Strategic HR Leadership

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Strategic HR Leadership

• Dave Martin
• Murray State University
• March 2008

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Strategic HR Leadership

• Management versus Leadership

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Strategic HR Leadership Firm Type by HR Attitude

• 1950s Style (estimated 30-50 of firms)
• Results in non-enlightened management and further
  described as the walking dead.

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Strategic HR Leadership Firm Type by HR
Attitude

• Reactors (estimated 20 of firms)
• This outsource-and-decentralize model results in
  line managers having HR responsibilities

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Strategic HR Leadership Firm Type by HR Attitude

• Confidants (est. 30-40 of firms)
• HR is run like a business, not a cost center,
  which results in HR in the role of trusted
  internal advisor, activities intended to improve
  quality, productivity and customer service

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Strategic HR Leadership

• Creativity
• Critical Thinking
• Organizational Culture

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Strategic HR Leadership

• Six Competencies for HR Managers
• Strategic Tactical HR Knowledge
• The Competitive Environment
• Operations
• Accounting
• Finance
• Credibility Leadership

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Strategic HR Leadership What is Competence?

• Competence refers to an individuals Knowledge,
  Skills, Abilities and Personality Traits that
  directly influence his or her job performance.
  The three most important aspects of competence
  are
• Emotional Intelligence (EI)
• Technical Expertise
• Leadership Ability

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Strategic HR LeadershipEmotional Intelligence
(EI)

• Whats your emotional intelligence quotient?
• Unlike IQ, which is considered relatively stable
  and unchangeable, research on emotional
  intelligence indicates that it can be improved
  through learning (Cherniss Goleman, 1998
  Goleman, 1995).
• EI consists of the following five capabilities

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Strategic HR Leadership Emotional Intelligence
(EI)

• 1. Self-awareness
• Having a deep understanding of ones emotions,
  strengths, weaknesses, needs, and drives.
• When people possess this behavior, they can
  understand their own feelings affecting others.
  The people who lack this ability often experience
  inadequate relationships and misunderstanding
  between colleagues.

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Strategic HR Leadership Emotional Intelligence
(EI)

• 2. Self-regulation
• Ability to control or redirect disruptive
  impulses and moods and the tendency to suspend
  judgment to think before acting.
• People with self-regulation have the ability to
  control their own feelings and respond with
  suitable action. Accordingly, they are able to
  create an environment of trust in competitive
  circumstances.

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Strategic HR Leadership Emotional Intelligence
(EI)

• 3. Self-motivation
• Tendency to pursue goals with energy and
  persistence.
• By encouraging themselves, people with high
  self-motivation remain optimistic when confronted
  with bad situations. An example of
  self-motivation is Henry Ford, who built his
  first automobile plant in 1908, when the
  automobile was built by hand. Nevertheless, he
  was successful by using self-motivation, even
  though he was presented with many difficulties
  along the way.

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Strategic HR Leadership Emotional Intelligence
(EI)

• 4. Empathy
• Ability to understand the emotional makeup of
  other people.
• When working within a group, the group leader
  might use empathy as a tool for understanding
  group members feelings. By doing this, empathy
  promotes understanding in the relationship
  between group members and the leader.
  Furthermore, if companies use the empathy method
  within an organization, employees will be treated
  with respect and made to feel a part of the
  company. As a result, companies find that empathy
  leads to improved employee retention.

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Strategic HR Leadership Emotional Intelligence
(EI)

• 5. Social-skills
• Proficiency in managing relationships and
  building networks.
• People employing social-skills cultivate
  relationships with others by combining the other
  emotional intelligence dimensions, such as
  self-regulation and self-awareness.

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Strategic HR LeadershipRelationships in the
Workplace

• Who is your Customer at work?
• Everybody you come in contact with!
• What is Quality?
• Quality is Meeting and Exceeding your Customers
  expectations.

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Strategic HR LeadershipRelationships in the
Workplace

• Ability, Benevolence Integrity
• are the main components of
• Interpersonal Trust
• between leaders and their direct reports
• in the workplace.

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Strategic HR Leadership Leadership Change

• Transformational Leadership, Charisma, and Change
• The Five Stages of Effective Change Management
• Motivating Change - readinesss resistance
• Creating a Vision ideology envisioned future
  state
• Developing Political Support identifying
  influencing key stakeholders
• Managing the Transition activity planning
  managing
• Sustaining Momentum - developing new skills
  reinforcing behaviors

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Strategic HR Leadership The Competitive
Environment

• Do you know what is your firms strategy is?
• Who are your firms competitors?
• What are your strengths, weaknesses,
  opportunities and threats?
• Which includes each of your competitors SWOTs!

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Strategic HR Leadership The Competitive
Environment

• Five Forces of Competition
• Threat of New Entrants
• Bargaining Power of Buyers
• Bargaining Power of Suppliers
• Threat of Substitute Products
• Rivalry Among Existing Firms
• Price Competition
• Product Innovation
• Product Differentiation

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Strategic HR Leadership HR Metrics

• What metrics do you use, or should you use,
• to emphasize the importance of
• Human Resource Management?

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Strategic HR Leadership HR Metrics

• Can you do the following
• Make the case to your CEO for better 401k
  matching?
• Devise a competitive health care plan for
  employees?
• Brief the CEO about HRs return on investment?
• Conduct due diligence for mergers or
  acquisitions?
• Justify additional HR staff?
• Defend your recruiting and HR budgets?
• Without data we have only an opinion

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Strategic HR LeadershipThink about the
following

• Are your HR Leadership Skills all that you want
  them to be?
• Is your EI where you would like it to be?
• Is your Strategic Tactical HR Knowledge base
  adequate?
• Do you need to improve the level of trust between
  you and others in the organization?