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A Way to Assess Organizational Behavior

Actually Strategic Human Resources Management (SHRM)


The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals
Strategy formulationproviding input as to what is possible given the types and numbers of people available.
Strategy implementationmaking primary resource allocation decisions about structure, processes, and human resources.

Strategic Analysis
What human resources are needed to do job and what are available?

Strategic Formulation
What structure is required and necessary in support of human resources?

Strategic Implementation
How will the human resources be allocated?

Human Resources Planning

Strategic Planning

Mission
The basic purpose of the organization as well as its scope of operations

Strategic Vision
A statement about where the company is going and what it can become in the future; clarifies the longterm direction of the company and its strategic intent

Core Values
The strong and enduring beliefs and principles that the company uses as a foundation for its decisions

FEEDBACK

ASSESS ENVIRONMENT EXTERNAL CONDITIONS

SET OBJECTIVES EFFICIENCY Organization Employee EQUITY Organization Employee

APPLY HUMAN RESOURCE ACTIVITIES PLANNING STAFFING DEVELOPMENT EMPLOYEE/UNION RELATIONS COMPENSATION

EVALUATE RESULTS

EFFICIENCY
EQUITY

World Conditions Economic Conditions Government Regulations Unions Technology ORGANIZATIONAL CONDITIONS Nature of the Organization Nature of the Work EMPLOYEE CONDITIONS Abilities (KSA) Motivation Interests

THE DIAGNOSTIC MODEL


George Milkovich John Boudreau

Environmental Scanning
The systematic monitoring of the major external 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

Culture

Competencies

Internal Analysis

Composition

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 organization?

Core Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

Sustained competitive advantage through people is achieved if these human resources:


1. Are 2. Are 3. Are 4. Are valuable. rare and unavailable to competitors. difficult to imitate. organized for synergy.

Strategy Formulation
Moving from simple analysis to devising a coherent course of action.

SWOT analysis

A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes. Use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses.

Growth and Diversification

Mergers and Acquisitions

Corporate Strategy

Strategic Alliances and Joint Ventures

Value Creation
What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted. Low-cost strategy: competing on productivity and efficiency
Keeping costs low to offer an attractive price to customers (relative to competitors).

Differentiation strategy: compete on added value


Involves providing something unique and distinctive to customers that they value.

External Fit (or External Alignment)


Focuses on the connection between the business objectives and the major initiatives in HR.

Internal Fit (or Internal Alignment)


Aligning HR practices with one another to establish a configuration that is mutually reinforcing.

Forecasting involves:
a. forecasting the demand for labor b. forecasting the supply of labor c. balancing supply and demand considerations.

FORECASTING DEMAND

Considerations
Product/service demand Technology Financial resources Absenteeism/turnover Organizational growth Management philosophy

Techniques
Trend analysis Managerial estimates Delphi technique

BALANCING SUPPLY AND DEMAND

(Shortage) Recruitment
Full-time Part-time Recalls

Techniques
Staffing tables Markov analysis Skills inventories Management inventories Replacement charts Succession planning

External Considerations
Demographic changes Education of the workforce Labor mobility Government policies Unemployment rate

(Surplus) Reductions
Layoffs Terminations Demotions Retirements

FORECASTING SUPPLY

Core knowledge workers


Employees who have firm-specific skills that are directly linked to the companys strategy.
Example: Senior software programmer

Traditional job-based employees


Employees with skills to perform a predefined job that are quite valuable to a company, but not unique.
Example: Security guard

Contract labor
Employees whose skills are of less strategic value and generally available to all firms.
Example: General electrician

Alliance/partners
Individuals and groups with unique skills, but those skills are not directly related to a companys core strategy.
Example: Independent product label designer

Source: McKinsey & Company

Taking Action: Reconciling Supply and Demand


Balancing demand and supply considerations Forecasting business activities (trends) Locating applicants Organizational downsizing Reducing headcount Making layoff decisions Seniority or performance? Labor agreements

Evaluation and Assessment Issues


Benchmarking: The process of comparing the organizations processes and practices with those of other companies Human capital metrics
Assess aspects of the workforce

HR metrics
Assess the performance of the HR function itself

Strategy Mapping and the Balanced Scorecard


Balanced Scorecard (BSC)
A measurement framework that helps managers translate strategic goals into operational objectives

financial customer processes learning

Organizational Capability
Capacity of the organization to act and change in pursuit of sustainable competitive advantage.
Coordination flexibility
The ability to rapidly reallocate resources to new or changing needs.

Resource flexibility
Having human resources who can do many different things in different ways.

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