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Introduction
A strategy:
Indicates what an organization's key executives hope to accomplish in the long run Is concerned with competition and aligning the resources of the firm
Good HR strategy results in a fit between organizational strategy and HRM policies and programs
formulating and executing HR systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims
Making human resources management a top priority Integrating HRM with the companys strategy, mission, and goals
HRM can make significant contributions if included in the strategic planning process from the outset
The strategic management process helps determine: What must be done to achieve priority objectives How they will be achieved
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Growth Profits Survival Expands awareness of possibilities Identifies strengths and weaknesses Reveals opportunities Points to the need to evaluate the impact of internal and external forces
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Planning also:
Capital, products
Cost centre Staff specialists
Production focus
Functional organization Individuals encouraged, singled out for praise, rewards People as expenses
Human Resource Management
Service focus
Process-based organization Cross-functional teams, teamwork most important
Strategy Implementation
Strategy Evaluation
In strategy formulation HR manager supplies competitive intelligence that is useful In strategy implementation Encouraging proactive behavior Explicit communication goals Stimulate critical thinking Productivity Quality and Service Proficient strategic management
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ARDM means:
Acquiring Rewarding Developing Maintaining and protecting Socially responsible and ethical practices
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The eventual success of any HRM activity is: The organization's employees are the best qualified They perform jobs that suit their needs, skills, and abilities Matching people and activities in order to accomplish goals is easier with a diagnostic approach
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The ARDM model has four specific steps: Diagnosis Prescription Implementation Evaluation Managers typically diagnose a work situation by observing and identifying key factors A prescription is then made to translate the diagnosis into action Most human resource problems are too complex to have a single correct prescription
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Implementing a solution is the next step, followed by evaluation Evaluation tells managers whether improvement in the ARDM process is needed If an organization teaches its members to focus on ARDM plus the environment, it is likely to achieve: Socially responsible, ethical behaviors Competitive, high-quality products and services
The ARDM model calls for thorough, timely, and systematic review of each situation
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HRM processes are influenced by both the internal and external environments
External influences include: Government laws and regulations Union procedures and requirements Economic conditions The labor force Guidelines Limits of available resources Competencies
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Economic Conditions
Productivity is:
Economic Conditions
Diagnosis, prescription, implementation, and evaluation Recruitment and selection Motivational and compensation techniques Training and development
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Strategy Goals Organizational culture Nature of the task Work groups The leaders style and experience
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Goals
Most departments have similar goals Differences arise from the importance placed on the goals
In organizations where profits take precedence, HRM goals receive little attention
This results in effectiveness problems (absenteeism, performance decrements, high grievance rates)
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Organization Culture
The way it does business How it treats customers and employees The autonomy or freedom that exists in the departments or offices The degree of loyalty expressed by employees
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Organization Culture
There is no one "best" culture for the development of human resources Impact behavior, productivity, expectations Provide a benchmark for standards of performance
Culture can:
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Work Group
A group is two or more people who: Consider themselves a group Work interdependently to accomplish a purpose Communicate and interact with one another on a continuous basis In many cases, work next to each other
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The experience and leadership style of the operating manager directly affects HRM activities
Orchestrating the skills, experiences, personalities, and motives of individuals Facilitating interaction within work groups Providing direction, encouragement, and authority to evoke desired behaviors Reinforcing desirable behavior
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