Human Resource Management 1 ELEVENTH EDITION GARY DESSLER

Human Resource Management 1 ELEVENTH EDITION GARY DESSLER Part 1 | Introduction Chapter 3 Strategic Human Resource Management and the HR Scorecard © 2008 Prentice Hall, Inc. All rights reserved. Power. Point Presentation by Charlie Cook The University of West Alabama

The Strategic Management Process • Strategic Management ➢ The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment. • Strategy ➢ A chosen course of action. • Strategic Plan ➢ How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term. 2 © 2008 Prentice Hall, Inc. All rights reserved.

Business Vision and Mission • Vision ➢ A general statement of an organization’s intended direction that evokes emotional feelings in organization members. • Mission ➢ Spells out who the company is, what it does, and where it’s headed. 3 © 2008 Prentice Hall, Inc. All rights reserved.

The Strategic Management Process • Defining the business and developing a mission • Evaluating the firm’s internal and external strengths, weaknesses, opportunities and threats. • Formulating a new business direction. • Translating the mission into strategic goals. • Formulating strategies or courses of action. • Implementing and evaluating the strategic plan. 4 © 2008 Prentice Hall, Inc. All rights reserved.

Types of Strategies Corporate-Level Strategies Diversification Strategy Vertical Integration Strategy Consolidation Strategy Geographic Expansion Strategy 5 © 2008 Prentice Hall, Inc. All rights reserved.

CORPORATE STRATEGY • Corporate-level Strategy - identifies the portfolio of businesses that, in total, comprise the company and how these businesses relate to each other. • Concentration Corporate Strategy. • Diversification Corporate Strategy. • Vertical Integration Strategy. • Consolidation Strategy. • Geographic Expansion 6 © 2008 Prentice Hall, Inc. All rights reserved.

Types of Strategies (cont’d) Business-Level/ Competitive Strategies Cost Leadership Differentiation Focus/Niche 7 © 2008 Prentice Hall, Inc. All rights reserved.

CORPORATE STRATEGY • Competitive Strategy - identifies how to build and strengthen the business’s long-term competitive position in the marketplace. • Cost leadership - low cost leader in an industry. • Differentiation - unique in its industry. • Focusers - carves out a market niche. 8 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC FIT • The “Fit” Point of View (Porter) ➢ All of the firm’s activities must be tailored to or fit the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies. 9 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HUMAN RESOURCE MANAGEMANT • Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. ➢ ❖ Involves formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims. 10 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HR TOOLS STRATEGIC HRM TOOLS STRATEGY MAP THE HR SCORECARD DIGITAL DASHBOARDS 11 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS • Strategy MAP- The strategy map provides an overview of how each department’s performance contributes to achieving the company’s overall strategic goals. 8 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS • HR scorecard- It refers to a process for assigning financial and non financial goals to the human resource management-related chain of activities required for achieving the company’s strategic aims. 8 © 2008 Prentice Hall, Inc. All rights reserved.

STRATEGIC HRM TOOLS • Digital Dashboards- A digital dashboard presents the manager with desktop graphs and charts, showing a computerised picture of how the company is doing on all the metric from the HR Scorecard process. 8 © 2008 Prentice Hall, Inc. All rights reserved.

HUMAN RESOURCE AUDITS Strategic Planning Roles WHERE IT CURRENTLY STANDS HOW TO IMPROVE HR FUNCTION 12 © 2008 Prentice Hall, Inc. All rights reserved.

KEY TERMS strategic plan strategic management vision mission SWOT analysis strategy strategic control competitive advantage leveraging strategic human resource management HR Scorecard metrics value chain analysis 14 © 2008 Prentice Hall, Inc. All rights reserved.

GROUP WORK DEVELOPING AN HR STRATEGY FOR STARBUCKS By 2010, Starbucks was facing serious challenges. Sales per store were stagnant or declining, and its growth rate and profitability were down. Many believed that its introduction of breakfast foods had diverted its “baristas” from their traditional jobs as coffee-preparation experts. Mc. Donald’s and Dunkin Donuts were introducing lower priced but still high-grade coffees. Starbucks’ former CEO stepped back into the company’s top job. You need to formulate a new direction for his company. Purpose: The purpose of this exercise is to give you experience in developing an HR strategy, in this case, by developing one for Starbucks. Instructions: Set up groups of 4/5 people. You are already quite familiar with what it’s like to have a cup of coffee or tea in Starbucks or similar coffee shops. You need to develop an outline for an HR strategy for Starbucks Corp. Your outline should include three basic elements: 1. A basic business/competitive strategy for Starbucks. 2. Workforce requirements (in terms of employee competencies and behaviours) this strategy requires. • Specific HR policies and the activities necessary to produce these workforce requirements. 16