week two - the strategy process applied to HRM Flashcards
what are the key concerns related to ‘best practice’ approach in HRM
- different levels of analysis
- different units of analysis
- time lag, reverse causality and cause-effect circularity
- influence of environmental factors
- different types of employees
- different psychological profiles and expectations
- implementation challenges
what is the HRM strategy process
topic 2, slide 5
what do effective HRM strategies aim at
- increasing firm performance
- fitting in with other aspects of the organisation
what are the two corporate strategies
- maintaining evolutionary
- keeping at a steady state
what is meant by maintaining evolutionary
- focussing on growth, entrepreneurship and risk taking
- aggressive M&As including in unrelated industries
- external hiring, decentralisation and flexibility
what is meant by keeping at a steady state
- focus on stability and internal, slow development
- avoidance of M&As
- efficiency, centralisation, paternalistic attitude
what are the two competitive strategies
- porters business unit strategies
- miles and snow’s business strategies
what are the two types of miles and snow’s business strategies
- defender: conservative business units (low risk taking and innovation)
- prospector: innovative business units (high risk taking and innovation)
what are some business strategies of the porters business unit strategies
- overall cost leadership
- differentiation
- focus (combination of cost-leadership and differentiation)
what are the organisational characteristics of cost leadership
- intense supervision of labour
- structured organisation and responsibilities
- products designed for ease in manufacture
what are the HR strategies of cost leadership
- efficient production
- detailed work planning
- job-specific training
- performance appraisal as a control device
what are the organisational characteristics of differentiation
- strong marketing abilities
- strong capability to research
- attracts highly skilled people
what are the HR strategies of differentiation
- innovation and flexibility
- loose work planning
- external recruitment
- performance appraisal used as a development tool
what are the strategic HR areas of the miles and snow’s business strategies
- work flows
- staffing
- employee separations
- performance appraisal
- training
- compensation
what is the defender and prospector strategy of work flows
defender:
- efficient production
- detailed work planning
prospector:
- innovation
- flexibility
what is the defender and prospector strategy of staffing
defender:
- internal recruitment
- emphasis on technical qualifications
prospector:
- external recruitment
- emphasis on culture fit
what is the defender and prospector strategy of employee separations
defender:
- hiring freeze
- preferential rehiring policy
prospector:
- recruit as needed
- no preferential treated for laid off workers
what is the defender and prospector strategy of performance appraisal
defender:
- used as a control tool
- narrow focus
prospector:
- used as a development tool
- multipurpose appraisal
what is the defender and prospector strategy of training
defender:
- individual training
- on the job training
prospector
- team training
- external training
what is the defender and prospector strategy of compensation
defender:
- fixed pay
- job-based pay
prospector
- variable pay
- individual-based pay
what is STEEPLE
key factors to fit with the environment
- sociocultural
- technological
- environmental and ethical
- political
- legal
- economic
what is meant by socio cultural factors
- social atmosphere
- demographic and educational variables
- social mobility
what is meant by technological factors
- R&D spending
- technological development of the country
- technological innnovation
what is meant by the environmental and ethical factors
- pollution and emission regulations
- recycling policies
- societal concern for the environment and ethical issues
what is meant by political factors
- political system
- role of trade unions
- national security and immigration policies
- government support
what is meant by legal factors
- specific industry regulations
- consumer protection
- labour regulations
what is meant by economic factors
- phase of economic cycle
- unemployment and inflation rate
- monetary policy
- fiscal policy
what are the key dimensions of fitting with the environment
- degree of uncertainty
- volatility
- magnitude of change
- complexity
what HR strategies imply a low degree of uncertainty
- detailed work planning
- fixed pay
- job-specific training
what HR strategies implies low volatility
- control emphasis
- fixed pay
- job-specific training
what HR strategies imply a low magnitude of change
- socialisation of new employees
- uniform appraisal procedures
what HR strategies implies low complexity
- control emphasis
- internal recruitment
what are the types of production processes a firm could have
- routine vs nonroutine
- levels of automisation
what are the types of market posture could a firm have
- product innovation for wide market segment vs low growth and innovation
what are the types of a firms managerial philosophy
- autocratic
- egalitarianism
types of organisational structure a firm can have
- high formalisation
- low formalisation
what types of firm organisational cultures exist
- high vs low entrepreneurial climate
high vs low moral commitment
what are distinctive competencies
characteristics that give a firm a competitive edge, allowing for competitive advantages to be obtained
what are the three dimensions of HR strategy development
- rational dimension
- organisational dimension
- political dimension
what is the rational dimension
focus on economic/ financial goals
what is the organisational dimension
focus on constraints and the needs of organisational structure with business strategy
what is the political dimension
focus on the feasibility of HR decisions, balancing the needs from different stakeholders
what the two strategies to motivate employees
- commitment strategy: employee empowerment and intrinsic motivation
- control strategy: direct supervision, extrinsic motivation
what are the two way of developing capabilities
- internalisation of capability development (make HR system)
- externalisation of capability development (buy HR system)
