Human resrouce management 12th mathis jacson chapter 002

CHAPTER 2

Strategic HR Management
and Planning
© 2008 Thomson/South-Western All rights reserved.

PowerPoint Presentation by Charlie Cook
The University of West Alabama


Chapter
Chapter Objectives
Objectives
After you have read this chapter, you should be able to:
■ Explain strategic HR management and how it is linked
to organizational strategies.
■ Discuss two possible contributors to competitive
advantage and how HR contributes to each.
■ Describe how legal, political, cultural, and economic
factors affect global HR management.
■ Define HR planning and outline the HR planning
process.
■ Describe the means for assessing the external and
internal
environments of HR management.
© 2008
Thomson/SouthWestern. All rights reserved.

2–2

Chapter
Chapter Objectives
Objectives (cont’d)
(cont’d)
After you have read this chapter, you should be able to:
■ Discuss several ways of managing a surplus and a
shortage of human resources.
■ Identify why HR metrics must consider both strategic
and operational HR measures.

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2–3


Nature of Strategy and HR Management
Strategy

Strategic HR Management

The proposition an
organization follows for how
to compete successfully and
thereby survive and grow.

The use of employees to gain
or keep a competitive
advantage, resulting in
greater organizational
effectiveness.

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FIGURE 2-1

Strategic HR Management Process

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Strategic Success with HR Practices
• Recognized HR Best Practices
 Employment security
 Selective recruiting
 High wages/incentives
 Information sharing/participation
 Training/cross training
 Promotion from within
 Measurement

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FIGURE 2-2

Common Areas for HR Strategies

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Operationalizing HR Strategy
Thinking
Strategically

Understand
the business

Focus on key
business goals

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Know what
to measure

Prepare for
the future

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FIGURE 2-3

Possible HR Areas for Core Competencies

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HR As Organizational Contributor
HR Contributions to
Organization Effectiveness

Organization
productivity

Customer service
and quality

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Financial
contributions

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Organizational Productivity
• Productivity
 Measure of the quantity and quality of work done,

considering the cost of the resources used.

• Unit labor cost
 Computed by dividing the average cost of workers by

their average levels of output.

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FIGURE 2-4

Approaches to Improving Organizational Productivity

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HR Effectiveness and Financial Performance
• Effectiveness
 The extent to which goals have been met.

• Efficiency
 The degree to which operations are done in an

economical manner.

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Global Competitiveness and Strategic HR

Types of Global Organizations

Importing and
exporting

Multi-national
enterprise

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Global
organization

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Hofstede’s Dimensions of Culture
Individualism/
Group
Orientation

Inequality

of Power

Culture
Long-term/
Short-term
Orientation

Masculinity/
Femininity

Uncertainty
Avoidance

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FIGURE 2-5

Hourly Compensation Costs for Manufacturing Production Workers

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Source: U.S. Bureau of Statistics, www.bls.gov.

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Human Resource Planning
• Human Resource (HR) Planning

 The process of analyzing and identifying the need for

and availability of human resources so that the
organization can meet its objectives.

• HR Planning Responsibilities
 Top HR executive and subordinates gather

information from other managers to use in the
development of HR projections for top management
to use in strategic planning and setting organizational
goals.

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Purpose of HR Planning
Effective HR
Planning

Right
people

Right
capabilities

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Right
time

Right
place

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HR Forecasting
Strategic HR Planning

Forecast HR
requirements (demand)

Yes

Forecast HR
availability (supply)

Match?

Develop programs to
increase supply or
reduce demand

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No

Develop programs to
decrease supply or
increase demand

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FIGURE 2-6

Typical Division of HR Responsibilities: HR Planning

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Small Businesses and HR Planning
Attracting and
retaining qualified
outsiders

Management
succession between
generations of owners

HR Planning
Issues in Small
Businesses

Evolution of HR

activities as the
business grows

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Family relationships
and HR policies

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FIGURE 2-7

HR Planning Process

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Scanning the External Environment
• Environmental Scanning
 The process of studying the environment of the

organization to pinpoint opportunities and threats.
Government
Influences

Economic
Conditions

HR
Planning

Workforce
Composition

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Geographic and
Competition
Concerns

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Assessing the Internal Workforce
• Jobs and Skills Audit
 What jobs exist now?
 How many individuals are performing each job?
 What are the reporting relationships of jobs?
 How essential is each job?
 What jobs will be needed to implement future

organizational strategies?
 What are the characteristics of anticipated jobs?

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Assessing the Internal Workforce (cont’d)
• Organizational Capabilities Inventory
 HRIS databases—sources of information about

employees’ knowledge, skills, and abilities (KSAs)
 Components of an organizational capabilities
inventory
 Individual employee demographics
 Individual career progression
 Individual job performance data

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