ch. 2 Flashcards
- strategic planning -
Procedures for making decisions about the organization’s long-term goals and strategies
- human resources planning (HRP) -
The process of anticipating and providing for the movement of people into, within, and out of an organization
- strategic human resources management (SHRM) -
The pattern of human resources deployments and activities that enable an organization to strategic goals
HPWS stands for…
- high performance work systems
high-performance work systems (HPWS)
to capitalize on employees as a distinctive source of competitive advantage.
4 HPWS are to…
- engaging employees by bringing to their awareness the organization’s vision and providing employees with a personal stake in the vision and its success
- involves acquiring and developing talent
- encompasses employee empowerment
- involves aligning leaders
first HPWS
The first system involves engaging employees by bringing to their awareness the organization’s vision and providing employees with a personal stake in the vision and its success
second HWPS
The second subsystem involves acquiring and developing talent by attending to the attraction, selection, and development processes
third HWPS
‣ The third subsystem encompasses employee empowerment, such as developing policies and practices for employment security so that employees can speak up without repercussion, decreasing status distinctions to promote egalitarianism and open communication, and team/decentralized decision making.
forth HWPS
subsystem involves aligning leaders so that leaders can support the growth and evolution of the organization.
HRP focuses - 2
strategy formulation and strategy implementation.
step 1
mission, vision, and values
the mission -
is the basic purpose of the organization as well as its scope of operations.
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 Developing a Mission Statement
step 2
external analysis
environmental scanning -
systematic monitoring of the major external forces influencing the organization
types of changes - 5
- economic and ecological changes
- technological changes
- demographic changes
- social changes
- legal and regulatory changes
competitive environments
The competitive environment is narrower than the remote environment and firms have a greater ability to affect it
why do firms analyze their competitive environment?
to adapt to or influence the nature of the competition
how do new firms often enter an industry
it is often because they have a different (and maybe better) way to provide value to customers
competitive environments - 6
- customers
- rival firms
- new entrants
- substitutes
- suppliers
- stakeholders
stake holders -
key people and groups that have an interest in a firms actives and that can either affect them or be affected by them
a firms primary stakeholders
have direct stake in the firm and its success
◦ investors, employees, customers, suppliers, and creditor
a firms secondary stakeholders
have less of a stake but none the less can affect or be affected by the company
◦ the community in which the firm operates, the government, business groups, and the media
HRs external supply of labour at an operational level,
labour-supply changes directly affect hiring plans in the area where the organization is located or plans to locate.
step 3
internal analysis
core capabilities -
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers
Core capabilities can consist of a combination of three resources:
(1) processes, (2) systems (technologies), and (3) people.
- value creation
- What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted
Organizations can achieve a sustained competitive advantage through people - 4
- The resources must be valuable
- The resources must be rare.
- The resources must be difficult to imitate.
- The resources must be organized.
- The resources must be valuable
People are a source of competitive advantage when they improve the efficiency or effectiveness of the company.
how is value increased
◦ Value is increased when employees find ways to decrease costs, provide something unique to customers, or some combination of the two.
- The resources must be rare.
People are a source of competitive advantage when their knowledge, skills, and abilities are not equally available to competitors
- The resources must be difficult to imitate.
People are a source of competitive advantage when the capabilities and contributions of a firm’s employees cannot be copied by others.
- The resources must be organized.
People are a source of competitive advantage when their talents can be combined and deployed to work on new assignments at a moment’s notice.
Strategic knowledge workers.
‣ This group of employees tends to have unique skills that are directly linked to the company’s strategy and are difficult to replace
‣ These employees are typically engaged in knowledge work that involves considerable autonomy and discretion.
◦ Core employees.
‣ This group of employees has skills that are quite valuable to a company but are not particularly unique or difficult to replace
their skills are transferable, it is quite possible that they could leave to go to another firm.
managers frequently make less investment in training and development and tend to focus more on paying for short-term performance achievements.
◦ Supporting workers.
‣ employees typically have skills that are of less strategic value to the firm and are generally available in the labour market
‣ Individuals in these jobs are increasingly hired from external agencies on a contract basis to support the strategic knowledge workers and core employees.
‣ The scope of their duties tends to be limited
◦ External partners.
‣ This group of individuals has skills that are unique but frequently are
companies perhaps cannot justify their internal employment
‣ As a consequence, companies tend to establish longer-term alliances and partnerships with them and nurture an ongoing relationship focused on mutual learning.
Considerable investment is made in the exchange of information and knowledge