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Human Resource Management: Gaining a Competitive Advantage, 11e Instructor’s Manual
This chapter provides an introduction of the strategic human resource management, its role within
a company’s competiveness. It is important to ensure students are aware of strategic management
(LO 2-1) and the general approaches to strategic management (LO 2-2). Here, instructors may be
able to have students review previous material covered in a Principles of Management or an
Introduction to Business course and review different generic strategies. It may be helpful for
instructors to emphasize internal and external analysis as important steps to strategy formulation.
As within Chapter 1, this can be integrated into a discussion of general business acumen for any
manager or leader, not just those concerned with HRM.
Instructors may emphasize that strategic decisions and components of the process are all people-
related (LO 2-3) and thus may require further integration of HRM and strategy formulation (LO 2-
4). It is important here to not just simply state employees are important to consider, but to
illustrate how these decisions may be informed through HRM as well as improved and enhanced for
better strategy. LO 2-5 and LO 2-6 provides examples of how HRM practices would be chosen to
align behind different organizational strategies. Throughout the discussion, different HRM practices
and processes and how they may contribute is defined.
Learning Objectives
LO 2-1: Describe the differences between strategy formulation and strategy implementation.
LO 2-5: Discuss the more popular typologies of generic strategies and the various HRM practices
associated with each.
LO 2-6: Describe the different HRM issues and practices associated with various directional
strategies.
This chapter contains content which may be identified within the following content areas identified
in HR Expertise:
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education.
Human Resource Management: Gaining a Competitive Advantage, 11e Instructor’s Manual
HR Strategic Planning
Talent Acquisition
Employee Engagement & Retention
Learning & Development
Total Rewards
Structure of the HR Function
Organizational Effectiveness & Design
Workforce Management
Employee & Labor Relations
This chapter contains content which may be identified within the following content areas:
Business Management & Strategy
Workforce Planning and Employment
Human Resource Development
Compensation and Benefits
Employee and Labor Relations
Discussion Question 1: Answers may vary widely, and so the instructor may wish to ensure
rationale follows from strategy to human capital. For example, if a defensive strategy is identified,
then human capital should be positioned to focus on defense. Instructors should also look to seek
rationale behind strengths and weaknesses, and note the correct or incorrect identification.
Discussion Question 2: Instructors may look to play devil’s advocate depending on the student’s
response. Larger organizations may have issues with bureaucracy, but have the resources to
support large HR initiatives. Smaller organizations, on the other hand, may be flexible and more
open to change, but not necessarily have the resources.
Discussion Question 3: Students should be able to present rationale that aligns the consistent HR
practices with the strategy, while identifying how the inconsistent practices didn’t align and may
have hurt the organization. An example might be policy on the importance of employees, but poor
(or lack of) training and low wages. This question may be integrated with the Self-Assessment
Exercise for more robust classroom discussion.
Discussion Question 4: Students may identify that a) strategic management within the HRM
department leads to leadership recognition of such decisions and thus a role in company strategic
management process, and b) strategic management within HRM department provides the
foundation for the department to contribute.
Discussion Question 6: Any number of variables may be identified, some previously discussed in
Chapter 1. Students should be able to rationalize those changes and their impact on HRM functions.
For example, the aging workforce, changes healthcare and minimum wage laws may impact
compensation and benefits practices. Focus should be on their ability to identify trends in the
external environment and apply them to HRM practices.
Exercising Strategy:
Southwest Airlines Comes of Age
1) Responses may vary, but students may identify the pricing strategy, the position (if they
have flown or are familiar with Southwest) or the employee relations. All or some of these
may be acceptable, given question number 2.
2) Students should be able to identify increasing competition and continued labor/employee
relations as issues. Responses to both #1 and #2 will probably be interrelated.
3) Student responses will vary dramatically, however should discuss the different HR practices
discussed within the chapter, with illustrations as to how it would correct the problems.
Students may employ table 2.3 in their responses. Further, they may identify how current
employees may be utilized to solve problems, while developing new approaches to services.
Managing People:
How Should Dell Respond to the HP Challenge
1) The instructor may wish to draw attention to Dell’s strategy of a direct-sales model, which
needed to emphasize both customer service and quality in both consumer and business
sales. It would seem that Dell’s position has been eroded due to competitive pressure and
weakness of customer service and computer quality. Further, leadership has been
stumbling with no apparent leadership bench other than Dell now. Thus, lower price
competition drove prices lower, causing issues with computer quality and customer service.
Further as an example of “with what to compete,” Dell does not seem to have much, as even
with investments in R & D the margins would be hurt.
2) HR could help by initially assessing where internal workforce capabilities reside in the
identified areas of leadership, customer service, R & D and manufacturing. HR could then
provide an employer of choice branding strategy to help attract and retain talent who may
be more interested in working for competitors.
HR in Small Business:
Radio Flyer Rolls Forward
1) Instructors may ask students to explore motivation and engagement issues within the
company, and whether an HR manager would be able to further identify areas to engage
and motivate the workforce in the U.S. Instructors may also ask students how the
motivation and engagement activities could then be used to brand the employer as a good
place to work. Responses should focus on those areas.
2) Instructors may wish to point out that large or small, people have relationships within
companies and outsourcing and the subsequent lay-offs are difficult because they a) sever
relationships, and b) cause employees to wonder if they are next. Outsourcing may further
hurt the employer’s brand if manufacturing is tied to the location. HRM could help smooth
the transition by preparing employees for the changes, identifying the appropriate
employees/capabilities, and advising on the process. Student responses should reflect the
above.
3) Students may emphasize the other engagement activities (reduction of carbon footprint) as
another example of how Radio Flyer can leverage its learning and innovation value without
it being directly tied to the outsourced manufacturing capability. Students should then
discuss how HR can help put those out for employees to see and celebrate to increase the
employer of choice brand and morale.
Instructors should note that at the end of Chapter 2 is a “Look Back” section, which revisits the
Amazon case and asks 3 questions. Suggested guidance for each is as follows:
1) Student responses should reflect the ability to identify how Amazon’s original strategy of
cheap and sales volume aided by the internet seems to be in direct contradiction with brick-
and-mortar. Then, their responses should either note it is not, because that is not how they
have become successful, or, it is, and the response demonstrates the combination of online
and brick-and-mortar. For example, the ability to pick-up food after ordering it online, or
how brick-and-mortar may provide the ability to deliver food faster.
2) Students may identify how Amazon may not have experience within brick-and-mortar, and
thus identify how some of the HR practices specific to the brick-and-mortar management
may not be possessed.
3) Answers may vary greatly, but students should be able to identify either a cost-based or a
differentiation-based strategy.
Integrity in Action:
From Hidden Emissions to Zero Emissions: Volkswagen’s Correction
Student responses will vary based on their opinion. Different discussion points may a) identify how
over time the reputation may build as people forget, b) some consumers may not care, c) the move
helps to change some consumers’ minds.
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Learning Objectives
LO 2-1 Describe the differences between strategy formulation
and strategy implementation.
LO 2-2 List the components of the strategic management
process.
LO 2-3 Discuss the role of the HRM function in strategy
formulation.
LO 2-4 Describe the linkages between HRM and strategy
formulation.
LO 2-5 Discuss the more popular typologies of generic
strategies and the various HRM practices associated with
each.
LO 2-6 Describe the different HRM issues and practices
associated with various directional strategies.
©McGraw-Hill Education.
Introduction
Strategic management includes
• Having the goal to deploy and allocate resources for a
competitive advantage
• Integrally involving the HRM function
• Using a business model to create value for customers
©McGraw-Hill Education.
What Is a Business Model?
Accounting Concepts
Fixed Costs
Variable Costs
Margins
Gross Margin
©McGraw-Hill Education.
What Is Strategic Management? 1 of 5
Strategic Management
• A process
• An approach to addressing the competitive
challenges an organization faces
• Managing the “pattern or plan that integrates an
organization’s major goals, policies, and action
sequences into a cohesive whole.”
• Developing strategies for achieving the company’s
goals in light of its current environment
LO 2-1
©McGraw-Hill Education.
What Is Strategic Management? 2 of 5
Strategic HRM
• “The pattern of planned human resource deployments
and activities intended to enable an organization to
achieve its goals.”
• Strategic management is a process to address the
organization’s competitive challenges by integrating
goals, policies and action sequences into a cohesive
whole.
©McGraw-Hill Education.
What Is Strategic Management? 3 of 5
Components of the Strategic Management
Process
• Strategy Formulation
Strategic planning groups decide on strategy
• Strategy Implementation
Organization follows through on the strategy
LO 2-2
©McGraw-Hill Education.
Figure 2.2 A Model of the Strategic Management Process
©McGraw-Hill Education.
What Is Strategic Management? 5 of 5
Role of HRM in Strategy Formulation
• With what will we compete?
• Four levels of integration between HRM and the
strategic management function
• administrative linkage
• one-way linkage
• two-way linkage
• integrative linkage
©McGraw-Hill Education.
Figure 2.4 Linkages of Strategic Planning and
HRM
SOURCE: Adapted from K. Golden and V. Ramanujam, “Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process,” Human Resource Management 24 (1985), pp. 429–51.
©McGraw-Hill Education.
Figure 2.5 Strategy Formulation
©McGraw-Hill Education. Adapted from K. Golden and V. Ramanujam, “Between a Dream and a Nightmare,” Human Resource Management 24 (1985), pp. 429–51
Strategy Formulation
Mission
Goals External
Analysis Internal
Analysis
Strategic Choice
©McGraw-Hill Education.
STRENGTHS
Expanding Liquidity
Operational Efficiency
Broad Range of Services Portfolio
OPPORTUNITIES
Growing Demand for Online Video Table 2.2
Growth in Internet Advertising Market
Inorganic Growth
SWOT
WEAKNESSES Analysis for
Issues with Chinese Government
Dependence on Advertising Segment
Google, Inc.
Loses at YouTube
THREATS
Weak Economic Outlook
Invalid Clicks
Microsoft-Yahoo! Deal
Strategy Implementation 1 of 12
Strategic implementation requires that
• “An organization has a variety of structural forms and
organizational processes to choose from when
implementing a given strategy”
• Five variables
• organizational structure
• HRM tasks
•task design
•selection, training, and development of people
•reward systems
• types of information and information systems
LO 2-5
©McGraw-Hill Education.
Figure 2.6 Variables to Be Considered in
Strategy Implementation
©McGraw-Hill Education.
Strategy Implementation 2 of 12
Vertical Alignment
• HR practices and processes address the strategic
needs of the business.
• The link between strategy and HR practices is
primarily through people.
• Job analysis and design
• Recruitment
• Selection systems
• Training and development programs
• Performance management systems
• Reward systems
• Labor relations programs
©McGraw-Hill Education.
Figure 2.7 Strategy Implementation
©McGraw-Hill Education.
Strategy Implementation 3 of 12
HRM Practices
Job Analysis/Design
Recruitment/Selection
Training/Development
Performance Management
Pay Structure/Incentives/Benefits
Labor-Employee Relations
©McGraw-Hill Education.
Strategy Implementation 4 of 12
Pay Structure, Incentives, and Benefits
• High pay and/or benefits relative to competitors can
help company attract and retain high-quality
employees, but might have a negative impact on
overall labor costs.
• Tying pay to performance can elicit specific activities
and levels of performance from employees.
©McGraw-Hill Education.
Strategy Implementation 5 of 12
Labor and Employee Relations
• Employees – asset or expense?
• How much should employees participate in decision
making?
• What rights do employees have?
• What is the company’s responsibility to employees?
• The approach a company takes in making these
decisions can result in successfully achieving its
short and long-term goals or ceasing to exist.
©McGraw-Hill Education.
Strategy Implementation 6 of 12
Strategic Types
• Porter’s Cost and Differentiation
• Value can be created by reducing costs.
• Value can be created by differentiating a product or service
so the company can charge a premium price relative to its
competitors
©McGraw-Hill Education.
Strategy Implementation 7 of 12
HRM Needs in Strategic Types
Role behaviors
• Behaviors required of an individual in his or her role as a job
holder in a social work environment
• Cost strategies – companies define the skills they require
and invest in training employees in these skill areas.
• Differentiation strategies - Employees are expected to exhibit
role behaviors that include cooperating with others,
developing new ideas, and taking a balanced approach to
process and results.
©McGraw-Hill Education.
Strategy Implementation 8 of 12
Directional Strategies
Concentration
Internal Growth
Mergers and Acquisitions
Downsizings
LO 2-6
©McGraw-Hill Education.
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Christian missionaries. Finally Nornagesta came to the court of King Olaf
Tryggvesson, who, according to his usual custom, converted him almost
by force, and made him receive baptism. Then, wishing to convince his
people that the time for superstition was past, the king forced the aged
scald to produce and light the taper which he had so carefully guarded
for more than three centuries.
In spite of his recent conversion, Nornagesta anxiously watched the
flame, and as it flickered and went out, he sank lifeless to the ground,
proving that, in spite of the baptism just received, he still believed the
words of the Norns.
In the middle ages, and even later, the Norns figure in many a story
or myth, appearing as fairies or witches, as, for instance, in the tale of
“the Sleeping Beauty,” and in Shakespeare’s tragedy of “Macbeth.”
These maidens, young and beautiful, with dazzling white arms and
flowing golden hair, wore helmets of silver or gold, blood-red corselets,
carried glittering spears and shields, and boldly charged hither and
thither on their mettlesome white steeds. These horses galloped over
the quivering Bifröst and through the realms of air, carrying not only their
fair riders, but the heroes slain, who were thus immediately transported
to Valhalla, after having received the Valkyrs’ kiss of death.
As the Valkyrs’ steeds were also personifications of the clouds, the
people fancied that all the hoar frost and dew dropped
The clouds.
down upon earth from their glittering manes as they rapidly dashed to
and fro through the air.
“He spake and his harp was with him, and he smote the strings full sweet,
And sang of the host of the Valkyrs, how they ride the battle to meet,
And the dew from the dear manes drippeth as they ride in the first of the
sun,
And the tree-boughs open to meet it when the wind of the dawning is
done:
And the deep dales drink its sweetness and spring into blossoming
grass,
And the earth groweth fruitful of men, and bringeth their glory to pass.”
Sigurd the Volsung (William Mor
The Valkyrs were not only sent to visit the battlefields upon earth,
but often rode over the sea, snatching the dying Vikings away from the
sinking vessels. Sometimes they stood upon the strand to beckon them
thither, thus warning them that the coming struggle would be their last—
a warning which every Northern hero received with joy.
Two of the brothers, Egil and Slagfinn, were so lonely without their
wives that, putting on their snow shoes, they went in search of them,
disappearing in the cold and foggy regions of the North; but the third
brother, Völund, remained at home—knowing all search would be of no
avail—contemplating a ring which Alvit had given him as a love token,
and constantly hoping she would return. As he was a very clever smith,
and could manufacture the most dainty ornaments of silver and gold, as
well as magic weapons which no blow could break, he now employed
his leisure in making seven hundred rings exactly like the one which his
wife had given him. These he bound all together; but one night, on
coming home from the hunt, he found that some one had carried away
one ring, leaving all the others behind; so he fancied his wife had been
there and would soon return for good.
That selfsame night, however, he was surprised in his sleep, and
bound and made prisoner by Nidud, King of Sweden, who took
possession of his choicest sword, which he reserved for his own use,
and of the love ring made of pure Rhine gold, which latter he gave to his
only daughter, Bodvild. As for the unhappy Völund himself, he was led
captive to a neighboring island, where, after having hamstrung him to
prevent his escape, the king made him forge weapons and ornaments
for his use day after day. He also compelled him to build an intricate
labyrinth, and to this day a maze in Iceland is known as “Völund’s
house.” Völund’s rage and despair increased with every new insult
offered him by Nidud, and he thought night and day how he might effect
his revenge. During the pauses of his labor he furthermore fashioned a
pair of wings similar to those his wife had used as a Valkyr, which he
intended to don as soon as his vengeance had been accomplished, to
escape from the labyrinth on the island. One day the king came to visit
him, and brought him the stolen sword that he might repair it; but Völund
cleverly substituted another weapon so exactly like the magic sword as
to deceive the king when he came to claim it once more. A few days
after, Völund the smith enticed the king’s sons into his smithy, slew
them, and cunningly fashioned drinking vessels for Nidud out of their
skulls, and jewels out of their eyes and teeth, which he bestowed upon
their mother and sister.
These gifts were joyfully accepted, as the royal family did not
suspect whence they came; for they fancied the youths had drifted out to
sea, where they had been drowned. Some time after this, Bodvild,
wishing to have her ring repaired, also visited the smith’s hut, where,
while waiting for it, she unsuspectingly partook of a magic drug, which
sent her to sleep and left her in Völund’s power. His last act of
vengeance accomplished, Völund donned the pair of wings which he
had cunningly fashioned to effect his escape, and grasping his sword
and ring slowly rose up in the air. He flew to the palace, and, perched
there out of reach, he confessed all his crimes to Nidud. The king,
beside himself with rage, summoned Egil, Völund’s brother, who had
also fallen into his power, and bade him use his marvelous skill as an
archer to bring down the impudent bird. Obeying a signal from Völund,
Egil aimed for a protuberance under his wing where a bladder full of the
young princes’ blood was concealed, and Völund flew triumphantly
away, declaring that Odin would give his sword to Sigmund—a
prediction which was duly fulfilled.
Völund then went to Alf-heim, where, if the legend is to be believed,
he found his beloved wife once more, and lived happy with her until the
twilight of the gods.
But, even in Alf-heim, this clever smith continued to ply his trade,
and manufactured several suits of impenetrable armor, which are
described in later heroic poems. Besides Balmung and Joyeuse,
Sigmund’s and Charlemagne’s noted swords, he is reported to have
fashioned Miming for his son Heime, and many other remarkable blades.
There are countless other tales of swan maidens or Valkyrs, who are
said to have consorted with mortals; but the most popular of all is that of
Brunhild, the wife of Sigurd, a descendant of Sigmund and the most
renowned of Northern heroes.
CHAPTER XIX.
HEL.
Hel, goddess of death, was the daughter of Loki, god of evil, and
of the giantess Angur-boda, the portender of ill. She
Loki’s
offspring. came into the world in a dark cave in Jötun-heim, and
was closely related to the serpent Iörmungandr and
the terrible Fenris wolf, the trio being considered the emblems of
pain, sin, and death.
Odin, having become aware of the terrible brood which Loki was
cherishing, resolved, as we have already seen, to banish them from
the face of the earth. The serpent was therefore cast into the sea,
where his writhing was supposed to cause the most terrible
tempests; the wolf Fenris was chained fast, thanks to the dauntless
Tyr; and Hel or Hela, the party-colored goddess of death, was hurled
down into the depths of Nifl-heim, where Odin gave her power over
nine worlds.
“Hela into Nifl-heim thou threw’st,
And gav’st her nine unlighted worlds to rule,
A queen, and empire over all the dead.”
Balder Dead (Matthew Arnold).
This goddess had many different abodes for the guests who
daily came to her, for she received not only perjurers and criminals of
all kinds, but also all those who were unfortunate enough to die
without shedding blood. To her realm also were consigned all those
who died of old age or disease—a mode of decease which was
contemptuously called “straw death,” as the beds of the people were
generally of that material.
“A hall standing
Far from the sun
In Nâströnd;
Its doors are northward turned,
Venom-drops fall
In through its apertures;
Entwined is that hall
With serpents’ backs.
She there saw wading
The sluggish streams
Bloodthirsty men
And perjurers,
And him who the ear beguiles
Of another’s wife.
There Nidhog sucks
The corpses of the dead.”
Sæmund’s Edda (Thorpe’s tr.).
Besides Niörd and Mimir, who were both ocean divinities, the one
representing the sea near the coast and the other the
God of the
sea. primeval ocean whence all things were supposed to
have sprung, the Northern races recognized another
sea-ruler, called Ægir or Hier, who dwelt either in the cool depths of
his liquid realm or had his abode on the Island of Lessoe, in the
Cattegat, or Hlesey.
Ægir (the sea), like his brothers Kari (the air) and Loki (fire), is
supposed to have belonged to an older dynasty of the gods, for he
ranked neither with the Æsir, the Vanas, the giants, dwarfs, nor elves,
but was considered omnipotent within his realm.
He was supposed to occasion and quiet the great tempests which
swept over the deep, and was generally represented as a gaunt old
man, with long white beard and hair, his clawlike fingers ever
clutching convulsively, as though he longed to have all things within
his grasp. Whenever he appeared above the waves, it was only to
take fiendish delight in pursuing and overturning vessels, which he
greedily dragged down to the bottom of the sea.
Ægir was mated with his sister, the goddess Ran, whose name
Ran. means “robber,” and who was as cruel, greedy, and
insatiable as her husband. Her favorite pastime was
lurking near dangerous rocks, whither she enticed mariners. There
she spread her net, her most prized possession, and, having
entangled the men in its meshes and broken their vessels on the
jagged cliffs, she calmly drew them down into her cheerless realm.
Ran was therefore also considered the goddess of death for all
who perished at sea, and the Northern nations fancied that she
entertained the drowned in her coral caves, where her couches were
spread to receive them, and where the mead flowed freely as in
Valhalla. The goddess was further supposed to have a great affection
for gold, which was called the “flame of the sea,” and was used to
illuminate her halls. This belief originated when the sailors first noticed
the well-known phosphorescent gleams in the deep, and to win Ran’s
good graces, they were careful to hide some gold about them
whenever any special danger threatened them on the sea.
Ægir and Ran had nine beautiful daughters, the Waves, or billow
maidens, whose snowy arms and bosoms, long golden
The Waves.
hair, deep-blue eyes, and willowy, sensuous forms
were fascinating in the extreme. These maidens delighted in playing
all over the surface of their father’s vast domain, lightly clad in
transparent blue, white, or green veils. They were very moody and
capricious damsels, however, varying from playful to sullen and
apathetic moods, and at times exciting one another almost to
madness, tearing their hair and veils, flinging themselves recklessly
upon their hard beds, the rocks, chasing one another with frantic
haste, and shrieking aloud with joy or despair. These maidens,
however, seldom came out to play unless their brother, the Wind,
were abroad, and according to his mood they were gentle and playful,
or rough and boisterous.
The Waves were generally supposed to go about in triplets, and
were often said to play around the ships of vikings whom they
favored, smoothing away every obstacle from their course, and
helping them speedily to reach their goal.
The giant’s wife, however, prevailed upon him to welcome Tyr and
Thor, and slay three oxen for their refection; but he was greatly
dismayed to see the thunder-god eat two of these for his supper.
Muttering that he would have to go fishing early the next morning to
secure a breakfast for such a voracious guest, the giant fell asleep.
When he went down to the shore at dawn the next day, he was joined
by Thor, who declared he would help him. As the giant bade him
secure his own bait for fishing, Thor coolly slew his host’s largest ox,
Himinbrioter (heaven breaker), cut off its head, and, embarking with it,
proceeded to row far out to sea. In vain Hymir protested that his usual
fishing ground had been reached, and that they might encounter the