HRM CH 3

HUMAN RESOURCE MANAGEMENT
Global Edition 12e
Chapter 3
The Managers
Role in
Strategic
Human
Resource
Management
Part 1 Introduction
Copyright 2011 Pearson Education
GARY DESSLER
PowerPoint Presentation by Charlie Cook

The University of West Alabama
WHERE WE ARE NOW
32
LEARNING OUTCOMES
1. Explain why strategic planning is important to all
managers.
2. Outline the basic steps in the management planning
process.
3. List the main contents of a typical business plan.
4. Answer the question, What should a manager do to set
smart motivational goals?
5. Explain with examples each of the seven steps in the
strategic planning process.
6. List with examples the main generic types of corporate
strategies and competitive strategies.
33
LEARNING OUTCOMES (contd)

7. Define strategic human resource management and give
an example of strategic human resource management
in practice.
8. Briefly describe three important strategic human
resource management tools.
9. Explain with examples why metrics are essential for
identifying and creating high-performance human
resource policies and practices.
34
Why Strategic Planning Is

Important
To
All
Managers
The
firms strategic plan guides much of what is done by
all to accomplish organizational goals.
Decisions made by managers depend on the goals set at
each organizational level in support of higher level goals.
35
FIGURE 31
Sample Hierarchy of Goals Diagram for a Company
36
Fundamentals of Management
Planning
The Planning Process
1
Set an objective.
Make forecasts and check assumptions.
Determine/develop alternative courses of action.
Evaluate the alternatives.
Implement and evaluate your plan.
37
FIGURE 32
Business Plan Table of Contents
38
FIGURE 33
Acme Consulting Profit and Loss
39
How Managers Set Objectives:

SMART Goals
Specific
Measureable
Attainable
Relevant
Timely
310
How to Set Motivational Goals
Motivational Goal Setting
Assign
specific
goals
Assign
measurable
goals
Assign
challenging
but doable
goals
Encourage
employee
participation
311
Using Management by Objectives

(MBO)
The MBO Process
1
Set overall organizational goals.
Set departmental (supporting) goals.
Discuss departmental goals with subordinates.
Set individual goals and timetables.
Give feedback on progress toward goal.
312
The Strategic Management Process

Strategy
A course of action the organization intends to pursue to achieve
its strategic aims.
Strategic Plan
How an organization intends to match its internal strengths and
weaknesses with its external opportunities and threats to

maintain a competitive advantage over the long term.
Strategic Management
The process of identifying and executing the organizations
mission by matching its capabilities with the demands of its

environment.
Leveraging
Capitalizing on a firms unique competitive strength while
underplaying its weaknesses.

313
Business Vision and Mission

Vision
A general statement of an organizations intended direction that
evokes emotional feelings in organization members.
Mission
Spells out who the firm is, what it does, and where its headed.
314
FIGURE 34
Management Objectives Grid
Company-Wide or Departmental Objective:

Double sales revenue to $16 million in fiscal year 2011
315
FIGURE 35
The Strategic Management Process
316
FIGURE 36
Worksheet for Environmental Scanning
317
FIGURE 37
SWOT Matrix, with Generic Examples
318
FIGURE 38
Type of Strategy at Each Company Level
319
Types of Corporate Strategies

Corporate Strategy
Possibilities
Concentration
Diversification
Vertical
integration
Consolidation
Geographic
expansion
320
Types of Competitive Strategies
Business-Level
Competitive
Strategies
Cost leadership
Differentiation
Focus/Niche
321
Achieving Strategic Fit

The Fit Point of View (Porter)
All of the firms activities must be tailored to or fit the chosen
strategy such that the firms functional strategies support its

corporate and competitive strategies.
Leveraging (Hamel and Prahalad)

Stretch in leveraging resourcessupplementing what you
have and doing more with what you havecan be more

important than just fitting the strategic plan to current resources.
322
FIGURE 39
Southwest Airlines Activity System
323
Departmental Managers
Strategic Planning Roles
Department Managers
and Strategy Planning
Help devise
the strategic
plan
Formulate
supporting,
functional/
departmental
strategies
Execute
the strategic
plans
324
Strategic Human Resource

Management
Strategic Human Resource Management
The linking of HRM with strategic goals and objectives in order
to improve business performance and develop organizational

cultures that foster innovation and flexibility.
Involves formulating and executing HR systemsHR policies
and activitiesthat produce the employee competencies and

behaviors that the company needs to achieve its strategic aims.
325
FIGURE 310 Linking Company-Wide and HR Strategies
326
FIGURE 311 Basic Model of How to Align HR Strategy

and Actions with Business Strategy
327
Strategic HRM Tools
Strategic HRM Tools
Strategy map
HR scorecard
Digital
dashboard
328
FIGURE 313 Strategy Map for Southwest Airlines
329
FIGURE 314 The Basic HR Scorecard Relationships
HR activities
Emergent employee
behaviors
Strategically relevant
organizational
outcomes
Organizational
performance
Achieve strategic
goals
330
Creating an HR Scorecard
The 10-Step HR Scorecard Process
1
Define the business strategy
Identify required HR policies

and activities
Outline value chain activities
Create HR Scorecard
Outline a strategy map
Choose HR Scorecard
measures
Identify strategically required

outcomes
Summarize Scorecard
measures on digital dashboard
Identify required workforce

competencies and behaviors
10
Monitor, predict, evaluate
331
FIGURE 315 Three Important Strategic HR Tools
Strategy Map
HR Scorecard
Digital Dashboard
A graphical tool that

summarizes the chain
of activities that
contribute to a
company's success,
and so shows
employees the "big
picture" of how their
performance
contributes to
achieving the
company's overall
strategic goals.
A process for
managing employee
performance and for
aligning all
employees with key
objectives, by
assigning financial
and nonfinancial
goals, monitoring and
assessing
performance, and
quickly taking
corrective action.
An information
technology tool that
presents the manager
with desktop graphs
and charts, so he or
she gets a picture of
where the company
has been and where
it's going, in terms of
each activity in the
strategy map.
332
Building A High-Performance Work

System
High-Performance Work System (HPWS)
A set of human resource management policies and practices
that promote organizational effectiveness.
High-Performance Human Resource Policies

and Practices
Emphasize the use of relevant HR metrics.
Set out the things that HR systems must do to become an
HPWS.
Foster practices that encourage employee self-management.
Practice benchmarking to set goals and measure the notable
performance differences required of an HPWS.
333
TABLE 31
Comparison of Selected Human Resource Practices in

High-Performance and Low-Performance Companies
334
KEY TERMS
business plan
offshoring
management by objectives (MBO)
strategic human resource
strategic plan
management
strategy
strategy map
strategic management
HR Scorecard
vision statement
digital dashboard
mission statement
high-performance work system
corporate-level strategy
human resource metric
competitive strategy
value chain
competitive advantage
HR audit
functional strategies
335
FIGURE 316 Simple Value Chain for The Hotel Paris
336
FIGURE 3A-1 Simple Value Chain for The Hotel Paris
337
FIGURE 3A-2 Revenue per FTE (by Industry)
338
FIGURE 3A-3 2007 Target Bonus Percentage for Executives

(Percent of Total Compensation, by Organizational Size)
339
FIGURE 3A-4 Sample Metrics from SHRM Measurements Library
340
FIGURE 3A-5 Highlights of SHRM Customized Benchmarking Service
341
FIGURE 3A-6 Customized Human Capital Benchmarking Report

for [Your Organizations Name Here]
342
FIGURE 3A-7 Customized Human Capital Benchmarking Report

for [Your Organizations Name Here]
343
TABLE 32
Examples of HR System Activities the Hotel Paris Can

Measure as Related to Each Chapter in This Book
344
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Printed in the United States of America.
345

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HUMAN RESOURCE MANAGEMENT

Global Edition 12e

Copyright 2011 Pearson Education

PowerPoint Presentation by Charlie Cook

WHERE WE ARE NOW

Copyright 2011 Pearson Education

Copyright 2011 Pearson Education

LEARNING OUTCOMES (contd)

Copyright 2011 Pearson Education

Why Strategic Planning Is

Copyright 2011 Pearson Education

Sample Hierarchy of Goals Diagram for a Company

Copyright 2011 Pearson Education

Make forecasts and check assumptions.

Determine/develop alternative courses of action.

Evaluate the alternatives.

Implement and evaluate your plan.

Copyright 2011 Pearson Education

Business Plan Table of Contents

Copyright 2011 Pearson Education

Acme Consulting Profit and Loss

Copyright 2011 Pearson Education

How Managers Set Objectives:

Copyright 2011 Pearson Education

How to Set Motivational Goals

Motivational Goal Setting

Copyright 2011 Pearson Education

Using Management by Objectives

Set overall organizational goals.

Set departmental (supporting) goals.

Discuss departmental goals with subordinates.

Set individual goals and timetables.

Give feedback on progress toward goal.

Copyright 2011 Pearson Education

The Strategic Management Process

its strategic aims.

weaknesses with its external opportunities and threats to

mission by matching its capabilities with the demands of its

underplaying its weaknesses.

Business Vision and Mission

evokes emotional feelings in organization members.

Copyright 2011 Pearson Education

Management Objectives Grid

Company-Wide or Departmental Objective:

Copyright 2011 Pearson Education

The Strategic Management Process

Copyright 2011 Pearson Education

Worksheet for Environmental Scanning

Copyright 2011 Pearson Education

SWOT Matrix, with Generic Examples

Copyright 2011 Pearson Education

Type of Strategy at Each Company Level

Copyright 2011 Pearson Education

Types of Corporate Strategies

Copyright 2011 Pearson Education

Types of Competitive Strategies

Copyright 2011 Pearson Education

Achieving Strategic Fit

strategy such that the firms functional strategies support its

Leveraging (Hamel and Prahalad)

have and doing more with what you havecan be more

Copyright 2011 Pearson Education