Aligning+hr+with+strategy
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Organizational Life-Cycle Stages and HR Activities LIFECYCLE STAGE
STAFFING
Introductio n
Attract best technical and professional talent.
Growth
Recruit adequate numbers and mix of qualifies workers. Plan management succession. Mange rapid internal labor market movements
TRAINING AND COMPENSATION DEVELOPME NT Meet or exceed Define future labor market skill rates to attract requirements needed talent. and begin establishing career ladders. Meet external market but consider internal equity effects. Establish formal compensation structures.
Mold effective management team through management development and organizational development.
LABOR / EMPLOYEE RELATIONS Set basic employeerelations philosophy of organization .Maintain labor peace, employee motivation, and morale.
Organizational Life-Cycle Stages and HR Activities (cont’d) LIFECYCLE STAGE Maturity
Decline
STAFFING Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility Plan andas reorganizations implement shift jobs around. workforce reductions and reallocations, downsizing and outplacement may occur during this stage.
TRAINING AND DEVELOPMENT
LABOR / EMPLOYEE RELATIONS
Control compensation costs.
Maintain flexibility and skills of an aging workforce.
Control labor costs and maintain labor peace. Improve productivity.
Implement tighter cost control.
Implement retraining and career consulting services.
Improve productivity and achieve flexibility in work rules. Negotiate job security and employmentadjustment policies
COMPENSATIO N
COKE Hires Graduates , with no corporate exp ,
invests in Training Life time employment , Seniority based salary increments HRM produces career managers
PEPSI Hires exp employees Fast tracks employees with high talent Continuous flow of new ideas Hiring and firing employees
Strategic HRM Interrelated practices , policies and
philosophies that facilitate the attainment of organizational strategy Human Capital : Intangible asset The sum of employees’ knowledge , skills , experience , and commitment invested in the organization .
Employees as Strategic Resources Porter estimates that it takes
approximately 7 years to duplicate a competitive edge in Human Resources The less a resource can be imitated the more durable is the source of competitive advantage These resources cannot be imitated as their effectiveness is embedded in the systems and culture that allow them to work productively
The Risks of Strategic Planning A HR Plan for the future may raise employees
expectations for life time jobs . In times of recession it will result in jobs losses Orgn may become blinded in implementation and lose flexibility Eg Hindustan Motors
Linking HR Processes To Strategy Form Organization Strategy than create
HR Strategy Eg McDonald Create HR Competencies and than create corporate strategies based on them Eg Infosys into Japanese and Chinese Markets A Combination of Both in a form of reciprocal relationship HR Strategy-------Business Stgy-------HR Strategy
HR Becomes a Business Partner Must be able to understand analysis
presented by Marketing , Financial and Operational Managers Eg Big Bazaar , Low cost strategy HR has to develop strategies to deal with rapid training and High Turnover rates
Getting Involved in the Strategic Plan Process Member of the executive Team Review / React Linkage Integrative Linkage
HR Strategy by Division Microsoft
HR Practices that support innovation in the R & D Branch Policies that support low cost in the Manufacturing Branch To achieve equality Employee benefits to be the same in both locations Using National /International Labor pool eg Nike
Characteristics of an Effective HRM Strategy External Fit eg Strategy based on Service , T
& D aligned to the above Internal Fit eg BPO 24* 7 CSE , Shift Differentials Focus on Results
MILES & SNOW’S Organisational Types Defender – Low cost Opr , Focus on Efficiency
by Std jobs Prospector –Innovation & Adaptation through Investments in R & D , Analyzer --- Scan Competitors and react Reactor ---No apparent Strategy
Ex HR Alignment with 2 strategies of Porter Low cost & Differentiation
Employee HR Planning Selection Compensation Training Performance Evaluation
Thank you
Please read case 1 from your case booklet And the chapter on Job Analysis
STAFFING
Introductio n
Attract best technical and professional talent.
Growth
Recruit adequate numbers and mix of qualifies workers. Plan management succession. Mange rapid internal labor market movements
TRAINING AND COMPENSATION DEVELOPME NT Meet or exceed Define future labor market skill rates to attract requirements needed talent. and begin establishing career ladders. Meet external market but consider internal equity effects. Establish formal compensation structures.
Mold effective management team through management development and organizational development.
LABOR / EMPLOYEE RELATIONS Set basic employeerelations philosophy of organization .Maintain labor peace, employee motivation, and morale.
Organizational Life-Cycle Stages and HR Activities (cont’d) LIFECYCLE STAGE Maturity
Decline
STAFFING Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility Plan andas reorganizations implement shift jobs around. workforce reductions and reallocations, downsizing and outplacement may occur during this stage.
TRAINING AND DEVELOPMENT
LABOR / EMPLOYEE RELATIONS
Control compensation costs.
Maintain flexibility and skills of an aging workforce.
Control labor costs and maintain labor peace. Improve productivity.
Implement tighter cost control.
Implement retraining and career consulting services.
Improve productivity and achieve flexibility in work rules. Negotiate job security and employmentadjustment policies
COMPENSATIO N
COKE Hires Graduates , with no corporate exp ,
invests in Training Life time employment , Seniority based salary increments HRM produces career managers
PEPSI Hires exp employees Fast tracks employees with high talent Continuous flow of new ideas Hiring and firing employees
Strategic HRM Interrelated practices , policies and
philosophies that facilitate the attainment of organizational strategy Human Capital : Intangible asset The sum of employees’ knowledge , skills , experience , and commitment invested in the organization .
Employees as Strategic Resources Porter estimates that it takes
approximately 7 years to duplicate a competitive edge in Human Resources The less a resource can be imitated the more durable is the source of competitive advantage These resources cannot be imitated as their effectiveness is embedded in the systems and culture that allow them to work productively
The Risks of Strategic Planning A HR Plan for the future may raise employees
expectations for life time jobs . In times of recession it will result in jobs losses Orgn may become blinded in implementation and lose flexibility Eg Hindustan Motors
Linking HR Processes To Strategy Form Organization Strategy than create
HR Strategy Eg McDonald Create HR Competencies and than create corporate strategies based on them Eg Infosys into Japanese and Chinese Markets A Combination of Both in a form of reciprocal relationship HR Strategy-------Business Stgy-------HR Strategy
HR Becomes a Business Partner Must be able to understand analysis
presented by Marketing , Financial and Operational Managers Eg Big Bazaar , Low cost strategy HR has to develop strategies to deal with rapid training and High Turnover rates
Getting Involved in the Strategic Plan Process Member of the executive Team Review / React Linkage Integrative Linkage
HR Strategy by Division Microsoft
HR Practices that support innovation in the R & D Branch Policies that support low cost in the Manufacturing Branch To achieve equality Employee benefits to be the same in both locations Using National /International Labor pool eg Nike
Characteristics of an Effective HRM Strategy External Fit eg Strategy based on Service , T
& D aligned to the above Internal Fit eg BPO 24* 7 CSE , Shift Differentials Focus on Results
MILES & SNOW’S Organisational Types Defender – Low cost Opr , Focus on Efficiency
by Std jobs Prospector –Innovation & Adaptation through Investments in R & D , Analyzer --- Scan Competitors and react Reactor ---No apparent Strategy
Ex HR Alignment with 2 strategies of Porter Low cost & Differentiation
Employee HR Planning Selection Compensation Training Performance Evaluation
Thank you
Please read case 1 from your case booklet And the chapter on Job Analysis
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