Transcript
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HR Strategy Formulation
Unit II / S - 3
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A strategy is the pattern or plan that
integrates an organizations major goals,
policies and action sequences to a coehsivewhole.
It provides direction, coordinating andproviding decisional framework.
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Rational / Comprehensive strategy
planning
1. Development of vision / mission mold
2. Environmental scanning
3. Analysis of SWOT
4. Formulation of strategic objectives
5. Generation of alternative strategies
6. Evaluation and selection of strategies
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Human Resource ContributionPerformance appraisal, staffing, trainingand compensation help towards
organization strategy
Competitive intelligence
Resource re-allocation decision
Dealing with labour shortages & surplus
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Types of Strategies1. Club : Low cost quality producer
Airlines, Banks , Utilities. (Dhabas - )
Lincoln Electric, Wall Mart
(stable staff)
2. Baseball Team : Innovation Strategy
H.P. (shampoo sachets mfrs.)Software developers, entrainment Cos,
( High turnover at lower level)
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3. Academy: Innovators and competitors
Pharmaceuticals, consumer products,
automobiles
(Make & buy human resource)
4. Fortress : highly competitive mkts./
environment dependantHotels, Retailing, textiles, publishing
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Schools of thought(Prescriptive)Design schoolemphasizing the fit between
SWOTmatching Internal and External
environments
Planning schoolA formal system of making
SOPs to ensure consistency of action
Positioning schoolleverages value chain,game
theories,other ideas within analytical framework
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Descriptive schoolsEntrepreneurial schoolCentral role of theleader-Intution and gut feeling
Cognitive schoolMental process ofdeveloping frames,models or maps-creativeinterpretations than the reality
Learning schoolLessons learned to be the
basis of making new palns-is dependant onpeople and their learning
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Descriptive schoolcontd--Power schoolnego between power
holders of the company and external
stakeholders-bargaining,political,confrontation among
power holders
Cultural schoolsocial process rooted inorganization culture-focusses on common
interests
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Descriptive schoolscontd--Environmental schoolContingencies
theories-responses expected out of
environmental issues and limits tostrategies-
Configuration schooltransforming the
organization-
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Strategic compensation policiesForming a compensation committee-dveloping
compenstaion policy framework,Job analysis,job
evaluation,pay ranges,increment
policy,monitoring the programme
Basically, to aattract and retain employees,to
reward employees,internal equity and
fairness,consultation with all the deptts.
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Strategic compensation designFlexible,competitive and performance oriented bytaking into account-------
History of organization
Using various workgroups
Pay ranges,evaluation criteria,vacation pay,
Matching with regulatory authorities
Integration of entire processImplementation of new strategically designedcompensation plan
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Schools of thought on compensationPrahald and Hamel-Only the employees of an organizationcan give sustainable competitive advantage
Beckers Human capital theory-knowledge skills of people
have an economic valueWilliamsons construction cost theory-Cost minimization
by considering people as strategic resource
Eisenhardts agency theoryAligning interests ofemployers and employees
Institutional theory stresses stakeholders agreement andDependancy theory counters this as anti-employees
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StrategiesA
cross LevelsMarket competition startegies
Product development strategies
Strategies to meet customer needs
Strategies for achievement of Cos long-
term profitability,slaes growth,efficiency--
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Tactics and StrategiesImplementation of a long term strategy requires
identification of CSFs
MarketingProduct,price,market,promotionFinanceCapital
acquisition,allocation,dividend,working capital
management
R&DInnovation,development
OB-managing cross cultural issues
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Aligning strategies to transform
peopleOrganizations transform employees by
aligning strategies to
processes,technology,systems,relationshipsCompetency development requires thrust on
Knowledge,skills and attitudes of people
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Strategic PlanningVISION-aspirations for the future
MISSION-articulates the Vision
GOALS
OBJECTIVESoperational definition of
GoalsKRAs,KPAs,KSOs,KPIs-basis
for individual level of performance
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