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Strategic Human

Resource

Management

The Strategic Management Process

 (^) Goal-Setting and the Planning Process :  (^) Planning process involves setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best, and then choosing and implementing your plan. A plan shows the course of action for getting from where you are to where you want to go in other words, to the goal. Planning is always goal-directed (in this case, to improve the hotels level of service significantly ).  (^) THE HIERARCHY OF GOALS: In companies, it is traditional to view the goals from the top of the firm down to front-line employees as a chain or hierarchy of goals

The Strategic Planning process

 (^) Strategic plan The companys plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage  (^) Strategy A course of action the company can pursue to achieve its strategic aims.  (^) Strategic management The process of identifying and executing the organizations strategic plan, by matching the companys capabilities with the demands of its environment.

 STEP 1: DEFINE THE CURRENT BUSINESS

 STEP 2: PERFORM EXTERNAL AND INTERNAL AUDITS

 STEP 3: FORMULATE A NEW DIRECTION

 STEP 4: TRANSLATE THE MISSION INTO STRATEGIC GOALS

 STEP 5: FORMULATE STRATEGIES TO ACHIEVE THE STRATEGIC GOALS

 STEP 6: IMPLEMENT THE STRATEGIES

 STEP 7: EVALUATE PERFORMANCE

Strategic Fit

 (^) Strategic planning expert Michael Porter uses the term strategic fit to sum up the idea that each department s functional strategy should fit and support the companys competitive aims.  (^) For example, Southwest Airlines is a low-cost leader. It aims to deliver low-cost, convenient service on its routes. To accomplish this, Southwest builds its departments activities around supporting certain core aims. Southwests core aims include limited passenger services (such as meals); short-haul, point-to-point service between mostly mid-size cities; high aircraft utilization; and lean highly productive ground crews. Achieving these aims means that each department s efforts needs to fit these aims. Southwests ground crew department must get fast 15-minute turnarounds at the gate. That way, Southwest can keep its planes flying longer hours and have more departures with fewer aircraft. Its purchasing and marketing departments shun frills like meals and premium classes of service. To ensure highly productive ground crews, the HR department will provide high compensation, flexible union contracts, and employee stock ownership. Their aim is that:

STRATEGIC HUMAN RESOURCE

MANAGEMENT

 (^) Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Linking Company Wide and HR Strategi Source: Gary Dessler, Phd 2010

HR as profit center

 (^) Albertsons Example Several years ago, Albertsons Markets had to improve performance, and fast. With 2,500 stores and 230, workers, it faced competition not only from grocery chains, but also from Walmart and online sites. Albertsons overall strategic aims included reducing costs, maximizing financial returns, becoming more customerfocused, and energizing employees. Albertsons turned to its human resource managers to help achieve these strategic aims. Its new human resource strategy entailed new screening, training, pay, and other human resources policies and practices, and using more technology to reduce its HR activities costs.17 The Albertsons human resource teams efforts helped Albertsons to cut costs, and to boost customer service by hiring and motivating customer-focused applicants.

Strategic Human Resource

Management Tools

STRATEGY MAP

• (^) strategy map A strategic planning tool that shows the big picture of how each departments performance contributes to achieving the companys overall strategic goals. THE HR SCORECARD
• (^) A process for assigning financial and nonfinancial goals or metrics to the human resource management related chain of activities required for achieving the companys strategic aims and for monitoring results. DIGITAL DASHBOARDS
• (^) Presents the manager with desktop graphs and charts, and so a computerized picture of where the company stands on all those metrics from the HR Scorecard process.

Sample HR scorecard Simple Retail Example Reference: Huselid, Mark & Barnes. (2003) Human capital management systems as a source Of competitive advantage

Digital Dashboard A digital dashboard is an electronic tracking tool used to build an interactive, visual representation of data from a host of sources including databases, CRM- and ERP data or other web services to monitor important business metrics and overall

HR

Types of Metrics

 (^) There are many measures that human resource managers use. For example, the HR-to-employee ratio averages about 1.12 HR employees per company employee for all employers. However, the ratio varies with employer size.  (^) Human Resource Management metrics include  (^) absence rate,  (^) Cost per hire, and  (^) Health care costs per employee

Improving Productivity Through

HRIS

 (^) A human resources information system (HRIS) is a software solution that maintains, manages, and processes detailed employee information and human resources-related policies and procedures. As an interactive system of information management, the HRIS standardizes human resources (HR) tasks and processes while facilitating accurate record keeping and reporting.  (^) (definition from Oracle)