1

Meeting Present and

Emerging Strategic
Human Resource
Challenges
1-

Challenges
Explain how a firms human resources influence its performance.
Describe how firms can use HR initiatives to cope with workplace
changes and trends such as a more diverse work force, the global
economy, downsizing, and new legislation.
Distinguish between the role of the HR department and the role of
the firms managers in utilizing human resources effectively.
Indicate how members of the HR department and managers within a
company can establish a strong partnership.
Formulate and implement HR strategies that can help the firm
achieve a sustained competitive advantage.
Identify HR strategies that fit corporate and business unit strategies.

Key HR Challenges for Todays

Managers
Environment

Rapid Change
Workforce Diversity
Globalization
Rise of Internet

Legislation
Evolving Work and Family Roles
Skill Shortages and the Rise
of the Service Sector

Organization
Competitive Position: Cost,
Quality, Distinctive Capabilities
Decentralization
Downsizing
Organizational Restructuring

Individual

Self-Managed Work Teams

Small Businesses
Organizational Culture
Technology
Outsourcing

Matching People and Organization

Ethical Dilemmas and Social Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity

Cultural Differences Between HewlettPackard and Apollo

Cultural
Element

Hewlett-Packard

Apollo

Planning and coordination

Professional orientation
People-minded style
Carefully laid-out work
objectives

Dominant
values

Quality/reputation
Components company

Time-to-market
Systems integrator

Philosophy

Flexible bureaucracy
Functional/matrix
structure

Ad-hoc-racy
Functional/integrated
structure

Rules of the
game

Problem solving
Specialize
Long tenure

Winning is everything
Be a generalist
Job hoppers

Feeling or
climate

Strong engineering and

marketing influence
Polite/congenial
Sing from the same hymnbook

Strong R&D and

engineering influence
Political/confrontational
Mixed bag/misfits

Behavioral
regularities
Norms

Crisis management
Entrepreneurial orientation
Rough-and-tumble style
Pushing your own agenda

Code of Ethics of the

American Marketing
Association
As a member of the American Marketing Association, I

recognize the significance of my professional conduct and

my responsibilities to society and to other members of my
profession:

1.
1.By
Byacknowledging
acknowledgingmy
myaccountability
accountabilityto
tosociety
societyas
asaawhole
wholeas
as
well
wellas
asto
tothe
theorganization
organizationfor
forwhich
whichIIwork.
work.
2.
2.By
Bypledging
pledgingmy
myefforts
effortsto
toassure
assurethat
thatall
allpresentations
presentationsof
of
goods,
goods,services,
services,and
andconcepts
conceptsbe
bemade
madehonestly
honestlyand
andclearly.
clearly.
3.
3.By
Bystriving
strivingto
toimprove
improvemarketing
marketingknowledge
knowledgeand
andpractice
practicein
in
order
orderto
tobetter
betterserve
servesociety.
society.
4.
4.By
Bysupporting
supportingfree
freeconsumer
consumerchoice
choicein
incircumstances
circumstancesthat
that
are
arelegal
legaland
andare
areconsistent
consistentwith
withgenerally
generallyaccepted
accepted
community
communitystandards.
standards.

Code of Ethics of the

American Marketing
Association (cont.)
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.

Blazing Graphics Mission

Statement
Blazing Graphics will provide you with the most
effective visual communication attainable. We will help
you achieve all of your goals while providing you with
the greatest value both seen and unseen.
Here at Blazing Graphics we will take the time to
do things right. We do this by controlling the entire
graphic art process. This enables us to better
coordinate each job while providing a higher level of
service.

Blazing Graphics Mission

Statement (cont.)
Our mission is to ensure exceptional quality by
opening up communication between crafts normally
separated and at times adverse to one another.
Here at Blazing Graphics we have committed
ourselves and our resources to being on the forefront of
technology.
Creative technical know-how is the single most
critical determinant of economic competitiveness.
Its our real belief that together we can create an
environment that will be both personally and
professionally fulfilling for all the people who make up
the Blazing Community.

Effective HR Strategy
Formulation and
Implementation
Organizational
Organizational
Strategies
Strategies

Fit

Consistency

Consistency

Fit

Organizational
Organizational
Characteristics
Characteristics

Environment
Environment

Consistency

HR Strategies

Fit

Improved
Improved
Firm
Firm
Performance
Performance

Fit
Consistency

Organizational
Organizational
Capabilities
Capabilities

Selected HR Strategies That Fit

Porters Three Major Types of
Business
Strategies
Common
Organizational
Business
Strategy

Characteristics

HR Strategies

Overall
cost
leadership

Sustained capital
investment and access
to capital
Intense supervision of
labor
Tight cost control
requiring frequent,
detailed control reports
Low-cost distribution
system
Structured organization
and responsibilities
Products designed for
ease in manufacture

Efficient production
Explicit job descriptions
Detailed work planning
Emphasis on technical
qualifications and skills
Emphasis on job-specific
training
Emphasis on job-based
pay
Use of performance
appraisal as a control
device

Selected HR Strategies That Fit

Porters Three Major Types of
Business
Strategies
(cont.)
Common
Organizational
Business
Strategy

Characteristics

HR Strategies

Differentiation

Strong marketing
abilities
Product engineering
Strong capability in
basic research
Corporate reputation for
quality or technological
leadership
Amenities to attract
highly skilled labor,
scientists, or creative
people.

Emphasis on innovation
and flexibility
Broad job classes
Loose work planning
External recruitment
Team-based training
Emphasis on individualbased pay
Use of performance
appraisal as
development tool

Selected HR Strategies That Fit

Porters Three Major Types of
Business Strategies (cont.)
Business
Strategy

Common Organizational
Characteristics

Focus

Combination of costleadership and

differentiation strategy
directed at a particular
strategic target.

HR Strategies
Combination of HR
strategies above.

Selected HR Strategies That Fit

Miles and Snows Two Major Types of
Business
Strategies
Strategic
HR Area

Defender Strategy

Prospector Strategy

Work flows

Efficient production
Control emphasis
Explicit job descriptions
Detailed work planning

Innovation
Flexibility
Broad job classes
Loose work planning

Staffing

Internal recruitment
HR department makes
selection decision
Emphasis on technical
qualifications and skills
Formal hiring and
socialization process

External recruitment
Supervisor makes
selection decision
Emphasis on fit of
applicant with culture
Informal hiring and
socialization process of
new employees

Selected HR Strategies That Fit Miles and

Snows Two Major Types of Business
Strategies (cont.)
Strategic
HR Area

Defender Strategy

Prospector Strategy

Employee
separations

Voluntary inducements
to leave
Hiring freeze
Continuing concern for
terminated employee
Preferential rehiring
policy

Layoffs
Recruit as needed
Individual on his/her own
No preferential treatment
for laid-off workers

Performance
appraisal

Uniform appraisal
procedures
Used as control device
Narrow focus
High dependence on
superior

Customized appraisals
Used as developmental
tool
Multipurpose appraisals
Multiple inputs for
appraisals

Selected HR Strategies That Fit Miles and

Snows Two Major Types of Business
Strategies (cont.)
Strategic
HR Area
Training

Defender Strategy

Prospector Strategy

Individual training
On-the-job training
Job-specific training
Make skills

Team-based or crossfunctional training

External training
Generic Training
emphasizing flexibility
Buy skills

Compensation Fixed pay

Job-based pay
Seniority-based pay
Centralized pay
decisions

Variable pay
Individual-based pay
Performance-based pay
Decentralized pay
decisions

Selected HR Strategies For Firms Low

and High on Different Environmental
Characteristics
Environmental
Dimension

Low

High

Degree of
Uncertainty

Detailed work planning

Job-specific training
Fixed pay
High dependence on
superior

Loose work planning

Generic training
Variable pay
Multiple inputs for
appraisals

Volatility

Control emphasis
Efficient production
Job-specific training
Fixed pay

Flexibility
Innovation
Generic training
Variable pay

Selected HR Strategies For Firms Low and

High on Different Environmental
Characteristics (cont.)
Environmental
Dimension
Low
Magnitude
of Change

Complexity

Explicit job descriptions

Formal hiring and
socialization of new
employees
make skills
Uniform appraisal
procedures
Control emphasis
Internal recruitment
Centralized pay
decisions
High dependence on
superior

High
Broad job classes
Informal hiring and
socialization of new
employees
buy skills
Customized appraisals
Flexibility
External recruitment
Decentralized pay
decisions
Multiple inputs for
appraisals

Competencies Required of HR
Department to Become a Full
Strategic Partner
Leadership
Understand the nature and styles of leadership, and
display appropriate leadership characteristics in
performance of professional responsibilities.
Demonstrate leadership at multiple performance levels:
Individual
Team
Unit or Organization

Competencies Required of HR
Department to Become a Full
Strategic
Partner (cont.)
Knowledge of the Business
Understand corporate business (structure, vision and
values, goals, strategies, financial, and performance
characteristics).
Understand the units business, including special
knowledge of competitors, products, technology, and
sources of competitive advantage.
Understand internal and external customers.
Understand the environment (external and internal) of
corporation and individual businesses.
Understand key business disciplines
Nature, scope, and HR implications of business
globalization
Information technology as it affects
competitiveness and business processes

Competencies Required of HR
Department to Become a Full
Strategic Partner (cont.)
HR Strategic Thinking
Understand the strategic business planning process.
Understand and be able to apply a systematic HR
planning process.
Be able to select, design, and integrate HR systems or
practices to build organizational mindset, capability,
and competitive advantage for the business.
Be able to develop and integrate business unit HR
strategies within framework of corporate HR strategies.

Competencies Required of HR
Department to Become a Full
Strategic Partner (cont.)
Process Skills

All HR professionals should be competent in key

corporate processes and understand management
processes critical to particular business units.
Understand key process skills such as consulting,
problem solving, evaluation/diagnosis, workshop
design, and facilitation.
Understand the basic principles, methodologies, and
processes or organizational change and development.
Facilitate and manage organizational change.
Balance, integrate, and manage under conditions of
uncertainty and paradox.

Competencies Required of HR
Department to Become a Full
Strategic Partner (cont.)
HR Technologies
All
All HR
HR professionals
professionals should
should have
have aa generalist
generalist
perspective
perspective on
on HR
HR systems
systems and
and practices
practices as
as they
they relate
relate
to
to achievement
achievement of
of business
business competitive
competitive advantage.
advantage.
Generalists
Generalists are
are capable
capable of
of designing,
designing, integrating,
integrating, and
and
implementing
implementing HR
HR systems
systems to
to build
build organizational
organizational
capability
capability and
and create
create business
business competitive
competitive advantage.
advantage.
Specialists
Specialists are
are capable
capable of
of designing/delivering
designing/delivering leadingleadingedge
edge practices
practices to
to meet
meet competitive
competitive business
business needs.
needs.
All
All HR
HR professionals
professionals are
are capable
capable of
of measuring
measuring
effectiveness
effectiveness of
of HR
HR systems
systems and
and practices.
practices.