Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–12–1...

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 2–1

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

Explain strategic HR management and how it is linked to organizational strategies.

Describe how legal, political, cultural, and economic factors affect global HR management.

Discuss four dimensions of organizational effectiveness and how HR contributes to each.

Define HR planning and outline the HR planning process.

Discuss several ways of managing a surplus of human resources.

Identify why HR metrics must consider both strategic and operational HR measures.


HR HR ManagemeManagement Activitiesnt Activities

HR HR ManagemeManagement Activitiesnt Activities

Figure 1–2


Strategic HR Management ProcessStrategic HR Management ProcessStrategic HR Management ProcessStrategic HR Management Process

Figure 2–1


Ford’s PlanFord’s PlanFord’s PlanFord’s Plan

• Strengthen Brands• Deliver innovative products• Reduce costs• Improve quality


Approaches to Improving Organizational Productivity

Approaches to Improving Organizational Productivity

Figure 2–3


TacticsTacticsTacticsTactics

• Differentiate brands• Design, innovation, safety, technology• Utilize global architectures• Reduce material costs • Introduce straightforward pricing• Lean manufacturing system• Reduce plant employment by 25,000-

30,000, and cut 4,000 white collar jobs (cost-$250 million)


Purpose of HR PlanningPurpose of HR PlanningPurpose of HR PlanningPurpose of HR Planning

Figure 2–4


HR Planning ProcessHR Planning ProcessHR Planning ProcessHR Planning Process

• HR Strategies

Overall Overall Strategic PlanStrategic Plan

Human Resources Human Resources Strategic PlanStrategic Plan

HR ActivitiesHR Activities


Making Downsizing More EffectiveMaking Downsizing More EffectiveMaking Downsizing More EffectiveMaking Downsizing More Effective

Figure 2–9


““Way Forward”Way Forward”““Way Forward”Way Forward”

• War Room• Team of several hundred workers• Team of 20-50 working on “plan”• 9-10 cross-functional teams working on

brands, revenue, purchasing, culture, capacity

• Sworn to secrecy• Banned powerpoint slides• Nearly-final review Nov. 14• Presented to Board Dec. 7


Examples of Strategic and Operational Examples of Strategic and Operational HR MetricsHR Metrics

Examples of Strategic and Operational Examples of Strategic and Operational HR MetricsHR Metrics

Figure 2–10


Measures of Strategic HR EffectivenessMeasures of Strategic HR Effectiveness

• Return on Investment (ROI)Calculation showing the value of expenditures

for HR activities.

A = Operating costs for a new or enhance system for the time periodA = Operating costs for a new or enhance system for the time period

B = One-time cost of acquisition and implementationB = One-time cost of acquisition and implementation

C = Value of gains from productivity improvements for the time periodC = Value of gains from productivity improvements for the time period

B A

C

ROI


Assessing HR EffectivenessAssessing HR EffectivenessAssessing HR EffectivenessAssessing HR Effectiveness

• HR AuditA formal research effort that evaluates the current

state of HR management in an organizationAudit areas:

Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA) Current job specifications and descriptions Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Grievance resolution process Orientation program Training and development Performance management system


Estimating Internal Labor Supply for a Given Estimating Internal Labor Supply for a Given UnitUnit

Estimating Internal Labor Supply for a Given Estimating Internal Labor Supply for a Given UnitUnit

Figure 2–8

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.2–12–1...

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