Professional Documents
Culture Documents
Strategic HR
Strategic HR
Strategic HR
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organizations mission by matching its capabilities with the demands of its environment.
Strategy
A chosen course of action.
Strategic Plan
How an organization intends to balance its internal
strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term.
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Mission
Spells out who the company is, what it does, and
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FIGURE 35
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FIGURE 37
A SWOT Chart
Strengths
Example: Market leadership
Weaknesses
Example: Large inventories
Opportunities
Example: New overseas markets
Threats
Example: Market saturation
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FIGURE 38
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Types of Strategies
Corporate-Level Strategies
Diversification Strategy
Consolidation Strategy
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Cost Leadership
Differentiation
Focus/Niche
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The Fit Point of View (Porter) consists of the idea that each departments strategy needs to fit the parent businesss competitive aims.
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objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility.
Involves formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors that the company needs to achieve its strategic aims.
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FIGURE 36
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Copyright 2011 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Human Resource Management, 12/e
Source: Adapted from Creating a Strategy Map, Ravi Tangri, Team@TeamCHRYSALIS.com. 313
Copyright 2011 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Human Resource Management, 12/e
Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Strategy, and Performance (Boston: Harvard Business School Press, 2001), p. 12. 314
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Creating an HR Scorecard
The 10-Step HR Scorecard Process
1 2 3 4 5 Define the business strategy Outline value chain activities Outline a strategy map Identify strategically required outcomes Identify required workforce competencies and behaviors 6 7 8 Identify required HR policies and activities Choose HR Scorecard measures Summarize Scorecard measures on digital dashboard and monitor, predict, and evaluate
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FIGURE 314
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HR Metric*
Absence rate
Five Sample HR Metrics How to Calculate It # of days absent in month Average # of employees during month # of workdays 100
Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits Number of hires
HR expense factor
HR expense Total operating expense Total days elapsed to fill job requisitions Number hired
Time to fill
Turnover rate
100
Copyright 2011 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Human Resource Management, 12/e
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 29 35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320; Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research 2006 Strategic HR 318 Management Survey Report, Society for Human Resource Management..