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HRM Strategy
Strategy: ,[object Object],[object Object],[object Object],2. Formulating plans to attain  outcomes consistent with the  above; then: 3 Implementing those plans (including evaluation)
HR Strategy “ The pattern of planned human resource deployments and activities intended to enable the organisation to achieve its goals” Focus: To provide the organisation with  sustained competitive advantage … through  procurement, development &  alingment of people, skills, HR policies  etc. Competitive advantage might arise from  having best people,  but also  from being  best at managing what you do have
External competitive environment Corporate strategy formulation Corporate strategy implementation HR strategy Input Input Division strategies HR FUNCTION OTHER FUNCTIONS Link to Corporate  Strategy Evaluation  (measurment etc)
Role of HRM in Strategy Formulation HR  Function HR  Function HR  Function HR  Function Strategic Planning Strategic Planning Strategic Planning Strategic Planning Administrative  linkage One-Way  linkage Two-way  linkage Integrative  linkage
Strategic Formulation:  Overview VISION MISSION GOALS / OBJECTIVES EXTERNAL  ANALYSIS: Opportunities Threat INTERNAL  ANALYSIS: Strengths Weaknesses STRATEGIC CHOICE
Strategic Formulation: ‘ Step’ 1: Vision Organisational Vision Core ideology Envisaged future
Core Ideology Core values Core Purpose Essential, enduring  tenants What is  important? What is inviolate? Reason for being What the  organisation  offers to society Controlling desire, Dominant aspiration
Examples:  Core Purposes 3M:  to solve unsolved problems innovatively Hewlett-Packard:  to make technical contributions for the advancement and welfare of humanity Mary Kay Cosmetics : to give unlimited opportunity to women Nike:  to experience the emotion of competition, winning, and crushing the competition W alt Disney:  to make people happy
Example:  Core Values ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Formulation: ‘ Step’ 1: Vision Organisational Vision Core ideology Envisaged future BHAGS Vivid Description
Envisaged Future BHAGS Vivid Description Huge, daunting  goals Clear & compelling,  tangible Unifying, inspiring, engaging Making goals  ‘ imaginable’ The ‘mind’s eye’ Hopeful,  passionate,  inspiring images & symbols ,[object Object],[object Object],[object Object],[object Object],[object Object]
Examples:  BHAGS Ford (1900’s):  Democratise the automobile (Target BHAG) (Nike, 1960’s):  Yamaha wo tsubusu! We will destroy Yamaha (Common Enemy BHAG) Stanford (1940’s):  Become the Harvard of the west (Role-Model BHAG) GE (1980’s):  #1 or #2 in every market we serve & revolutionise this company to have the strengths of a big company combined with the leanness & agility of a small company     
Examples:  Vivid Description Sony: We will create products that become pervasive around the world…We will be the first Japanese company to go into the U.S. market and distribute directly…We will succeed with innovations that U.S. companies have failed at - such as transistor radio…50 years from now our brand name will be as well known as any in the world…and will signify innovation and quality that rival most innovative companies anywhere…’Made in Japan’ will mean something fine, not something shoddy. 
Strategic Formulation ‘ Step’ 2: SWOT Analysis Brings balance to the more unchanging vision:  Organisation’s internal & external  environment: Change is often a constant here! S W O T Internal  strengths  &  weaknesses  of organisation External  opportunities  & threats  of organisation
Strategic Formulation: ‘ Steps’ 3, 4 & 5: Mission,  Goals & Objectives ‘ Eternal’ of Vision ‘ Now’ of SWOT Mission : What business / markets are we in to realise our vision? Goals : The tasks that need to be done  to enable mission Objectives The quantifiable targets that are set through the goals
Examples:  Missions Microsoft:  A computer on every desktop Saturn: The mission of Saturn is to market vehicles developed and manufactured in the United States that are world leaders in quality and customer satisfaction through the integration or people, technology, and business systems and to transfer knowledge, technology and experience throughout General Motors”.   Chevrolet:  Manufactirug safe and reliable economy cars, sports cars, sedans and trucks.   Electronic Data Systems:  Designing & operating information systems for both public and private organisations
Strategic Formulation: ‘ Step’ 6: Strategic Choice Vision Mission Goals Objectives Deliberate planning Everyday operations Emergent (organic,  evolutionary) strategy + Eventual plans Example : A new customer service process is planned for through consideration of new aims Example : Customer service people discover new process through dealing with customers
HR & Corporate  Strategic Choice Deliberate  planning Emergent  strategy Eventual plans HR Function Limit or  enable choices Surface,  communicate & integrate  suggestions
Strategic Types Categorisations under which any strategy can be typified Porter : Overall cost leadership Differentiation Focus Miles and Snow Defenders Prospectors Analysers Reactors Directional Strategies Concentration Internal growth External growth Divestment
Strategic Implementation:  Overview 2nd major part of strategy Implementation by all functions,  but six major implementation “musts”: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Not in textbook
HR Function and Implementation HR enables the six implementation  musts through various HR tasks: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Culture, Leaders, Strategy These can support or hinder strategy Culture Strategy Leadership b a d c e ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Culture, Leaders, Strategy Culture is influential! Leaders must learn to  shape and manipulate corporate cultures: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Leadership = Top management! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ETC!
Strategic Types  and HR Tasks Different strategic types work better  with some HR practices than others, e.g.: Porter / Miles and Snow Cost / defender  = efficiency, consistency Differentiation / prospector  = quality,  effectiveness, knowledge, creative Focus / analyser  = flexibility Directional Strategies Concentration  = current skills focus Internal growth  = new employees, new targets, new training External growth  = harmony, cooperation Divestment  = minimising loss (retrenchments, morale, severance)
Strategic Measurement  & Control Strategic  Formulation Strategic Implementation Sets standards (esp objectives) Measurement of outcomes Strategic  evaluation Thus: Evaluation is the judgment of how the standards set in strategic formulation were achieved in strategic implementation Evaluation is fed back into the formulation of plans and the knowledge base of how to implement them

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strategy

  • 2.
  • 3. HR Strategy “ The pattern of planned human resource deployments and activities intended to enable the organisation to achieve its goals” Focus: To provide the organisation with sustained competitive advantage … through procurement, development & alingment of people, skills, HR policies etc. Competitive advantage might arise from having best people, but also from being best at managing what you do have
  • 4. External competitive environment Corporate strategy formulation Corporate strategy implementation HR strategy Input Input Division strategies HR FUNCTION OTHER FUNCTIONS Link to Corporate Strategy Evaluation (measurment etc)
  • 5. Role of HRM in Strategy Formulation HR Function HR Function HR Function HR Function Strategic Planning Strategic Planning Strategic Planning Strategic Planning Administrative linkage One-Way linkage Two-way linkage Integrative linkage
  • 6. Strategic Formulation: Overview VISION MISSION GOALS / OBJECTIVES EXTERNAL ANALYSIS: Opportunities Threat INTERNAL ANALYSIS: Strengths Weaknesses STRATEGIC CHOICE
  • 7. Strategic Formulation: ‘ Step’ 1: Vision Organisational Vision Core ideology Envisaged future
  • 8. Core Ideology Core values Core Purpose Essential, enduring tenants What is important? What is inviolate? Reason for being What the organisation offers to society Controlling desire, Dominant aspiration
  • 9. Examples: Core Purposes 3M: to solve unsolved problems innovatively Hewlett-Packard: to make technical contributions for the advancement and welfare of humanity Mary Kay Cosmetics : to give unlimited opportunity to women Nike: to experience the emotion of competition, winning, and crushing the competition W alt Disney: to make people happy
  • 10.
  • 11. Strategic Formulation: ‘ Step’ 1: Vision Organisational Vision Core ideology Envisaged future BHAGS Vivid Description
  • 12.
  • 13. Examples: BHAGS Ford (1900’s): Democratise the automobile (Target BHAG) (Nike, 1960’s): Yamaha wo tsubusu! We will destroy Yamaha (Common Enemy BHAG) Stanford (1940’s): Become the Harvard of the west (Role-Model BHAG) GE (1980’s): #1 or #2 in every market we serve & revolutionise this company to have the strengths of a big company combined with the leanness & agility of a small company    
  • 14. Examples: Vivid Description Sony: We will create products that become pervasive around the world…We will be the first Japanese company to go into the U.S. market and distribute directly…We will succeed with innovations that U.S. companies have failed at - such as transistor radio…50 years from now our brand name will be as well known as any in the world…and will signify innovation and quality that rival most innovative companies anywhere…’Made in Japan’ will mean something fine, not something shoddy. 
  • 15. Strategic Formulation ‘ Step’ 2: SWOT Analysis Brings balance to the more unchanging vision: Organisation’s internal & external environment: Change is often a constant here! S W O T Internal strengths & weaknesses of organisation External opportunities & threats of organisation
  • 16. Strategic Formulation: ‘ Steps’ 3, 4 & 5: Mission, Goals & Objectives ‘ Eternal’ of Vision ‘ Now’ of SWOT Mission : What business / markets are we in to realise our vision? Goals : The tasks that need to be done to enable mission Objectives The quantifiable targets that are set through the goals
  • 17. Examples: Missions Microsoft: A computer on every desktop Saturn: The mission of Saturn is to market vehicles developed and manufactured in the United States that are world leaders in quality and customer satisfaction through the integration or people, technology, and business systems and to transfer knowledge, technology and experience throughout General Motors”. Chevrolet: Manufactirug safe and reliable economy cars, sports cars, sedans and trucks.   Electronic Data Systems: Designing & operating information systems for both public and private organisations
  • 18. Strategic Formulation: ‘ Step’ 6: Strategic Choice Vision Mission Goals Objectives Deliberate planning Everyday operations Emergent (organic, evolutionary) strategy + Eventual plans Example : A new customer service process is planned for through consideration of new aims Example : Customer service people discover new process through dealing with customers
  • 19. HR & Corporate Strategic Choice Deliberate planning Emergent strategy Eventual plans HR Function Limit or enable choices Surface, communicate & integrate suggestions
  • 20. Strategic Types Categorisations under which any strategy can be typified Porter : Overall cost leadership Differentiation Focus Miles and Snow Defenders Prospectors Analysers Reactors Directional Strategies Concentration Internal growth External growth Divestment
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Strategic Types and HR Tasks Different strategic types work better with some HR practices than others, e.g.: Porter / Miles and Snow Cost / defender = efficiency, consistency Differentiation / prospector = quality, effectiveness, knowledge, creative Focus / analyser = flexibility Directional Strategies Concentration = current skills focus Internal growth = new employees, new targets, new training External growth = harmony, cooperation Divestment = minimising loss (retrenchments, morale, severance)
  • 26. Strategic Measurement & Control Strategic Formulation Strategic Implementation Sets standards (esp objectives) Measurement of outcomes Strategic evaluation Thus: Evaluation is the judgment of how the standards set in strategic formulation were achieved in strategic implementation Evaluation is fed back into the formulation of plans and the knowledge base of how to implement them