Hr Challen Ges 729
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The document discusses several key human resource challenges facing managers today including rapid environmental change, workforce diversity, globalization, and skill shortages. It also discusses different HR strategies organizations can employ such as Porter's differentiation and low-cost leadership strategies as well as Miles and Snow's defender and prospector strategies related to recruiting and compensation. The role of HR in being a strategic partner is discussed through understanding the business, strategic thinking, process skills, technology, and demonstrating leadership.
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Hr Challen Ges 729
- 1. M eeting P resent and E merging S trategic H uman R esource C hallenges
- 10. HR Strategy Leads to Improved Organizational Performance HR Strategies Organizational Strategies Organizational Characteristics Organizational Capabilities Environments
Editor's Notes
- Environmental challenges are the forces external to the firm. They influence organizational performance but are largely beyond managementโs control. Managers need to monitor the external environment constantly for opportunities and threats. This slide demonstrates how a variety of environmental factors impact the organization.
- The term organizational culture refers to the basic assumptions and beliefs shared by members of an organization. These beliefs operate unconsciously, are taken for granted, and are typically very apparent to someone outside the organization. This slide illustrates the key elements of organizational culture, and the ways in which these elements differ between two organizations.
- Mission statements have become useful tools that an organization may use to clarify the essential strengths and purposes of an organization, as well as point to where the organization would like to go.
- Expectations that employers will behave ethically are increasing. Many firms and professional organizations have created codes of ethics outlining principles and standards of personal conduct for their members. This slide, and the next, represent the code of ethics of the American Marketing Association. Unfortunately, these codes often do not meet employeesโ expectations of ethical employer behavior. Polls have indicated that almost half the respondents believe that managers do not consistently make ethical decisions.
- The success of HR strategies depends on the situation or context in which they are used. An HR strategyโs effect on firm performance is always dependent on how well it fits with other factors. This slide depicts the key factors that firms should consider in determining which HR strategies will have positive impact on firm performance: organizational strategies, environment, organizational characteristics, and organizational capabilities.
- A differentiation business strategy attempts to achieve a competitive advantage by creating a product or service that is perceived as unique. Approaches to differentiation can take may forms, among them: design or brand image; technology; features; customer service; and dealer networks.
- The overall cost leadership strategy is aimed at gaining a competitive advantage through lower costs. Cost leadership requires aggressive construction of efficient plant facilities, intense supervision of labor, vigorous pursuit of cost reductions, and tight control of distribution costs and overhead.
- A focus strategy relies on both a low-cost position and differentiation, with the objective of serving a narrow target market better than other firms. The HR strategies likely to fit the focus strategy best would be somewhere in the middle of those described for low-cost producers and differentiators.
- For the sake of the firm, managers and the HR department need to work together closely. Lack of cooperation has traditionally been a problem. The next five slides highlight five competencies required of HR departments in order that they might be strategic partners with management. Companies can take certain steps to foster an effective partnership between managers and HR department. Companies should: (1) Analyze the people side of productivity rather than depend solely on technical solutions to problems. (2) View HR professionals as internal consultants who can provide valuable advice and support that improve the management of operations. (3) Instill a shared sense of common fate in the firm rather than a win/lose perspective among individual departments and units. (4) Require some managerial experience as part of the training of HR professionals. (5) Actively involve top corporate and divisional managers in formulating, implementing, and reviewing all HR plans and strategies in close collaboration with the HR department. (6) Require senior HR executives to participate on an equal basis with other key managers from the various functional areas (marketing, finance) involved in charting the enterpriseโs strategic direction.
- Students should identify many of the concepts presented in this chapter, including individual challenges, organizational challenges, cultural challenges, ethical dilemmas and environmental challenges.