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1) TRW implemented a strategic human resource management (SHRM) system across the company to address declining profits in the late 1980s.
2) The SHRM system aligned business objectives with individual employee goals through two iterations to improve performance. This included linking pay to performance.
3) The results of implementing SHRM were positive, with improved sales and revenues as employee performance increased due to greater goal alignment. SHRM transformed HR from a cost center to a profit center for TRW.
1) TRW implemented a strategic human resource management (SHRM) system across the company to address declining profits in the late 1980s.
2) The SHRM system aligned business objectives with individual employee goals through two iterations to improve performance. This included linking pay to performance.
3) The results of implementing SHRM were positive, with improved sales and revenues as employee performance increased due to greater goal alignment. SHRM transformed HR from a cost center to a profit center for TRW.
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1) TRW implemented a strategic human resource management (SHRM) system across the company to address declining profits in the late 1980s.
2) The SHRM system aligned business objectives with individual employee goals through two iterations to improve performance. This included linking pay to performance.
3) The results of implementing SHRM were positive, with improved sales and revenues as employee performance increased due to greater goal alignment. SHRM transformed HR from a cost center to a profit center for TRW.
Copyright:
Attribution Non-Commercial (BY-NC)
Verfügbare Formate
Als PPTX, PDF, TXT herunterladen oder online auf Scribd lesen
• Will Sproule, Director Human Resources • Knicely created three strategy awards • OD methods went beyond team building • HR to have a seat in the management table • Company Profile • Well Diversified Company • Automotives, Space, Defense and IS • IS earned mostly by acting as a credit reporting agency – Consumer Credit Reports – Direct marketing Lists • 1980’s profitable • Late 80’s profits dwindle BAIL OUT!! • Cost Cutting measures initiated • Layoffs Occurred • Upper Level managers Shifted • Company pushed to survival Mode • 1993- The Turning Point SHRM IMPLEMENTATION
üAlign Business Objectives and Individual Goals- Bring Synergy
üImplementation Through Two Iterations üPerformance Related pay Iterations • SHRM was implemented through two iterations • In Iteration I four main objectives identified • 5 management Priorities Identified – R&R – PMS – Training – Professional Development System – WorkForce Diversity ITERATION II • Results of the Iteration I were positive as sales were improving • Iteration II included the ITS division • SHRM is a continuous process • 3 Preliminary Issues are – Performance Management – Alignment of Goals – The ability to use IT internally ANALYSIS • Cost Center vs. Profit Center • Employee Life Time Value • Performance based Pay • Employee as a Stock • Quality of Life Orientation COST CENTER VS PROFIT CENTRE
qInitially considered Cost Center
qLaunch Of SHRM changed the scenario qHR Dept is a Profit center qHuman Resources liable for wealth maximization qAligning Objectives resulted in increased revenues EMPLOYEE LIFETIME VALUE
• Total value during stay = ELV
• Employee Revenues – Employee Cost • Training Employees • PMS • Achieve Objectives PERFORMANCE BASED PAY
qLinking Pay to Performance
qSales Man = Two Options qSmall basic Salary + High Variable Pay qHigher basic salary + Small variable Pay qEmployees Chose First Option qReturn on Investment High qBrings out 100% of the employees Employee as a stock
• Employee is a Long Term Investment • Human capital also liable for Returns • Positive Returns Spurred by SHRM Quality of life orientation
SHRM
qCo’s Promise Better
Quality of Life qEmployees have to Support to Fulfill promise CONCLUSION
qSHRM is a new dimension which affects the firms
performance qTRW’s Will Sproule implementation of SHRM spurs firm’s profits qGoal Congruency Improves employees Performance and increases the profits q