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Meeting Present and
Emerging Strategic
Human Resource
Challenges
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Challenges facing HR
• How can HR influence firm
performance?
• How can HR cope with
workplace changes and trends?
• What are HR strategies that
help a firm achieve competitive
advantage?
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Key HR Challenges for
Today’s Managers: Environmental
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Rapid change
Workforce diversity
Globalization
Internet revolution
Legislation
Evolving work and family roles
Skill Shortages
Rise of the service sector
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Key HR Challenges for
Today’s Managers: Organizational
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Quality, distinctive capabilities
Decentralization
Downsizing
Organizational restructuring
Self-managed work teams
Small business growth
Technology
Outsourcing
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Key HR Challenges for
Today’s Managers: Cultural
Basic assumptions and beliefs shared by
members of an organization…
• rules, norms
• behaviors
• philosophy
• dominant values
• feeling or climate
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Individual Challenges
Key HR Challenges for
Today’s Managers: Individual
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Matching People and Organization
Ethical dilemmas
Social responsibility
Productivity
Empowerment
Brain drain
Job insecurity
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Mission Statement:
Otis Elevator
Our mission is to:
provide any customer a means
of moving people and things up,
down and sideways over short
distances with higher reliability
than any similar enterprise in
the world.
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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CODE OF ETHICS: As a member of the American
Marketing Association, I recognize the significance of
my professional conduct and responsibilities to society
and to other members of my profession:
1. By acknowledging my accountability to society
as a whole as well as to the organization for
which I work.
2. By pledging my efforts to assure that all
presentations of goods, services, and concepts
be made honestly and clearly.
3. By striving to improve marketing knowledge and
practice in order to better serve society.
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Code of Ethics
(cont’d)
4. By supporting free consumer choice in
circumstances that are legal and are consistent
with generally accepted community standards.
5. By pledging to use the highest professional
standards in my work and in competitive activity.
6. By acknowledging the right of the American
Marketing Association, through established
procedure, to withdraw my membership if I am
found to be in violation of ethical standards of
professional conduct.
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
1-9
HR Strategy Leads to Improved
Organizational Performance
Organizational
Strategies
Organizational
Capabilities
HR Strategies
Organizational
Characteristics
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
Environments
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Porter’s Differentiation Strategy
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Efficient production
Explicit job descriptions
Detailed work planning
Emphasis on technical skills
Emphasis on job-specific training
Emphasis on job-based pay
Use performance appraisal
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Porter’s Low-cost
Leadership Strategy
• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on qualifications and skills
• Emphasis on job-specific training
• Emphasis on job-based pay
• Use of performance appraisal
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Porter’s Focus Strategy
Low cost
Differentiation
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Miles and Snow
Defender Strategy -- RECRUITING
• Internal recruitment
• HR makes selection decision
• Emphasis on qualifications and skills
• Formal hiring and socialization
process
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Miles and Snow
Prospector Strategy -- RECRUITING
• External recruitment
• Supervisor makes selection decision
• Emphasis on applicant fit with culture
• Informal hiring and socialization
process of new employees
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Miles and Snow
Defender Strategy -- Compensation
• Fixed pay
• Job-based pay
• Seniority-based pay
• Centralized pay decisions
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Miles and Snow
Prospector Strategy -- Compensation
• Variable pay
• Individual-based pay
• Performance-based pay
• Decentralized pay
decisions
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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LEADERSHIP
How HR can be a Strategic Partner
• Understand styles of leadership
• Display appropriate leadership
• Demonstrate leadership at all levels
of performance – team, individual,
unit or organization
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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KNOWLEDGE OF BUSINESS
How HR can be a Strategic Partner
HR must understand…
• internal / external customers
• key business disciplines
• business structure, vision, values,
goals, strategies, finances
• competitors, products, technology
and sources of competitive advantage
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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STRATEGIC THINKING
How HR can be a Strategic Partner
• Understand strategic business planning
• Apply a systematic HR planning process
• Integrate HR systems to build capability
and competitive advantage for the firm
• Develop and integrate department
strategies within corporate framework
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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PROCESS SKILLS
How HR can be a Strategic Partner
• Know management processes
• Know process skills: consulting, problem
solving, evaluation and communication
• Understand organizational development
• Facilitate and manage change
• Manage under uncertainty and instability
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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TECHNOLOGY
How HR can be a Strategic Partner
• Maintain HR documentation using
knowledge management and
technology
• Build firm’s capability using info
systems
• Provide training in use of technology
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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Case
3M has a $1 billion budget and staff of
7,000. To speed growth, 3M announced a
series of performance objectives for
individual business chiefs who before
enjoyed much free rein. In addition, 3M
introduced specially trained “black belts”
to root out inefficiencies in departments.
If you were a “black belt”, what would you
look for?
© 2004 by Prentice Hall
Terrie Nolinske, Ph.D.
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