Competitive Environment

Competitive Environment

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Context

HR best practices (e.g., performance appraisal, selection systems) exist at a general level

The particular way in which best practices are applied depends on an organization’s unique strategy and characteristics

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Context

Primary HR practices focus on:Hiring the right peoplePlacing them in the right jobs or teamsTraining them to be effectiveMotivating them to work harderRetaining and rewarding them

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Context

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Context

When it creates value, an HR system provides a competitive advantage by being inimitable:

1. Causal ambiguity: competitors don’t know which particular HR practice caused what benefit

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Context

HR strategy is influenced by four primary factors:

1. The purpose and mission of the organization

2. The top management team

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Corporate strategy determines what businesses the firm will operate, there are four major corporate strategies:

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Business strategy deals with how firms will compete in business markets, there are four major strategies:

1. Strategies within the adaptation model match business strategy to the conditions of the business’ environment/market

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

3. Cost leadership strategy requires HR to find employees that will work for low costs, and train employees to be efficient and produce high output

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Functional strategy refers to the specific strategy used by a given function (e.g., HR, marketing, etc.) within an organization, HR functional strategy has three components:

1. Staffing involves forecasting labor needs, recruiting qualified applicants, and selecting the best applicants; it must fit with corporate and business strategies

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

2. Development involves managing employee performance (e.g., standards, sanctions, feedback), which includes training KSAs, career/succession planning, and productivity-enhancing interventions (e.g., job re-design)

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

In order to affect firm performance, HR systems and practices must be designed and administered such that all organizational members view them (HR systems/practices) the same way

To create shared meaning, HR systems must be:Distinct (visible, easy to understand, legitimate)Consistent (always lead to same outcome, valid)Consensual (communicated by all managers)

(Bowen & Ostroff, 2004)

Week : Context ∙ Strategies ∙ Implementation ∙ Evaluation

Strategies

Culture arises with human interaction, and is shaped by leaders, shared experiences, and external pressures. It evolves as a company brings in new people and develops new services

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

ACTIVITY

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

Implementation & Evaluation

Interpersonal processes have a major effect on the implementation of an HR strategy, people need to be motivated to enact a new strategy

Psychological contracts are employee’s expectation of what s/he will contribute to the organization and what the organization will return

Read both the implementation and evaluation sections on your own (focus on the above)

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation

ACTIVITY

Week 1: Context ∙ Strategies ∙ Implementation ∙ Evaluation