organizations capabilities


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Strategic Human Resource Planning- The Benefits

Encouragement of Proactive Rather Than ReactiveBehavior

Explicit Communication of Company Goals

Stimulation of Critical Thinking and OngoingExamination of Assumptions

Identification of Gaps Between Current Situation

and Future Vision

Encouragement of Line Managers Participation

Identification of HR Constraints and Opportunities

Creation of Common Bonds


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Strategic HR Planning -The Challenges

Maintaining a Competitive Advantage Reinforce Overall Business Support

Avoiding Excessive Concentration on Day-to-DayProblems

Developing HR Strategies Suited to UniqueOrganizational Features

Coping with the Environment

Securing Management Commitment

Translating the Strategic Plan into Action Combining Intended and Emergent Strategies

Accommodating Change


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HR Strategies & Company StrategiesBest Fit

Fit- refers to the compatibly between the HR strategiesand other important aspect the organization

Evolutionary Business Strategy(flexibility, quick response, entrepreneurship, risk-sharing, decentralization)

vs.

Steady-State Strategy(efficiency, detailed work planning, internal grooming of employees for promotion,

long-term career development, centralization)


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Defender Strategy(conservative businesses operating in a stable environment)

Work Flows Detailed work planning

Explicit job descriptions

Staffing

Internal recruitment

HR department makes selection

decision

Formal hiring process

Employees Separations

Hiring Freeze Concern for terminated workers

Preferential rehiring policy

Performance Appraisal Uniform appraisal procedure

Used as a control devise

High dependence on superior

Training

Individual training

On-the job training

Job-specific training

Make Skills

Compensation Fixed pay

Seniority based pay

Centralized pay decisions


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HR Strategies & the Environment -Best Fit

Degree of Uncertainty How much accurate information you have to make decisions

Volatility How often does your environment changes

Magnitude of Change How drastic are the changes when they occur

Complexity Sheer number of elements in the environment that effect the company

and the industry (individually or together)


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HR Strategies & Organizational CapabilitiesBest Fit

Leveraging your firms distinctive competenciesto give your company a competitive advantage:

Technical abilities

Management SystemsReputation

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HR Best Practices

Employment Security Selectivity in Recruiting

High Wages

Incentive Pay

Employee Ownership Information Sharing

Participation & Empowerment

Self-managed Teams

Training & Skills Development

Cross-Utilization and Cross-training

Promotion from Within

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