HB 307 Lecture 2 Current Lecture Strategic Management and Human Resources Strategic Planning Procedures for making decisions about long term goals and strategies Human Resources Planning HRP Process of Anticipating and making provision for the movement of people into within and out of organization Strategic Human Resources Management SHRM Pattern of human resources deployments and activities that enable organization to achieve its strategic goals o Strategy Formation Providing input to possibilities and people o Strategy Implementation Making decisions about structure processes HR Step 1 Mission Vision and Values Mission basic purpose of organization and scope of operations Strategic Vision Statement of Where company is going and what it can become in future Core Values Beliefs and principles that company uses as foundation for decisions Linking Strategic Planning and HRP Strategic Analysis Strategic Formation Strategic Implementation Step 2 Environmental Analysis Environmental Scanning Monitors major external forces influencing organization Includes economic factors trends technology government issues social concerns demographic and labor market Corporate Culture Values assumptions beliefs and expectations Cultural Audits Audits of the culture and quality of work life in an organization Forecasting Demand for labor supply of labor balancing supply and demand Quantitative Approach Trend Analysis Forecasting labor demand based on an organizational index such as sales These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Select Business factor that predicts human resources needs Plot business factor in relation to of employees to determine labor productivity Compute productivity ratio for last 5 years Calculate HR demand by multiplying business factor by productivity ratio Project HR demand out to the target year Forecasting Demand Management forecasts Delphi techniques Supply Staffing Tables Markov Analysis Skill Inventory Replacement Charts Succession Planning Internal Demand Forecasting Tools Skill Inventories Personal education experience interests skills Replacement Charts Current jobholders persons who are potential replacements Succession Planning Identifying Developing tracking key individuals for positions Gap Analysis Quantity and Quality of Employees Step 4 Formulating Strategy Strategy Formulation Moving from simple analysis to devising plan of action SWOT analysis compares strengths weaknesses opportunities and threats Business Strategy Value Creation o What firm adds to a product o Amount of benefits provided by the product o Value Benefits Costs Low Cost Strategy Competing on productivity and efficiency Differentiation Strategy Compete on added value provides something unique and distinctive to customers Functional Strategy Ensuring Alignment o External Fit Connection between objectives and initiatives in HR o Internal Fit Aligning practices with one another to establish configuration Step 5 Strategy Implementation Taking Action Reconciling Supply and Demand o Balancing considerations forecasting locating applications o Downsizing outsourcing offshoring o Making layoff decisions Step 6 Evaluation and Assessment Evaluation and Assessment Issues o Benchmarking Process of compares organizations processes and practices with those of other companies o Human capital metrics o HR metrics Measuring Firm s Strategic Alignment Strategy Mapping and Balanced Scorecard Measurement framework that helps managers translate goals into objectives Ensuring Strategic Flexibility For The Future Organizational Capability Capacity to act and change in pursuit of competitive advantage Coordination Flexibility Ability to reallocate resources to new or changes needs Resource flexibility Having human resources who can do many different things Calculating Employee Turnover of separations during month Total of employees at mid month x 100 Expressed as percentage Computing Absenteeism Rates of worker days lost through job absence through period Average of employees x of workdays x 100 Expressed as percentage