Dessler - hrm14 - PPT - 03 N 04

3 Human Resource Management
Strategy and Analysis
Copyright © 2015 Pearson Education,

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The Strategic HR
Management Process
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HR strategies refer to the HR policies and practices maintained by a firm. Such
strategies are necessary to produce the desired competencies, and behaviors that a
firm needs to achieve its strategic plans and goals.

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The Management Planning
Process
The Hierarchy of Goals
In companies, it is traditional to view the goals from
the top of the firm down to front-line employees as a
chain or hierarchy of goals. At the top, the president
sets long-term or “strategic” goals His or her vice
presidents then set goals for their units that flow
from, and make sense in terms of accomplishing, the
president’s goal. Then their own subordinates 3 set
goals, and so on down the chain.
Policies and Procedures

Policies set broad guidelines delineating how employees should proceed. For example,
“It is the policy of this company to comply with all laws, regulations, and principles of
ethical conduct.” Procedures spell out what to do if a specific situation arises.

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Strategic Planning
(8 Steps)
Step 1. Ask, Where Are We Now
What products do we sell, where do we sell them, and how do our products or services differ from
our competitors’?”
Step 2. Size Up The Situation: Perform

3
External and Internal Audits
Studies the SWOT and determines if the company is heading in the right direction given the
challenges that it face?”
Step 3. Create Strategic Options

Step 4. Review Strategic Options
Here the manager compares his or her strategic options to see which are most consistent with the
firm’s opportunities and threats, and its strengths and weaknesses.

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Strategic Planning
(Continued)
Step 5. Make (Finalize) a Strategic Choice

Where do we want to go
Step 6. Translate into 3Goals

Management translates the new desired direction into actionable strategic goals. Ford breathed life
into its “Quality Is Job One” mission by setting goals such as “no more than 1 initial defect per 10,000
cars.”
Step 7. Implement the Strategies

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. To do this,
management uses the firm’s new top-level strategic goals to formulate a hierarchy of goals, and
policies and procedures. These guide action down the chain of command at lower organizational
levels, and in the firm’s various departments.
Step 8. Evaluate Performance

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Types of Strategies
Corporate-Level Strategy
Identifies the portfolio of businesses that comprise the company and the ways in which these businesses are related to
each other.
Competitive Strategy
Managers endeavor to achieve competitive advantages for each of their businesses. Competitive advantages enable a
company to differentiate its product or service from those of its competitors.
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Functional Strategy
Functional strategies identify the basic course of action that each department will pursue in order to help the business
attain its competitive goals. Human capital is one of the best competitive advantages because it is hard to duplicate a
company’s personnel.
Strategic Fit
“Strategic fit” sums up the idea that each department’s functional strategy should fit and
support the company’s competitive aims.

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Managers Roll in Planning
Top managers design overall corporate strategies, and then design competitive
strategies for each of the company’s businesses. Then the departmental managers
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formulate functional strategies for their departments that support the business and
company-wide strategic aims. The marketing department would have marketing
strategies. The production department would have production strategies. The human
resource management (“HR”) department would have human resource management
strategies.

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Review
In companies, it is traditional to view the goals from the top of the firm down to front-
line employees as a chain or hierarchy of goals. A strategic plan is the company’s plan
for how it will match its internal strengths and weaknesses with external opportunities
and threats. This will allow the organization to maintain a competitive advantage.

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Strategic Management
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
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environment.

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Strategic Human Resource
Management
What Is Strategic Human Resource

Management?
Management formulates a strategic plan and measurable strategic goals or aims.
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The plans imply certain workforce requirements required to achieve the firm’s
strategic aims. Given these workforce requirements, HR management formulates
strategies. These HR policies and practices (strategies) help produce the desired
workforce skills, competencies, and behaviors.

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Management
Strategic Human Resource Management Tools

Managers use several tools to translate the company’s broad strategic goals into human
resource management policies and practices. 3 Three important tools are the strategy
map, the HR scorecard, and the digital dashboard.

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Management
Translating Strategy into Human Resource

Policies and Practices: An Example
The CEO of Einstein Medical decided to summarize the change in the program’s goals
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in three words: initiate, adapt, and deliver. To turn Einstein Medical into a
comprehensive health-care network within the dynamic new health care environment,
Einstein Medical’s HR and other departmental strategies would have to focus on
helping the medical center and its employees to produce new services (initiate),
capitalize on opportunities (adapt), and offer consistently high-quality services
(deliver).

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Improving Mergers and Acquisitions
• Critical human resource M&A tasks include:

o Choosing top management
o Communicating changes to employees
o Merging the firms’ cultures
o 3
Retaining key talent
• When mergers and acquisitions fail, it’s often not

due to financial issues but to personnel-related
ones, such as employee resistance.

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IMPROVING PERFORMANCE: HR
Practices Around the Globe
• Ritz-Carlton Company had to improve level

of service 3
o This meant new HR plans for:
o Hiring
o Training
o Rewarding hotel employees
• Profits soared

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When the Ritz-Carlton Company took over managing the Portman Hotel in Shanghai, China, the new
management reviewed the Portman’s strengths and weaknesses, and its fast-improving local competitors.
They decided that to compete, they had to improve the hotel’s level of service.
It meant putting in place a new human resource strategy for the Portman Hotel, one aimed at improving customer service.
Their HR strategy involved taking these steps:
● Strategically, they set the goal of making the Shanghai Portman outstanding by offering superior
Customer service.
● To achieve this, Shanghai Portman employees would have to exhibit new skills and behaviors, for
instance, in terms of how they treated and responded to guests.
● To produce these employee skills and behaviors, management formulated new human resource management plans,
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policies, and procedures. For example, they introduced the Ritz-Carlton Company’s human resource system to the Portman:
“Our selection [now] focuses on talent and personal values because these are things that can’t be taught . . . it’s about caring
for and respecting others.”
Management’s efforts paid off. Their new human resource plans and practices helped to produce the employee Behaviors
required to improve the Portman’s level of service, thus attracting new guests. Travel publications were soon calling it the
“best employer in Asia,” “overall best business hotel in Asia,” and “best business hotel in China. ”Profits soared, in no small
part due to effective strategic human resource management.

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Management Tools
Strategy map
The strategy map shows the “big picture” of how each department’s performance contributes to achieving the
company’s overall strategic goals. Many employers quantify and computerize the map’s activities. The HR Scorecard
helps them to do so.
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The HR scorecard
The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR
activities, employee behaviors resulting from the activities required in order to achieve the company’s strategic aims
and for monitoring results.
Digital dashboards
A digital dashboard presents the manager with desktop graphics and charts. It is a computerized picture of where the
company stands on all those metrics from an HR Scorecard perspective.
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SCOREBOARD & STRATEGY MAP
• https://www.youtube.com/watch?v=M_IlOlywryw
Copyright © 2015 Pearson Education, Inc. 17

Review
• Definition
• Strategies
• Policies
3
• Service-oriented
example
strategic human resource management as formulating and executing human resource policies and practices. Such policies and practices can produce
employee competencies and behaviors the company needs to improve its competitive position.
Strategies are then developed for the organization that suggest certain workforce requirements. With these workforce requirements, HR management
formulates strategies to produce the desired workforce skills, competencies, and behaviors.

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HR Metrics and Benchmarking
HR metrics
A human resource metric is the quantitative measure of a human resource
management yardstick such as employee turnover, qualified applicants
per position, or hours of training per employee. Such metrics are used to
assess a firm's HR performance and to compare one company's HR
performance with another. Usually using data mining techniques
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Benchmarking
comparing the practices of high-performing companies to your own
What Are 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
Evidence-Based HR
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Strategy and Strategy-Based
Metrics
Workforce/Talent Analytics
Analyzed data on employee backgrounds, capabilities, and performance. Workforce or talent
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analytics help you understand and track and improve results.
Analytics improves performance

Microsoft identified correlations among the schools and companies that the employees arrived from
and the employees’ subsequent performance. This enabled Microsoft to improve its recruitment and
selection practices.

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IMPROVING PERFORMANCE:
HR Tools for Line Managers and
Entrepreneurs
• Scientific evidence-based approach

o Employee analysis
3 shows
productivity
o Company instituted health
programs linked to increased
productivity
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Examples abound of human resource managers taking a scientific, evidence-based approach to making
decisions. For example, an insurance firm was considering cutting costs by buying out senior
underwriters, most of whom were earning very high salaries. But after analyzing the data, HR noticed
that these underwriters also brought in a disproportionate share of the company’s revenue. In fact,
reviewing data on
things such as employee salaries and productivity showed that it would be much more profitable to
eliminate some low-pay call-center employees, replacing them with even less-expensive employees.
As another example, the chemical company BASF Corp. analyzed data on the relationship among
stress, health, and productivity in its 15,000 U.S. headquarters staff. Based on that analysis, the
company instituted health programs that it calculated would more than pay for themselves in increased
productivity by reducing stress.
Discussion Question 3-2: If it is apparently so easy3 to do what BASF did to size up the potential
benefits of health programs, why do you think more employers do not do so?

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Review
• Strategy and strategy-based metrics

3
• Audits
• Evidence-based HR
• The scientific method
• Talent analytics

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For this learning objective, we have discussed the relationship between business and HR
strategies and the metrics used to measure them.
Workforce or talent analytics help you understand and track and improve results.
Data has to be useful and involves statistical analysis to find hidden or new relationships
among different variables.
HR audits are a way for an organization to measure current policies and practices.
3
Evidence-based HR is the use of data, facts, etc. to support HR activities.
For managers, the key point of being “scientific” is to make better decisions through objective
experimentation.
All of these elements together are designed to help integrate business goals with HR practices
and policies while improving results.

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High-Performance Work
Systems
• High-Performance
Human Resource
Policies and
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Practices
A high-performance work system (HPWS) is a set of HR policies and practices that
together produce superior employee performance. They also reveal what HR systems
must do to be successful. Such success may include helping workers aspire to manage
themselves or uses validated selection tests for hiring . HR practices also highlight
measureable differences between HR systems in high and low performing companies.

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Review
• What exactly are these high-performance
work practices?
• For example, in terms of HR practices, high-

performing companies recruit more job
candidates, use more
3 validated selection
tests, and spend many more hours training
employees.

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Improving Performance at
the Hotel Paris
• Hotel Paris International Strategy

• The Strategically Required
3 Organizational
Outcomes
• The Strategically Relevant Workforce
Competencies and Behaviors

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Hotel Paris International
As a corporate strategy, the Hotel Paris’s management and owners want to continue to expand geographically. They believe doing so
will let them capitalize on their reputation for good service, by providing multicity alternatives for their satisfied guests. The problem
is, their reputation for good service has been deteriorating. If they cannot improve service, it would be unwise for them to expand,
since their guests might prefer other hotels after trying the Hotel Paris.
The Strategy
All Hotel Paris managers—including the director of HR services—must now formulate strategies that support this competitive
strategy approved by the board and top managers. “The Hotel Paris International will use superior guest services to differentiate the
Hotel Paris properties, and to thereby increase the length of stays and the return rate of guests, and thus boost revenues and
profitability.”
The Strategically Required Organizational Outcomes 3

Each step in the hotel’s value chain provides opportunities for improving guest service. Management must take steps that produce
fewer customer complaints and more written compliments, more frequent guest returns and longer stays, and higher guest
expenditures per visit.
The Strategically Required Organizational Outcomes

Management asked, “What competencies and behaviors must our hotel’s employees exhibit if we are to produce required
organizational outcomes such as fewer customer complaints, more compliments, and more frequent guest returns?” Thinking through
this question helps Lisa come up with an answer. For example, the hotel’s required employee competencies and behaviors would
include, “high quality front-desk customer service,” “taking calls for reservations in a friendly manner,” “greeting guests at the front
door,” and “processing guests’ room service meals efficiently.” All require motivated, high morale employees.

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Improving Performance at
the Hotel Paris
• The Strategically Relevant

3
HR Policies
and Activities
• The Strategy Map
• How We Will Use the Hotel Paris Case

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The Strategically Relevant HR Policies and Activities
The HR manager’s task now is to identify and specify the HR policies
and activities that will enable the hotel to produce these crucial workforce
competencies and behaviors.
The Strategy Map

Next management working with the hotel’s chief financial officer (CFO), outlines a
strategy map for the hotel. This outlines the cause-and-effect links among the HR
activities, the workforce behaviors, and the organizational outcomes (the figure on this
book’s inside back cover shows the overall map;
3 you’ll find detailed maps for each HR
function in each chapter’s related MyManagementLabs page).
How We Will Use the Hotel Paris Case

A Hotel Paris case in each chapter will show how Lisa, the Hotel Paris’s HR director, uses
that chapter’s concepts and techniques to: (1) create HR policies and practices that help
the Hotel Paris (2) produce the employee competencies and behaviors the company needs
(3) to produce the customer service the Hotel Paris needs to achieve its strategic goals.

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Hotel Paris
Strategy
Chapter 3

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4 Job Analysis and the
Talent Management
Process

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Talent Management
Talent management is the goal-oriented and integrated process of planning, recruiting,
developing, managing, and compensating employees. Talent management means
getting the right people (in terms of competencies) in the right jobs, at the right time,
doing their jobs correctly.
3
The usual process of talent management consists of the following steps:
1. Decide what positions to fill
2. Build a pool of job candidates
3. Application forms
4. Use selection tools
5. Make an offer
6. Orient, train, and develop
7. Appraise
8. Reward and compensate

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The Talent Management
Process
What Is Talent Management?
Tasks
Are part of one unified process
Goal-directed
Uses the same “profile” 3
of competencies, traits, knowledge, and experience for potential employees.
Integrates/coordinates all talent management
functions
recruiting, developing, and compensating employees.

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Review
Thought of as linear
process
acquire, deploy, and retain
3
Definition
Managing talent
effectively

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The Basics of Job Analysis
Talent management begins with understanding what jobs need to be filled, and the
human traits and competencies employees need. Job analysis is the procedure through
which you determine the duties of the positions and the characteristics of the people to
hire for them.
• Work activities
• Behaviors
3
• Machines, tools,
equipment, and work aids
• Performance standards
• Job context
• factors controlled by the organization like work
condition, base salary, company policies etc
• Human requirements
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Uses of Job Analysis
Information
• Recruitment and
selection
• EEO compliance 3
• Performance
appraisal
• Compensation
• Training
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Uses of Job Analysis
The information collected through a job analysis is used help manage all aspects of an
effective HR program.
In terms of recruitment and selection information about what duties the job entails and
what human characteristics are required helps in hiring decisions.
Job analysis is crucial for validating all major human resources practices, especially
when it comes to legal compliance. You may recall from our earlier discussion of federal
laws that care must be exercised in all areas related to employees such as hiring under
the Americans with Disabilities Act (ADA).
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A job analysis helps compare each employee’s actual performance with his or her duties
and performance standards in performance appraisals.
Compensation often depends on the job’s required skill and education level, safety
hazards, degree of responsibility, and other factors you assess through job analysis.
The job description, which is created from a job analysis, lists the job’s specific duties
and skills—and therefore the training—that the job requires.

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Conducting a Job
Analysis
1. How will information be used?

2. Background information
3
3. Representative positions
4. Collect and analyze data
5. Verify
6. Job description and specification

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Conducting a Job Analysis
Job analysis may involve these processes:
1. Workflow analysis is a detailed study of the flow of work from job to job in a work process.
Usually, the analyst focuses on one identifiable work process, rather than on how the company gets all its
work done.
2. Business Process Reengineering means redesigning business processes, usually by combining

steps, so that small multifunction teams, often using information technology, do the jobs formerly done by
a sequence of departments.
3. Job redesign 3
A. Job enlargement means assigning workers additional same-level activities. Thus, the worker who
previously only bolted the seat to the legs might attach the back too.
B Job rotation means systematically moving workers from one job to another.
C. Job enrichment means redesigning jobs in a way that increases the opportunities for the worker to
experience feelings of responsibility, achievement, growth, and recognition—and therefore more
motivation. It does this by empowering the worker—for instance, by giving the worker the skills and
authority to inspect the work, instead of having supervisors do that. Herzberg said empowered employees
would do their jobs well because they wanted to, and quality and productivity would rise. That
philosophy, in one form or another, is the theoretical basis for the team-based self-managing jobs in many
companies around the world today.

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The basic reengineering approach is to:
1. Identify a business process to be redesigned (such as
processing an insurance claim)
2. Measure the performance of the existing processes
3. Identify opportunities to improve these processes
4. Redesign and implement a new way of doing the work
5. Assign ownership of sets of formerly
3 separate tasks to an
individual or a team who use new
computerized systems to support the new arrangement

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IMPROVING PEFORMANCE:
HR as a Profit Center
• Boosting Productivity Through
Work Redesign
o Workflow analysis prompted
3
several performance-boosting
redesigns
o Firm reduced from four to one
the number of people opening
mail
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Boosting Productivity through Work Redesign
The Atlantic American insurance company in Atlanta conducted a workflow analysis to

identify inefficiencies in how it processes its insurance claims. What did this involve? As
the firm’s HR director said, “We followed
the life of a claim to where it arrived in the mail and where it eventually ended up” in order
to find ways to improve the process.
The workflow analysis prompted several performance-boosting redesigns of the insurance

claim jobs. The firm reduced from four to one the number of people opening mail,
replacing three people with a machine that does it automatically. A new date stamping
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machine lets staff stamp 20 pages at a time rather than 1. A new software program adds bar
codes to each claim automatically, rather than manually. The new system lowered costs.
Discussion Question 4-1: Based on your experience, what would the workflow look like
for the process a dry-cleaning store uses to accept and chronicle a new order of clothes
from a customer?
How might this process be improved?

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Job Analysis Guidelines
A joint effort
human resources manager, the worker, and the worker’s
supervisor.
Different job analysis methods
3
questionnaire, survey, focus groups, observation,
interviews
Clarity of questions and
process

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Review
• The basics of job analysis

• Uses of job analysis information
3
• Conducting a job analysis
• Job analysis guidelines

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Methods for Collecting Job Analysis
Information
• Interviews
• Questionnaires
• Observation
3
• Diary/logs
• Quantitative techniques
• Internet-based
Managers frequently combine direct observation with personal interviews to gather job analysis
information. Often, managers observe the worker for a complete work cycle to gather as much information
as possible, and then they follow up with an interview to gain clarification.

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Job analysis interviews range from completely unstructured interviews to highly structured ones. We will discuss interviews in more detail
on the next slide.
Having employees fill out questionnaires to describe their job-related duties and responsibilities is another popular way to obtain job
analysis information.
Direct observation is especially useful when jobs consist mainly of observable physical activities—assembly-line worker and accounting
clerk are examples.
Another method is to ask workers to keep a diary/log of what they do during the day. For every activity engaged in, the employee records
the activity (along with the time) in a log.
Qualitative methods like interviews and questionnaires are not always3suitable. You may need to say that, in effect, “Job A is twice as
challenging as Job B, and so is worth twice the pay.” Now, of course, you must be able to prove such a claim quantitatively. The position
analysis questionnaire (PAQ) is a very popular quantitative job analysis tool, consisting of a questionnaire containing 194 items. The 194
items (such as “written materials”) each represent a basic element that may play a role in the job.
Experts at the U.S. Department of Labor (DOL) did much of the early work developing job analysis. The DOL method uses a set of standard
basic activities called worker functions to describe what a worker must do with respect to data, people, and things.
For internet-based job analysis, the HR department can distribute standardized job analysis questionnaires to geographically disbursed
employees. Such questionnaires may be sent via company intranets, and include instructions to complete the forms and return them by a
particular date.

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Collecting Job Analysis
Information – Interviews
• The Interview
o Typical questions
o Structured interviews
3
o Pros and cons
o Interviewing guidelines

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Managers may conduct individual interviews with each employee, group interviews with groups of employees who
have the same job, and/or supervisor interviews with one or more supervisors who know the job. Some typical
interview questions include the following:
• What is the job being performed?
• What are the education, experience, skill, and certification and licensing requirements?
• What are the job’s physical demands? The emotional and mental demands?
• And many others
Many managers use a structured format to guide the interview to ensure consistency and be certain key elements are
not overlooked.
The interview’s wide use reflects its advantages. It’s a simple and quick way to collect information, including
information that might not appear on a written form.
3
Distortion of information is the main problem—whether due to outright falsification or honest misunderstanding.
The basic interviewing guidelines include:

1. Quickly establish rapport.
2. Use a structured guide.
3. Ask the worker to list his or her duties in order of importance and frequency of occurrence.
4. Review the information with the worker’s immediate supervisor and with the interviewee.

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Review
• Interviews
• Questionnaires
• Observation 3
• Diary/logs
• Quantitative techniques
• Internet-based (Geographically disbursed)
Can be used in conjunction with one or more of the other techniques

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Writing Job Descriptions
• Job identification
• Job summary
• Relationships
• Responsibilities and duties
3
o Authority
• Performance standards &
working conditions
• Job specifications

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The job description is one of the main outcomes of conducting a job analysis. The job identification section (on top)
contains several types of information. The Fair Labor Standards Act (FLSA) status section identifies the job as
exempt or nonexempt with respect to being exempt or non-exempt from FLSA overtime rules. Exempt and non-
exempt status also is used to help plan compensation strategies for a firm. The “Date” is the date the job description
was actually approved. The job summary should summarize the essence of the job, and include only its major
functions or activities.
There may be a “relationships” statement that shows the jobholder’s relationships with others inside and outside the
organization. Responsibilities and duties are the heart of the job description. This section should present a list of the
job’s significant responsibilities and duties. This section may also define the limits of the jobholder’s authority.
A “standards of performance” section lists the standards the company expects the employee to achieve for each of the
job description’s main duties and responsibilities. 3
Working conditions include the location, tools, environment (hot, cold, etc.) and the like.
More employers are turning to the Internet for their job descriptions. The process is simple. Search by alphabetical
title, keyword, category, or industry to find the desired job title. This leads you to a generic job description for that
title which you may then customize as needed. The Internet, particularly O*NET, can help you create the “human
requirements” of the job for the job specification. We will discuss job specifications next.

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JOB DESCRIPTIONS
https://www.youtube.com/watch?v=jsHC15xh43A
Copyright © 2015 Pearson Education, Inc. 56

HR Tools for Line Managers and
Entrepreneurs
• O*NET
o The U.S. Department of Labor’s online
3
occupational information network
o O*NET lists the specific duties
associated with numerous
occupations

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O*Net
http://www.careeronestop.org/businesscenter/jdw/gettingstarted.aspx

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The U.S. Department of Labor’s online occupational information network, called O*NET, is a popular tool.
It enables users (not just managers, but workers and job seekers) to see the most important characteristics
of various occupations, as well as the experience, education, and knowledge required to do each job well.
Both the Standard Occupational Classification and O*NET list the specific duties associated with numerous
occupations. O*NET also lists skills, including basic skills such as reading and writing, process skills such
as critical thinking, and transferable skills such as persuasion and negotiation.
The steps in using O*Net to facilitate writing a job description follow.

Step 1. Review your Plan. Ideally, the jobs you need should flow from your departmental
or company plans. Do you plan to enter or exit businesses? What do you expect your sales
to be in the next few years? What departments will have to be expanded or reduced?
What kinds of new positions will you need?
Step 2. Develop an Organization Chart. Start with the organization as it is now. Then
produce a chart showing how you want it to look in a year or two. Microsoft Word includes
an organization charting function.
Step 3. Use a Job Analysis Questionnaire. Next, gather information about each job’s duties.
(You can use job analysis questionnaires, such as those shown in Figure 4-4 and Figure 4-10.)
3
Combine the duties of the “retail salesperson” with those of “first-line supervisors/managers of
retail sales workers.”
Step 5. List the Job’s Human Requirements from O*NET. Next, return to the summary for
Retail Salesperson (C). Here, click, for example, Knowledge, Skills, and Abilities. Use this
information to help develop a job specification for your job. Use this information for
recruiting, selecting, and training your employees.
Step 6. Finalize the Job Description. Finally, perhaps using Figure 4-10 as a guide, write an
appropriate job summary for the job. Then use the information obtained previously in steps 4
and 5 to create a complete listing of the tasks, duties, and human requirements of each of the
jobs you will need to fill.
Discussion Question 4-2: Pick out a job that someone with whom you are familiar is doing, such
as a bus driver, mechanic, and so on. Review the O*NET information for that job. To what extent does
the person seem to have what it takes to do that job, based on the O*NET information? How does that
correspond to how he or she is actually doing? Copyright © 2015 Pearson Education, 3-59
Inc.
Experts at the U.S. Department of Labor (DOL) did much of the early work developing
job analysis. The DOL method uses a set of standard basic activities called worker
functions to describe what a worker must do with respect to data, people, and things.
Organization charts show the organization-wide

3 division of work with titles of each
position and interconnecting lines that show who reports to and communicates with
whom.

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Review
• Job descriptions
o Identifying the job,
3
summary, relationships
o Responsibilities, duties,
standards
• Specifications

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Writing job specifications
• Trained vs. untrained

• Judgment 3
• Statistical analysis
• Task statements

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Writing job specifications for trained employees is relatively straightforward. Here your job
specifications might focus mostly on traits like length of previous service, quality of relevant
training, and previous job performance. The problems are more complex when you’re filling jobs
with untrained people. Here you must specify qualities such as physical traits, personality, interests,
or sensory skills that imply some potential for performing or for being trained to do the job.
Finally, the job analyst compiles all this information in a job requirements matrix for this job.
This matrix would list the following information, in 5 columns:
Column 1: Each of the four or five main job duties;
Column 2: The task statements associated with each main job duty;
Column 3: The relative importance of each main job duty;
Column 4: The time spent on each main job duty; and
Column 5: The knowledge, skills, ability, and other human characteristics related to each
3
main job duty.
Such a job requirements matrix provides a more complete picture of what the worker does on the job
and how and why he or she does it than does a job description. (For instance, it specifies each task’s
purpose.) And, the list of each duty’s required knowledge, skills, abilities, and other characteristics is
useful for selection, training, and appraisal decisions.

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Inc.
Review

4-64
Inc.
Profiles in Talent Management
• Competencies and
competency-based job
analysis
• How to write competencies-
3
based job descriptions
Competencies are observable and measurable behaviors of the person that make
performance possible. Competency-based job analysis means describing the job in terms
of measurable, observable, behavioral competencies. Such competencies are usually
grouped into general competencies, leadership competencies, and technical competencies.

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Inc.
Review

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Inc.
HR Practices Around the Globe
• Daimler Alabama emphasizes

o Just-in-time inventory
3
o Work teams
o Continuous improvement
• Stressing competencies rather than duties

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Inc.
Daimler Alabama Example
In planning its Alabama Mercedes-Benz factory, Germany-based Daimler’s strategy was to design a high tech factory.
The plant emphasizes just-in-time inventory methods, so inventories stay negligible due to the arrival “just in time” of
parts. It also organizes employees into work teams, and emphasizes that all employees must dedicate themselves to
continuous improvement. Such production operations require certain employee competencies (skills and behaviors).
For example, they require multi-skilled and flexible employees.
Competencies-based job analysis played an important role in staffing this factory. Guidelines regarding
who to hire and how to train them are based more on the competencies someone needs to do the job
(such as “ability to work cooperatively on a team”) than on lists of job duties. Because they don’t have to
follow detailed job descriptions showing what “my job” is, it’s easier for employees to move from job to
job within their teams.
Stressing competencies rather than duties also encourages workers to3look beyond their own jobs to
find ways to improve things. For instance, one team redesigned the racks that the assembly parts move
on, saving assembly workers thousands of steps per year, thereby boosting performance and productivity.
Now that the new system, including the competencies-based job analysis, has proved itself in Alabama,
Daimler plants in South Africa, Brazil, and Germany now use it.
Discussion Question 4-3: Are you surprised that Daimler could implement a team-based production
system like this in places where the cultures are as disparate as Alabama, Germany, and Brazil? Why?
What inter-country cultural differences would you think might have impeded Daimler’s efforts?

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Inc.
Translating Strategy into HR Policies &
Practices: Improving Performance at the
Hotel Paris
• Based on the hotel’s stated strategy, list at

least four more important employee
behaviors important 3for the Hotel Paris’s
staff to exhibit.
• If time permits, spend some time prior to

class observing the front-desk clerk at a
local hotel. In any case, create a job
description for a Hotel Paris front-desk clerk.
4-69
Inc.
Hotel Paris
Strategy
Chapter 4

4-70
Inc.

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3 Human Resource Management

Strategy and Analysis

Copyright © 2015 Pearson Education,

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Policies and Procedures

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Step 2. Size Up The Situation: Perform

Step 3. Create Strategic Options

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Step 5. Make (Finalize) a Strategic Choice

Step 6. Translate into 3Goals

Step 7. Implement the Strategies

Step 8. Evaluate Performance

support the company’s competitive aims.

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Strategic management is the process of identifying and executing the organization's

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What Is Strategic Human Resource

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Strategic Human Resource Management Tools

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Translating Strategy into Human Resource

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• Critical human resource M&A tasks include:

• When mergers and acquisitions fail, it’s often not

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• Ritz-Carlton Company had to improve level

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Copyright © 2015 Pearson Education, Inc. 17

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What Are HR Audits

Analytics improves performance

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• Scientific evidence-based approach

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• Strategy and strategy-based metrics

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• For example, in terms of HR practices, high-

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• Hotel Paris International Strategy

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The Strategically Required Organizational Outcomes 3

The Strategically Required Organizational Outcomes

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• The Strategically Relevant

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The Strategy Map

How We Will Use the Hotel Paris Case

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1. How will information be used?