Answer questions on the template attached.
Assignment #2 – Chapter 2
Please answer these questions to the best of your ability using the information that you gathered from
reading the chapter, along with information from your own work experience.
1. The role of HR’s importance to organizations has changed to a more strategic role? What are some
reasons for this change?
2. Please go to the list of the Fortune 500 companies (http://fortune.com/fortune500/). Choose one
company out of the list and go to their website to find their Vision and the Mission Statement.
a. What company did you choose, and what is its Mission Statement (usually available on corporate
website; please provide reference link)?
b. What are five ways that human resources might play a strategic role in fulfilling the mission
statement of the company that you chose? Please be specific.
http://fortune.com/fortune500/
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Human Resource Management: Functions, Applications, Skill
Development by Robert N. Lussier and John R. Hendon Chapter
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 20
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SAGE Pub lications, Inc.
Strategy and strategic planning in the 21st
Century and the Environment
Strategy and strategic planning deal with looking at
the organization and its environment – today and
in the expected future – and determining what the
organization wants to do to meet the requirements
of that expected future.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
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Factors in Choosing a Strategy
Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Influences
from
outside the
organization
that
managers
cannot
control.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Influences
within the
organization
that
managers
can control.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Strategy and Strategic Planning
Strategy is a plan of action to achieve a particular
set of objectives.
It looks at the external environment and the
internal (organizational) environment in order to
create strategic advantage.
Strategic advantage occurs when the
organization analyzes the environment better
and reacts quicker than its competitors.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Three Big Strategic Questions
What is the present situation? – E.g., profits,
customers, employees, technology, physical
resources, etc.
Where do we want to go? – What is the
organization’s vision and mission?
How do we plan to get there? – A plan that will
allow the organization to reach the goals
identified in the vision and mission, and that will
create a sustainable competitive advantage.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Vision and Mission
Vision – What the organization expects to become
at a particular point in time.
Mission – Specific expectations of what the
organization will do in order to realize the vision.
Vision + Mission =
Focus on the direction for the organization and its
people.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Types of Strategies
Cost Leadership – Focuses on lowering
organizational costs required to produce
products or services
Differentiation – Focuses on creating a distinctive
impression of the product or service in
customers’ minds.
Focus or niche – Focuses on a specific portion of
a larger market.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
How Strategy Affects HRM
HRM and Cost Leadership – maximize employee
efficiency and effectiveness through highly
specialized jobs that require people to repeat the
same task.
HRM and Differentiation – maximize employee
flexibility and adaptability through jobs that
require cross-functional teams to innovate and
try new processes in uncertain environments.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Strategic
Analysis
Five-Force
Competitive
Analysis
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Strategic
Analysis
SWOT
Analysis
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Designing a Strategy
Set objectives
Objectives state what is to be accomplished in
singular, specific, and measurable terms with a
target date.
Create a strategy – weave objectives into a
cohesive organizational plan.
Implement, Monitor and Evaluate Strategies –
Controlling is the process of establishing and
implementing mechanisms to ensure that
objectives are achieved.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
How HR Promotes Strategy
By recruiting, selecting, training, evaluating, and
interacting with employees, based on the
organizational strategies.
By evaluating objectives, competitors,
organizational strengths and weaknesses, and
many other industry and company characteristics
based on the organizational strategies.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Organizational Structure
Determines how an organization groups its resources
to accomplish its mission.
Complexity – the degree of vertical, horizontal and
spatial differentiation within the organization.
Formalization – the degree to which jobs are
standardized within an organization.
Centralization – the degree to which decision-
making is concentrated within the organization.
The best structure is one that allows the firm to
implement its strategies successfully.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
How Structure Affects Employee Behavior
The way organizations combine complexity,
formalization, and centralization affects
employee autonomy.
How Structure Affects HRM
It affects the nature of job expertise, training,
evaluation and appraisal of HR employees.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Organizational Culture
Refers to members’ shared values, beliefs, and
assumptions about appropriate behavior.
It affects how and why employees do what they
do, because individuals typically adapt their
actions to conform to those that the culture
values.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Measurement tools for Strategic HRM
Economic Value Added (EVA)
Return on Investment (ROI)
Balanced Scorecard (BSC)
HR Scorecard
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Strategy-Driven Human Resource Management
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Pub lications, Inc.
Human Resource Information Systems (HRIS)
HRIS are database management systems that
manage and manipulate data that influence
organizational performance.
E.g., attendance and leave tracking, job and pay
history, job descriptions, appraisal scores and review
date tracking, benefits enrollment and tracking.
Also used when considering promotions, transfers,
team assignments and many other daily activities.
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