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ROBERT L. MATHIS
JOHN H. JACKSON
PowerPoint Presentation by Charlie CookThe University of West Alabama
Linkage of Organizational and HR StrategiesLinkage of Organizational and HR StrategiesLinkage of Organizational and HR StrategiesLinkage of Organizational and HR Strategies
• Cost Leadership Competition on the basis of
low price and high quality of product or service
Relies on “building” employees to fit specialized needs
Requires a longer HR planning horizon approach
• Differentiation Competition on the basis of
either offering distinctively different products or services or establishing an exclusive image for quality products and services
Relies on hiring needed skills.
Needs a shorter planning time frame in order to be responsive to dynamic environments
Factors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR ManagementFactors Affecting Global HR Management
Organizational Productivity and HR EffortsOrganizational Productivity and HR EffortsOrganizational Productivity and HR EffortsOrganizational Productivity and HR Efforts
• ProductivityA measure of the quantity and quality of work done,
considering the cost of the resources used.A ratio of the inputs and outputs that indicates the
value added by an organization. Unit labor cost: computed by dividing the average cost of
Approaches to Improving Organizational ProductivityApproaches to Improving Organizational ProductivityApproaches to Improving Organizational ProductivityApproaches to Improving Organizational Productivity
Organizational Culture and Organizational Culture and Organizational EffectivenessOrganizational EffectivenessOrganizational Culture and Organizational Culture and Organizational EffectivenessOrganizational Effectiveness
• Organizational CultureThe shared values and beliefs in an organizationStrategy and culture must be compatible and aligned
for the organization to be effective.Culture affects recruitment and retention of
employees.Culture can enhance or constrain organizational
performance.Culture is the “climate” of an organization.
Human Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource Planning
• Human Resource (HR) PlanningThe process of analyzing and identifying the need for
and availability of human resources so that the organization can meet its objectives.
• HR Planning ResponsibilitiesTop HR executive and subordinates gather
information from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals
Assessing the Internal WorkforceAssessing the Internal WorkforceAssessing the Internal WorkforceAssessing the Internal Workforce
• Jobs and Skills Audit What jobs exist now?How many individuals are performing each job?What are the reporting relationships of jobs?How essential is each job?What jobs will be needed to implement future
organizational strategies?What are the characteristics of anticipated jobs?
Assessing the Internal Workforce (cont’d)Assessing the Internal Workforce (cont’d)Assessing the Internal Workforce (cont’d)Assessing the Internal Workforce (cont’d)
• Organizational Capabilities InventoryHRIS databases—sources of information about
employees’ knowledge, skills, and abilities (KSAs)Components of an organizational capabilities
inventory Individual employee demographics Individual employee career progression Individual job performance data
Net migration for an area Individuals entering and leaving the workforce Individuals graduating from schools and colleges Changing workforce composition and patterns Economic forecasts Technological developments and shifts Actions of competing employers Government regulations and pressures Other circumstances affecting the workforce
Estimating Internal Labor Supply for a Given UnitEstimating Internal Labor Supply for a Given UnitEstimating Internal Labor Supply for a Given UnitEstimating Internal Labor Supply for a Given Unit
Developing and Using a Strategic HR PlanDeveloping and Using a Strategic HR PlanDeveloping and Using a Strategic HR PlanDeveloping and Using a Strategic HR Plan
• Issues in Matching the Supply of Labor with the Demand for LaborSuccession PlanningManaging a Human Resources SurplusOutplacement ServicesHR Planning in Mergers and Acquisitions
Managing a Human Resource Surplus Managing a Human Resource Surplus (cont’d)(cont’d)
Managing a Human Resource Surplus Managing a Human Resource Surplus (cont’d)(cont’d)
• Downsizing Approaches (cont’d)Outplacement services provided to displaced
employees to give them support and assistance: Personal career counseling Resume preparation and typing services Interviewing workshops Referral assistance Severance payments Continuance of medical benefits Job retraining
HR Planning in Mergers and AcquisitionsHR Planning in Mergers and AcquisitionsHR Planning in Mergers and AcquisitionsHR Planning in Mergers and Acquisitions
• Cultural CompatibilityThe extent to which such factors as decision-making
styles, levels of teamwork, information-sharing philosophies, and the formality of the two organizations are similar.
• HR’s Role in Mergers and AcquisitionsCommunicating decisionsRevising the organization structureMerging HR activities
• HR MetricsSpecific measures tied to HR performance indicators.
Development and use of metrics that can better demonstrate HR’s value and track its performance.
Characteristics of good HR metrics: Accurate data can be collected. Measures are linked to strategic and operational objectives. Calculations can be clearly understood. Measures provide information expected by executives. Results can be compared both externally and internally. Measurement data drives HR management efforts.
Costs per Employee of the HR FunctionCosts per Employee of the HR FunctionCosts per Employee of the HR FunctionCosts per Employee of the HR Function
Figure 2–11Source: Adapted from HR Department Benchmarks and Analysis (Washington, DC: Bureau of National Affairs, 131, 140. 2004) To purchase this publication and find out more about other BNA HR solutions visit http://hrcenter.bna.com or call 800-372-1033. Used with permission.
• HR AuditA formal research effort that evaluates the current
state of HR management in an organizationAudit areas:
Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA) Current job specifications and descriptions Valid recruiting and selection process Formal wage and salary system Benefits Employee handbook Absenteeism and turnover control Grievance resolution process Orientation program Training and development Performance management system