15.660 Strategic Human Resource ManagementObjectivesConclusion15.660 Strategic Human Resource ManagementMIT Sloan School of ManagementObjectives? Review lessons from Southwest Airlines case? To link explicitly a firm’s strategy and key success factors to its HR policies and practices? To evaluate the economic costs and benefits of Portman’s strategy? To consider how HR alignment and consistency relate to the execution of strategyPortman Hotel 1. What evidence is there that Portman is havingproblems?2. What are the causes of these problems?3. To what extent are Portman’s human resourcepolicies consistent with its strategy? Witheach other?4. What should Portman do? How much shouldPortman be willing to spend to solve theirproblems?Portman’s Vision “We know that if we want customers treated better we should treat each other better. Wewant to make the Portman the most fulfilling, fun work experience that anyone on the staff has ever had. We want to be the best employerin San Francisco, to show our trust and pridein each person on our staff, and to work in waysthat help each person to grow, both personallyand professionally.”Are Portman’s HR Policies Consistentwith their Strategy? Internally Consistent? Are Portman’s HR Policies Consistentwith their Strategy? Internally Consistent? • Base pay• Incentive pay• Benefits• Job security• Ownership• Information sharing• Measurement of practices• Long-term perspective• Vision/philosophy • Recruiting• Participation• Staffing• Cross utilization• Job design• Teams• TrainingPortman Hotel How much should Portmanbe willing to spend to fix theproblems you’ve identified?Portman HotelPortman HotelAssistant Manager(Vacant)Director ofMarketingPat MeneManaging DirectorDirector ofHuman Resources Joe VillaSpencer ScottGuest Room ServicesJob Design ConsiderationsCore JobDimensionsCore JobDimensionsPsychologicalStatesPsychologicalStatesWorkOutcomesWorkOutcomesIntrinsicMotivationSkill VarietyTask IdentityTask SignificanceAutonomyFeedbackMeaningfulnessQualityResponsibilitySatisfactionKnowledgeof ResultsAbsenteeismTurnoverTo Enrich Jobs, Consider the Following...Task IdentitySkill VarietyTask SignificanceAutonomyFeedbackForm Natural Work UnitsCombine TasksEstablish Client RelationshipsIncrease Task ResponsibilityOpen Feedback ChannelsJob Design ConsiderationsTechnological efficiency. Are the tasks performed efficiently in terms of level of output per unit of labor input(adjusting for the cost of labor inputs)?Flexibility. How flexible is the organization in adjusting to both temporary and more permanent changes in its external environment?Explicit extrinsic incentives. To what extent can (must?) workers be given explicit, extrinsic incentives that will lead them to act in the fashion desired by the organization?Job Design Considerations Cont’dIntrinsic motivation and commitment. To what extent are workers intrinsically motivated to perform well? To what extent does the job design encourage or foster commitmentto the organization?Social aspects. Does the job design foster positive peer pressure and discourage negative peer pressure? Are social comparisons fostered or defused? Do workers benefit from positive social interactions on the job?Narrow JobsTechnological efficiency (pin factory)Learning easierIncentives easierBroad JobsUses peoples mindsCreates organizational flexibilityIncreases organizational commitment (more social interaction)Conclusion? Next Class:?