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2. The Strategic Human Resource Environment

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Title: 2. The Strategic Human Resource Environment


1
2. The Strategic Human Resource Environment
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2
The strategic context of human resource
environment
  • This chapter is devote to the strategic human
    resource environment.
  • The first section discusses the strategic context
    of human resource management in the terms of the
    organizations purpose, mission, and the top
    management team.

3
  • The next section focus on corporate, business,
    and functional strategies and their relationship
    to human resource management.
  • Human resource can be an important source of
    competitive advantage for any organization, but
    it is critical that the organization understand
    how to use those resource to gain competitive
    advantage.

4
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5
The Influence of Organizational Purpose and
Mission
  • Purpose
  • An organizations purpose is its basic reason
    for existence
  • Mission
  • An organizations mission is a statement of
    how it intends to fulfill its purpose
  • Purpose statement
  • A purpose statement specifies how the
    organization intends to management itself so it
    can purpose Pursue the fulfillment of its purpose
    most effectively.

6
  • Top Management Team
  • The top management team of an organization refers
    to the group of senior executives responsible for
    the overall strategic operation of the firm.
  • The top management team sets the tone for the
    organization and play a major role in shaping its
    culture.
  • Some top management teams have a clear vision of
    where they want the firm to go and how they think
    it should get there.

7
Top Management Team
  • While Top Managers sometimes use speeches and
    proclamations to articulate the organization
    vision and purpose, their actual behavior more
    commonly communicates their true personal values
    and beliefs, and thus of the organization.
  • Managerial discretion
  • Top management teams to influence the
    organization is constrained by the nature of the
    industry, the nature of the organization, and the
    nature of the individuals themselves.

8
The Lighter Side of HR
  • The top management team plays a major in
    determining its strategies and its culture.
  • When top management clearly respect the firms
    employees and treat them with dignity,
  • those employees feel valued and are likely to
    became more motivated and committed to the firm.

9
SWOT analysis and human resource management
  • The first step in formulating strategy is what
    some managers call a SWOT analysis.

10
Corporate strategy and human resource management
  • Grand strategy
  • Growth strategy
  • Retrenchment
  • Stability strategy
  • Diversification strategy

11
Business strategy and human resource management
  • The adaptation model
  • Defender strategy
  • Prospector strategy
  • Analyzer strategy
  • Competitive strategies
  • Differentiation strategy
  • Cost leadership strategy
  • Focus strategy

12
Functional strategies and human resource
management
  • Functional strategies address how the
    organization will manage its basic functional
    activities, such as marketing, finance,
    operations, research and development, and human
    resources.

13
Human resource strategy formulation
14
The impact of organization design
  • Organization design refers to the framework of
    jobs, positions, group of positions, and
    reporting relationships among positions that are
    used to construct an organization.
  • Functional design (U-form organization)
  • Conglomerate (H-form organization)
  • Divisional (M-form organization)
  • Flat organization/Horizontal corporation

15
The impact of corporate culture
  • The culture of the organization also affects how
    it formulates and implements its human resource
    strategy.
  • An organizations culture refers to the set of
    values that helps, and what it considers
    important.

16
The impact of unionization and collective
bargaining
  • Other important aspects of the workforce that
    affect the human resource management function are
    unionization and collective bargaining.
  • Labor relations is the process of dealing with
    employees who are represented by an employee
    association, usually called a union.

17
HUMAN RESOURCE PLANNING AND THE WORKFORCE
  • Probably the most important factor that affects
    the human resource management function is the
    labor force or workforce.
  • Human resource planning is the process of
    forecasting the supply and demand for human
    resources within an organization and developing
    action plans for aligning the two.

18
The Human Resource Planning Process
Forecasting the supply of human resources
Forecasting the demand for human resources
Comparing forecasted supply and forecasted demand
Taking appropriate actions
19
Forecasting the Supply of Human Resources
  • Human resource information system is an
    integrated and increasingly an automated system
    for maintaining a database regarding the
    employees in an organization.
  • Labor force trends and issues
  • 1.The baby-boom generation age
  • 2.Gender differenceglass ceiling
  • 3.Changing ethnicity
  • Executive succession involves systematically
    planning for future promotions into top
    management positions.

20
Forecasting the Demand for Human Resources
  • Manager need to ascertain the numbers and types
    of people the organization will actually need to
    employ in the future.
  • The organizations own strategic plans regarding
    anticipated growth, stability, or decline.
  • These general demand trends influence the
    availability of human resources for two reasons.
  • employees for jobs in high demand will be more
    difficult to hire and will be more expensive to
    hire.
  • 2. Students and future employees who track these
    demand trends often make decisions about what
    majors to pursue in college based on their
    anticipated employability.

21
Human Resource Strategy Implementation
Human resource strategy implementation
  • Individual processes
  • Psychological contracts
  • Personality traits
  • Attitudes
  • Motivation
  • Stress
  • Organizational
  • systems/processes
  • Single-use plans
  • -programs
  • -projects
  • Standing plans
  • -policies
  • -standard operating
  • procedures
  • -rules
  • interpersonal
  • processes
  • Group dynamics
  • Leadership
  • Communication

22
HUMAN RESOURCE STRATEGY IMPLEMENTATION
  • Implementing a Growth Strategy
  • Support to apprentice or training programs.
  • Implementing a Stability Strategy
  • Implement programs such as training to
    upgrade the skills of current employees.
  • Implementing a Reduction Strategy
  • Enhance employees retirement benefits so that
    people might consider retiring at an earlier age
    than they would have done otherwise.

23
Individual and interpersonal Processes and
Strategy Implementation
A psychological contract is the overall set of
expectations held by an individual with respect
to what he or she will contribute to the
organization and what the organization, in turn,
will provide to the individual.
  • Individual processes
  • 1.Psychological contracts
  • 2.Personality traits
  • 3.Attitudes
  • 4.Motivation
  • 5.Stress
  • interpersonal processes
  • 1.Leadership
  • 2.Communication

24
Evaluating the human resource function in
organizations
Human Resource Management Practices That
May Lead to Improved Firm Performance
1.Self-directed work teams
2.Total quality management (TQM)
3.Contingent pay
4.Formal performance appraisals
5.Continuous training
  • High performance work systems rely on a set of
    best practices to use human resources to gain a
    meaningful competitive advantage.
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