Organizational Life-Cycle Stages and HR

Activities
LIFE- TRAINING LABOR /
CYCLE STAFFING COMPENSATION AND EMPLOYEE
STAGE DEVELOPMENT RELATIONS
Introduction Attract best Meet or exceed Define future Set basic
technical and labor market rates skill employee-
professional to attract needed requirements relations
talent. talent. and begin philosophy of
establishing organization.
career ladders.
Growth Recruit adequate Meet external Mold effective Maintain labor
numbers and mix market but consider management peace,
of qualifies internal equity team through employee
workers. Plan effects. Establish management motivation,
management formal development and morale.
succession. Mange compensation and
rapid internal structures. organizational
labor market development.
movements
 Organizational Life-Cycle Stages and
HR Activities (cont’d)
LIFE-CYCLE TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS
Maturity Encourage sufficient Control Maintain flexibility Control labor costs
turnover to compensation and skills of an and maintain labor
minimize layoffs and costs. aging workforce. peace. Improve
provide new productivity.
openings.
Encourage mobility
as reorganizations
shift jobs around.
Decline Plan and implement Implement tighter Implement Improve
workforce cost control. retraining and productivity and
reductions and career consulting achieve flexibility
reallocations, services. in work rules.
downsizing and Negotiate job
outplacement may security and
occur during this employment-
stage. adjustment
policies
COKE
Hires Graduates , with no corporate exp , invests in
Training
Life time employment , Seniority based salary
increments
HRM produces career managers
PEPSI
Hires exp employees
Fast tracks employees with high talent
Continuous flow of new ideas
Hiring and firing employees
Strategic HRM
Interrelated practices , policies and philosophies that
facilitate the attainment of organizational strategy
Human Capital : Intangible asset
The sum of employees’ knowledge , skills ,
experience , and commitment invested in the
organization .
Employees as Strategic Resources
Porter estimates that it takes approximately 7
years to duplicate a competitive edge in Human
Resources
The less a resource can be imitated the more
durable is the source of competitive advantage
These resources cannot be imitated as their
effectiveness is embedded in the systems and
culture that allow them to work productively
The Risks of Strategic Planning
A HR Plan for the future may raise employees
expectations for life time jobs . In times of recession
it will result in jobs losses
Orgn may become blinded in implementation and
lose flexibility
Eg Hindustan Motors
Linking HR Processes To Strategy
Form Organization Strategy than create HR
Strategy Eg McDonald
Create HR Competencies and than create
corporate strategies based on them Eg Infosys into
Japanese and Chinese Markets
A Combination of Both in a form of reciprocal
relationship
HR Strategy-------Business Stgy-------HR Strategy
HR Becomes a Business Partner
Must be able to understand analysis presented by
Marketing , Financial and Operational Managers
Eg Big Bazaar , Low cost strategy
HR has to develop strategies to deal with rapid
training and High Turnover rates
Getting Involved in the Strategic Plan
Process
Member of the executive Team
Review / React Linkage
Integrative Linkage
HR Strategy by Division
Microsoft
HR Practices that support innovation in the R & D
Branch
Policies that support low cost in the Manufacturing
Branch
To achieve equality Employee benefits to be the same in
both locations
Using National /International Labor pool eg Nike
Characteristics of an Effective HRM Strategy
External Fit eg Strategy based on Service , T & D
aligned to the above
Internal Fit eg BPO 24* 7 CSE , Shift Differentials
Focus on Results
MILES & SNOW’S Organisational Types
Defender – Low cost Opr , Focus on Efficiency by Std
jobs
Prospector –Innovation & Adaptation through
Investments in R & D ,
Analyzer --- Scan Competitors and react
Reactor ---No apparent Strategy
Ex HR Alignment with 2 strategies of Porter
Low cost & Differentiation

Employee
HR Planning
Selection
Compensation
Training
Performance Evaluation
Thank you
Please read case 1 from your case booklet And the
chapter on Job Analysis