Human Resource

Management
1

ELEVENTH EDITION

GARY DESSLER

Part 1 | Introduction

Chapter
3

Strategic Human Resource

Management and the HR Scorecard
PowerPoint Presentation by Charlie Cook
The University of West Alabama

After studying this chapter, you should be

able to:
1.

Outline the steps in the strategic management

process.

2.

Explain and give examples of each type of

companywide and competitive strategy.

3.

Explain what a strategy-oriented human

resource management system is and why it is
important.

4.

Illustrate and explain each of the seven steps

in the HR Scorecard approach to creating
human resource management systems.
2

JUSTIFY YOUR
POSITION.
OKAY!

The Hierarchy of Goals

in well-run companies, the goals from the
very top of the organization down to where
youre working should form a more-or-less
unbroken chain (or hierarchy) of goals.
These goals, in turn, should be guiding
what you do.
The Managers role in Strategic Human Resource Management..Ch. 3, p. 72

The following strategic outline contains

some of the actual documents that were
used during a 1 year period of strategic
planning and implementation to merge two
medical programs into one and develop a
new RNA program for San Joaquin Valley
College in Fresno California in 1997.

The Strategic Management

Process

Strategic Management

Strategy - How do we get from here to there?

The process of identifying and executing the organizations

mission by matching its capabilities with the demands of its
environment.
A chosen course

of action.

Strategic Plan SWOT!

How an organization intends to balance its internal strengths

and weaknesses with its external opportunities and threats to
maintain a competitive advantage over the long-term.

Business Vision and Mission

Vision

A general statement of an organizations intended

direction that evokes emotional feelings in
organization members.

Mission

1.
2.
3.

Spells out:
*Who the company is
What it does, and
Where its headed.

*Under the US Constitution, companies are looked upon as entities.

7

FIGURE 31 The Strategic Management Process

Strategies can be applied to any

project:

What is it we are trying to accomplish?

What issues do we need to consider?
What logical path do we need to take in order to
achieve our goals?
What budgets are we working with? Funding? Etc.
What is the forecast loss/gain?
What personnel do we need to implement our goal?
How much time will our critical path take?

FIGURE 32 A SWOT Chart

10

S.W.O.T.
Strength:
1. Already have much of the
personnel in place to carry out
the changes we need to make.
Weaknesses:
We dont have enough
classrooms at this time in order
to accommodate X amount of
students at critical mass.
We need to hire part time
instructors during critical mass
time or authorize overtime.

Opportunities:
We can combine two classes into one of
the larger LGI rooms and section off
them off.
We have a team of people who are
willing to corporate in working long
overtime hours.
Upper management is willing to give us
the materials and time we need to get
this done.
Threats:
1. We have other colleges who are
gearing up to offer the same
programs quicker.
2. Our cost is much more.

11

http://www.buzzle.com/articles/profit-and-loss-statement-sample.html

12

Profit and Loss Sample

Turn to page 75 of your text
Lets look at Figure 3-3
Pro Forma Profit and Loss Income Statement
Example
http://www.buzzle.com/articles/profit-andloss-statement-sample.html
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FIGURE 33 Strategies in a Nutshell

Source: Arit Gadiesh and James Gilbert, Frontline

Action, Harvard Business Review, May 2001, p. 74.

17

Types of Strategies
Corporate-Level
Strategies

Diversification
Strategy

Vertical
Integration
Strategy

Consolidation
Strategy

Geographic
Expansion
Strategy

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FIGURE 35
The
Southwest
Airlines
Activity
Note: Companies like Southwest
System
tailor all of their activities so that
they fit and contribute to making
their strategies a reality.

Source: Michael E. Porter, What Is Strategy? Harvard Business

Review, NovemberDecember 1996. Reprinted with permission.

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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 have
can be more important than just fitting the strategic
plan to current resources.

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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.
21

FIGURE 39
Basic Model of
How to Align
HR Strategy
and Actions
with Business
Strategy

Source: Adapted from Garrett Walker

and J. Randal MacDonald, Designing
and Implementing an HR Scorecard,
Human Resources Management 40,
no. 4 (2001), p. 370.

The Seven Steps

in the HR
Scorecard
Approach to
Formulating HR
Policies,
Activities, and
Strategies

Source: Gary Dessler, Ph.D., 2007.

23

FIGURE
3A3
Simple
Value
Chain for
The
Hotel
Paris

Source: Gary Dessler, Ph.D., 2007.

24

Courtesy of Drawpack.com

25

Courtesy of Drawpack.com

26

27

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

28

Evaluate the results

Did we accomplish our goal and objective?

Did we achieve customer satisfaction?
Are we happy with the results? Why? Why not?
Where and What can we do to improve?
What should be focused on?
Did we stay within budget?
Did we meet all company objectives? Why or
why not?
What is the next step?

29

Reporting on those results

Giving Feedback to management.

Giving Statistical analysis and Documented proven results
Identifying SWOT and areas for Improvement
Managing the Next Steps and giving Feedback, Input and
Direction.
Allowing for Q&A
31

KEY TERMS
strategic plan
strategic management
vision
mission
SWOT analysis
strategy
strategic control
competitive advantage
leveraging
strategic human resource management
HR Scorecard
metrics
value chain analysis