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PowerPoint Presentation by Charlie Cook

The University of West Alabama


1
Human Resource
Management
ELEVENTH EDITION
G A R Y D E S S L E R
2008 Prentice Hall, Inc.
All rights reserved.
Strategic Human Resource Management
and the HR Scorecard
Chapter 3
Part 1 | Introduction
2008 Prentice Hall, Inc. All rights reserved. 32
After studying this chapter, you should be able to:
1. Outline the steps in the strategic management
process.
2. Explain and give examples of each type of
companywide and competitive strategy.
3. Explain what a strategy-oriented human resource
management system is and why it is important.
4. Illustrate and explain each of the seven steps in the
HR Scorecard approach to creating human resource
management systems.
2008 Prentice Hall, Inc. All rights reserved. 33
The Strategic Management Process
Strategic Management
The process of identifying and executing the
organizations mission by matching its capabilities
with the demands of its environment.
Strategy
A chosen course of action.
Strategic Plan
How an organization intends to balance its internal
strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage over the long-term.
2008 Prentice Hall, Inc. All rights reserved. 34
Business Vision and Mission
Vision
A general statement of an organizations intended
direction that evokes emotional feelings in
organization members.
Mission
Spells out who the company is, what it does, and
where its headed.
2008 Prentice Hall, Inc. All rights reserved. 35
Types of Strategies
Diversification
Strategy
Geographic
Expansion
Strategy
Vertical
Integration
Strategy
Corporate-Level
Strategies
Consolidation
Strategy
2008 Prentice Hall, Inc. All rights reserved. 36
Types of Strategies (contd)
Cost Leadership Focus/Niche
Business-Level/
Competitive
Strategies
Differentiation
2008 Prentice Hall, Inc. All rights reserved. 37
Achieving Strategic Fit
The Fit Point of View (Porter)
All of the firms activities must be tailored to or fit
the chosen strategy such that the firms functional
strategies support its corporate and competitive
strategies.
Leveraging (Hamel and Prahalad)
Stretch in leveraging resourcessupplementing
what you have and doing more with what you have
can be more important than just fitting the strategic
plan to current resources.
2008 Prentice Hall, Inc. All rights reserved. 38
Strategic Human Resource Management
Strategic Human Resource Management
The linking of HRM with strategic goals and
objectives in order to improve business performance
and develop organizational cultures that foster
innovation and flexibility.
Involves formulating and executing HR systemsHR
policies and activitiesthat produce the employee
competencies and behaviors that the company needs
to achieve its strategic aims.
2008 Prentice Hall, Inc. All rights reserved. 39
Strategic Human Resource Challenges
Corporate
productivity and
performance
improvement
efforts
Increased HR
team involvement
in design of
strategic plans
Basic Strategic
Challenges
Expanded role of
employees in the
organizations
performance
efforts
2008 Prentice Hall, Inc. All rights reserved. 310
Human Resource Managements
Strategic Roles
Strategy
Execution
Role
Strategic
Planning
Roles
Strategy
Formulation
Role
2008 Prentice Hall, Inc. All rights reserved. 311
Creating the Strategic Human Resource
Management System
Human Resource
Professionals
Employee
Behaviors and
Competencies
Components of a
Strategic HRM System
Human Resource
Policies and
Practices
2008 Prentice Hall, Inc. All rights reserved. 312
K E Y T E R M S
strategic plan
strategic management
vision
mission
SWOT analysis
strategy
strategic control
competitive advantage
leveraging
strategic human resource management
HR Scorecard
metrics
value chain analysis
2008 Prentice Hall, Inc. All rights reserved. 313
Creating 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