HR and Corporate Strategy Strategic Human Resources Management SHRM STEP 1 Mission Org The basic purpose of the organization as well as its scope of operations HR Capture underlying business philosophy Strategic vision Org 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 HR Establish cultural foundation Core values Org The strong and enduring beliefs and principles that the company uses as a foundation for its decisions HR Guide ethical code of conducts Business Strategy Focus on how the company will compete against rival firms in order to create value for customers There are multiple strategies including Low Cost provider Strategy and Differentiation Strategy Value Creation Value Creation What the firm adds to a product or service by virtue of making it the amount of benefits provided by the product or service once the costs of making it are subtracted value benefits costs Low cost strategy competing on productivity and efficiency Keeping costs low to offer an attractive price to customers relative to competitors Differentiation strategy compete on added value Involves providing something unique and distinctive to customers that they value Competitive Challenges and HR 1 Challenge Responding strategically to change in the marketplace Change management Systematic ways of bringing about and managing both org changes and changes on the individual level Formal change management programs help to keep employees focused on the success of the business Reactive change Change that occurs after external forces have already affected performance Proactive change Change initiated to take advantage of targeted opportunities Total Quality Management TQM A set of principles and practices whose core ideas include understanding customer needs doing things right the first time and striving for continuous improvement Six Sigma A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another Reengineering fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost quality service and speed 2 Challenges Competing recruiting and staffing globally Globalization The trend toward opening up foreign markets to international trade and investment Impact of Globalization Partnerships with foreign firms Lower trade and tariff barriers Corporate Social Responsibility CSR The responsibility of the firm to act in the best interests of the people and communities affected by its activities Globalization s Impact on HRM Managers have to deal with a complicated set of issues related to Different geographies including cultures employment laws and business practices safety of employees and facilities abroad Sustainability company s ability to produce a good or service without damaging the environment or depleting the resource 3 Challenges Advancing HRM w technology Taking advantage of information explosion Collaborative software software that allows workers to interface ad share info with one another electronically Human Resources Information System HRIS o A computerized system that provides current and accurate data for the purposes of control and decision making o Benefits Operational Automation of routine tasks lower administrative costs increased productivity and response times Self service access to information and training for managers and employees Relational Connecting ppl with each other and data they need Online recruiting screening and pretesting of applicants Training tracking and selecting employees based on their record of skills and abilities Organization wide alignment of cascading goals Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include planning decision making and problem solving Knowledge Based Training Online instruction Just in time learning via the Internet on company intranets Virtual learning 4 Challenges Containing costs As companies see rising costs for transportation health care and other benefits they might have to adopt some drastic cost savings Downsizing is a popular choice since labor is one of the most expensive costs Outsourcing and offshoring by contracting labor outside of their company is popular because of reduced labor costs overseas and by contract workers Companies can also reduce costs by employee leasing Larger companies will take over HR control of the smaller company reducing costs and giving employees better benefits o Downsizing offshoring managing benefits furloughing employees take time off with little or no pay outsourcing employee leasing productivity enhancements 5 Responding to change in the workforce changes in demographic and diversity Demographic Changes i More diverse workforce 1 Ethnic and cultural challenges ii Aging workforce iii More educated workforce 1 Necessity of basic skills training iv Gender distribution Managing Diversity Being aware of characteristics common to employees while also managing employees as individuals The primary business reasons for diversity management include o Better utilization of talent o Increased quality of team problem solving o Increased marketplace understanding o Understanding of leadership positions o Enhanced creativity HR competency model Responsibilities 1 Advice and counsel 2 Service 3 Policy formulation and implementation 4 Employee advocacy Competencies 1 Business mastery 2 HR mastery 3 Personal credibility Human Capital The knowledge skills and capabilities of individuals that have economic value to an organization Valuable because capital is based on company specific skills is gained through long term experience can be expanded through development SHRM Strategic Human Resources Management The pattern of human resources deployments and activities that enable an org to achieve its strategic goals Strategy formulation providing input as to what is possible given the types and numbers of people available Strategy implementation making primary resource allocation decisions about structure processes and human resources Strategic Planning Procedures for making decisions about org s long term goals and strategies Procedures for making decisions about the organization s long term goals and strategies The plans especially on how the organization will position itself relative to its competitors in order to ensure long term survival create value and grow It is a strong