Human resource 1e by denisi griffin chapter 04

© 2012 South-Western, Cengage Learning, Inc.
All rights reserved.

Prepared by Joseph B. Mosca, Monmouth University & Marla M. Kameny, Baton Rouge
Community College


Learning Objectives
After studying this chapter, you should be able to:

1. Describe the strategic context of human resource
management.
2. Identify three types of strategies and relate each to
human resource management.
3. Discuss human resource strategy formulation and
relevant organizational factors.
4. Discuss the processes through which human
resource strategy is implemented.
5. Discuss how the human resource function in
organizations can be evaluated.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–2


• The Competitive Environment
for Human Resource Management
 HRM occurs not in a vacuum, but in a
complex and dynamic milieu of forces
within the organizational context.
 HR managers now have a strategic

perspective that recognizes the critical
links between organizational strategy
and HR strategy.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–3


Strategic
Human
Resource
Management

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–4


Beyond the Book:
Considering Fundamental HRM Practices
 If we examine fundamental HRM practices,
it seems reasonable to suggest two points:
 Formal performance appraisals
are better than none.
 Using systematic selection techniques
is better than hiring based on intuition.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–5


A Strategic
Perspective
• What is meant when we refer to strategy
and a strategic perspective.
 All firms exist in a competitive environment,

with competitors trying to attract the same
customers.
 Therefore, a firm implements a strategy that
its competitors are unable to implement.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–6


The Influence of Organizational
Purpose and Mission
• What is an organization’s purpose?
 It is the organization’s basic reason for

existence.

• What is an organization’s mission?
 It is the organization’s statement of how it

intends to fulfill its purpose.

• Both purpose and mission affect an
organization’s HR practices.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–7


Starbucks Corporate Mission Statement

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–8


What Is a Top Management
Team?
The organization’s group of
senior executives responsible
for the overall strategic
operation of the firm.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–9


Beyond the Book:
Organizational Culture and HRM Success

Understanding
Understanding
the
the Cultural
Cultural Environment
Environment

Sets
Setsthe
thetone
tone
for
forthe
the
organization
organization

Plays
Playsaamajor
major
role
rolein
in
shaping
shaping
its
itsculture
culture

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Have
Haveaavision
vision
of
ofwhere
wherefirm
firm
isisgoing
going

Have
Haveaavision
vision
of
ofhow
howfirm
firm
should
shouldget
get
there
there

4–10


Corporate Strategy and HRM
• Corporate Strategy
 Deals with determining what businesses the

corporation will operate.

• Growth Strategy
 Focuses on growing and expanding the

business, which can be pursued through joint
ventures or acquisitions.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–11


Corporate Strategy and HRM
(cont’d)

• Retrenchment Strategy

 Occurs when an organization operations are

not effective and changes are required.

• Stability Strategy
 Maintains the status quo.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–12

Diversification Strategies
• Diversification Strategy
 Occurs when an organization adds new

products and services.

• Related Diversification
 Occurs when a firm achieves synergy among

the various businesses it owns.

• Unrelated Diversification
 Is used when a firm operated several unique

businesses in different unrelated markets.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–13


Business Strategies (cont’d)
• Adaptation Model
 Is an approach to business strategy where a

firm seeks ways to adapt to its environment.

• Basic Strategy Alternatives:
 Defender strategy
 Prospector strategy

 Analyzer strategy

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–14


Business Strategy Alternatives
Defender Strategy
Works best in an environment
with little uncertainty and risk
and a high degree of stability

Prospector Strategy
Works best in dynamic and
growing environments with much
uncertainly and risk

Analyzer Strategy
Work best in stable conditions
with a moderate degree of
uncertainly and risk.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–15


Other
Other Competitive

Competitive Strategies
Strategies

Differentiation
Differentiation
strategy
strategy

Cost
Costleadership
leadership
strategy
strategy

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Focus
Focus
strategy
strategy

4–16


Human Resource Strategies

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–17

What Is
Organizational
Design?

• The framework of jobs, positions, clusters
of positions, and reporting relationships
among positions that are used to construct
an organization.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–18


The Impact of Organization Design

Organization
Organization Design
Design
Forms
Forms

U-form
U-form
(unitary/functional)
(unitary/functional)

H-form
H-form

(holding
(holdingcompany)
company)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

M-form
M-form
(multidivisional)
(multidivisional)

4–19


HR Strategy Implementation
• Psychological Contract
 The overall set of expectations held

by the individual that they can
contribute to the organization.

• Personality
 The stable set of psychological

attributes or traits that distinguish
one person from another.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

2–20

HR Strategy Implementation
(cont’d)
• Communication
 The exchange of information and shared

meaning
 HR managers are responsible for coordinating

communication among employees.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

2–21


Motivation is:
 The set of forces that causes people
to behave in certain ways.
 A major determinant of individual
performance.
 What causes an employee to choose
to expend effort to support an
organizational activity.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–22

Understanding Stress
• Stress
 A person’s adaptive response to a stimulus that

places excessive psychological or physical
demands on that person.

• Managing stress requires understanding:
 The causes of stress
 How stress affects individuals
 How organizations and individuals

can better cope with stress

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–23


Human Resource Management Practices
That May Lead to Improved Firm
Performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

4–24