HR lecture # 5,6

Ch # 3
The Management Planning Process
The basic management planning process consists of five steps:
1) setting objectives
2) making basic planning forecasts
3) reviewing alternative courses of action
4) evaluating which options are best
5) and then choosing and implementing your plan.
A plan shows the course of action for getting from where you are to the goal. Planning is always
“goal-directed”
Policies set broad guidelines delineating how employees should act.
” Procedures spell out what to do if a specific situation arises.
What Is Strategic Planning?
A strategic plan is the company’s overall plan for how it will match its internal strengths and
weaknesses with its external opportunities and threats in order to maintain a competitive
position.
 Strategic plans are similar to but not the same as business models. Those investing in a
business will ask top management, “What’s your business model?”
A business model “is a company’s method for making money in the current business
environment.”
 It pinpoints whom the company serves, what products or services it provides, what
differentiates it, its competitive advantage, how it provides its product or service, and,
most importantly, how it makes money.
Strategy
A course of action the company can pursue to achieve its strategic aims. Both PepsiCo
and Coca-Cola face the same basic problem— people are drinking fewer sugared drinks.
However, they each chose different strategies to deal with this. PepsiCo diversified by selling
more food items like chips. Coca-Cola concentrated on sweet beverages, and on boosting
advertising to (hopefully) boost Coke sales.
 The Strategic Management Process
Strategic management is the process of identifying and executing the organization’s strategic
plan by matching the company’s capabilities with the demands of its environment.
Step of process
Its seven steps include
1) ask, “What business are we in now?”
“What business are we in?” Here the manager defines the company’s current business.
Specifically, “What products do we sell, where do we sell them, and how do our products or
services differ from our competitors’?” For example, the Coca-Cola Company sells mostly
sweetened beverages such as Coke and Sprite, while PepsiCo sells drinks but also foods such as
Quaker Oats and Frito chips
2) evaluate the firm’s internal and external strengths, weaknesses, opportunities, and
threats,
The second step is to ask, “Are we in the right business given our strengths and
weaknesses and the challenges that we face?” To answer this, managers “audit” or study both the
firm’s environment and the firm’s internal strengths and weaknesses. This audit may also include
analyzing the so-called PEST factors. These include Political factors such as government
regulations and employment laws; Economic factors including unemployment and economic
growth; Social factors such as changing demographics and health consciousness trends; and
Technological factors such as the use of social media and digitalization and of self-driving
vehicles. In any case, the manager aims to create a strategic plan that makes sense in terms of the
company’s strengths, weaknesses, opportunities, and threats.
3) formulate a new business direction
The task in step 3 will be to decide what should our new business be, in terms of what we
sell, where we will sell it, and how our products or services differ from competitors’ products
and services? Some managers express the essence of their new business with a vision statement.
A vision statement is a general statement of the firm’s intended direction; it shows, in broad
terms, “what we want to become.” Whereas the vision statement describes in broad terms what
the business should be, the company’s mission statement summarizes what the company’s main
tasks are today.

4) decide on strategic goals

The manager’s next step (step 4) is to translate the desired new direction into strategic
goals.
5) choose specific strategies or courses of action.
Next, (step 5) the manager chooses strategies—courses of action—that will enable the
company to achieve its strategic goals.
6) is to implement
Step 6, strategy execution, means translating the strategies into action. This means
actually hiring (or firing) people, building (or closing) plants, and adding (or eliminating)
products and product lines. (A product line is a group of related products all marketed under a
single brand name that is sold by the same company).
7) and then evaluate the strategic plan
Finally, in step 7, the manager evaluates the results of his or her planning and execution.
Things don’t always turn out as planned. All managers should periodically assess the progress of
their strategic decisions.
Types of Strategies
In practice, managers engage in three types or levels of strategic planning, corporate-
level strategic planning, business unit (or competitive) strategic planning, and functional (or
departmental) strategic planning.
Corporate-level Strategy:
It the type of strategy that identifies the portfolio of businesses that, in total, comprise the
company and the ways in which these businesses relate to each other.
Types
There are 3 types:
1) Growth strategies
2) Stability strategies
3) Renewable strategies
1) Growth Strategy
 A corporate strategy that is used when an organization wants to expand the number of
markets served or products offered either through current business or through new business.

In a growth strategy, 3 types occur.

i. Concentration
In it, an organization focuses on its primary line of business and increases the number of
products offered or markets served in that business. (basically expand business by its current
product).
 They can expand geographically but do not make additions in their product line.
ii. Integration
In it, two types of integration occur,
a) Verticle Integration:
Further two types of integration occur,
 Backward vertical integration:
An organization becomes its own supplier so it can control its inputs.
 Forward verticle integration:
An organization becomes its own distributor and can control its outputs.
b) Horizontal integration
A company grows by combining with competitors. E.g. Jazz/Warid.
iii. Diversification
 Related Diversification
A related diversification corporate strategy means the firm will expand by
adding new product lines. PepsiCo is diversified. Thus, PepsiCo added Frito-Lay chips and
Quaker Oats to its drinks businesses. Here product scope is wider but business is single that is of
food. Diversification in a single business.
 Unrelated Diversification
Diversification in different businesses. E.g. GOURMET ( business in bakery,
catering, furniture, pharmacy).
With a consolidation strategy, the company reduces its size. With the geographic expansion,
the company grows by entering new territorial markets, for instance, by taking the business
abroad.
2) Stability strategy
In this, an organization continues to do what it is currently doing. With this type of
strategy, the organization does not grow, but it does not fall behind.

3) Renewal Strategy:
It is the corporate strategy designed to address declining performance either by
retrenchment or turnaround strategy.
 Retrenchment is a short-term renewal strategy used for minor performance
problems. They may change technology, culture, or can reduce the workforce, or may
change the structure.
 Turnaround strategy is used when the problems are very serious. It means a
complete change in the business
An example of a renewable strategy is NOKIA mobile in case of change from dial-pad to the
android system.
Competitive strategy (divisional level)
“A strategy that identifies how to build and strengthen the business’s long-term
competitive position in the marketplace.”
Dealing directly with a niche market, customers.
 On what basis will each of our businesses compete? Within a company like PepsiCo, each
business unit (such as Pepsi and Frito-Lay) needs a business-level competitive strategy. A
competitive strategy identifies how to build and strengthen the business unit’s long-term
competitive position in the marketplace. 8 It shows, for instance, how Domino’s would
compete with Pizza Hut or how Big Bazaar would compete with Reliance Retail.
 Managers build their competitive strategies around their businesses’ competitive advantages.
Competitive advantage means any factors that allow a company to differentiate its product
or service from those of its competitors to increase market share. Coca-Cola has a “secret
formula” that shows how to create its famous beverage. However, competitive advantages
needn’t be tangible.
TYPES:
 Cost leadership means becoming the low-cost leader in an industry. They can
compromise but the cost will be minimum.
  With differentiation, the firm seeks to be unique in its industry along dimensions that
are widely valued by buyers. They can not compromise on quality. No matter whether
the cost is high. E.g. Apple, omega watches, Nishat.
 Focus strategy Focusers carve out a market niche (like Bugatti cars). They don’t bother that
who will buy their products or not but they know that a specific group will buy. They offer a
product or service that their customers cannot get from generalist competitors (such as Toyota).
Segments can be based on product variety, customer type, distribution channels, or geographic
location. E.g. GUCCI.
Functional Strategy (departmental level)
 The functional department makes these strategies.
 A strategy that identifies the broad activities that each department will pursue to help
the business accomplish its competitive goals.
 Functional strategies identify what each department must do to help the business
accomplish its strategic goals.
STRATEGIC HUMAN RESOURCE MANAGEMENT
Definition
Formulating and executing human resource policies and practices that produce the
employee competencies and behaviors the company needs to achieve its strategic aims.
 The basic idea of strategic human resource management is this: In formulating human
resource management policies and activities, the manager should aim to formulate policies that
produce the employee skills and behaviors that the company needs to achieve its strategic goals.
Strategic Human Resource Management Tools
Managers use several tools to translate the company’s strategic goals into human resource
management policies and practices. These tools include the
 strategy map
 the HR scorecard
 the digital dashboard.
STRATEGY MAP
 A strategic planning tool that shows the “big picture” of how each department’s
performance contributes to achieving the company’s overall strategic goals.
 It helps the manager and each employee visualize and understand the role his or her
department plays in achieving the company’s strategic plan. Management gurus sometimes
say that the map clarifies employees’ “line of sight.” It does this by visually linking their
efforts with the company’s ultimate goals.
  Supportive policy;
Hr Supportive hr policy means they support their employees, where they need training,
Hr will provide them, where they need compensation then Hr dep will also provide them, and
so on.
 Workplace performance system:
If a junior member joins and after2-3 years his performance gets better or good, he will
be promoted first as compared to that senior who has a lot of experience but is not performing
well. This concept is also applicable to the HR department.
HR SCORECARD
A process for assigning financial and nonfinancial goals or metrics to the human resource
management– related chain of activities required for achieving the company’s strategic aims and
for monitoring results.
 Many employers quantify and computerize the strategy map’s activities. The HR
scorecard helps them to do so.
  We can determine the business’ performance value through scorecard.
 We have to score HR department’s performance.
(Is mai basically yai hai k wo scorecard jis mai hr k dep nai jo policies or plan bnaye hain
overall organization k liye wo kitni effective rahi hai financially or non financially goal ko
achieve krnay mai isko number ya matrices assign kren gai jis k through hum dekh rahay hn ga k
performance kesi rahi).
DIGITAL DASHBOARDS:
A digital dashboard presents the manager with desktop graphs and charts, showing a
computerized picture of how the company is doing on all the metrics from the HR scorecard
process.
 We can determine the HR department’s performance through graphs, charts, bar charts,
etc. It is a digital indicator. It is a tracking tool for a manager through which they came to
know that what they have to do now.
 Basically representing HR scorecard digitally is called the digital dash-board.
Different Terms
MATRICES:
 The general meaning of matrices is PARAMETERS.
 It is the quantitative gauge of a human resource management activity, such as employee
turnover, hours of training per employee, or qualified applicants per position.
HR Audits
An analysis by which an organization measures where it currently stands and determines
what it has to accomplish to improve its HR functions.
The HR audit generally involves using a checklist to review the company’s human resource
functions (recruiting, testing, training, and so on), as well as ensuring that the firm is adhering to
regulations, laws, and company policies. The HR auditor may first review payroll data, focusing
on what and when each employee was paid. He or she will then turn to whether the human
resource records are in order (for instance, are medical records kept separate from résumés?). He
or she will also review the employer’s handbooks and policies, for instance, checking for
disability accommodation policies, social media policies, and family and medical leave
policies.35 He or she may also want to benchmark the results to comparable companies’.

LECTURE # 7
Ch # 4: Job Analysis and the Talent Management Process
Talent management
 It is the goal-oriented and integrated process of planning, recruiting, developing,
managing, and compensating employees.
 It is almost similar to Strategic Human Resource Management but is mai aik particular
employee k reference sai baat ki gai hai k kis tarah sai employee ko recruite krna yak is
tarah sai select krna and so on and at the end competency increase ho gi employe ki and
with the increase in competency, directly or indirectly strategic goal achieve ho ga.
Job Analysis
 In simple word, it is the combination of job requirement and human requirements
( job specification).
 Aisi job, the procedures, jis hum us job k reference k us job ki requirements kia hain
means k us job ko perform krnay k liye koni duties, responsibility, skills ki requirement
hai us job ko complete krnay k liye is one aspect of job analysis. The second aspect is
 what kind of person is you need to fulfill these things means human requirement kia hai.
This whole process is called job analysis.
 Job analysis is the procedure through which you determine the duties of the company’s
positions and the characteristics of the people to hire for them. (book definition)
Job descriptions
 A list of a job’s duties, responsibilities, reporting relationships, working conditions, and
supervisory responsibilities—one product of a job analysis.
 It is a list of what the job entails.
 Multinational conducts job descriptions annually.
Job specifications
 It is a list of a job’s “human requirements,” that is, the requisite education, skills,
personality, and so on—another product of a job analysis.
 It is what kind of people to hire for the job.

Types of information collected via job analysis

Work activities: Information about the job’s actual work activities, such as cleaning, selling,
teaching, or painting. This list may also include how, why, and when the worker performs each
activity.
Human behaviors: Information about human behaviors the job requires, like sensing,
communicating, lifting weights, discipline, or walking long distances.
Machines, tools, equipment, and work aids: Information regarding tools used, materials
processed, knowledge dealt with or applied (such as finance or law), and services rendered (such
as counseling or repairing).
Performance standards: Information about the job’s performance standards (in terms of
quantity or quality levels for each job duty, for instance). KEY PERFORMANCE INDICATOR
(KPI), these are the standard on which basis we will upto mark or below average the job’s
performance.
Job context: what is the context of the job. It means what are the working condition of the job
( it means k kis dep mai employe ko shift kiya jaye ga field ka kam hai ya headquarter ka ya
office ka, working schedual kia hai morning shift hai ya evening, job permanent hai ya
temporary and so on ).

Interviews
  The job analyst and supervisor should work together to identify the workers who know
the job best.
 Quickly establish rapport with the interviewee.
 Follow a structured guide or checklist, one that lists open-ended questions and provides
space for answers.
 Ask the worker to list his or her duties in order of importance and frequency of
occurrence.
 After completing the interview, review and verify the data.
Questionnaires
Having employees fill out questionnaires to describe their job duties and responsibilities is
another good way to obtain job analysis information.
Observation
Observing and noting the physical activities of employees as they go about their jobs by
managers.
Diary/log
Another method is to ask workers to keep a diary/log; here for every activity engaged in, the
employee records the activity (along with the time) in a log. diary/log Daily listings made by
workers of every activity in which they engage along with the time each activity takes. Some
firms give employees pocket dictating machines and pagers. Then at random times during the
day, they page the workers, who dictate what they are doing at that time.