Ch 2 Flashcards
Strategic Planning
Procedures for making decisions about the organization’s long-term goals and strategies
Human Resource Planning (HRP)
The process of anticipating and providing for the movement of people into, within, and out of an organization
- its purpose is to help managers deploy their human resources as effectively as possible, where and when they are needed, to accomplish the organization’s goals
Strategic Human Resources Management (SHRM)
the pattern of HR deployments and activities that enable an organization to achieve its strategic goals
- combines strategic planning and HRP
What are the steps of strategic HR management?
Step 1: Mission, Vision, Values
Step 2: External Analysis
Step 3: Internal Analysis
Step 4: Formulating Strategy
Step 5: Strategy Implementation
Step 6: Evaluation and Assessment
Mission
The basic purpose of the organization as well as its scope of operations
- example: Google “to organize the world’s information and make it universally accessible and useful”
Strategic Vision
A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent
Core Values
The strong and enduring beliefs and principles that the company uses as a foundation for its decisions
- the underlying parameters for how the company will act toward customers, employees, and the public in general
Environmental Scanning
Systematic monitoring of the major external forces influencing the organization
- forces in the business environment, the remote environment, and the competitive environment
the business environment
consists of all the external factors in the general environment—factors a firm cannot directly control but that can affect its strategy
- economic and ecological changes
- technological changes-
- demographic changes-
- social changes-
- legal and regulatory change
economic and ecological changes
- firms must react to changes in the economy: economic booms → firms are more likely to expand, recessions → generally contract
- ecological conditions can negatively impact the production process
technological changes
technological changes such as automation have a broad effect on businesses—changes that they have had to adapt to strategically
demographic changes
changes in the labour supply can limit the strategies available to firms
social changes
peoples’ changing priorities toward work; the need for childcare, eldercare, adequate wages, and job security; educational priorities; and environmental and sustainability concerns
legal and regulatory change
one change can require firms, and entire industries, to dramatically adjust their strategic direction
the remote environment
part of the business environment, includes forces that generally affect most, if not all, firms—forces over which they have virtually no control
the competitive environment
- customers
- rival firms
- new entrants
- substitutes
- suppliers
- stakeholders
customers
- A firm’s strategy should focus on creating value for customers
- influences the kind of skills and behaviour that will be needed from employees
rival firms
the most obvious element of industry analysis is examining the nature of competition
new entrants
- companies often try to establish entry barriers to keep new firms out of the industry
- when new firms do enter an industry, it is often because they have a different—and perhaps better—way to provide value to customers
substitutes
- sometimes the biggest opportunity or threat in an industry is not from direct competition but from buyers substituting other products
- firms may need to think about how they will compete in different ways
suppliers
inputs can include raw materials for production, money (from banks and stockholders), information, and people
stakeholders
- Key people and groups that have an interest in a firm’s activities and that can either affect them or be affected by them
- Primary stakeholders have a direct stake in the firm and its success
- secondary stakeholders have less of a stake but nonetheless can affect or be affected by the company
Forecasting a Firm’s Demand for Employees
forecasting should include the use of both quantitative and qualitative approaches
- Trend Analysis
- Management Forecasts
Trend Analysis
A quantitative approach to forecasting labour demand based on an organizational index such as sales
- helps in predicting the number and types of people that an organization needs to meet its objectives
Management Forecasts
The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs
- qualitative forecasting method
- developing a list of questions to ask the managers in their companies
Forecasting the Supply of Employees
firms must also determine whether sufficient numbers and types of employees are available to staff the openings it anticipates having
- staffing tables
- markov analysis
- skill inventories
- replacement charts
Staffing tables
Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements
Markov analysis
A method for tracking the pattern of employee movements through various jobs
- shows the percentage (and actual number) of employees who remain in each of a firm’s jobs from one year to the next, as well as the proportions of those who are promoted, demoted, or transferred or exit the organization
Skill Inventories
Files of personnel education, experience, interests, and skills that allow managers to quickly match job openings with employee backgrounds
Replacement Charts
Listings of current jobholders and people who are potential replacements if an opening occurs
Dealing with Surplus Employees
- attrition
- hiring freeze
- termination
Attrition
A natural departure of employees from organizations through quits, retirements, and deaths
- turnover rates of an organization vary greatly by industry and by occupation
Hiring Freeze
A practice whereby new workers are not hired as planned or workers who have left the organization are not replaced
- usually implemented at the same time as the organization adopts a strategy of workforce reduction through attrition
Termination
Practice initiated by an employer to separate an employee from the organization permanently
- different from firing, in which an employee is released for such causes as poor performance, high absenteeism, or unethical behaviour
- purpose of termination is to reduce the size of the workforce and thereby save money
- begins with the identification of employees who are in positions that are no longer considered useful or critical to the company’s effectiveness
- Employers cannot terminate without some form of compensation to the employee
Evaluation and Assessment Issues
- Benchmarking
Benchmarking
The process of measuring one’s own services and practice against the other companies to identify areas for improvement
- a benchmarking team would collect information on its own company’s operations and those of other firms to uncover any gap
- gaps help determine the causes of performance differences
Measuring a Firm’s Strategic Alignment
- Balanced Scorecard
Balanced Scorecard
A measurement framework that helps managers translate strategic goals into operational objectives
- The model has four related cells: (1) financial, (2) customer, (3) processes, and (4) learning
