Chapter 2 Flashcards
Strategic Planning and Human Resources
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 achieve its strategic goals
High Performance Work Systems
A group of human resource practices that have been proven to increase an organization’s ability to attract, select, hire, develop, and retain high-performing employees.
Strategic Planning and HRP model (list categories)
- Mission, Vision, and Values
- External Analysis
- Internal Analysis
- Strategy Formulation
- Strategy Formulation
- Evaluation
(All have organizational and HR levels)
Mission
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
Questions to ask when crafting mission statement
- What is my organization’s reason for being? What need do we fulfill that isn’t already being met by another firm or could be better met?
- For whom would the firm fulfill the need? Who are our customers?
- How do we fulfill, or better fulfill, the need?
- Where is our market and our customers? Where will we operate? Locally, geographically, or globally?
- What core values do the people in my organization share and will continue to embrace as part of our mission? How do these values differentiate us from other companies?
Environmental scanning
Systematic monitoring of the major external forces influencing the organization
Five Forces Framework
Around:
- New Entrants
- Suppliers
- Substitutes
- Customers
Center:
- Rival Firms
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
Core capabilities
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers
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
Core capabilities (the three resources)
- processes,
- systems (technologies), and
- people.
Why would managers contract externally?
managers often consider contracting externally (or outsourcing) skill areas that are not central to the firm’s core competence
Cultural audits
Audits of the culture and quality of work life in an organization
Four distinct type of corporate cultures
- The “clan” culture, in which employees are closely knit and exhibit great concern for one another and their customers, and loyalty and cohesion are highly valued.
- The “adhocracy” culture, which is a culture characterized by risk taking, innovation, and a spirit of entrepreneurship.
- The “market” culture, which encourages competitive, result-oriented behaviours.
- The “hierarchical” culture, which is characterized by formal structures and procedures and in which efficiency and stability are greatly valued.
Model for HR Forecasting (functions)
- forecasting the demand for labour,
- forecasting the supply of labour
- balancing supply and demand considerations.
Forecasting Demand (Considerations & Techniques)
Considerations:
- Product/service demand
- Economics
- Technology
- Financial resources
- Absenteeism/turnover
- Organizational growth
- Management philosophy
Techniques:
- Trend analysis
- Managerial estimates
- Delphi technique
Delphi technique
A qualitative forecasting method. It is more subjective and holistic.
It attempts to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals.
Trend analysis
A quantitative approach to forecasting labour demand based on an organizational index such as sales
Forecasting Supply (Techniques and External Considerations)
External Considerations:
- Demographic changes
- Education of workforce
- Labour mobility
- Government policies
- Unemployment rate
Techniques:
- Staffing tables
- Markov analysis
- Skills inventories
- Management inventories
- Replacement charts
- Succession planning
Balancing supply and demand (shortage and surplus)
Shortage:
- Utilize overtime
- Add full-time workers
- Employ contract workers
- Recall employees
- Outsource work
- Reduce employee turnover
Surplus:
- Reduce employees’ work hours
- Implement a hiring freeze
- Offer employees early retirement
Management Forecasts
The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs
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
Quality to fill
A metric designed to assess how well new hires are performing on the job
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
Executive Replacement Chart (function)
Provides insights for internal candidates in current positions, listing their promotability and performance.
Succession planning
The process of identifying, developing, and tracking key individuals for executive positions
Human capital readiness (Assessing Firm’s Human Capital model)
The process of evaluating the availability of critical talent in a company and comparing it to the firm’s supply
SWOT analysis
A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes
Company growth elements (HRP)
- increased employee productivity,
- a greater number of employees, and
- employees developing or acquiring new skills.
The types of fits that HR policies & practices need to achieve
Vertical and Horizontal
Vertical fit (or alignment)
focuses on the connection between the business objectives and the major initiatives in HR
horizontal fit (or alignment)
managers need to ensure that their HR practices are all aligned with one another internally to establish a configuration that is mutually reinforcing
The 7S Framework
- Shared value
- Skills
- Staff
- Style
- Systems
- Strategy
- Structure
Hard S’s (The 7S Framework)
- Structure
- Systems
- Strategy
Soft S’s (The 7S Framework)
- Shared value
- Skills
- Staff
- Style
HR’s role in strategy implementation
reconcile:
1. human resources demanded and
2. human resources available.
Options available to employers when it comes to dealing with surplus employees
- layoffs
- attrition
- termination
Attrition
the “natural” departure of employees through quits, retirements, and deaths.
Hiring freeze
A practice whereby new workers are not hired as planned or workers who have left the organization are not replaced
Termination
a practice initiated by an employer to separate an employee from the organization permanently.
Severance pay
A lump-sum payment given to terminated employees by an employer at the time of an employer-initiated termination
Benchmarking
the process of identifying “best practices” in a given area
The process of measuring one’s own services and practice against the recognized leaders to identify areas for improvement
Balanced scorecard (BSC)
a framework that helps managers translate their firms’ strategic goals into operational objectives
The model has four related cells:
1. financial,
2. customer,
3. processes, and
4. learning.
Organizational capability
The capacity of the organization to act and change in pursuit of sustainable competitive advantage
