Managing human resrouce management 5th by snel chapter 2

Managing Human ResourcesStrategy and Human Resources Planning... Identify the advantages of integrating human resources planning and strategic planning.. Strategic Planning and Human Re

Managing Human Resources

Strategy and Human

Resources Planning

After studying this chapter, you should be able to:

1 Identify the advantages of integrating human resources

planning and strategic planning.

2 Understand how an organization’s competitive

environment influences strategic planning.

3 Recognize the importance of internal resource analysis.

4 Describe the basic tools for human resources

Strategic Planning and Human

Resources

organization’s long-term goals and strategies

movement (flow) of people into, within, and out of an organization

Strategic Planning and HR Planning

(SHRM)

activities that enable an organization to achieve its strategic goals

 Strategy formulation—providing input as to what is possible given the types and numbers of people available.

 Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.

HRP and Strategic Planning

Linking Strategic Planning and Human Resources

Step One: Mission, Vision, and Values

scope of operations

what it can become in the future; clarifies the term direction of the company and its strategic intent

the company uses as a foundation for its decisions

Step Two: Environmental Analysis

forces influencing the organization

1 Economic factors: general and regional conditions

2 Competitive trends: new processes, services, and innovations

3 Technological changes: robotics and office automation

4 Political and legislative issues: laws and administrative rulings

5 Social concerns: child care and educational priorities

6 Demographic trends: age, composition,and literacy

Five Forces Framework

Step Three: Internal Analysis

Composition

Internal Analysis

Scanning the Internal Environment

• Cultural Audits

Audits of the culture and quality of work life in an organization

How do employees spend their time?

How do they interact with each other?

Are employees empowered?

What is the predominant leadership style of managers?

How do employees advance within the

Competitive Advantage through

People

that distinguish it from its competitors and deliver value to customers

people is achieved if these human resources:

Composition: The Human Capital

Architecture

directly linked to the company’s strategy

 Example: Senior software programmer

are quite valuable to a company, but not unique

 Example: Security guard

Composition: The Human Capital

Architecture (cont’d)

and generally available to all firms

 Example: General electrician

skills are not directly related to a company’s core strategy

Mapping Human Capital

Forecasting: A Critical Element of Planning

BALANCING SUPPLY AND DEMAND

(Shortage) Recruitment

• Full-time

• Part-time

• Recalls

(Shortage) Recruitment

• Full-time

• Part-time

• Recalls

(Surplus) Reductions

• Layoffs

• Terminations

• Demotions

(Surplus) Reductions

• Layoffs

• Terminations

• Demotions

• Retirements

Forecasting Demand for Employees

Quantitative Methods Quantitative Methods

Qualitative Methods Qualitative Methods

Forecasting Demand

Forecasting Demand

Quantitative Approach: Trend Analysis

organizational index such as sales:

resources needs

employees to determine the labour productivity ratio

the business factor by the productivity ratio

Example of Trend Analysis of HR Demand

BUSINESS  LABOUR = HUMAN RESOURCES

Qualitative Approaches

managers, experts, or others knowledgeable about

the organization’s future employment needs

soliciting and summarizing the judgments of a

preselected group of individuals

judgment

Forecasting the Supply of Employees: Internal Labour Supply

Forecasting Internal Labour Supply

along with the numbers of employees currently

occupying those jobs and future (monthly or yearly) employment requirements

movements through various jobs

Hypothetical Markov Analysis for a Retail Company

Internal Demand Forecasting Tools

skills, etc., that allow managers to quickly match job openings with employee backgrounds

potential replacements if an opening occurs

key individuals for executive positions

succession-planning and management

program appearing in the left

column below, enter a number

to the right to indicate how well

you believe your organization

manages that characteristic

Ask other decision makers in

your organization to complete

this form individually Then

compile the scores and

compare notes.

Succession-Planning Checklist

Scores

An Executive Replacement Chart

Step Four: Formulating Strategy

course of action

purposes

opportunities, counteract threats, and alleviate

internal weaknesses

Corporate Strategy

Strategic Alliances and Joint Ventures

Growth and Diversification

Mergers and Acquisitions

Corporate Strategy

Business Strategy

making it; the amount of benefits provided by the

product or service once the costs of making it are

subtracted

efficiency

 Keeping costs low to offer an attractive price to

customers (relative to competitors).

 Involves providing something unique and distinctive to

Functional Strategy: Ensuring

Alignment

objectives and the major initiatives in HR

configuration that is mutually reinforcing

The 7-S Model

Step Five: Strategy Implementation

Step Six: Evaluation and Assessment

organization’s processes and practices with those of other companies

 Assess aspects of the workforce

 Assess the performance of the HR function itself

Measuring Strategic Alignment

Balanced Scorecard

Assessing Internal Fit

Ensuring Strategic Flexibility for the Future

pursuit of sustainable competitive advantage

Calculating Turnover and Absenteeism

Employee Turnover Rates

Number of separations during the month

X 100 Total number of employees at midmonth

Employee Turnover Rates (cont’d)

Highlights in HRM

Costs Associated With The Turnover Of One Computer Programmer

(Turnover costs = Separation costs + Replacement costs + Training costs)

Separation costs

1 Exit interview cost for salary and benefits of both interviewer and departing employee

during the exit interview = $30+$30 = $60

2 Administrative and record-keeping action = $30

Total separation costs = $60 + $30 = $90

Replacement costs

1 Advertising for job opening = $2,500

2 Preemployment administrative functions and record-keeping action = $100

1 Booklets, manuals, and reports = $50

2 Education = $240/day for new employee’s salary and benefits x 10 days of workshops,

seminars, or courses = $2,400

3 One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) x 20

days of one-to-one coaching = $9,600

4 Salary and benefits of new employee until he or she gets “up to par” = $240/day for salary

and benefits x 20 days = $4,800

Employee Absenteeism Rates

Number of worker days lost through job absence during period

X100 Average number of employees X number of work days