© 2012 South-Western, Cengage Learning, Inc.
All rights reserved.
Prepared by Joseph B. Mosca, Monmouth University & Marla M. Kameny, Baton Rouge
Community College
PowerPoint Presentation Design by Charlie Cook, The University of West Alabama
Learning Objectives
After studying this chapter, you should be able to:
1. Describe the strategic context of human resource
management.
2. Identify three types of strategies and relate each to
human resource management.
3. Discuss human resource strategy formulation and
relevant organizational factors.
4. Discuss the processes through which human
resource strategy is implemented.
5. Discuss how the human resource function in
organizations can be evaluated.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–2
• The Competitive Environment
for Human Resource Management
HRM occurs not in a vacuum, but in a
complex and dynamic milieu of forces
within the organizational context.
HR managers now have a strategic
perspective that recognizes the critical
links between organizational strategy
and HR strategy.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–3
Strategic
Human
Resource
Management
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–4
Beyond the Book:
Considering Fundamental HRM Practices
If we examine fundamental HRM practices,
it seems reasonable to suggest two points:
Formal performance appraisals
are better than none.
Using systematic selection techniques
is better than hiring based on intuition.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–5
A Strategic
Perspective
• What is meant when we refer to strategy
and a strategic perspective.
All firms exist in a competitive environment,
with competitors trying to attract the same
customers.
Therefore, a firm implements a strategy that
its competitors are unable to implement.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–6
The Influence of Organizational
Purpose and Mission
• What is an organization’s purpose?
It is the organization’s basic reason for
existence.
• What is an organization’s mission?
It is the organization’s statement of how
it intends to fulfill its purpose.
• Both purpose and mission affect an
organization’s HR practices.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–7
Starbucks Corporate Mission Statement
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–8
What Is a Top Management Team?
The organization’s group of
senior executives responsible
for the overall strategic
operation of the firm.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–9
Beyond the Book:
Organizational Culture and HRM Success
Understanding
the Cultural Environment
Sets the tone
for the
organization
Plays a major
role in shaping
its culture
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
Have a vision
of where firm
is going
Have a vision
of how firm
should get
there
4–10
Corporate Strategy and HRM
• Corporate Strategy
Deals with determining what businesses the
corporation will operate.
• Growth Strategy
Focuses on growing and expanding the
business, which can be pursued through joint
ventures or acquisitions.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–11
Corporate Strategy and HRM (cont’d)
• Retrenchment Strategy
Occurs when an organization operations are
not effective and changes are required.
• Stability Strategy
Maintains the status quo.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–12
Diversification Strategies
• Diversification Strategy
Occurs when an organization adds new
products and services.
• Related Diversification
Occurs when a firm achieves synergy among
the various businesses it owns.
• Unrelated Diversification
Is used when a firm operated several unique
businesses in different unrelated markets.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–13
Business Strategies (cont’d)
• Adaptation Model
Is an approach to business strategy where a
firm seeks ways to adapt to its environment.
• Basic Strategy Alternatives:
Defender strategy
Prospector strategy
Analyzer strategy
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–14
Business Strategy Alternatives
Defender Strategy
Works best in an environment
with little uncertainty and risk
and a high degree of stability
Prospector Strategy
Works best in dynamic and
growing environments with much
uncertainly and risk
Analyzer Strategy
Work best in stable conditions
with a moderate degree of
uncertainly and risk.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–15
Other Competitive Strategies
Differentiation
strategy
Cost leadership
strategy
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
Focus
strategy
4–16
Human Resource Strategies
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–17
What Is
Organizational Design?
• The framework of jobs, positions, clusters
of positions, and reporting relationships
among positions that are used to construct
an organization.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–18
The Impact of Organization Design
Organization Design Forms
U-form
(unitary/functional)
H-form
(holding company)
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
M-form
(multidivisional)
4–19
HR Strategy Implementation
• Psychological Contract
The overall set of expectations held
by the individual that they can
contribute to the organization.
• Personality
The stable set of psychological
attributes or traits that distinguish
one person from another.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
2–20
HR Strategy Implementation (cont’d)
• Communication
The exchange of information and shared
meaning
HR managers are responsible for coordinating
communication among employees.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
2–21
Motivation is:
The set of forces that causes people
to behave in certain ways.
A major determinant of individual
performance.
What causes an employee to choose
to expend effort to support an
organizational activity.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–22
Understanding Stress
• Stress
A person’s adaptive response to a stimulus
that places excessive psychological or
physical demands on that person.
• Managing stress requires understanding:
The causes of stress
How stress affects individuals
How organizations and individuals
can better cope with stress
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–23
Human Resource Management Practices That
May Lead to Improved Firm Performance
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.
4–24
