Human Resource Management Strategy

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Human Resource Management Strategy

• HR Management
• MBAO 6030

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Human Resource Management Strategy

• The Meaning of Strategy
• A critical factor that affects Firm Performance
• A factor that contributes to Competitive
  Advantage in markets
• Having a long-term focus
• Plans that involve the top executives and/or
  board of directors of the firm
• A general framework that provides a perspective
  for selecting specific policies and procedures

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Human Resource Management Strategy

• Why is HR critical to firm performance?
• 85 of all firms in the US are service firms.
• Service is delivered by people.
• Low quality HR leads to low quality customer
  service.
• In the 21st century effective knowledge
  management translates into competitive advantage
  and profits.
• Knowledge comes from a firms people.

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Human Resource Management Strategy

• What is unique about Human Resource Management?
• HR is multidisciplinary It applies the
  disciplines of Economics (wages, markets,
  resources), Psychology (motivation,
  satisfaction), Sociology (organization
  structure, culture) and Law (min. wage, labor
  contracts, EEOC)
• HR is embedded within the work of all managers,
  and most individual contributors due to the need
  of managing people (subordinates, peers and
  superiors) as well as teams to get things done.
  

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HR Strategy Strategic Fit
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HR Strategy HR System Internal Fit

• HR Strategy

Goal Setting
Performance Measurement
Appeal
Coaching
Rewards
Performance Evaluation
Performance Management System
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HR Strategy Context of HR System

• The Five Factors Influencing the HR System
• External Environment
• Social social values, roles, trends, etc.
• Political political forces, changes. Ex. Bush
  presidency and its agenda for Social Security.
• Legal laws, court decisions, regulatory rules.
• Economic product, labor, capital, factor markets.

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HR Strategy Context of HR System

• The Workforce
• Demographics

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HR Strategy Context of HR System

• Organization Culture
• Weak vs. Strong culture
• Type of culture

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HR Strategy Context of HR System

• Organization Strategy
• What are a firms distinctive competencies?
• What is the basis that competitive strategy be
  sustained?
• What are a firms strategic objectives?
• Compare corporate and Business strategies.

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HR Strategy Context of HR System

• Technology of Production Organization of Work
• Physical layout/employee proximity
• Required employee skills
• Ease of monitoring employees input

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HR Strategy Context of HR System

• Critical Thinking Questions
• Should a company monitor the HR environment and
  imitate Best Practices of HR from successful
  firms? What caveats would you want to apply to
  applying Best HR Practices?
• Give an example of a type of Organizational
  Culture that would reinforce strategy What type
  of HR practices would fit with this culture?
• What type of HR practices would fit with jobs
  with tasks that are highly ambiguous, uncertain
  and creative? What about predictable, routine
  and certain tasks?

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HR Strategy Strategic Roles

• Distribution of Task Outcomes 3 Possibilities
• Foot soldier low upside, low downside of
  performance variance
• Guardian low upside, high downside of
  performance variance
• Star high upside, low downside of performance
  variance

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HR Strategy Strategic Roles

• Critical Thinking Questions
• Which Roles are Strategic? Foot soldier, guardian
  or star?
• What are the advantages of focusing on foot
  soldiers with the company HR policies?
• What are the liabilities of stars? When is it
  advantageous to cultivate and sustain stars?

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HR Strategy Consistency

• Consistency is an important quality related to
  the implementation of HR policies. Employees
  should receive a clear, undiluted message of what
  behaviors are important and desirable. When there
  is a fit between HR systems, employees are likely
  to receive consistent feedback. The 3 types of
  consistency are

• Single-employee consistency
• Among-employee consistency
• Temporal consistency

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HR Strategy Consistency

• Critical Thinking Questions
• Are there circumstances when it is effective to
  have inconsistent HR policies? Give an example.
• Does an emphasis on temporal consistency create a
  barrier for change when change is necessary?
• What impact (if any) would consistency have on
  the organization culture?