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Transcript of GARY DESSLER HUMAN RESOURCE MANAGEMENT Global Edition 12e Chapter 3 The Manager’s Role in...
GARY DESSLER
HUMAN RESOURCE MANAGEMENT Global Edition 12e
Chapter 3
The Manager’s Role in Strategic Human Resource Management
PowerPoint Presentation by Charlie CookThe University of West AlabamaCopyright © 2011 Pearson Education
Part 1 Introduction
Copyright © 2011 Pearson Education 3–2
WHERE WE ARE NOW…WHERE WE ARE NOW…
Copyright © 2011 Pearson Education 3–3
1.1. Explain why strategic planning is important to all Explain why strategic planning is important to all managers.managers.
2.2. Outline the basic steps in the management planning Outline the basic steps in the management planning process.process.
3.3. List the main contents of a typical business plan.List the main contents of a typical business plan.
4.4. Answer the question, “What should a manager do to set Answer the question, “What should a manager do to set ‘smart’ motivational goals?”‘smart’ motivational goals?”
5.5. Explain with examples each of the seven steps in the Explain with examples each of the seven steps in the strategic planning process.strategic planning process.
6.6. List with examples the main generic types of corporate List with examples the main generic types of corporate strategies and competitive strategies.strategies and competitive strategies.
LEARNING OUTCOMESLEARNING OUTCOMES
Copyright © 2011 Pearson Education 3–4
7.7. Define strategic human resource management and give Define strategic human resource management and give an example of strategic human resource management an example of strategic human resource management in practice.in practice.
8.8. Briefly describe three important strategic human Briefly describe three important strategic human resource management tools.resource management tools.
9.9. Explain with examples why metrics are essential for Explain with examples why metrics are essential for identifying and creating high-performance human identifying and creating high-performance human resource policies and practices.resource policies and practices.
LEARNING OUTCOMES (cont’d)LEARNING OUTCOMES (cont’d)
Copyright © 2011 Pearson Education 3–5
Why Strategic Planning Is Why Strategic Planning Is ImportantImportantTo All ManagersTo All Managers• The firm’s strategic plan guides much of what is done by The firm’s strategic plan guides much of what is done by
all to accomplish organizational goals.all to accomplish organizational goals.• Decisions made by managers depend on the goals set at Decisions made by managers depend on the goals set at
each organizational level in support of higher level goals. each organizational level in support of higher level goals.
Copyright © 2011 Pearson Education 3–6
FIGURE 3–1 Sample Hierarchy of Goals Diagram for a Company
Copyright © 2011 Pearson Education 3–7
Fundamentals of Management Fundamentals of Management PlanningPlanning
1
2
3
4
5
The Planning Process
Make forecasts and check assumptions.
Set an objective.
Determine/develop alternative courses of action.
Evaluate the alternatives.
Implement and evaluate your plan.
Copyright © 2011 Pearson Education 3–8
FIGURE 3–2 Business Plan Table of Contents
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FIGURE 3–3 Acme Consulting Profit and Loss
Copyright © 2011 Pearson Education 3–10
Specific
Measureable
Attainable
Relevant
Timely
How Managers Set Objectives: How Managers Set Objectives: SMART GoalsSMART Goals
S
M
A
R
T
Copyright © 2011 Pearson Education 3–11
How to Set Motivational GoalsHow to Set Motivational Goals
Assign specific
goals
Assign measurable
goals
Assign challenging but doable
goals
Motivational Goal Setting
Encourage employee
participation
Copyright © 2011 Pearson Education 3–12
Using Management by Objectives Using Management by Objectives (MBO)(MBO)
1
2
3
4
5
The MBO Process
Set departmental (supporting) goals.
Set overall organizational goals.
Discuss departmental goals with subordinates.
Set individual goals and timetables.
Give feedback on progress toward goal.
Copyright © 2011 Pearson Education 3–13
The Strategic Management ProcessThe Strategic Management Process• StrategyStrategy
A course of action the organization intends to pursue to achieve A course of action the organization intends to pursue to achieve its strategic aims.its strategic aims.
• Strategic PlanStrategic Plan How an organization intends to match its internal strengths and How an organization intends to match its internal strengths and
weaknesses with its external opportunities and threats to weaknesses with its external opportunities and threats to maintain a competitive advantage over the long term.maintain a competitive advantage over the long term.
• Strategic ManagementStrategic Management The process of identifying and executing the organization’s The process of identifying and executing the organization’s
mission by matching its capabilities with the demands of its mission by matching its capabilities with the demands of its environment.environment.
• LeveragingLeveraging Capitalizing on a firm’s unique competitive strength while Capitalizing on a firm’s unique competitive strength while
underplaying its weaknesses.underplaying its weaknesses.
Copyright © 2011 Pearson Education 3–14
Business Vision and MissionBusiness Vision and Mission• VisionVision
A general statement of an organization’s intended direction that A general statement of an organization’s intended direction that evokes emotional feelings in organization members.evokes emotional feelings in organization members.
• MissionMission Spells out who the firm is, what it does, and where it’s headed.Spells out who the firm is, what it does, and where it’s headed.
Copyright © 2011 Pearson Education 3–15
FIGURE 3–4 Management Objectives Grid
Company-Wide or Departmental Objective:Double sales revenue to $16 million in fiscal year 2011
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FIGURE 3–5 The Strategic Management Process
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FIGURE 3–6 Worksheet for Environmental Scanning
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FIGURE 3–7 SWOT Matrix, with Generic Examples
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FIGURE 3–8 Type of Strategy at Each Company Level
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Types of Corporate StrategiesTypes of Corporate Strategies
Concentration
Vertical integration
Diversification
Corporate Strategy Possibilities
Consolidation
Geographic expansion
Copyright © 2011 Pearson Education 3–21
Types of Competitive StrategiesTypes of Competitive Strategies
Cost leadership Differentiation
Business-LevelCompetitive Strategies
Focus/Niche
Copyright © 2011 Pearson Education 3–22
Achieving Strategic FitAchieving Strategic Fit• The “Fit” Point of View (Porter)The “Fit” Point of View (Porter)
All of the firm’s activities must be tailored to or fit the chosen All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional strategies support its strategy such that the firm’s functional strategies support its corporate and competitive strategies.corporate and competitive strategies.
• Leveraging (Hamel and Prahalad) Leveraging (Hamel and Prahalad) ““Stretch” in leveraging resources—supplementing what you Stretch” in leveraging resources—supplementing what you
have and doing more with what you have—can be more have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.important than just fitting the strategic plan to current resources.
Copyright © 2011 Pearson Education 3–23
FIGURE 3–9 Southwest Airlines’ Activity System
Copyright © 2011 Pearson Education 3–24
Departmental Managers’ Departmental Managers’ Strategic Planning RolesStrategic Planning Roles
Help devise the strategic
plan
Formulate supporting, functional/
departmental strategies
Department Managers and Strategy Planning
Execute the strategic
plans
Copyright © 2011 Pearson Education 3–25
Strategic Human Resource Strategic Human Resource ManagementManagement• Strategic Human Resource ManagementStrategic Human Resource Management
The linking of HRM with strategic goals and objectives in order The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational to improve business performance and develop organizational cultures that foster innovation and flexibility.cultures that foster innovation and flexibility.
Involves formulating and executing HR systems—HR policies Involves formulating and executing HR systems—HR policies and activities—that produce the employee competencies and and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.behaviors that the company needs to achieve its strategic aims.
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FIGURE 3–10 Linking Company-Wide and HR Strategies
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FIGURE 3–11 Basic Model of How to Align HR Strategy and Actions with Business Strategy
Copyright © 2011 Pearson Education 3–28
Strategic HRM ToolsStrategic HRM Tools
Strategy map HR scorecard
Strategic HRM Tools
Digital dashboard
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FIGURE 3–13 Strategy Map for Southwest Airlines
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FIGURE 3–14 The Basic HR Scorecard Relationships
HR activities
Organizational performance
Emergent employee behaviors
Strategically relevant organizational
outcomes
Achieve strategic goals
Copyright © 2011 Pearson Education 3–31
Creating an HR ScorecardCreating an HR Scorecard
1
2
3
4
5
Outline value chain activities
Define the business strategy
Outline a strategy map
Identify strategically required outcomes
Identify required workforce competencies and behaviors
6
7
8
9
10
Create HR Scorecard
Identify required HR policies and activities
Choose HR Scorecard measures
Summarize Scorecard measures on digital dashboard
Monitor, predict, evaluate
The 10-Step HR Scorecard Process
Copyright © 2011 Pearson Education 3–32
FIGURE 3–15 Three Important Strategic HR Tools
HR ScorecardStrategy Map Digital Dashboard
A process for managing employee performance and for
aligning allemployees with key
objectives, by assigning financial and nonfinancial
goals, monitoring andassessing
performance, and quickly taking
corrective action.
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 their
performancecontributes to achieving the
company's overall strategic goals.
An information technology tool that
presents the manager with desktop graphs and charts, so he or she gets a picture of where the company has been and where it's going, in terms of each activity in the
strategy map.
Copyright © 2011 Pearson Education 3–33
Building A High-Performance Work Building A High-Performance Work SystemSystem• High-Performance Work System (HPWS)High-Performance Work System (HPWS)
A set of human resource management policies and practices A set of human resource management policies and practices that promote organizational effectiveness.that promote organizational effectiveness.
• High-Performance Human Resource Policies High-Performance Human Resource Policies and Practicesand Practices Emphasize the use of relevant HR metrics.Emphasize the use of relevant HR metrics.
Set out the things that HR systems must do to become an Set out the things that HR systems must do to become an HPWS.HPWS.
Foster practices that encourage employee self-management.Foster practices that encourage employee self-management.
Practice benchmarking to set goals and measure the notable Practice benchmarking to set goals and measure the notable performance differences required of an HPWS.performance differences required of an HPWS.
Copyright © 2011 Pearson Education 3–34
TABLE 3–1 Comparison of Selected Human Resource Practices in High-Performance and Low-Performance Companies
Copyright © 2011 Pearson Education 3–35
K E Y T E R M S
business plan
management by objectives (MBO)
strategic plan
strategy
strategic management
vision statement
mission statement
corporate-level strategy
competitive strategy
competitive advantage
functional strategies
offshoring
strategic human resource
management
strategy map
HR Scorecard
digital dashboard
high-performance work system
human resource metric
value chain
HR audit
Copyright © 2011 Pearson Education 3–36
FIGURE 3–16 Simple Value Chain for “The Hotel Paris”
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FIGURE 3A-1 Simple Value Chain for “The Hotel Paris”
Copyright © 2011 Pearson Education 3–38
FIGURE 3A-2 Revenue per FTE (by Industry)
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FIGURE 3A-3 2007 Target Bonus Percentage for Executives (Percent of Total Compensation, by Organizational Size)
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FIGURE 3A-4 Sample Metrics from SHRM Measurements Library
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FIGURE 3A-5 Highlights of SHRM® Customized Benchmarking Service
Copyright © 2011 Pearson Education 3–42
FIGURE 3A-6 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]
Copyright © 2011 Pearson Education 3–43
FIGURE 3A-7 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]
Copyright © 2011 Pearson Education 3–44
TABLE 3–2 Examples of HR System Activities the Hotel Paris Can Measure as Related to Each Chapter in This Book
Copyright © 2011 Pearson Education 3–45
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any
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Printed in the United States of America.