This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
• Summarize the strategic planning process and how it drives Summarize the strategic planning process and how it drives the organizational activities.the organizational activities.
• Outline how strategic HR management is linked Outline how strategic HR management is linked to the organizational strategies.to the organizational strategies.
• Discuss how internal and external environmental factors Discuss how internal and external environmental factors affect HR strategies.affect HR strategies.
• List HR strategic challenges faced by modern organizations.List HR strategic challenges faced by modern organizations.
• Explain how technology is affecting HR management Explain how technology is affecting HR management practices and employees.practices and employees.
• Identify how organizations can measure and assess Identify how organizations can measure and assess the effectiveness of HR management practices.the effectiveness of HR management practices.
After you have read this chapter, you should be able to:After you have read this chapter, you should be able to:
The assessment of internal and external The assessment of internal and external environmental conditions that affect the organizationenvironmental conditions that affect the organization
The process of identifying a plan for the orderly The process of identifying a plan for the orderly replacement of key employees.replacement of key employees.
HR Planning in Mergers and HR Planning in Mergers and AcquisitionsAcquisitions• Cultural CompatibilityCultural Compatibility
The extent to which such factors as decision-making The extent to which such factors as decision-making styles, levels of teamwork, information-sharing styles, levels of teamwork, information-sharing philosophies, and the formality of the two philosophies, and the formality of the two organizations are similar.organizations are similar.
• HR’s Role in Mergers and AcquisitionsHR’s Role in Mergers and Acquisitions Communicating decisionsCommunicating decisions Revising the organization structureRevising the organization structure Merging HR activitiesMerging HR activities
Measuring Effectiveness of HR Measuring Effectiveness of HR InitiativesInitiatives• HR MetricsHR Metrics
Specific measures tied to HR performance indicators.Specific measures tied to HR performance indicators.Development and use of metrics that can better Development and use of metrics that can better
demonstrate HR’s value and track its performance.demonstrate HR’s value and track its performance. Characteristics of good HR metrics:Characteristics of good HR metrics:
Are accurate.Are accurate.Are linked to strategic and operational objectives.Are linked to strategic and operational objectives.Have clearly understood calculations.Have clearly understood calculations.Meet information needs.Meet information needs.Can be compared internally and internally.Can be compared internally and internally.Can be used to drive HR management efforts.Can be used to drive HR management efforts.
HR and BenchmarkingHR and Benchmarking• BenchmarkingBenchmarking
Comparing specific measures of performance to an Comparing specific measures of performance to an industry standard or best practices in other “best-in-industry standard or best practices in other “best-in-class” organizations.class” organizations.
• Common BenchmarksCommon Benchmarks Total compensation as a percentage of net income Total compensation as a percentage of net income
before taxesbefore taxes Percent of management positions filled internallyPercent of management positions filled internally Dollar sales per employeeDollar sales per employee Benefits as a percentage of payroll costBenefits as a percentage of payroll cost
HR and the Balanced ScorecardHR and the Balanced Scorecard• The Balanced ScorecardThe Balanced Scorecard
Uses a diverse set of performance measures to align Uses a diverse set of performance measures to align performance efforts with organizational strategy.performance efforts with organizational strategy.
Avoids a limited focus on financial measures by Avoids a limited focus on financial measures by focusing on long-term drivers of performance and focusing on long-term drivers of performance and organizational sustainability.organizational sustainability.
Requires spending considerable time and effort to Requires spending considerable time and effort to identify the appropriate HR measures and how they identify the appropriate HR measures and how they tie to strategic organizational success.tie to strategic organizational success.
Address three elements—accountability, validity, and Address three elements—accountability, validity, and actionable results.actionable results.
A formal research effort that evaluates the current A formal research effort that evaluates the current state of HR management in an organizationstate of HR management in an organization
Audit areas:Audit areas:StaffingStaffingCompensationCompensationHealth and safetyHealth and safetyLegal compliance Legal compliance Administrative processes and recordkeepingAdministrative processes and recordkeepingEmployee retentionEmployee retentionBenefitsBenefits