This document discusses strategic human resource management and the HR Scorecard approach. It covers the strategic management process, including strategic planning, vision, mission, and types of corporate and competitive strategies. It defines strategic human resource management as linking HRM with strategic goals to improve performance. The HR Scorecard is presented as a 10-step approach to creating strategic human resource management systems by outlining value chain activities, business strategy, required outcomes, competencies, policies, and metrics.

1. © 2008 Prentice Hall, Inc.
© 2008 Prentice Hall, Inc.
All rights reserved.
All rights reserved.
PowerPoint Presentation by Charlie Cook
PowerPoint Presentation by Charlie Cook
The University of West Alabama
The University of West Alabama
1
Human Resource
Human Resource
Management
Management
ELEVENTH EDITION
ELEVENTH EDITION
G A R Y D E S S L E R
G A R Y D E S S L E R
Strategic Human Resource Management
Strategic Human Resource Management
and the HR Scorecard
and the HR Scorecard
Chapter 3
Chapter 3
Part 1 | Introduction
Part 1 | Introduction

2. © 2008 Prentice Hall, Inc. All
rights reserved. 3–2
After studying this chapter, you should be able to:
1.
1. Outline the steps in the strategic management
Outline the steps in the strategic management
process.
process.
2.
2. Explain and give examples of each type of
Explain and give examples of each type of
companywide and competitive strategy.
companywide and competitive strategy.
3.
3. Explain what a strategy-oriented human resource
Explain what a strategy-oriented human resource
management system is and why it is important.
management system is and why it is important.
4.
4. Illustrate and explain each of the seven steps in the HR
Illustrate and explain each of the seven steps in the HR
Scorecard approach to creating human resource
Scorecard approach to creating human resource
management systems.
management systems.

3. © 2008 Prentice Hall, Inc. All
rights reserved. 3–3
The Strategic Management Process
The Strategic Management Process
• Strategic Management
Strategic Management
 The process of identifying and executing the
The process of identifying and executing the
organization’s mission by matching its capabilities
organization’s mission by matching its capabilities
with the demands of its environment.
with the demands of its environment.
• Strategy
Strategy
 A chosen course of action.
A chosen course of action.
• Strategic Plan
Strategic Plan
 How an organization intends to balance its internal
How an organization intends to balance its internal
strengths and weaknesses with its external
strengths and weaknesses with its external
opportunities and threats to maintain a competitive
opportunities and threats to maintain a competitive
advantage over the long-term.
advantage over the long-term.

4. © 2008 Prentice Hall, Inc. All
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Business Vision and Mission
Business Vision and Mission
• Vision
Vision
 A general statement of an organization’s intended
A general statement of an organization’s intended
direction that evokes emotional feelings in
direction that evokes emotional feelings in
organization members.
organization members.
• Mission
Mission
 Spells out who the company is, what it does, and
Spells out who the company is, what it does, and
where it’s headed.
where it’s headed.

5. © 2008 Prentice Hall, Inc. All
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Types of Strategies
Types of Strategies
Diversification
Strategy
Geographic
Expansion
Strategy
Vertical
Integration
Strategy
Corporate-Level
Strategies
Consolidation
Strategy

6. © 2008 Prentice Hall, Inc. All
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Types of Strategies (cont’d)
Types of Strategies (cont’d)
Cost Leadership Focus/Niche
Business-Level/
Competitive
Strategies
Differentiation

7. © 2008 Prentice Hall, Inc. All
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Achieving Strategic Fit
Achieving Strategic Fit
• The “Fit” Point of View (Porter)
The “Fit” Point of View (Porter)
 All of the firm’s activities must be tailored to or fit
All of the firm’s activities must be tailored to or fit
the chosen strategy such that the firm’s functional
the chosen strategy such that the firm’s functional
strategies support its corporate and competitive
strategies support its corporate and competitive
strategies.
strategies.
• Leveraging (Hamel and Prahalad)
Leveraging (Hamel and Prahalad)
 “
“Stretch” in leveraging resources—supplementing
Stretch” in leveraging resources—supplementing
what you have and doing more with what you have—
what you have and doing more with what you have—
can be more important than just fitting the strategic
can be more important than just fitting the strategic
plan to current resources.
plan to current resources.

8. © 2008 Prentice Hall, Inc. All
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Strategic Human Resource Management
Strategic Human Resource Management
• Strategic Human Resource Management
Strategic Human Resource Management
 The linking of HRM with strategic goals and
The linking of HRM with strategic goals and
objectives in order to improve business performance
objectives in order to improve business performance
and develop organizational cultures that foster
and develop organizational cultures that foster
innovation and flexibility.
innovation and flexibility.
 Involves formulating and executing HR systems—HR
Involves formulating and executing HR systems—HR
policies and activities—that produce the employee
policies and activities—that produce the employee
competencies and behaviors that the company needs
competencies and behaviors that the company needs
to achieve its strategic aims.
to achieve its strategic aims.

9. © 2008 Prentice Hall, Inc. All
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Strategic Human Resource Challenges
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
organization’s
performance
efforts

10. © 2008 Prentice Hall, Inc. All
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Human Resource Management’s
Human Resource Management’s
Strategic Roles
Strategic Roles
Strategy
Execution
Role
Strategic
Planning
Roles
Strategy
Formulation
Role

11. © 2008 Prentice Hall, Inc. All
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Creating the Strategic Human Resource
Creating the Strategic Human Resource
Management System
Management System
Human Resource
Professionals
Employee
Behaviors and
Competencies
Components of a
Strategic HRM System
Human Resource
Policies and
Practices

12. © 2008 Prentice Hall, Inc. All
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K E Y T E R M S
strategic plan
strategic plan
strategic management
strategic management
vision
vision
mission
mission
SWOT analysis
SWOT analysis
strategy
strategy
strategic control
strategic control
competitive advantage
competitive advantage
leveraging
leveraging
strategic human resource management
strategic human resource management
HR Scorecard
HR Scorecard
metrics
metrics
value chain analysis
value chain analysis

13. © 2008 Prentice Hall, Inc. All
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Creating an HR Scorecard
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