1. HUMAN RESOURCE MANAGEMENT Global Edition 12eChapter 3The Managers Rolein Strategic HumanResourceManagementPart 1 IntroductionPowerPoint Presentation by Charlie CookCopyright 2011 Pearson EducationGARY DESSLER The University of West Alabama

2. WHERE WE ARE NOWCopyright 2011 Pearson Education 32 3. LEARNING OUTCOMES1. Explain why strategic planning is important to all managers.2. Outline the basic steps in the management planning process.3. List the main contents of a typical business plan.4. Answer the question, What should a manager do to set smart motivational goals?5. Explain with examples each of the seven steps in the strategic planning process.6. List with examples the main generic types of corporate strategies and competitive strategies.Copyright 2011 Pearson Education33 4. LEARNING OUTCOMES (contd)7. Define strategic human resource management and give an example of strategic human resource management in practice.8. Briefly describe three important strategic human resource management tools.9. Explain with examples why metrics are essential for identifying and creating high-performance human resource policies and practices.Copyright 2011 Pearson Education 34 5. Why Strategic Planning Is ImportantTo All Managers The firms strategic plan guides much of what is done by all to accomplish organizational goals. Decisions made by managers depend on the goals set at each organizational level in support of higher level goals.Copyright 2011 Pearson Education 35 6. FIGURE 31 Sample Hierarchy of Goals Diagram for a CompanyCopyright 2011 Pearson Education36 7. Fundamentals of Management PlanningThe Planning Process 1 Set an objective. 2 Make forecasts and check assumptions. 3 Determine/develop alternative courses of action. 4 Evaluate the alternatives. 5 Implement and evaluate your plan.Copyright 2011 Pearson Education37 8. FIGURE 32 Business Plan Table of ContentsCopyright 2011 Pearson Education38 9. FIGURE 33 Acme Consulting Profit and LossCopyright 2011 Pearson Education39 10. How Managers Set Objectives:SMART Goals S Specific M Measureable A Attainable R Relevant T TimelyCopyright 2011 Pearson Education 310 11. How to Set Motivational Goals Motivational Goal Setting AssignAssign Assign Encouragespecific measurable challenging butemployeegoalsgoals doable goals participationCopyright 2011 Pearson Education311 12. Using Management by Objectives (MBO) The MBO Process 1 Set overall organizational goals. 2 Set departmental (supporting) goals. 3 Discuss departmental goals with subordinates. 4 Set individual goals and timetables. 5 Give feedback on progress toward goal.Copyright 2011 Pearson Education 312 13. The Strategic Management Process Strategy A course of action the organization intends to pursue to achieveits strategic aims. Strategic Plan How an organization intends to match its internal strengths andweaknesses with its external opportunities and threats tomaintain a competitive advantage over the long term. Strategic Management The process of identifying and executing the organizationsmission by matching its capabilities with the demands of itsenvironment. Leveraging Capitalizing on a firms unique competitive strength whileunderplaying its weaknesses.Copyright 2011 Pearson Education 313 14. Business Vision and Mission Vision A general statement of an organizations intended direction thatevokes emotional feelings in organization members. Mission Spells out who the firm is, what it does, and where its headed.Copyright 2011 Pearson Education314 15. FIGURE 34 Management Objectives Grid Company-Wide or Departmental Objective:Double sales revenue to $16 million in fiscal year 2011Copyright 2011 Pearson Education315 16. FIGURE 35 The Strategic Management ProcessCopyright 2011 Pearson Education 316 17. FIGURE 36 Worksheet for Environmental ScanningCopyright 2011 Pearson Education 317 18. FIGURE 37 SWOT Matrix, with Generic ExamplesCopyright 2011 Pearson Education 318 19. FIGURE 38 Type of Strategy at Each Company LevelCopyright 2011 Pearson Education 319 20. Types of Corporate Strategies Corporate Strategy Possibilities Concentration DiversificationConsolidation VerticalGeographic integration expansionCopyright 2011 Pearson Education320 21. Types of Competitive StrategiesBusiness-Level Competitive StrategiesCost leadership Differentiation Focus/NicheCopyright 2011 Pearson Education321 22. Achieving Strategic Fit The Fit Point of View (Porter) All of the firms activities must be tailored to or fit the chosenstrategy such that the firms functional strategies support itscorporate and competitive strategies. Leveraging (Hamel and Prahalad) Stretch in leveraging resourcessupplementing what youhave and doing more with what you havecan be moreimportant than just fitting the strategic plan to current resources.Copyright 2011 Pearson Education 322 23. FIGURE 39 Southwest Airlines Activity SystemCopyright 2011 Pearson Education323 24. Departmental ManagersStrategic Planning Roles Department Managers and Strategy PlanningFormulateHelp devisesupporting, Executethe strategicfunctional/ the strategicplandepartmentalplansstrategiesCopyright 2011 Pearson Education 324 25. Strategic Human Resource Management Strategic Human Resource Management The linking of HRM with strategic goals and objectives in orderto improve business performance and develop organizationalcultures that foster innovation and flexibility. Involves formulating and executing HR systemsHR policiesand activitiesthat produce the employee competencies andbehaviors that the company needs to achieve its strategic aims.Copyright 2011 Pearson Education 325 26. FIGURE 310 Linking Company-Wide and HR StrategiesCopyright 2011 Pearson Education326 27. FIGURE 311 Basic Model of How to Align HR Strategy and Actions with Business StrategyCopyright 2011 Pearson Education 327 28. Strategic HRM Tools Strategic HRM ToolsStrategy map HR scorecardDigital dashboardCopyright 2011 Pearson Education 328 29. FIGURE 313 Strategy Map for Southwest AirlinesCopyright 2011 Pearson Education 329 30. FIGURE 314 The Basic HR Scorecard RelationshipsHR activities Emergent employee behaviors Strategically relevant organizational outcomes Organizationalperformance Achieve strategic goalsCopyright 2011 Pearson Education330 31. Creating an HR Scorecard The 10-Step HR Scorecard Process Identify required HR policies1 Define the business strategy6 and activities2 Outline value chain activities7Create HR Scorecard Choose HR Scorecard3 Outline a strategy map8 measuresIdentify strategically requiredSummarize Scorecard4 9outcomes measures on digital dashboard Identify required workforce105Monitor, predict, evaluate competencies and behaviorsCopyright 2011 Pearson Education 331 32. FIGURE 315 Three Important Strategic HR ToolsStrategy Map HR ScorecardDigital Dashboard A graphical tool that A process for managing An information technologysummarizes the chain ofemployee performancetool that presents theactivities that contributeand for aligning allmanager with desktopto a companys success,employees with keygraphs and charts, so heand so shows employees objectives, by assigning or she gets a picture of the "big picture" of howfinancial and nonfinancialwhere the company hastheir performance goals, monitoring and been and where its going,contributes to achievingassessing performance,in terms of each activity inthe companys overall and quickly taking the strategy map.strategic goals. corrective action.Copyright 2011 Pearson Education332 33. Building A High-Performance Work System High-Performance Work System (HPWS) A set of human resource management policies and practicesthat promote organizational effectiveness. High-Performance Human Resource Policies and Practices Emphasize the use of relevant HR metrics. Set out the things that HR systems must do to become anHPWS. Foster practices that encourage employee self-management. Practice benchmarking to set goals and measure the notableperformance differences required of an HPWS.Copyright 2011 Pearson Education333 34. TABLE 31Comparison of Selected Human Resource Practices inHigh-Performance and Low-Performance CompaniesCopyright 2011 Pearson Education 334 35. KEY TERMSbusiness planoffshoringmanagement by objectives (MBO) strategic human resourcestrategic plan managementstrategy strategy mapstrategic management HR Scorecardvision statement digital dashboardmission statementhigh-performance work systemcorporate-level strategy human resource metriccompetitive strategy value chaincompetitive advantageHR auditfunctional strategiesCopyright 2011 Pearson Education335 36. FIGURE 316 Simple Value Chain for The Hotel ParisCopyright 2011 Pearson Education336 37. FIGURE 3A-1 Simple Value Chain for The Hotel ParisCopyright 2011 Pearson Education337 38. FIGURE 3A-2 Revenue per FTE (by Industry)Copyright 2011 Pearson Education 338 39. FIGURE 3A-3 2007 Target Bonus Percentage for Executives (Percent of Total Compensation, by Organizational Size)Copyright 2011 Pearson Education 339 40. FIGURE 3A-4 Sample Metrics from SHRM Measurements LibraryCopyright 2011 Pearson Education 340 41. FIGURE 3A-5 Highlights of SHRM Customized Benchmarking ServiceCopyright 2011 Pearson Education 341 42. FIGURE 3A-6 Customized Human Capital Benchmarking Report for [Your Organizations Name Here]Copyright 2011 Pearson Education342 43. FIGURE 3A-7 Customized Human Capital Benchmarking Report for [Your Organizations Name Here]Copyright 2011 Pearson Education343 44. TABLE 32Examples of HR System Activities the Hotel Paris CanMeasure as Related to Each Chapter in This BookCopyright 2011 Pearson Education 344 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 means, electronic, mechanical, photocopying, recording, orotherwise, without the prior written permission of the publisher.Printed in the United States of America.Copyright 2011 Pearson Education 345