MGTO 231 Human Resources Management

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MGTO 231Human Resources Management

• The Importance of HRM
• Dr. Kin Fai Ellick WONG

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Personnel vs. HRM

• Personnel Department vs. Human Resource
  Management
• Are they the same?
• If no, what are the differences?
• How come there are two names?
• You will know the answer at the end of this class

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Outline

• Business Strategy
• Strategy and HRM
• Strategic HR Choices
• Importance of strategic HR Planning

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Outline

• Business Strategy
• Strategy and HRM
• Strategic HR Choices
• Importance of strategic HR Planning

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Business Strategy

• What is a strategy
• Text book definition The companys long-term
  plan for how it will balance its internal
  strengths and weaknesses with its external
  opportunity and threats to maintain a competitive
  advantage
• Simply speaking A plan that is expected to make
  an organization adaptive and competitive
• Simplest speaking A plan to make money

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Business Strategy

• Example of strategic choices
• Defender vs. Prospector
• Exploitation vs. Exploration
• Quality vs. Quantity
• Focused vs. Diversified

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Examples

• Defender vs. Prospector strategy
• A defender strategy (??)
• Conservative, prefer to maintain a secure
  position in relatively stable product or service
  areas
• Not so looking to expand into new territory
• Attempting to protect market share from
  competitors not to engage in new-product
  development
• Low risk, stable return

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Examples

• Defender vs. Prospector strategy
• A prospector strategy (??)
• Aggressive, emphasize growth and innovation
• Looking to expand into new territory
• Attempting to engage in new-product development
• Failure is regarded as normal
• High risk, high return

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Examples

• Exploitation vs. Exploration
• Exploitation
• Seeking to improve the current version of product
• Incremental improvement
• Exploration
• Seeking to have breakthrough in product
  development
• Dramatic changes in the fundamental concepts or
  architect of a product

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Examples

• Exploitation vs. Exploration
• Examples
• Game software
• EA Sports vs. Nintendo
• Game lists of EA
• NBA Live 1996
• NBA Live 1997
• NBA Live 1998
• NBA Live. 07
• http//www.easports.com/
• How about Nintendo?
• Made in Wario (key control)
• Mawaru Made in Wario (key motion control)

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Examples

• Exploitation vs. Exploration
• Examples
• TV industry
• Panasonic vs. Samsung
• Panasonic Improving the quality of CRT TV
• Samsung Switching to LCD TV
• Mobile phone
• Keep improving 2G vs. Switching to 3G

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Examples

• Exploitation vs. Exploration
• Similar to prospector, exploration is high risk
  high return
• Anyone remember this product by NOKIA

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Examples

• Quality vs. Quantity
• Examples
• Car industry
• Rolls Royce vs. Toyota

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Examples

• Focused vs. Diversified
• Examples
• Hey, would you give me an example?

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Outline

• Business Strategy
• Strategy and HRM
• Strategic HR Choices
• Importance of strategic HR Planning

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Personnel vs. HR

• For organizations with a personnel department
• Top-management often regard various HR functions
  (e.g., recruitment, pay, training) as IRRELEVANT
  to business strategies
• Their managers usually do not involve in the
  strategic planning and decision-making of
  organizations

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Personnel vs. HR

• For organizations with a HR department
• Top-management often regard various HR functions
  (e.g., recruitment, pay, training) as a part of
  business strategy
• Their managers usually play an important role in
  strategic planning of organizations

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The role of HR managers

• They have to decide policies and actions that are
  consistent with their goals!
• There are many strategies they can choose in
  various HR contexts
• The choices may be different for different
  business strategies

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Strategic HR Choices
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Strategic HR choices

• Managers or top-management have to decide
  policies and actions that are consistent with
  their goals!
• There are many strategies they can choose in
  various HR contexts
• The choices may be different for different
  business strategies

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Some strategic HR Choices

• Work Flows
• Efficiency ?? Innovation
• Control ?? Flexibility
• Explicit job description ?? Broad job classes
• Detailed work planning ?? Loose work planning

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• Staffing
• Internal recruitment ?? External recruitment
• Supervisor makes hiring ?? HR makes hiring
• Fit in with firms culture ?? Skill and
  qualification
• Informal hiring ?? Formal hiring

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• Separations
• Inducing voluntary retirement ?? Layoffs
• Hiring freeze ?? Recruitment as needed
• Continuing support after termination ?? Letting
  them fend for themselves
• Preferential rehiring ?? No preference

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• Performance appraisal
• Customized appraisals ?? Uniform
  appraisal procedures
• Multiple-purpose appraisals ??
  Control-oriented appraisals
• Multiple inputs (peers, subordinate)??
  Supervisory input only

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• Training and development
• Individual training ?? Team training
• Job-specific training ?? Generic training
• Buy skills with higher wages ?? Make skills at
  lower wages

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• Compensation
• Fix pay ?? Variable pay
• Job-based pay ?? Individual-based pay
• Seniority-based pay ?? Performance-based pay
• Centralized pay decisions ?? Decentralized one

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• International management
• Create global company culture ?? Adapt to local
  culture
• Rely on expatriates ?? Rely on own country
  nationals
• Repatriation agreement ?? No formal repatriation
• Universal company policies ?? Country-specific
  company polices

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Choices of HR strategies

• No HR strategy is good or bad in and of
  itself
• Depend on situation context
• Fit between the strategies and organizations

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Outline

• Business Strategy
• Strategy and HRM
• Strategic HR Choices
• Importance of strategic HR Planning

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Importance of strategic HR planning

• Encourage proactive behavior
• Vision, active, anticipation
• Translating the strategic plans into actions
• A good HR planning makes strategic HR choices
  that fit the overall organizational strategies

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A good HR planning

• Fits organizational strategies
• Fits environments

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Conclusions

• HRM is at a strategic level
• Managers can formulate HR functions in a way that
  facilitate business strategies
• It is a matter of fit between the HR choices and
  (1) business strategies, and (2) environments