Strategic Role of HR

Strategic Management
HR’s Strategic Challenges
Vision & Mission
Strategic Management Process
SWOT example
BLUE OCEAN STRATEGY
A way of value Innovation
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.
The basic Architecture of HR

NUDGE
 NUDGE
For helping people take better
behavioural decisions
Outlining the Company’s Value Chain
HR Strategic tools
 Strategic Human Resource Management Tools
Manager’s 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, and the digital dashboard.
Strategy Map : The strategy map summarizes 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.

Figure (next slide) presents a strategy-map example for Southwest Airlines. The top level
target is to achieve its profitability, costs, and revenue goals. Then the strategy map
shows the chain of activities that help Southwest Airlines achieve these goals.
Like Walmart, Southwest has a low-cost-leader strategy. So, for example, to boost revenues
and profitability Southwest must fly fewer planes (to keep costs down), maintain low
prices, and maintain on-time flights. In turn (further down the strategy map), on-time
flights and low prices require fast turnaround. This, in turn, requires motivated ground
and flight crews. The resulting strategy map helps each department under stand what it
needs to do to support Southwest’s low-cost strategy.
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.
 Why Employee engagement is important ?

• Employee engagement refers to being psychologically involved in,

connected to, and committed to getting one’s jobs done. Engaged
employees “experience a high level of connectivity with their work tasks,”
and work hard to accomplish their task-related goals. Employee
engagement is important because it drives performance and productivity.
• employee engagement is correlated with employees’ customer service
productivity, and improvements in employee engagement were associated
with  significant increases in sales, product quality, productivity, safety
incidents at work,  retention and absenteeism, and revenue growth.
• Companies with highly engaged employees are also less likely to be
unionized. In one survey, highly engaged employees lost only about 7.5
days of productivity per year, compared to about 14 days for disengaged
employees.
A survey by consultants Watson Wyatt Worldwide concluded that
companies with highly engaged employees have 26% higher revenue
per employee.
Why Employee Engagement is an issue ?
The problem is that, depending on the study, only about 21–30% of
employees nationally are engaged.

Gallup distinguishes among :

• engaged employees “who work with passion and feel a profound
connection to their company,”
• not-engaged employees who are essentially “checked out,” and
• actively disengaged employees. The latter “act out their unhappiness”
by undermining what their engaged coworkers are accomplishing.

Gallup found that about 30% of employees were engaged, 50% were not
engaged, and 20% were actively disengaged
 What Can Managers Do to Improve Employee Engagement?

One important activity is providing supportive supervision. For example, a

Gallup survey found that managers who focus their support and coaching
on their employees’ strengths can “practically eliminate active
disengagement”; conversely, “bosses from hell” kill employee engagement.
Other steps managers can take to foster engagement include making sure
employees
(1)understand how their departments contribute to the company’s success;
(2)see how their efforts contribute to achieving the company’s goals;
(3)get a sense of accomplishment from working at the firm; and
(4)are highly involved—as when working in self-managing teams.
 How they Measure Employee Engagement ?

Firms like Gallup (www.gallup.com), and Towers Watson offer

comprehensive employee engagement survey services.
With about 180,000 employees worldwide, the consulting
firm Accenture uses a three-part “shorthand” method it calls
“say, stay, and strive.”
First, Accenture assesses how positively the employee speaks
about the company and recommends it to others.
Second, it looks at who stays with the company, and why.
Third, it looks at “strive.” For instance, “do employees take an
active role in the overall success of the organization by
moving beyond just doing tasks to going above and beyond?”
Actually executing KIA UK’S EMPLOYEE ENGAGEMENT HR STRATEGY involved
SIX steps. These were:
1. set measurable objectives for the program;
2. provide leadership development, for example, send all managers for training
to improve their management skills;
3. institute new employee recognition programs, for instance, giving
“Outstanding Awards” to selected employees quarterly;
4. Fourth, Kia UK improved internal communications. For example, it instituted
quarterly employee briefings and more extensive use of performance
appraisals, and launched a new corporate intranet called Kia Vision (this
provided key business information and other useful communiqués to all
employees).
5. institute a new employee development program, for instance, using the
company’s appraisal process to identify employees’ training needs and to
create training plans for each employee;
6. and change the compensation and other policies to ensure they are aligned
with the new cultural values.