Human Resource Management - G.O.L TEAM by Mr. Sherif Osman


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This is Human Resource Management Training organized by G.O.L and hosted by US Embassy in Cairo

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Human Resource Management - G.O.L TEAM by Mr. Sherif Osman

  1. 1. © 2014 American University in Cairo. All rights reserved. 2–1 SHRM
  2. 2. 2–2 Part I Strategic Management
  3. 3. 2–3 a) Introduction b) Three Big Strategic Questions c) Models of Strategic Management d) Hierarchy of Strategy e) Five Steps of Strategic Management f) Who performs the task of strategy? g) Benefits of thinking and managing strategically. Contents
  4. 4. 2–4 a) Introduction
  5. 5. 2–5 A firm without strategy is like a ship without rudder.
  6. 6. 2–6 A firm wants to know where it is going & why it going.
  7. 7. 2–7 What is Strategy? A company's strategy is a set of competitive moves and business approaches that management is employing to run the company in order to do the following:
  8. 8. 2–8 What is Strategy? (Cont’d) Attract & please customers Stake out a market position Conduct operations Compete successfully Achieve organizational objectives
  9. 9. 2–9 Why Strategy is needed? To proactively shape how’s a company’s business will be conducted & direct the managers & employees decisions into one direction.
  10. 10. 2–10 b) Three Big Questions
  11. 11. 2–11 Three big strategic questions 1- Where are we now?
  12. 12. 2–12 Three big strategic questions 2- Where do we want to go? -Kind of Business(es) to be in. -Market position to stake out. -Buyers need & group to serve. -Outcomes to achieve.
  13. 13. 2–13 Three big strategic questions 3- How do we get there?
  14. 14. 2–14 c) Models of Strategic Management
  15. 15. Strategic Management (Models of Strategic Management) Strategic formulation Involves senior managers evaluating the interaction between strategic factors and making strategic choices that guide managers to meet the organization’s goals.
  16. 16. Strategic Management (Models of Strategic Management) Strategy Implementation Focuses on the techniques used by managers to implement their strategies (e.g. leadership style, organizational structure, control systems, management of human resources).
  17. 17. Strategic Management (Models of Strategic Management) Strategy Evaluation Determines to what extent the actual change and performance match the desired change and performance.
  18. 18. 2–18 d) Hierarchy of Strategy
  19. 19. Hierarchy of Strategy (Corporate Strategy) A- Corporate - Level Strategy Describes a corporation’s overall direction in terms of its general philosophy towards growth and the management of its various business units. WHAT BUSINESS ARE WE IN?
  20. 20. Hierarchy of Strategy (Corporate Strategy) • Establishing investment priorities and steering resources into the most attractive business units • Initiating actions to improve combined performance of business units • Improving synergy between related business units to increase performance
  21. 21. Hierarchy of Strategy (Business-Level Strategy) Business-Level Strategy Deals with decisions and actions pertaining to each business unit in order to make each unit more competitive in its market-place.
  22. 22. Hierarchy of Strategy (Functional-Level Strategy) Functional-Level Strategy Pertains to the major functional operations within the business unit (including research and development, marketing, manufacturing, finance and HR) to maximize resource productivity.
  23. 23. 2–24 e) Five steps of strategic Management
  24. 24. 2–26 There are five tasks / steps the firm must undergo or involved in strategic management
  25. 25. 2–27 Five tasks of Strategic Management 1- Developing a strategic vision & mission & Values 2- Setting Objectives 3- Creating a strategy (Types) 4- Implementing & executing the strategy (BSC) 5- Evaluating performance & applying corrective adjustments
  26. 26. 2–28 1- Developing a strategic vision & mission & Values Vision: outlines what the organization wants to be, or how it wants the world in which it operates to be (an "idealized" view of the world). It is a long-term view and concentrates on the future. It can be emotive and is a source of inspiration. For example, a charity working with the poor might have a vision statement which reads "A World without Poverty."
  27. 27. 2–29 1- Developing a strategic vision & mission & Values (Cont’d) Mission: Defines the fundamental purpose of an organization or an enterprise, describing why it exists and what it does to achieve its vision. For example, the charity above might have a mission statement as "providing jobs for the homeless and unemployed".
  28. 28. 2–30 1- Developing a strategic vision & mission & Values (Cont’d) Values: Beliefs that are shared among the stakeholders of an organization. Values drive an organizations culture and priorities and provide a framework in which decisions are made. For example, "Knowledge and skills are the keys to success" or "give a man bread and feed him for a day, but teach him to farm and feed him for life".
  29. 29. 2–31 2- Setting Objectives Setting the strategic objectives of a company or organization should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.
  30. 30. 2–32 SWOT Analysis (Environmental Analysis) SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.
  31. 31. © 2014 American University in Cairo. All rights reserved. 2–33
  32. 32. 2–34 SWOT Analysis Strengths: characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e.g. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project
  33. 33. 2–35 SWOT Analysis •Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. •First, the decision makers have to determine whether the objective is attainable, given the SWOTs. •If the objective is NOT attainable a different objective must be selected and the process repeated.
  34. 34. 2–36 SWOT Analysis •Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) in order to maximize the benefits of this evaluation and find their competitive advantage.
  35. 35. 2–37 SWOT Analysis •Next is an example SWOT analysis of a market position of a small management consultancy with specialism in HRM.
  36. 36. 2–38 SWOT Analysis Strengths Weaknesses Opportunities Threats Reputation in marketplace (Capitalize) Shortage of consultants at operating level (strength) Well established position with a well defined market share (Invest) Large consultancies operating at a minor level (Identify) Expertise at partner level in HRM consultancy Unable to deal with multi- disciplinary assignments because of size or lack of ability Identified market for consultancy in areas other than HRM Other small consultancies looking to invade the marketplace
  37. 37. 2–39 SWOT Analysis •From the previous example it shows that main goal of this consultancy company is to: A- Capitalize on it’s strengths. B- Strengthen it’s weaknesses. C- Invest on it’s opportunities. D- Identify it’s Threats.
  38. 38. 2–40 Part II Creating a Strategy
  39. 39. 2–41 3- Creating a Strategy Involves senior managers evaluating the interaction of strategic factors and making strategic choices that guide the organization to meet its goal(s). Some strategies are formulated at the corporate, business, and specific functional level such as marketing and HRM.
  40. 40. The Balanced Scorecard Approach
  41. 41. What is a Balanced Scorecard? The Balanced Scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals.
  42. 42. Balanced Scorecard Concept Was first published in 1992 by Kaplan and Norton, a book followed in 1996. Traditional performance measurement that only focus on external accounting data are obsolete. The approach is to provide 'balance' to the financial perspective.
  43. 43. Why Use a Balanced Scorecard? Improve organizational performance by measuring what matters Increase focus on strategy and results Align organization strategy with workers on a day-to-day basis Focus on the drivers key to future performance Improve communication of the organization’s Vision and Strategy Prioritize Projects / Initiatives
  44. 44. 4 Original Business Perspectives Adapted from The Balanced Scorecard by Kaplan & Norton  The Balanced Scorecard model suggests that we view the organization from 4 perspectives.  Then Develop metrics, collect data and analyze it relative to each of these perspectives
  45. 45. 4 Business Perspectives Questions Financial ◦ What must we do to create sustainable economic value? Internal Business Process ◦ To satisfy our stakeholders, what must be our levels of productivity, efficiency, and quality? Learning and Growth ◦ How does our employee performance management system, including feedback to employees, support high performance? Customer ◦ What do our customers require from us and how are we doing according to those requirements?
  46. 46. Balanced Scorecard Measurements
  47. 47. Key Implementation Success Factors Obtaining executive sponsorship and commitment Involving a broad base of leaders, managers and employees in scorecard development Choose the right Scorecard Champion Beginning interactive (two-way) communication first Viewing the scorecard as a long-term journey rather than a short-term project Getting outside help if needed
  48. 48. 2–50 Part III Business Level Strategy
  49. 49. 2–51 Business-level strategy deals with decisions and actions pertaining to each business unit, the main objective of a business-level strategy being to make the unit more competitive in its marketplace. This level of strategy addresses the question, ‘How do we compete?’
  50. 50. 2–52 Business Level Competitive strategy models
  51. 51. 2–53 In the 1980s, Porter (1980, 1985) made a significant contribution to our understanding of business strategy by formulating a framework that described three competitive strategies: A- Low cost leadership strategy B-Differentiation strategy C- Focus strategy.
  52. 52. 2–54 A- Low cost leadership strategy
  53. 53. 2–55 The low-cost leadership strategy attempts to increase the organization’s market share by having the lowest unit cost and price compared with competitors.
  54. 54. 2–56 B- Differentiation competitive Strategy
  55. 55. 2–57 Differentiation Strategy assumes that managers distinguish their services and products from those of their competitors in the same industry by providing distinctive levels of service, product or high quality such that the customer is prepared to pay a premium price.
  56. 56. 2–58 C- Focus Business Strategy
  57. 57. 2–59 With the focus strategy, managers focus on a specific buyer group or regional market. A market strategy can be narrow or broad, as in the notion of niche markets being very narrow or focused.
  58. 58. 2–60
  59. 59. 2–61 Part IV Function Level Strategy
  60. 60. 2–62 4- Implementing a Strategy Activities that focuses on the techniques used by managers to implement their strategies. In particular, it refers to activities which deal with leadership style that is compatible to the strategies, the structure of the organization, the information and control systems, and the management of human resources.
  61. 61. Types of Organisation From Leadership perspective hit can be divided into three types: Autocratic Democratic Laissez-Faire
  62. 62. Leadership Styles: Autocratic (Authoritarian): the leader makes the decisions and closely supervises employees.
  63. 63. Leadership Styles: Democratic (Participative): the leader allows participation in decisions and does not closely supervise employees.
  64. 64. Leadership Styles: Laissez-Faire (Delegate)/ Free : the leader takes a leave-the-employees-alone approach.
  65. 65. Types of Organisation From Number of Employees perspective it can be divided into three types: Small Organisations (Uk 50-, US100-) Medium Organisations (UK 250-, US500-) Large Organisations (UK 250+, US500+)
  66. 66. Types of Organisation From Structure perspective it can be divided into three types: Functional Structure Divisional Structure Matrix Structure
  67. 67. 1- Functional / Pyramid Organization Structure
  68. 68. This kind of organizational structure classifies people according to the function they perform in their professional life
  69. 69. 2- Divisional / Product Organization Structure
  70. 70. This is the kind of structure that is based on the different divisions in the organization
  71. 71. 3- Matrix Organization Structure
  72. 72. This is a structure, which is a combination of function, and product structures.
  73. 73. Types of Organisation From the Authority perspective it can be divided into three types: Line Authority Structure Line & Staff Authority Structure
  74. 74. a- Line Organization Structure
  75. 75. The approvals and orders in this kind of structure come from top to bottom in a line. Hence the name line structure
  76. 76. b- Line & Staff Organization Structure
  77. 77. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates
  78. 78. Types of Organisation From the Form perspective it can be divided into two types: Tall (Vertical) organisation Flat (Horizontal) Organisation
  79. 79. Large corporations use the tall organizational structure The decision-making powers all rest with the top management. The decision making and authority are all centralized and all the strategic functions are executed through departments with narrower span of control.
  80. 80. Span of control A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control.
  81. 81. The advantages of a narrow span of control are: A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily Feedback of ideas from the workers will be more effective
  82. 82. Flat organization structure is generally adopted by small firms. Here the management trusts and respects the judgment and decision- making capabilities of its employees.
  83. 83. Considerations: Every organization must choose its structure after a careful evaluation of several factors. These are factors such as the scale and magnitude of the company's operations, its products, customers and employees.
  84. 84. The advantages of wide span of control are: There are less layers of management to pass a message through, so the message reaches more employees faster. It costs less money to run a wider span of control because a business does not need to employ as many managers in different levels.
  85. 85. Types of Organisation The main types of business organization in the private are: sole traders partnerships companies franchises.
  86. 86. 2–97 5- Strategy Evaluation Is an activity in the strategic management process that determines to what extent actual change and performance matches desired change and performance.