week 2 - a strategic issue in HR planning

Question 1

Describe the main benefit of applying a Strategic approach to HRM

Answer 1

Deliver CA through the company’s Human Resources

Question 2

What are strategic HRM’s roles in organisational stragegy?

Answer 2

Strategy formulation - HRM considers proposed strategies, provides info on HR capabilities including costing.

Strategy implementation - HRM develops and aligns HR practices to attract, retain & develop staff capability to meet the strategy.

Question 3

Define Human Resource Planning (HRP)

Answer 3

Activities required to meet HR goals as part of the orgs overall strategy

Steps:
Forecast supply/demand
Determine labour surplus or shortage
Goals
Implement
Evaluate

Question 4

Describe methods of forecasting labour supply / demand

Answer 4

Most orgs use a mix of both.

Statistical method:
Hard data, pref lead indicators correlating with demand.
More accurate
Cannot encompass all impacts on demand

Judgement methods:
Best guess of experts & specialists
Can accommodate impacts that are difficult to quantify, unique or with no precedent.

Question 5

Discuss means of addressing a labour surplus

Answer 5

Downsize
fast, future focus
high epee impact, costly, drastic, poss loss of skill/trust, moral / rep, often goes awry

Early retirement
medium epee impact
trend shows working longer, at odds with anti age legislation

Technical innovation
low epee impact, better forecasting prevents surplus, slow

Reduce pay, demote, transfer/retrain, work share, WLB, natural attrition

Question 6

Discuss means of addressing a labour shortage

Answer 6

Overtime
Fast, revokable, temporary measure only

Temp hire
fast, revokable, low cost, flexible, can vet new staff, generalist training.
Tension, low commitment, require training & induction

Outsourcing
Fast, revokable, possibly cheaper, save on recruiting costs
Can undermine the company, impact on overall labour market, can create future competitors

Technical innovation
low epee impact, better forecasting prevents surplus, slow

Question 7

What is strategic management and it’s 2 parts

Answer 7

Pattern or plan
integrates an orgs major goals, policies & action sequences into a whole.

2 steps, strategic formulation & implementation

Question 8

What is Strategic formulation, the 3 questions it answers and it’s components

Answer 8

Deciding on a strategic direction defined by the companies mission/goals & internal/external environment (SWOT).

Answers 3 questions:
Where to compete - markets.
How to compete - differentiating characteristic
With what will we compete - resources used

Components = 
mission, 
goals, 
swot, 
HR input, 
strategic choice.

Question 9

What is Strategy Implementation and HR’s part in it?

Answer 9

Devising structures & allocating resources to enact a strategy.

HR’s part =
Determine HR needs,
Design HR practices to develop HR capabilities
Plug into strategy, result in firms performance.
Evaluate.

Question 10

What is the role of HR in strategy formulation.

Answer 10

Limit strategic choices - offer expert feedback on current HR capabilities & cost of acquiring others.

Analyse external environment - through general HR trends and SWOT analysis

Question 11

Possible linkages between HR and strategy forumulation

Answer 11

Admin linkage - not linked

One way - Exec develops strategic plan then informs the HR function

Two way - exec give and receive to HR during strategic formulation process

Integrative - dynamic & multifaceted interaction. A continuous relationship.

Question 12

Discuss generic business strategies & HR

Answer 12

Cost leadership:
• Employees attributes: quantity focused, short term focus, cope with stiablity and be risk averse.
• Role Behaviours: are relatively repteititive and performend independencly/ autonomously.

Differentiation:
• Employees attributes: creative / cooperatovie, long term focus, toleranece for ambiguity & risk.
• Role behaviours: cooperative approach, innovation and balance approach to process & results.

Question 13

Discuss directional strategies & how they relate to HRM(CIED)

Answer 13

4 standard directional strategies:

Concentration: increasing market share/reduce costs or creating a market niche
HR= retain staff, keep skills current
Appraisals = behavioural

Internal growth strategy: new market / product development, innovation and joint ventures.
HR=attract & develop staff, incentive rewards
Appraisals a combination of behaviours and results.

External growth strategy: acquiring vendors and suppliers or businesses to expand.
HR= evaluate merger opportunity, conflict resolution, standardise processes

Downsizing: eliminate enhance effectiveness.
HR = reduce staff, manage morale, repair culture,

Question 14

list the competencies that an HR executive needs in order to become a strategic partner in the company(BPMI)

Answer 14

business competence—knowing the company’s business and understanding its economic and financial capabilities.

professional / technical HR knowledge in areas such as staffing, development, rewards, organisational design and communication.

management of change processes, such as diagnosing problems, implementing organisational changes and evaluating results.

integration competence: the ability to integrate the three other competencies to increase the company’s value.

Question 15

identify some of the issues associated with implementing strategic human resource management(JRP)

Answer 15

1. Job analysis & job design: tasks must be designed 1. Job analysis & job design: tasks must be designed and grouped into jobs in a way that is efficient and effective.
2. Recruitment & selection: the organisation is staffed with people who have the necessary knowledge, skills and abilities to perform their part in implementing the strategy.
3. Performance management issues: develop performance management and reward systems that lead employees to work for and support the strategic plan.