Strategic planning process and human resource management

Strategic Planning Process and Human Resource Management

Presented by

JC Guiyab, RN

Part One

Learning Objectives

1. Explain why strategic planning is important to all managers.

2. Explain with examples each of the seven steps in the strategic planning process.

3. List with examples the main generic types of corporate strategies and competitive strategies.

4. Define strategic human resource management and give an example of strategic human resource management in practice.

Learning Objectives

4. Briefly describe three important strategic human resource management tools.

5. Explain with examples why metrics are important for managing human resources.


The Strategic Management Process

The Shanghai Portman Hotel

• Strategically they set the goal of making their hotel outstanding by offering superior customer service.

• To achieve this, the hotel employees would have to exhibit new skills and behavior, for instance, in terms of how they treated and responded to guests.

The Strategic Management Process

The Shanghai Portman Hotel

• To produce this employee skills and behaviors, the management formulated new human resources management plans and policies.

Goal Setting and the Planning Process

• Setting objectives

• Basic planning forecasts

• Reviewing alternative courses of action

• Evaluation of options

• Choosing and implementation of plan.

*A plan shows getting from where you are to where you want to go.

The Hierarchy of Goal

Strategic Planning

Strategy

A course of action the company can pursue to achieve its strategic aims.

Strategic Plans

The company’s plan for how it will match its internal strengths and weaknesses with the external opportunities and threats in order to maintain a competitive advantage.

Strategic Planning

Strategic Management

The process of identifying and executing the organization’s strategic plan by matching the company’s capabilities with the demands of its environment.

2. Explain with examples each of the seven steps in the strategic

planning process.

Strategic Planning

Example of SWOT Analysis

3. List with examples the main generic types of corporate strategies and competitive

strategies.

Types of Strategies

Corporate Strategy

• Concentration

• Diversification

• Vertical Integration

• Consolidation

• Geographical Expansion

Competitive Strategy/ Business Unit

• Competitive Strategy

– A strategy the identifies how to build and strengthen the business long term competitive position in the market place.

• Competitive advantage

– Any factors that allow an organization to differentiate its products or service from those of its competitors to increase market share.

Competitive Strategy Business Strategy

Human Resource as Competitive Advantage?

Functional Strategy

• A strategy that identifies the broad activities that each department will pursue in order to help the business accomplish its competitive goals.

• Strategic Fit

– Porter said that each departments functional strategy must fit and support the company’s aim.

Functional Strategy

Top Management’s Role in StratMAn

• Devise strategic plan

• Determines the direction of the business.

• Responsible for achievement of company aims.

Departmental Managers’ Role

• They help devise the strategic plan.

• They formulate supporting, functional/departmental strategies.

• They execute the plans.

4. Define the Strategic Human Resource Management and give an

example of Human Resource Management in Practice.

Strategic Human Resource Management

• Formulating and executing human resource policies and practices that produce employee competencies and behaviors the company needs to achieve its strategic aims.

Strategic Human Resource Management

The Practices Behaviors Strategy Pyramid

5. Briefly describe three important strategic human resource

management tools.

Strategy Map

• A graphical tool that summarizes the chain ofactivities that contribute to a company’ssuccess and so shows employees the “bigpicture” of how each employee anddepartment’s performance contributes toachieving the company’s overall strategicgoals.

Strategy Map

HR Scorecard

• A process for managing employeeperformance and for alignment of allemployees with key objectives of assigningfinancial and non financial goals or metrics tothe human resource management relatedchain of activities required for achieving thecompany’s strategic aims and for monitoringthe results.

HR Scorecard

HR Scorecard

Digital Dashboard

• Presents the manager with desktop graphs and charts so he gets a picture of where the company is ad where it is going tin terms of each activity in the strategy map.

Digital Dashboard

HR Metrics and Benchmarking

• Measuring performance is an integral part of Strategic HRM.

• Management translates workforce requirement to measurable worker competencies and behavior.

• Formulation of supportive HR strategies, policies, and practices to produce intended workforce competencies.

Types of Metrics

Benchmarking

• Comparing the practices of high performing companies to your own, in order to understand what they do that makes them better.

6. Explain with examples why metrics are important for

managing human resources.

Strategy and Strategy Based Metrics

• Strategy-based metrics– Metrics that focus on measuring activities that

contribute to achieving a company’s strategic aim.

• Examples:– Measuring customer service quality, customer

engagement, sales pitch success, employee process knowledge.

– Action plans to improve performance of workforce.

Workforce/Talent Data Mining and Analytics

• The use of applications to analyze human resources data and draw conclusion from it.

• Data mining is the technique used to search for relevant data (new, hidden, unexpected patterns).

Workforce/Talent Data Mining and Analytics

HR Audit

• An analysis by which an organization measureswhere it currently stands and determines what ishas to accomplish to improve its hr function.

– Roles, head count, legal issues, recruitment,compensation, employee relations, benefits, payroll,documentation and record keeping, training anddevelopment, employee communications, internalcommunications, termination and transition policiesand practices.

Evidenced Based HR and Scientific Approach

• Be objective in gathering and interpreting data.

• Use of experimentation.

• This approach will allow managers to have better decision making.

High Performance Work System

• A set of human resource management policies and practices that promote organization or superior employee effectiveness.

• 4 Principles– Egalitarianism and engagement

– Shared information

– Knowledge and talent development

– Performance-reward linkage

Egalitarianism and Engagement

• Sense of being members, not just workers, in an organization

• Egalitarian work environments eliminate status and power differences

• Increase collaboration and teamwork• Productivity improves through working together• Employee engagement: Involving employees in

decision-making and giving them the power• Engaged employees: performing at high levels, are

enthusiastic about what they do, and look for better, more efficient ways of doing things

Shared Information

• The principal of shared information is critical to the success of employee empowerment and involvement initiatives in organizations

• In the past employees traditionally were not given and did not ask information about the organizations

• Information helps employees make good suggestions for improving the business and to cooperate in major organizational changes

• The principal of shared information typifies a shift in the relationship between employer and employee in organizations

Knowledge and Talent Development

• Knowledge development: the twin sister of information sharing

• “The only thing you get when you empower dummies, is bad decisions faster.”

• The number of jobs requiring little knowledge and skill is declining

• The number of jobs requiring greater knowledge and skill is growing

• High-performance work systems depend on the shift from touch labor to knowledge work

• Employees today need a broad range of skills • Knowledge and skill requirements must also change rapidly

Performance-Reward Linkage

• People may intentionally or unintentionally pursue outcomes that are beneficial to them but not necessarily to the organization as a whole

• When companies reward their employees based on their performance, workers naturally pursue outcomes that are mutually beneficial to themselves and the organization

You are now able to:


2. Explain with examples each of the seven steps in the strategic planning process.

3. List with examples the main generic types of corporate strategies and competitive strategies.

4. Define strategic human resource management and give an example of strategic human resource management in practice.

You are now able to:

4. Briefly describe three important strategic human resource management tools.

5. Explain with examples why metrics are important for managing human resources.

End of Part One.

The Strategic Human Resource Manager: Roles and Competencies

Presented by

JC Guiyab, RN

Part Two

Yesterday and Today

• Managers are focused on transactional HR activities like payroll, hiring, compensation and benefits.

• Role expanded to testing and training and dealing with unions that began in the 1930s.

• 60s began the role of helping the company avoid and manage discrimination claims.

• Today HR managers are dealing with globalization, increased demand of profit from operations, and technology.

The Role and Competencies of the Strategic HR Manager

They focus more on STRATEGIC, Big Picture Issues

The use new ways to provide transactional services

They Take an Integrated, Talent Management Approach

to Managing Human Resources

• Talent management is the goal-oriented and integrated process of planning, recruiting, developing, managing, and compensating employees. It involves instituting a coordinated process for identifying, recruiting, hiring, and developing high-potential employees.

They Take an Integrated, Talent Management Approach

to Managing Human Resources

They Manage Ethics

They Manage Employee Engagement

• The Institute for Corporate Productivity defines engaged employees as those who are mentally and emotionally invested in their work and in contributing to an employer s success.



They Measure HR Performance and Results

They Use Evidence-Based Human Resource Management

They Add Value

• Adding value means helping the firm and its employees gain in a measurable way from the human resource manager’s actions.

• Putting in place a high-performance work system is one way to add value.

They Have New Competencies

1. Talent Managers/Organization Designers, with a mastery of traditional human resource management tasks such as acquiring, training, and compensating employees

2. Culture and Change Stewards, able to create human resource practices that support the firms cultural values.

3. Strategy Architects, with the skills to help establish the company s overall strategic plan, and to put in place the human resource practices required to support accomplishing that plan


4. Operational Executors, able to anticipate, draft, and implement the human resource practices (for instance in testing and appraising) the company needs to implement its strategy

5. Business Allies, competent to apply business knowledge (for instance in finance, sales, and production) that enable them to help functional and general managers to achieve their departmental goals


6. Credible Activists, with the leadership and other competencies that make them both credible (respected, admired, listened to) and active (offers a point of view, takes a position, challenges assumptions.)


HR Certification

• Society of Human Resource Management (USA)

End of Part Two.