Introduction

Michel Verstraeten
 Leadership and HR: 2 Distinct Fields

2 questions :
• What are the main themes in HR (Human resources
management) ?
• What are the differences between HR and leadership ?

2| Introduction
 Added
Leadership and HR: 2 Distinct Fields slide

3 Introduction
HR Global View: Planning
Objectives

The objectives of this chapter are to:

– Set out the range of activities of the HR function

– Demonstrate how human resource management can make a
difference by adding value to an organisation
– Explain the feasibility and nature of the link between business
strategy and HR strategy
– Explore the scope of HR planning
– Explain an integrated HR planning framework
– Outline the links between HR strategy and customer satisfaction

5 Introduction
Why a HR Course?
Why a HR Course?

• Everybody is affected by the HR policies:

– as employee
– as line manager

• A corporate strategy has to be sustained by a specific RH

strategy.

The perspective adopted here: you are considered as line

managers (not HR officers).

7 Introduction
Why a HR Course?
What the customers want according to
Yum! Restaurants International
• C Cleanliness
• H Hospitality
• A Accuracy
• M Maintenance (equipment and facilities)
• P Product Quality
• S Speed with Service

Disney’s values
• Safety
• Courtesy
• The show
• Efficiency

8 Introduction
 Short exercise

• In groups of 2-4
• Choose one of the two companies.
• Let’s imagine you’re the vice-president HR. You’ve just
heard your CEO mentioning the values. How would you
apply the vision in terms of HR policies, how to bring the
strategies/visions into play ? What propositions can you
make ?
• 10 minutes

9| Introduction
Corporate Strategy and HR Strategy

• Global Approach
• Links between Corporate Strategy and HR
Strategy
Global Approaches in HR
• Universalist approach
– Derived from the conception of human resource management as
a set of “best practices”.
• Fit or contingency approach
– Two critical forms of fit
• Vertical integration : HR strategy meets the demands of business
strategy
• Horizontal integration: HR policies and activities fit together so that
they make a coherent whole, are mutually reinforcing and are
applied consistently.
• Resource-based approach
– Focuses on the promotion of sustained competitive advantage
through the development of human capital rather than merely
aligning human resources to current strategic goals.

11 Introduction
Defining an HR policy

Environment

Corporate HR Strategy
strategy

Forecasts
HR strategic plan:
needs
• R&S
• Training
• C&B
Forecasts • Appraisal system
supply • Job description

Environment

12 Introduction
Tools…

… to analyse classical effects of Strategy on

HR issues
 LINKS BETWEEN LIFE CYCLE
AND HR STRATEGY

14 | Introduction
Links between life cycle and HR Strategy (1/3)

• Innovation phase
1

• Quality enhancement phase

2

• Cost reduction phase

3

15 Introduction
 Cycles and behaviours

Innovation Quality enhancement Cost reduction

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 Cycles and HR policies

Innovation Quality enhancement Cost reduction

17 | Introduction
 CUSTOMER-LEVEL CHANGES

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Customer-Level Changes and HR Strategy

Changes in the perception of the customer’s tastes and requirements are

important issues for the definition of a HR strategy !

• Each organization must focus on the behaviours its customers regard

as most important (not all elements are equally important)

• The organization must also be conscious of the customer’s zone of

tolerance.
“Zone of tolerance” = gap between desired service and adequate
service
The zone tends to be narrower for the most important components of
satisfaction and wider for less important factors.

19 Introduction
Customer-Level Changes and HR Strategy

A well-known measure of service quality : SERVQUAL (five-

dimensions model)

• Reliability
The ability of the organization to perform the promised service
dependably and accurately.
Examples include accurately posting a deposit or a credit to an
account, or the on-time arrival of a flight. Customers consistently rate
reliability as more important than the other dimensions.

• Responsiveness
The organization's willingness to help customers and provide prompt
service. Examples include waiting time, or the time it takes to
complete a transaction.

20 Introduction
Customer-Level Changes and HR Strategy

• Assurance
The knowledge and courtesy of the employees and their ability to
inspire trust and confidence in the customers of the organizations.
Examples include greeting and thanking customers for their business,
or the knowledge level of employees in electronics superstores.
Although it is rated as less important than reliability, assurance is
related to higher levels of customer commitment.

• Empathy
The caring and individualized attention the organization provides to its
customers. Examples include acknowledging the customer's needs or
frustrations when resolving problems. Although it is rated as less
important than reliability, empathy is also related to higher levels of
customer commitment.

21 Introduction
Customer-Level Changes and HR Strategy

• Tangibles
The physical facilities, equipment, and appearance of personnel in the
organization. Examples include the condition of the ATM, the
appearance of the cashier, or the cleanliness of the parking lot.

Source: Parsuamann, Berry, and Zeithaml (1998).

22 Introduction
 Your circept ?

Reliability
10
9
8
7
6
5
4
Tangibles 3 Responsiveness
2
1 Your company - now
0
Your company - 5 years

Empathy Assurance

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 Try for your company !

Reliability

Tangibles Responsiveness

Your company - now

Your company - 5 years

Empathy Assurance

24 | Introduction
 ENVIRONMENT ANALYSIS

25 | Introduction
Business changes ?

Expansion of business into other countries: Are there

opportunities to sell your product or service abroad?
Competition: What are the threats from competitors and the
opportunities to compete? What will be the impact of new
issues such as the growth of global competition, for
instance increasing competition from countries like China?
Technological developments: Will new technology affect
the design of products, work processes and costs?
Legislation: What regulations are in the pipeline and what
are the associated implications for costs, work processes
and product standards?

26 Introduction