Ch2. Strategic Human Resource Management

Question 1

Strategic management includes

Answer 1

1. having the goal -> deploy and allocate resources -> competitive advantage
2. Integrally involving the HRM function (input, knowledge, requirement, program)
3. using a business model -> value for customers

Question 2

Strategic Management

Answer 2

• Process
• Approach -> address the competitive challenges
• Managing the pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole
• Developing strategies for achieving the company’s goals in light of its current environment

Question 3

Strategic HRM

Answer 3

• The pattern of:
  + planned human resource deployments (sự triển khai)
  + and activities intended to enable an organization to achieve its goals
• Strategic management is a process to address the organization’s competitive challenges by integrating goals, policies and action sequences into a cohesive whole.

Question 4

Components

of the Strategic Management Process

Answer 4

1. Strategy Formulation: Strategic planning groups decide on strategy
2. Strategy Implementation: Organization follows through on the strategy

Question 5

Linkage

Between HRM and the Strategic Management Process

Answer 5

• Strategic choice:
  + Where to compete? In what market?

+ How to compete? On what criterion or differentiating characteristic?

+ With what will we compete? What resources to beat our competitors? How to acquire, develop and deploy resources?

Question 6

Role of HRM in Strategy Formulation

Answer 6

• With what will we compete?

- Four levels of integration between HRM and the strategic management function (the link between strategic planning and HRM function)
\+ administrative linkage
\+ one-way linkage
\+ two-way linkage
\+ integrative linkage

Question 7

Strategy Formulation based on

Answer 7

• External analysis (Opportunities, threats),
• Internal analysis (Strengths, Weaknesses),
• Missions,
• Goals
• > strategic choice

Question 8

Strategy Implementation

Answer 8

Strategic choice -> Human resource needs (skills, behaviors, cultures) -> HRM practices -> Human resource capability, human resource actions -> Firm performance

Question 9

Strategic implementation requires that

Answer 9

• An organization has a variety of structural forms and organizational processes to choose from when implementing a given strategy
• Five variables

Question 10

Pay Structure, Incentives, and Benefits

Answer 10

• High pay and/or benefits relative to competitors can help a company attract and retain high-quality employees, but might have a negative impact on overall labor costs
• Tying pay to performance can elicit specific activities and levels of performance from employees

Question 11

Labor and Employee Relations

Answer 11

• Employees - asset or expense?
• How much should employees participate in decision-making?
• What rights do employees have?
• What is the company’s responsibility to employees?
• The approach a company takes in making these decisions can result in successfully achieving its short and long term goals or ceasing to exist

Question 12

Strategic Types

Answer 12

Porter’s Cost and Differentiation:
- Value can be created by:
+ reducing costs
+ differentiating a product or service -> charge a premium price relative to its competitors

Question 13

HRM Needs in Strategic Types

Answer 13

Role
Behaviors:
Behaviors required of an individual in his or her role as a job holder in a social work environment
+ Cost strategies - high concern in quantity, short time - companies define the skills they require and invest in training employees in these skill areas
+ Differentiation strategies skills include cooperating with others, developing new ideas, and taking a balanced approach to process and results

Question 14

Directional Strategies

Answer 14

1. Concentration
2. Internal Growth
3. Mergers and Acquisitions
4. Downsizings

Question 15

Concentration Strategies

Answer 15

focusing on:
- increasing market share,
- reducing costs,
- creating and maintaining a market niche for products and services
+ Require that the company maintain the current skills that exist in the organization
+ Need for skill-based training and fair compensation

Question 16

Internal Growth Strategies

Answer 16

A focus on new market and product development, innovation, and joint ventures
+ Companies must constantly hire, transfer and promote individuals
+ Compensation weighted towards achievement
+ Joint ventures require conflict resolution

Question 17

Mergers and Acquisitions

Answer 17

• An emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new markets
• On the increase
• HR needs to be involved (People issues can cause problems, Different organizational cultures, Conflict resolution)

Question 18

Downsizing

Answer 18

• The planned elimination of large numbers of personnel, designed to enhance organizational effectiveness
• Trend has slowed since 2008 as it falls short of meeting companies’ financial and organizational objectives, and has negative effects on employee morale and productivity
• The HRM function must “surgically” reduce the workforce by cutting only the workers who are less valuable in their performance
• Survivor morale issues

Question 19

Emergent Strategies

Answer 19

• Consist of the strategies that evolve from the grassroots of the organization
• Can be thought of as what organizations actually do, as opposed to what they intend to do
• Usually identified by those lower in the organizational hierarchy

Question 20

Intended Strategies

Answer 20

The result of the rational decision making process used by top managers as they develop a strategic plan

Question 21

Enhancing Firm Competitiveness

Answer 21

• Develop a human capital pool that gives the company the unique ability to adapt to an ever changing environment.
• Learning organization

Question 22

Strategy implementation includes structuring an organization and allocating resources

Answer 22

True

Question 23

Company attracts high-quality employees

Answer 23

?

Question 24

When Clean Motors condensed all its parts factories into one large location, the company increased research and development and customer service, and decreased its sales force. How would this practice help the company to become a low-cost producer?

Answer 24

The company constructed efficient large-scale facilities.

Question 25

Pluto Inc., a large manufacturer of desktops and laptops, has decided to enhance revenues by expanding its product line. It has identified the tablet market as a possible market to expand, and has identified Compco Inc. as a potential competitor. Pluto Inc. is currently in the _____ stage of the strategic management process.

Answer 25

Strategical formulation

Question 26

Benjamin, a plant manager, sets targets for his work lines every week. He rewards those who succeed and he makes note of those who do not reach their set target, placing them on warning. How would you describe this company’s cost strategy?

Answer 26

The company has a high concern for quantity.

Question 27

Strategies emphasizing market share or operating costs are considered _____ strategies.

Answer 27

CONCETRATION

Question 28

Pavi, an employee with Manor Electrics, has been transfered to a different division within the company. to facilitate a smooth transition, the company has initiated a program for Pavi that will provide her with the knowledge and skills required to do her new current job. which HRM practices did Manor Electricals perform?

Answer 28

training