MANA 3320 1st Edition Lecture 3 Outline of Last Lecture I 7 Challenges of HRM Continued Outline of Current Lecture I 6 Steps Areas in Strategic Planning a Step 1 Mission Vision and Values b Step 2 Environmental Analysis c Step 3 Internal Analysis d Step 4 Formulating Strategy Current Lecture HRM general terms o Short term vs long term Short One year or less Long used to be 10 years or more now it s considered 5 years Strategic planning challenges in HRM o Strategy formulation o Strategy implementation 6 Steps Areas in Strategic Planning o Step 1 Mission Vision and Values Mission The basic purpose of the organization as well as its scope of operations Strategic vision A statement about where the company is going and what it can become in the future Clarifies the long term direction of the company and its strategic intent Core values 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 o The strong and enduring beliefs and principles that the company uses as a foundation for its decisions Step 2 Environmental Analysis Five forces framework Fig 2 2 1 New entrants 2 Suppliers 3 Customers 4 Substitutes 5 Rival firms Service industry Skilled usually needs license or certificate o Unskilled don t need experience skills training o o Accountants lawyers doctors engineers professors Fast food landscaping retail Step 3 Internal Analysis Three C s 1 Culture o Cultural audits Audits of the culture and quality of work life in an organization How do employees spend their time How do they interact with each other Are employees empowered What is the predominant leadership style of managers How do employees advance within the organization 2 Core Competencies o Skills and abilities necessary to complete the mission of the firm 3 Composition of the workforce o Contract laborers has no benefits o Knowledge worker o Unskilled worker Forecasting o The opinions or judgments of dept heads experts top management that make educated guesses about the future of the business o Use quantitative or qualitative approach Internal demand forecasting tools o Skills inventories o o Replacement charts Listings of current jobholders and persons who are potential replacements if an opening occurs Used at management levels upper and mid management Succession planning o o Files of personnel education experience interests skills etc that allow managers to quickly match job openings with employee backgrounds The process of identifying developing and tracking key individuals for executive positions SHRM society of human resource managers Did a study of companies to see who use succession planning of companies said it was good but only had one in place Step 4 Formulating Strategy Strategy formulation Moving from simple analysis to devising a coherent course of action SWOT analysis A comparison of strengths weaknesses opportunities and threats for strategy formulation purposes Use the strengths of the organization to capitalize on opportunities counteract threats and alleviate internal weaknesses Corporate strategy Growth and diversification Mergers and acquisitions Strategic alliances and joint ventures Low cost strategy Usually resorts to layoffs Differentiation strategy Concentrates on value added Highest priced products