Chapter 1
Meeting Present and Emerging Strategic Human
Resources Challenges
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Chapter Challenges
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Understand the major challenges affecting HR
Develop competence in planning and implementing strategic HR policies
Develop competence in selecting HR strategies to increase firm
performance
Become aware of HR best practices
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Chapter Challenges
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5.
Understand the need to establish a close partnership between the HR
department and managers
Recognize career opportunities in various human resources
management subfields
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Types of Employees
Managers
Line employees
Junior employees
Staff employees
Exempt employees
Senior employees
Nonexempt employees
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Human Resources Strategy
Human resources strategy refers to a firm’s deliberate use of human
resources to help it gain or maintain an edge against competitors in the
marketplace
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Key HR Challenges
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Organizational Culture
Organizational culture refers to the basic assumptions and beliefs
shared by members of an organization
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Key Elements of Organizational Culture
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Observed behavioral regularities
Norms
Dominant values
Philosophy
Rules of the game
Feeling of climate
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Strategic HR Policies: Benefits
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Encouraging Proactive Behavior
Communicating Company Goals
Stimulating Critical Thinking and Examination of Assumptions
Identification of Gaps Between Current Situation and Future Vision
Encouragement of Line Managers’ Participation
Identification of HR Constraints and Opportunities
Creating Common Bonds
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Strategic HR Policies: Challenges
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Maintaining a Competitive Advantage
Reinforcing Overall Business Strategy
Avoiding Excessive Concentration on Daily Problems
Develop HR Strategies Suited to Unique Organizational Features
Coping with Environment
Securing Management Commitment
Translating the Strategic Plan into Action
Combining Intended and Emergent Strategies
Accommodating Change
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Strategic HR: Choices
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Work Flows
Staffing
Employee Separations
Performance Appraisal
Training and Career Development
Compensation
Employee Rights
Employee and Labor Relations
International Management
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Selecting HR Strategies
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To increase firm performance
HR strategies should fit with other organizational aspects
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HR Fit with Organizational Strategies
Corporate Strategies
Evolutionary Business
Steady State
Porter’s Business Unit Strategies
Cost Leadership
Differentiation
Focus
Miles & Snow’s Business Strategies
Defender
Prospector
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Miles & Snow’s Business Strategies
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HR Fit with Environment
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Degree of Uncertainty
Magnitude of Change
Volatility
Complexity
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HR Fit with Environment
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HR Fit with Organizational Characteristics
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Production Process
Firm’s Market Posture
Firm’s Overall Managerial Philosophy
Firm’s Organizational Structure
Firm’s Organizational Culture
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HR Fit with Organizational Capabilities
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Distinctive Competencies
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HR Strategies should
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Competitive edge
Help firm exploit its competencies
Assist the firm to help use its HR skills
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HR Department Managers:
An Important Partnership
To foster effective partnerships, companies should:
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Analyze the people side of productivity
View HR roles as consultants
Instill a shared sense of common fate
Require HR training to include managerial experience
Actively involve top corporate and divisional managers in HR plans
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HR Audit
Periodic HR Audits should ask:
Is the turnover rate exceptionally low or high?
Are employees who quit good employees or marginal?
What is the firm’s ROI regarding recruitment, training, and performance plans?
Is the firm complying with government regulations?
How well is the company managing employee diversity?
Are HRM policies and procedures helping the firm reach long-term goals?
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Summary and Conclusions
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HR Challenges Facing Managers
Environmental Challenges
Organizational Challenges
Individual Challenges
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Planning and Implementing Strategic HR Policies
Policies and procedures should be congruent
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Selecting HR Strategies to Increase Firm Performance
The Important Partnership of HR and Managers
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Second level
Third level
Fourth level
Fifth level
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