STRATEGIC HR CHOICES STRATEGIC HR CHOICES COMPENSATION Internal

STRATEGIC HR CHOICES

STRATEGIC HR CHOICES: COMPENSATION ² ² Internal vs. external equity Fixed vs. variable pay Performance vs. membership Job vs. individual pay

STRATEGIC HR CHOICES: COMPENSATION ² Egalitarian vs. elitism ² Below-market vs. abovemarket compensation ² Monetary vs. non-monetary awards ² Open vs. secret pay

STRATEGIC HR CHOICES: COMPENSATION ² Centralization vs. Decentralization of pay decisions ² Narrow bands vs. broad bands ² Structured vs. versatile ² Reward vs. investment

STRATEGIC HR CHOICES: TRAINING AND DEVELOPMENT ² Quick-fix vs. long-term solutions ² Haphazard approach vs. designed ² Reactive vs. TNA - based ² Political selection of programs, resource persons and participants vs. cost-benefit assessments

STRATEGIC HR CHOICES: TRAINING AND DEVELOPMENT ² Content is peripherally related to business objectives vs. directly linked to strategic goals ² General topics vs. specific ² Training as reward and benefit vs. training as investment ² General audience vs. targeted

STRATEGIC HR CHOICES: TRAINING AND DEVELOPMENT ² Passive participants vs. active ² Inductive vs. deductive ² Limited evaluation vs. systems-wide evaluation ² Carrot and stick vs. fun and engaging ² Directive vs. participatory

STRATEGIC HR CHOICES

Identify the strategic HR choices and the specific HR practice • When participation in training programs are decided according to specific criteria rather than offering it to everyone, even to those who do not have a clear need for the program. • When the task of organizing company affairs and activities are assigned to employees from different departments who are given the authority to make decisions rather than being simply decided by management.

Identify the strategic HR choices and the specific HR practice • When appraisals are conducted to help supervisors diagnose and solve performance problems rather than simply assigning grades for past performance. • When compensation and benefits are customized to the specific needs of employees rather than being uniform regardless of need or reason.

Identify the strategic HR choices and the specific HR practice • When HRM programs are used as drivers for organizational change efforts and new strategic directions rather than as monitoring devices for compliance and participation. • When candidates for hiring are evaluated according to how their capabilities and personalities match the requirements and the conditions in the department rather than mere general IQ or scholastic records.

Identify the strategic HR choices and the specific HR practice • When management practices open book management with the Union, trusting them with the true financial condition of the company rather than viewing the Union as opportunists whose only aim is to take advantage of the company. • When HR programs are horizontally and vertically aligned to be able to respond to strategic business issues in a holistic way rather than as piecemeal approaches to

What are strategic HR choices? • ____ shifts • that implement the _________ in HRM • across various HRM ____ • through deliberately ____ strategies • that aim for ______ • of strategic _____of the organization

General classifications of strategic HR choices • Shift in focus from functional to business – textbook solutions vs real business solutions – consultant perspective vs partnership • Shift in management perspective from control to empowerment – management vs leadership – discipline vs control to empowerment

General classifications of strategic HR choices • Shift in orientation from admin to strategic business partner – efficiency vs effectiveness – operational vs long-term • Shift in philosophy from psychology to multi-disciplinary approaches – counseling vs coaching – controlling vs influencing – individual vs teams/networks

General classifications of strategic HR choices • Shift in objectives from people to organization – individual level vs multi levels – productivity vs total performance • Shift in utility of HRM from processes to results

Traditional vs Strategic Job Descriptions of HRM Managers • Traditional Job Description – Implement and monitor compliance to Policies – Manage Compensation Structure to avoid distortions – Ensure equity in compensation and benefits – Implement and manage training efforts – Manage employee relations to maintain industrial peace – Ensure availability of manpower

Traditional vs Strategic Job Descriptions of HRM Managers • Strategic Job Description – Grill executives about strategic directions – Stay in touch with workers & work processes to be aware of skill needs – Broker services delivered by internal & external suppliers – Teach line managers how to manage employees – Facilitate process improvement and/or teach line managers how to do it – Manage diversity issues – Push HRM programs upstream (front-end of a business initiative)

Traditional vs Strategic Job Descriptions of HRM Managers • Strategic Job Description – Help managers think through performance problems & find solutions, whether the solution is HRM or something else – Make big-picture observations of work processes for problems or potential improvements that people might not see – Facilitate problem-solving teams – Bring about change that will develop competencies and push up the bottom line

COMPETENCY CHECKLIST for strategic HRM managers • • • Listening. Negotiating. Coaching. Facilitating small group interaction (Spend less time talking). Awareness of individual differences. Testing and measurement Knowledge of business processes. Strategic planning. Problem solving. Facilitating organizational change.