The Strategic Outlook

Recruitment and Selection

1
Strategic Staffing Model

1-2
Organization

A deliberate
arrangement
of people to
accomplish
some specific
purpose

1-3
Characteristics of Organizations

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved

Management

Involves coordinating
and overseeing the
work activities of others
so that their activities
are completed
efficiently and
effectively.

1-5
Efficiency and Effectiveness

 Efficiency: doing
things right
 getting the most
output from the least
amount of input
 Effectiveness: doing
the right things
 attaining
organizational goals

1-6
Effectiveness
Organizational effectiveness: how 1.
effective an organization is in
achieving the outcomes (product
or service) the organization intends 2.
to produce. Value creation as
source of competitiveness
3.
4.
Examines alignment between
the areas and improves them
Improves trade-offs between
reliability, speed and quality
in the above areas
Strategizes for higher
adoption rates in these areas
Facilitates/initiates/catalyzes
capability building : structure,
process and people
1-7
Strategic Outlook
1. Open System – Eco System 8. Staffing Organizations Model
2. Business Model 9. Strategic HRM – Competency
3. Value Chain Model Framework
4. RBV – Sustainable 10. Strategic Job Analysis and
Competitive Advantage – HR Planning
Sustainable Resources and 11. Job Description
Capabilities – High 12. Marketing Approach –
performance workplace realistic approach
practices 13. Realistic Job Preview and
5. The McKinsey 7S Framework Effect on perception and
6. Strategic Management retention
Essentials 14. Matrix and measurement
7. Human Resource 15. Effectiveness
Management (HRM) 16. Ethics and Legal

1-8
Open System – ECO System

1-9
Contemporary Approaches

 System: a set of interrelated and

interdependent parts arranged in a manner
that produces a unified whole
 Closed systems: systems that are not
influenced by and do not interact with their
environment
 Open systems: systems that interact with
their environment
Open System – ECO System

1-11
Eco - System

1-12
Business Model

1-13
Value Chain (1)
Michael Porter – 1985 - Competitive Advantage: Creating and Sustaining Superior Performance

The idea of the value chain is based

on the process view of organizations,
the idea of seeing a manufacturing (or
service) organization as a system,
made up of subsystems each with
inputs, transformation processes and
outputs. Inputs, transformation
processes, and outputs involve the
acquisition and consumption of
resources – money, labor, materials,
equipment, buildings, land,
administration and management. How
value chain activities are carried out
determines costs and affects profits.

1-18
1-19
Value Chain
Michael Porter – 1985 - Competitive Advantage: Creating and Sustaining Superior Performance

Primary activities Outbound logistics: is the process related to the

storage and movement of the final product and the
5 primary activities essential to add value and
related information flows from the end of the
creating a competitive advantage:
production line to the end user

Inbound logistics: arranging the inbound

Marketing and sales: selling a products and
movement of materials, parts, and/or finished
processes for creating, communicating, delivering,
inventory from suppliers to manufacturing or
and exchanging offerings that have value for
assembly plants, warehouses, or retail stores
customers, clients, partners, and society at large.

Operations: concerned with managing the process

Service: includes all the activities required to keep
that converts inputs (in the forms of raw materials,
the product working effectively for the buyer after it
labor, and energy) into outputs (in the form of
is sold and delivered.
goods and/or services).

Companies can harness a competitive advantage

at any one of the five activities in the value chain.
For example, by creating outbound logistics that are
highly efficient or by reducing a company's shipping
costs, it allows to either realize more profits or pass
the savings to the consumer by way of lower prices

1-20
Value Chain
Michael Porter – 1985 - Competitive Advantage: Creating and Sustaining Superior Performance
Support activities
Helps make primary activities more
effective. Increasing any of the four
support activities helps at least one
primary activity to work more
efficiently.
Infrastructure: consists of activities
such as accounting, legal, finance,
control, public relations, quality
assurance and general (strategic)
management.
Technological development: pertains
to the equipment, hardware, software,
procedures and technical knowledge
brought to bear in the firm's
transformation of inputs into outputs.
Human resources management:
consists of all activities involved in
recruiting, hiring, training, developing,
compensating and (if necessary)
dismissing or laying off personnel.
Procurement: the acquisition of goods,
services or works from an outside
external source. In this field company
also makes decisions of purchases.
1-21
Value Chain

1-22
The McKinsey 7S Framework
 Based on the theory  The model helps to identify
that, for an what needs to be realigned
to improve performance, or
organization to perform
to maintain alignment (and
well and be effective performance) during other
to produce and create types of change:
value and be  Improve the performance of a
company
competitive, there are  Examine the likely effects of future
changes within a company
seven elements (hard
 Align departments and processes
and soft) need to be during a merger or acquisition
 Determine how best to implement a
aligned and mutually proposed strategy
reinforcing.
1-23
The McKinsey 7S Framework

1-24
The McKinsey 7S Framework
Hard Elements
 Strategy - Purpose of the
business and the way the
organization seeks to
enhance its competitive
advantage.
 Structure - Division of
activities; integration and
coordination mechanisms.
 Systems - Formal
procedures for measurement,
reward and resource
allocation.
Soft Elements
 Shared Values
 Skills - The organization's
core competencies and
distinctive capabilities.
 Staff - Organization's
human resources,
demographic, educational
and attitudinal characteristics.
 Style - Typical behavior
patterns of key groups, such
as managers, and other
professionals.
1-25
Strategic Management Essentials

Strategy Strategy
Strategy
formulati implementati
evaluation
on on

1-26
Strategic Management Essentials

1-27
Stages of Strategic Management

Strategy Formulation
 developing a vision and mission
 identifying an organization’s external
opportunities and threats
 determining internal strengths and weaknesses

 establishing long-term objectives

 generating alternative strategies

 choosing particular strategies to pursue

1-28
Strategy Formulation Decisions

 What new businesses to enter

 What businesses to abandon
 Whether to expand operations or
diversify
 Whether to enter international markets
 Whether to merge or form a joint venture
 How to avoid a hostile takeover

1-29
Stages of Strategic Management

Strategy Implementation
 requires a firm to establish annual
objectives for units, devise policies,
motivate employees, and allocate
resources so that formulated
strategies can be executed

1-30
Stages of Strategic Management

Strategy Evaluation
 Determining which strategies are not
working well
 Three fundamental activities:
 reviewing external and internal factors
that are the bases for current strategies
 measuring performance (HR)

 taking corrective actions

1-31
To Watch

https://www.youtube.com/w
atch?v=Sh4epiY-
W4s&feature=youtu.be

1-32
Human Resource Management (HRM)

 Utilization of individuals to achieve

organizational objectives
 Concern of all managers at every level
 Face a multitude of challenges

1-33
Interrelationships of HRM Functions

 All HRM functions are interrelated so that

each function affects the others
 For example, a pay-for-performance
compensation plan depends upon reliable
and valid performance appraisal practices

1-34
 • Organization/job design activities are concerned with
interdepartmental relations and the organization and
definition of jobs.
• Performance management and performance appraisal
Secondary Functions systems are used for establishing and maintaining
accountability throughout an organization.
• Research and information systems (including Human
Resource Information Systems) are necessary to make
enlightened human resource decisions.

1-35
Human Resource Management
Functions

1-36
Staffing
Process of ensuring the organization always
has:
Required number of employees
Employees with appropriate skills
Employees in the right jobs at the right time
Constant job analysis, human resource
planning, recruitment, and selection

1-37
Job Analysis

 Systematic process of determining skills,

duties, and knowledge required for
performing jobs in an organization
 Impacts virtually every aspect of HRM

1-38
Human Resource Planning

 Matching internal and external supply of

people with anticipated job openings over
a specified period of time
 Sets the stage for recruitment and other
HR actions

1-39
Recruitment and Selection

Recruitment: Attracting individuals

to apply for jobs
 Must be timely
 Applicants need appropriate qualifications
 Need sufficient number of applicants
Selection: Choosing individual best suited
for a particular position and the organization

1-40
Performance Management

 Goal-oriented process to ensure

organizational processes are in place
to maximize productivity
 Applies to employees, teams, and
ultimately, the organization

1-41
Performance Appraisal

 Formal system of review and evaluation

 Individual
 Team

1-42
Human Resource Development

 Major HRM functions include:

 Training
 Development

 Career planning

 Career development

 Organization development

1-43
Training and Development

 Training: Providing learners with

knowledge and skills needed for their
present jobs
 Relatively short-term focus

 Development: Offering learning that

goes beyond present job
 Relatively long-term focus

1-44
Career Planning and Development

 Career planning: Ongoing process

 Individual sets career goals
 Identifies means to achieve them

 Career development: Formal approach

used by the organization
 Ensures a pipeline of people with proper
qualifications and experiences

1-45
Organization Development

Planned and systematic attempt to:

 Make the organization more
effective
 Createa positive behavioral
environment

1-46
Compensation
All rewards that individuals receive as a
result of their employment
 Financial compensation
 Nonfinancial compensation

1-47
Financial Compensation

 Direct (Core Compensation): Pay

employee receives in form of wages,
salaries, bonuses, or commissions
 Indirect (Employee Benefits): Benefits
employee receives such as paid
vacations, sick leave, holidays, medical
insurance

1-48
Nonfinancial Compensation

Satisfaction that employees receive from:

 Job itself
 Psychological and/or physical environment

1-49
Employee and Labor Relations

 Businesses are required by law to

recognize a union and bargain with it in
good faith if the firm’s employees want
union representation
 Human resource activity with a union is
often referred to as industrial (labor
management) relations

1-50
Internal Employee Relations

Internal Labor Relations: Movement of

employees within the organization
Examples:
 Promotions
 Demotions
 Terminations
 Resignations

1-51
Safety and Health
 Safety: Protecting employees from injuries
caused by work-related accidents
 Health: Employees' freedom from illness
and their general physical and mental well-
being

1-52
Interrelationships of HRM
Functions
 All HRM functions are interrelated so that
each function affects the others
 For example, a pay-for-performance
compensation plan depends upon reliable
and valid performance appraisal practices

1-53
Dynamic Human Resource Management
Environment

1-54
Legal Considerations

 Federal, state, and local legislation

 Court decisions
 Presidential executive orders

1-55
Labor Market

 Potentialemployees located within

certain geographic area
 Demographic shifts (more older
workers) are associated with
workforce preparedness
 Always changing

1-56
Society
Firm must accomplish its purpose while
complying with societal norms
 Ethics: Deals with what is good and bad,
or right and wrong, and with moral duty and
obligation
 Corporate social responsibility: Implied,
enforced, or felt obligation of managers to
serve or protect interests of groups other
than themselves

1-57
Political Parties
 Related to society are political parties
 The Democratic and Republican
parties are the two major political
parties in the United States
 Differing opinions on how HRM
should be accomplished (government
intervention such as laws vs. market
forces)

1-58
Unions

 Group of employees who have joined

together to collectively bargain with their
employer
 The union becomes a third party when
dealing with the company

1-59
Shareholders

 Owners of a corporation
 Have invested money in the firm
 May challenge programs put forth by
management to be beneficial to the
organization

1-60
Competition
 In product or service and labor markets
 Firms must maintain a supply of
competent employees
 Bidding war often results

1-61
Customers
 People who actually use firm’s goods
and services
 Employment practices should not
antagonize members of the market that
the firm serves
 Workforce should be capable of
providing top-quality goods and
services

1-62
HR Technology

Rapid technological changes provide:

 Increased sophistication
 Ability to design more useful human
resource information systems (HRIS)

1-63
Economy
 When economy is booming, it is often
more difficult to recruit qualified workers
 In economic downturn, more applicants
are typically available

1-64
Unanticipated Events

 Unforeseen occurrences in external

environment
 Require a tremendous amount of
adjustment with regard to HRM

1-65
Corporate Culture and HRM

Corporate culture: System of shared

values, beliefs, and habits within an
organization that interacts with the formal
structure to produce behavioral norms

1-66
Employer Branding

The firm’s corporate image or culture

created to attract and retain the type of
employees the firm is seeking. It is what the
company stands for in the public eye.

1-67
To Watch

https://www.youtube.c
om/watch?v=A2HFus
WQIeE&t=1s

1-68
Staffing Organizations Model

1-69
Key Issues for Staffing

 Effectiveness
 Skill Gap Fill
 Best fit
 Quantity, Quality & time
 Retention
 Interrelation
 Strategic Contribution

1-70
R&S Ultimate Goal = Organization’s goals and its
effectiveness in reaching these goals

Discrepancies or
gaps between
existing skills
R&S and the skills
required for
effective current
job performance
R&S Ultimate Goal = Organization’s goals and its
effectiveness in reaching these goals

Discrepancies or
gaps between
existing skills
R&S and the skills
required for
effective current
job performance
Task Analysis

 The collection of data

about a specific job or
group of jobs
 Job analysis and job
design
 What employee needs
to know to perform a
job or jobs
Task Analysis

 The collection of data

about a specific job or
group of jobs
 Job analysis and job
design
 What employee needs
to know to perform a
job or jobs
Textbook

Staffing
Organizations,
Ninth Edition
©2019 | Heneman,
Judge, Kammeyer-
Mueller | McGraw-Hill
Higher Education —
USA

1-75
Plan of the Course & the Book

 Part 1: Nature of Staffing (Ch. 1)

 Part 2: Support Activities (Ch. 2, 3, 4)
 Part 3: Recruitment (Ch. 5, 6)
 Part 4: Selection (Ch. 7, 8, 9, 10)
 Part 5: Employment (Ch. 11, 12)
 Part 6: Staffing System & Retention
Management (Ch. 13, 14)

1-76
Staffing Organizations Model

1-77