Learning Objectives
 Explain strategic HR management and how it is
linked to organizational strategies.
 Describe how legal, political, cultural, and economic
factors affect global HR management.
 Discuss four dimensions of organizational
effectiveness and how HR contributes to each.
 Define HR planning and outline the HR planning
process.
 Discuss several ways of managing a surplus of
human resources.
 Identify why HR metrics must consider both
strategic and operational HR measures.
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2–1
HR
Management
Activities
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Figure 1–2
2–2
Strategic HR Management Process
Figure 2–1
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2–3
Ford’s Plan
•
•
•
•
Strengthen Brands
Deliver innovative products
Reduce costs
Improve quality
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2–4
Approaches to Improving Organizational Productivity
Figure 2–3
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Tactics
•
•
•
•
•
•
•
Differentiate brands
Design, innovation, safety, technology
Utilize global architectures
Reduce material costs
Introduce straightforward pricing
Lean manufacturing system
Reduce plant employment by 25,000-30,000,
and cut 4,000 white collar jobs (cost-$250
million)
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2–6
Purpose of HR Planning
Figure 2–4
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2–7
HR Planning Process
• HR Strategies
Overall
Strategic Plan
Human Resources
Strategic Plan
HR Activities
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2–8
Making Downsizing More Effective
Figure 2–9
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2–9
“Way Forward”
•
•
•
•
•
•
•
•
War Room
Team of several hundred workers
Team of 20-50 working on “plan”
9-10 cross-functional teams working on
brands, revenue, purchasing, culture, capacity
Sworn to secrecy
Banned powerpoint slides
Nearly-final review Nov. 14
Presented to Board Dec. 7
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2–10
Examples of Strategic and Operational
HR Metrics
Figure 2–10
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Measures of Strategic HR Effectiveness
• Return on Investment (ROI)
 Calculation showing the value of expenditures for
HR activities.
C
ROI 
A B
A = Operating costs for a new or enhance system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period
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2–12
Assessing HR Effectiveness
• HR Audit
 A formal research effort that evaluates the
current state of HR management in an organization
 Audit areas:
 Legal
compliance (e.g., EEO, OSHA, ERISA, and FMLA)
 Current job specifications and descriptions
 Valid recruiting and selection process
 Formal wage and salary system  Benefits
 Employee handbook
 Absenteeism and turnover control
 Grievance resolution process
 Orientation program  Training and development
 Performance management system
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2–13
Estimating Internal Labor Supply for a Given
Unit
Figure 2–8
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