Professional Documents
Culture Documents
On
Strategic Human Resource
Management
by
Dr. Jamnean Joungtrakul
President and CEO, BLCI GROUP
and Senior Industry Fellow,
Graduate School of Business,
Curtin University of Technology,
Australia
3300/71, 11th Floor, Tower B,Elephant
Tower Paholyothin Road, Chompol,
Chatuchack, BKK 10900
Tel 02-937-3773 Fax 02-937-3770
Email: jamnean@blcigroup.com
Website: www.blcigroup.com 1
Food for Thought
Strategy is very important. But no one knows
what it means. Every professor in the worlds
has different version of what strategy means.
This keeps them in business but
does not help management. In answer to the
professorial question ‘What is strategy?, there
is only one universally accurate answer: ‘It
means exactly what you want it to mean to
make your own point.’ (Owen, 2002, p. 199) 2
Scope of this Presentation
Part-1: The Concept of Strategy
Part-2: Strategic Management
Part-3: Human Resource Management
Part-4: Strategic Human Resource
Management
Part-5: Case Study
Part-6: Questions and Answers
3
Part-1: The Concept of Strategy
4
The Origin of Strategy
5
The Origin of Strategy
(con’t)
6
The Most Famous Quotation
from Sun Tzu
“Know your enemy, know yourself, and you
can fight a hundred battles with no danger of
defeat. When you are ignorant of the enemy
but know yourself, your chances of winning
and losing are equal. If you don’t know both
your enemy and yourself, you are bound to
perish in all battles…know the terrain, know
the weather, and your victory will be
complete.” (Chen, 1995, p. 42)
7
The Essence of Sun Tzu’s
Art of War
The major principles of strategies;
The importance of moral influences;
The quality a good general should and should not
possess;
The role of climate and terrain in determining the
situation of the battle;
The strategy of enlarging one’s comparative strengths;
The importance of organization and training;
The proper usage of discipline which combines
severity and benevolence 8
The Principles of Strategies
“With careful and detailed planning, one can
win, with careless and less detailed planning,
one cannot win. How much less chance of
victory has one who does not plan at all!
From the way planning is done beforehand,
one can predict victory or defeat.” (Chen,
1995)
9
Some Critical View Points on
Strategy
“Strategy comes from the Greek word strategos,
which has its roots in military language. It refers
to a general’s grand design behind a war or a
battle.” (Noe, Hollenbeck, Gerhart and Wright,
2000, p. 42)
11
Some Critical View Points on
Strategy (con’t)
“When you cut away all the jargon, this is what
strategy is all about: how you are going to do better
by being different.” (Magretta, 2002, p. 72)
13
Some Definitions of Strategy
“Strategy is a deliberate search for a plan of
action that will develop a business’s
competitive advantage and compound it.”
(Henderson, 1991, p. 5)
“A strategy is an integrated set of choices which
identify the positioning and the competitive
advantages that beat competition on a
sustainable basis in meeting consumer needs.”
14
(Procter & Gamble)
Some Definitions of Strategy (con’t)
15
Some Definitions of Strategy (con’t)
“…Strategy, in effect, is management’s game
plan for strengthening the organization’s
position, pleasing customers, and achieving
performance targets.” (Thompson & Strickland,
1995, p. 2)
“Strategy has been defined…as ‘the pattern of
decisions a firm makes.’” (Hax, cited in Kreitner,
1998, p. 196)
16
Some Definitions of Strategy (con’t)
17
Part-2: Strategic Management
18
The Concept of Strategic
Management Application to Business
19
The Concept of Strategic
Management Application to Business
(con’t)
20
Some Definition of Strategic
Management
21
Some Definition of Strategic Manageme
(con’t)
25
26
The Seven Steps of Strategy
Deployment System
Long Term Vision
Develop Strategy
Deploy Strategy
Capability
Do the Plans
Review and Audit-Monthly
Review and Audit-Quarterly
27
Long Term Vision:
Define why we exist, where we are
headed as a Business
28
Develop Strategy:
Develops strategy; defines the
objectives, goals, strategies,
measures. OGSM’s are the building
blocks of the system
29
Objectives: What we are trying to achieve
(1 choice) = Words
Goals: Howe we will measure the objective =
Numbers
Strategies: How we will achieve the
objective/goals (1-3 choices) = Words
Measures: How we will measure the
strategies = Numbers
30
Deploy Strategy:
- Defines the groups responsible for delivering
the strategies/measures, and then translates to
actions/measures/accountability for execution.
- Deployment links strategies throughout the
organization and translates to what “I/we can
go do.”
- The emphasis is on what it will take to achieve
the strategy, not negotiate to a lower need.
31
Capability:
Checks sufficiency of the plans and
capability of the organization to
deliver the plans
32
Do the Plans:
Execute and track
33
Review and Audit-Monthly:
- Action Planners ask, “Did we do what we
said;” they check actual vs. target, analyze
gaps, and determine adjustments.
- Reviews are the “heart” of the system,
where strategy becomes action,
accountability is established, and learning
occurs.
34
Review and Audit-Quarterly:
- Management and Action Planners ask “Is it
working, what is needed, what is learned, how
to maintain the improvement.”
- Quarterly Reviews are the “test” for leadership’s
behaviour that creates focus, commitment, and a
learning environment or lack of focus and
compliance, or a fear environment.
35
Strategy Deployment Flow Chart
LONG TERM VISION “Defines Winning”
Purpose & Vision & Values Corp. OGSM
DEPLOY STRATEGY
“How Are We Going
Function OGSM Action Plans Linkages to Organize”
37
What is Human Resource
Management?
Human Resource Management is a distinctive
approach to employment management which
seeks to achieve competitive advantage
through the strategic deployment of a highly
committed and capable workforce, using an
integrated array of cultural, structural and
personnel techniques (Storey, 1995, p. 5)
38
The Major Component of
HRM-Beliefs and Assumptions
- That it is the human resource which gives
competitive advantage
- That the aim should be not more compliance
with rules, but employee commitment
- That therefore employees should be very
carefully selected and developed
39
The Major Component of
HRM-Strategic Qualities
- Because of the above factors, HR decisions
are of strategic importance
- Top management involvement is necessary
- HR policies should be integrated into the
business strategy-stemming from it and
even contributing to it
40
The Major Component of HRM-
Critical Role of Managers
- Because HR practice is critical to core activities of
the business, it is too important to be left to
personnel specialists alone
44
HRM vs. PM- Differences
(con’t)
Orientation Welfare, moral and humanistOccupational, service and Managerial, market and HR
manpower control utilisation
Paternalist
Ideology Person management Collectivist Individualist
Role of personal System management Resource
management Administrative
Relationship with line Advisory/executive Strategic
management Human relations
Generic activity relations Industrial relations Employee
Workers
Status of workforce Social Employees Professionals
Contract with workers Legal Psychological
Marginal
Role of unions Adversarial Collaborationist/absent
Slow
Change Moderate Continuous
Protected
Market position Stable Competitive
Cost containment of labour
Attitude to workforce Cost-effectiveness of Investment in human
workforce resources
46
47
My Own Professional Opinion
- I see it as a development of management
- I agree with Legge (1995, p. 75)
“[HRM is], in theory, a more central strategic
management task than personnel management in that
it is experienced by managers, as the most valued
company resource to be managed; it concerns them in
the achievement of business gaols and it expresses
senior management’s preferred organizational
values”.
48
An Organization with a
Strong Commitment to HRM
- The firm competes on the basis of product quality and
differentiation as well as price
49
An Organization with a
Strong Commitment to HRM (con’t)
- Investments in new hardware or physical technology are
combined with the investments in human resources and
changes in organizational practices required to realise the
full potential benefits of these investments
- The firm sustains a high level of investment in training,
skill development and education, and personnel practices
are designed to capture and utilise these skills fully
- Compensation and reward systems are internally
equitable, competitive and linked to the long-term
performance of the firm
50
An Organization with a Strong
Commitment to HRM
(con’t)
- Employment continuity and security is an important
priority and value to be considered in all corporate
decisions and policies
- Workplace relations encourage flexibility in the
organization of work, empowerment of employees to
solve problems, and high levels of trust among
workers, supervisors and managers
- Worker rights to representation are acknowledged and
respected. Union or other employee representatives
are treated as joint partners in designing and
overseeing innovations in labour and human resource
51
practices (Beaumont, 1995, p.40)
Part-4: Strategic Human
Resource Management
52
Strategic Human Resource
Management (SHRM):
53
Strategic Human Resource:
56
Human Resource Strategy:
Internal
Analysis
Strengths
Weaknesses
58
61
62
70
แนวทางการทำากรณี ศึกษา
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76