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HUMAN RESOURCE MANAGEMENT                                     Global Edition 12e                                          ...
WHERE WE ARE NOW…Copyright © 2011 Pearson Education   3–2
LEARNING OUTCOMES1. Explain why strategic planning is important to all   managers.2. Outline the basic steps in the manage...
LEARNING OUTCOMES (cont’d)7. Define strategic human resource management and give   an example of strategic human resource ...
Why Strategic Planning Is ImportantTo All Managers • The firm’s strategic plan guides much of what is done by   all to acc...
FIGURE 3–1             Sample Hierarchy of Goals Diagram for a CompanyCopyright © 2011 Pearson Education                  ...
Fundamentals of Management Planning                The Planning Process                     1               Set an objecti...
FIGURE 3–2             Business Plan Table of ContentsCopyright © 2011 Pearson Education                        3–8
FIGURE 3–3             Acme Consulting Profit and LossCopyright © 2011 Pearson Education                        3–9
How Managers Set Objectives:SMART Goals                                     S   Specific                                  ...
How to Set Motivational Goals                                     Motivational Goal Setting         Assign                ...
Using Management by Objectives (MBO)               The MBO Process                     1               Set overall organiz...
The Strategic Management Process • Strategy        A course of action the organization intends to pursue to achieve      ...
Business Vision and Mission • Vision        A general statement of an organization’s intended direction that            e...
FIGURE 3–4             Management Objectives Grid                             Company-Wide or Departmental Objective:     ...
FIGURE 3–5             The Strategic Management ProcessCopyright © 2011 Pearson Education                         3–16
FIGURE 3–6             Worksheet for Environmental ScanningCopyright © 2011 Pearson Education                             ...
FIGURE 3–7             SWOT Matrix, with Generic ExamplesCopyright © 2011 Pearson Education                           3–18
FIGURE 3–8             Type of Strategy at Each Company LevelCopyright © 2011 Pearson Education                           ...
Types of Corporate Strategies                                     Corporate Strategy Possibilities   Concentration        ...
Types of Competitive Strategies                                        Business-Level                                     ...
Achieving Strategic Fit • The “Fit” Point of View (Porter)        All of the firm’s activities must be tailored to or fit...
FIGURE 3–9             Southwest Airlines’ Activity SystemCopyright © 2011 Pearson Education                            3–23
Departmental Managers’Strategic Planning Roles                                     Department Managers and                ...
Strategic Human Resource Management • Strategic Human Resource Management        The linking of HRM with strategic goals ...
FIGURE 3–10 Linking Company-Wide and HR StrategiesCopyright © 2011 Pearson Education                    3–26
FIGURE 3–11 Basic Model of How to Align HR Strategy             and Actions with Business StrategyCopyright © 2011 Pearson...
Strategic HRM Tools                                     Strategic HRM Tools              Strategy map               HR sco...
FIGURE 3–13 Strategy Map for Southwest AirlinesCopyright © 2011 Pearson Education                 3–29
FIGURE 3–14 The Basic HR Scorecard Relationships                                          HR activities                   ...
Creating an HR Scorecard         The 10-Step HR Scorecard Process                                                         ...
FIGURE 3–15 Three Important Strategic HR Tools          Strategy Map                   HR Scorecard              Digital D...
Building A High-Performance Work System • High-Performance Work System (HPWS)        A set of human resource management p...
TABLE 3–1              Comparison of Selected Human Resource Practices in                        High-Performance and Low-...
KEY TERMSbusiness plan                        offshoringmanagement by objectives (MBO)       strategic human resourcestrat...
FIGURE 3–16 Simple Value Chain for “The Hotel Paris”Copyright © 2011 Pearson Education                      3–36
FIGURE 3A-1 Simple Value Chain for “The Hotel Paris”Copyright © 2011 Pearson Education                      3–37
FIGURE 3A-2 Revenue per FTE (by Industry)Copyright © 2011 Pearson Education           3–38
FIGURE 3A-3 2007 Target Bonus Percentage for Executives             (Percent of Total Compensation, by Organizational Size...
FIGURE 3A-4 Sample Metrics from SHRM Measurements LibraryCopyright © 2011 Pearson Education                           3–40
FIGURE 3A-5 Highlights of SHRM® Customized Benchmarking ServiceCopyright © 2011 Pearson Education                         ...
FIGURE 3A-6 Customized Human Capital Benchmarking Report             for [Your Organization’s Name Here]Copyright © 2011 P...
FIGURE 3A-7 Customized Human Capital Benchmarking Report             for [Your Organization’s Name Here]Copyright © 2011 P...
TABLE 3–2              Examples of HR System Activities the Hotel Paris Can                        Measure as Related to E...
All rights reserved. No part of this publication may be reproduced,                                     stored in a retrie...
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Dessler hrm12e ppt_03

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Dessler hrm12e ppt_03

  1. 1. HUMAN RESOURCE MANAGEMENT Global Edition 12e Chapter 3 The Manager’s Role in Strategic Human Resource Management Part 1 Introduction PowerPoint Presentation by Charlie CookCopyright © 2011 Pearson Education GARY DESSLER The University of West Alabama
  2. 2. WHERE WE ARE NOW…Copyright © 2011 Pearson Education 3–2
  3. 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 Education 3–3
  4. 4. LEARNING OUTCOMES (cont’d)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 3–4
  5. 5. Why Strategic Planning Is ImportantTo All Managers • The firm’s 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 3–5
  6. 6. FIGURE 3–1 Sample Hierarchy of Goals Diagram for a CompanyCopyright © 2011 Pearson Education 3–6
  7. 7. Fundamentals of Management Planning The 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 Education 3–7
  8. 8. FIGURE 3–2 Business Plan Table of ContentsCopyright © 2011 Pearson Education 3–8
  9. 9. FIGURE 3–3 Acme Consulting Profit and LossCopyright © 2011 Pearson Education 3–9
  10. 10. How Managers Set Objectives:SMART Goals S Specific M Measureable A Attainable R Relevant T TimelyCopyright © 2011 Pearson Education 3–10
  11. 11. How to Set Motivational Goals Motivational Goal Setting Assign Assign Assign Encourage specific measurable challenging but employee goals goals doable goals participationCopyright © 2011 Pearson Education 3–11
  12. 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 3–12
  13. 13. The Strategic Management Process • Strategy  A course of action the organization intends to pursue to achieve its strategic aims. • Strategic Plan  How an organization intends to match its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long term. • Strategic Management  The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment. • Leveraging  Capitalizing on a firm’s unique competitive strength while underplaying its weaknesses.Copyright © 2011 Pearson Education 3–13
  14. 14. Business Vision and Mission • Vision  A general statement of an organization’s intended direction that evokes emotional feelings in organization members. • Mission  Spells out who the firm is, what it does, and where it’s headed.Copyright © 2011 Pearson Education 3–14
  15. 15. FIGURE 3–4 Management Objectives Grid Company-Wide or Departmental Objective: Double sales revenue to $16 million in fiscal year 2011Copyright © 2011 Pearson Education 3–15
  16. 16. FIGURE 3–5 The Strategic Management ProcessCopyright © 2011 Pearson Education 3–16
  17. 17. FIGURE 3–6 Worksheet for Environmental ScanningCopyright © 2011 Pearson Education 3–17
  18. 18. FIGURE 3–7 SWOT Matrix, with Generic ExamplesCopyright © 2011 Pearson Education 3–18
  19. 19. FIGURE 3–8 Type of Strategy at Each Company LevelCopyright © 2011 Pearson Education 3–19
  20. 20. Types of Corporate Strategies Corporate Strategy Possibilities Concentration Diversification Consolidation Vertical Geographic integration expansionCopyright © 2011 Pearson Education 3–20
  21. 21. Types of Competitive Strategies Business-Level Competitive Strategies Cost leadership Differentiation Focus/NicheCopyright © 2011 Pearson Education 3–21
  22. 22. Achieving Strategic Fit • The “Fit” Point of View (Porter)  All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies. • Leveraging (Hamel and Prahalad)  “Stretch” in leveraging resources—supplementing what you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.Copyright © 2011 Pearson Education 3–22
  23. 23. FIGURE 3–9 Southwest Airlines’ Activity SystemCopyright © 2011 Pearson Education 3–23
  24. 24. Departmental Managers’Strategic Planning Roles Department Managers and Strategy Planning Formulate Help devise supporting, Execute the strategic functional/ the strategic plan departmental plans strategiesCopyright © 2011 Pearson Education 3–24
  25. 25. 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 systems—HR policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.Copyright © 2011 Pearson Education 3–25
  26. 26. FIGURE 3–10 Linking Company-Wide and HR StrategiesCopyright © 2011 Pearson Education 3–26
  27. 27. FIGURE 3–11 Basic Model of How to Align HR Strategy and Actions with Business StrategyCopyright © 2011 Pearson Education 3–27
  28. 28. Strategic HRM Tools Strategic HRM Tools Strategy map HR scorecard Digital dashboardCopyright © 2011 Pearson Education 3–28
  29. 29. FIGURE 3–13 Strategy Map for Southwest AirlinesCopyright © 2011 Pearson Education 3–29
  30. 30. FIGURE 3–14 The Basic HR Scorecard Relationships HR activities Emergent employee behaviors Strategically relevant organizational outcomes Organizational performance Achieve strategic goalsCopyright © 2011 Pearson Education 3–30
  31. 31. Creating an HR Scorecard The 10-Step HR Scorecard Process Identify required HR policies 1 Define the business strategy 6 and activities 2 Outline value chain activities 7 Create HR Scorecard Choose HR Scorecard 3 Outline a strategy map 8 measures Identify strategically required Summarize Scorecard 4 9 outcomes measures on digital dashboard Identify required workforce 10 5 Monitor, predict, evaluate competencies and behaviorsCopyright © 2011 Pearson Education 3–31
  32. 32. FIGURE 3–15 Three Important Strategic HR Tools Strategy Map HR Scorecard Digital Dashboard A graphical tool that A process for managing An information technology summarizes the chain of employee performance tool that presents the activities that contribute and for aligning all manager with desktop to a companys success, employees with key graphs and charts, so he and so shows employees objectives, by assigning or she gets a picture of the "big picture" of how financial and nonfinancial where the company has their performance goals, monitoring and been and where its going, contributes to achieving assessing performance, in terms of each activity in the companys overall and quickly taking the strategy map. strategic goals. corrective action.Copyright © 2011 Pearson Education 3–32
  33. 33. Building A High-Performance Work System • High-Performance Work System (HPWS)  A set of human resource management policies and practices that 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 an HPWS.  Foster practices that encourage employee self-management.  Practice benchmarking to set goals and measure the notable performance differences required of an HPWS.Copyright © 2011 Pearson Education 3–33
  34. 34. TABLE 3–1 Comparison of Selected Human Resource Practices in High-Performance and Low-Performance CompaniesCopyright © 2011 Pearson Education 3–34
  35. 35. KEY TERMSbusiness plan offshoringmanagement by objectives (MBO) strategic human resourcestrategic plan managementstrategy strategy mapstrategic management HR Scorecardvision statement digital dashboardmission statement high-performance work systemcorporate-level strategy human resource metriccompetitive strategy value chaincompetitive advantage HR auditfunctional strategiesCopyright © 2011 Pearson Education 3–35
  36. 36. FIGURE 3–16 Simple Value Chain for “The Hotel Paris”Copyright © 2011 Pearson Education 3–36
  37. 37. FIGURE 3A-1 Simple Value Chain for “The Hotel Paris”Copyright © 2011 Pearson Education 3–37
  38. 38. FIGURE 3A-2 Revenue per FTE (by Industry)Copyright © 2011 Pearson Education 3–38
  39. 39. FIGURE 3A-3 2007 Target Bonus Percentage for Executives (Percent of Total Compensation, by Organizational Size)Copyright © 2011 Pearson Education 3–39
  40. 40. FIGURE 3A-4 Sample Metrics from SHRM Measurements LibraryCopyright © 2011 Pearson Education 3–40
  41. 41. FIGURE 3A-5 Highlights of SHRM® Customized Benchmarking ServiceCopyright © 2011 Pearson Education 3–41
  42. 42. FIGURE 3A-6 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]Copyright © 2011 Pearson Education 3–42
  43. 43. FIGURE 3A-7 Customized Human Capital Benchmarking Report for [Your Organization’s Name Here]Copyright © 2011 Pearson Education 3–43
  44. 44. TABLE 3–2 Examples of HR System Activities the Hotel Paris Can Measure as Related to Each Chapter in This BookCopyright © 2011 Pearson Education 3–44
  45. 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, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education 3–45

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