Human Resource Management(Business Strategy)

Prepared by Grace Amin, M.Psi, Psikolog

Questions• Do you have any plans for 3 – 5

years later?• What do you prepare to get that?

Does a company have any plan?

• Why strategic planning is important to all manager?– Organizations exist to achieve some purpose, and if

they fail to achieve their ends, to that extent they have failed

– Those aim or goals – and the hard work you put into accomplishing them – all depend on your company’s plan

In well run companies, the goals from the very top of the organization down to

where you’re working should form a more or less

unbroken chain (or “hierarchy”)

CONTOH

PresidentDouble sales

revenue $ 20 million

Vice President of Sales

Double Sales in Java, Sumatra, Kalimantan

Manager Sales, JavaAdd 10 new customers

Manager Sales, Sumatra

Hire 4 new sales people

Vice president of Production

Add one production line

Vice President of HRAdd and train 6 sales

people

Recruiting ManagerIdentify and attract

20 good sales candidates

Training ManagerTrain 6 new salesperson

The Planning Process• Set an objective• Make forecasts• Determine what courses of

action• Evaluate alternatives• Implement and evaluate the

planex : planning our budget, study, career, business

Business Plan (long term, strategic plan)

• A comprehensive view of the firm’s situation today and of its company – wide and departmental goals and plans for the next 3 to 5 years

Description of the business

The marketing plan

The financial plan

The management &/ personnel plan

Putting together the business plan• The MARKETING plan

“the four Ps” = product, price, promotion, place

• The PERSONNEL / HR plan• The PRODUCTION/OPERATIONS plan

implementing the marketing plan• The FINANCIAL plan

the vehicle for doing so = the bottom line of planning

How Managers Set Objectives ??

• S•M• A• R• T

SpecificMeasurableAttainable RelevantTimely

How Managers Set Objectives ??

How to set motivational goals?? Assign specific goals

Assign measurable goals

Assign challenging but doable goals

Encourage participation

Goals are only useful if employees are motivated

to achieve them

1. Set organizational goals

2. Set department goals3. Discuss department

goals4. Set individual goals5. Give feedback

Management by Objectives

Supervisor and subordinate jointly set goals for the latter

and periodically assess progress toward those goals

MBO

Peter Drucker

The downside is time consuming

Goals at each level will relate to those above and belowEmployee participation

Management objectives grid• Every manager needs a system for organizing

how their subordinates’ goals dovetail with those of the company

• The goals of MOG– List department managers’ supporting goals– Clarify department manager own goals should be– Summarize subordinates goals– Track subordinates’ progress

The strategic management process

• Strategic plan = “where are we now as a business, where do we want to be and how should we get there?”

A

BSWOT

The strategic management process1Define the

current business and mission

2Perform external and internal audits

3Formulate new business and mission statements

4Translate the mission into goals

5Formulate strategies to achieve the strategic goals

6Implement the strategy

7Evaluate performance

Strategic PlanningStrategic

execution Strategic

evaluation

Types of strategiesCorporate wide

strategic planning

Competitive (or business unit) strategic planning

Functional (or departmental) strategic planning

Corporate wide

Competitive

Functional

Functional Competitiv

e

Corporate wide strategic planning“how many and what kind of business should we be

in?”

• Several standard corporate strategy possibilities:– Concentration (single

business) strategy– Diversification – Vertical integration– Consolidation– Geographic expansion

The portfolio of business that comprise the company and

the way in which these businesses

relate to each other

Competitive strategy

• Standard competitive strategy– Cost leadership– Differentiation– Focusers

HUMAN RESOURCES AS A COMPETITIVE ADVANTAGE

Identifies how to build and strengthen the business’s long term competitive

position in the marketplace

Functional strategy• The broad activities that each

department will pursue in order to help the business accomplish its competitive goals

Top Manager’s Role is devising a strategic plan

• Departmental Managers roles are :–Help devise the strategic plan– Formulate supporting, functional/

departmental strategies– Execute the plans

Strategic HRM

Formulate business strategy

Identify workforce

requirements

Formulate HR strategic policies

and activities

Develop detailed HR scorecard

measures

Formulating and executing HR policies and practices that produce the employee competencies and

behaviors the company needs to achieve its strategic aims

Strategic HRM tools• Strategy Map– “Big pictures” – how each

department’s contributes to achieving company’s strategic goals

• The HR scorecard– Take the strategy map and to quantify

it• Digital Dashboards– Desktop graphs and charts

Translating strategy into HR policies and

practices• New strategy

– Produce new services– Capitalize on opportunities– Offer consistently high quality

services• New employee competencies

and behaviors• New HR policies and practices

– New training programs– Enriching work– Appropriate returns– Improved selection, orientation

and dismissal procedures

HIGH Performance

work systems