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《国际人力资源管理》课程公共资源 > 讲义：section02

clarke1周前 (09-10)人力资源管理18

After learning this section, you should be able to identify human resource’s strategic challenge.

Then you should be able to list strategic management process components.

Thirdly, you are supposed to describe HRM function’s role in strategy formulation.

For example, PepsiCo in the 1980s acquired the fast-food chains of Kentucky fried chicken， Pizza Hut (“ Where to compete” decision). Pepsi wanted to increase its customer base.

However, it failed to recognize the differences between its existing workforce (most professionals ) and that of the fast-food industry (lower skilled people and high schools) as well as its ability to manage such a workforce.

That was one reason that PepsiCo, in 1998, spun off the fast-food chains.

It had made a decision about where to compete. But it didn’t fully understand what resource would be needed to compete in that market.

The case told us, HRM function must be integrally involved in the company’s strategic management process.

Strategic human resource management is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

战略性人力资源管理，指为企业能够实现目标所进行和所采取的一系列有计划、具有战略意义的人力资源部署和管理行为。

We know that the strategic management process consists of two components: strategy formulation and strategy implementation.

Strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

In strategy implementation, the organization follows through on the strategy that has been chosen. This includes structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing HR systems that align employee behavior with the strategic goals.

So the role of HRM in Strategy Implementation is obvious, then what about the role of HRM in Strategy Formulation?

One recent study of 115 strategic business units within Fortune 500 corporations found that between 49 and 69% of the companies had some link between HRM and the strategic planning process, however, the level of linkage varied.

Four levels of integration seem to exist between the HRM function and the strategic management function: administrative linkage, one-way linkage, two-way linkage, and integrative linkage.

Administrative linkage is lowest level of integration.

HRM function's attention is focused on day-to-day activities.

No input from the HRM function to the company's strategic plan is given.

For example, one company chose a strategy of cost reduction through technological improvements. It built a plant equipped with a computer-integrated manufacturing system with statistical process controls. Although this choice may seem like a good one, the company soon learned otherwise. It discovered that its employees could not operate the new equipment because 25% of the workforce was functionally illiterate.

If there is linkage between HR department and strategic planning process, what will happen?

In One-Way Linkage, the strategic business planning function develops the plan and then informs the HRM function of the plan.

HRM then helps in the implementation.

If there is one-way linkage between strategic planning and HRM, HRM then helps in the implementation by the following strategies.

First, the company can train all affected employees.

Second, the company may decide to identify computer-literate employees by using tests and work samples. Employees who fail the test can be reassigned to other jobs.

Integrative linkage is based on continuing, rather than sequential, interaction.

The HR executive is an integral member of the strategic planning team.

In the integrative linkage, HRM fully perform strategic role, and become the real human resource business partners.

Are you familiar with Wal-Mart?

It is the largest private company in the world, once ranked the first on the Fortune 500 list for three years.

What strategy does Wal-Mart adopt? Overall Low Cost Strategy.

Wal-Mart’s three biggest sources of cost advantage are low corporate overheads, low labor costs and emphasizing on efficiency.

A newly hired employee at Wal-Mart might earn as little as $8 an hour, some 20-30% less than unionized worker at rival discount stores.

The executives in Wal-Mart often take the economy class on business trips, and buy discount tickets.

WAL-MART's purchasing manager was arranged to live in a vacant student dormitory in a university in Summer.

The way of Wal-Mart managing its employees corresponds to its low cost strategy.

When Walmart formulates its strategy, the inputs from human resource are considered.

The first component is the organization’s mission. A mission is a statement of the organization's reasons for being.

Founded in 1668, Merck is the world's oldest pharmaceutical and chemical company.

Goals are what the organization hopes to achieve in the medium-to long-term future.

Objectives form a hierarchy, ranging from the broad aim to specific individual objectives.

For example, to increase the production output by 5% by December 31, 2015 without additional cost while maintaining the current quality level.

External analysis consists of examining the organization's operating environment to identify strategic opportunities and threats.

Internal analysis attempts to identify the organization's strengths and weaknesses.

An analysis of a company’s internal strengths and weaknesses also requires input from the HRM function.

A d

After an organization has chosen its strategy, it has to execute that strategy-make it come to life in its day-to-day workings. The strategy a company pursues dictates certain HR needs.

Five important variables determine success in strategy implementation: organizational structure; task design; the selection, training, and development of people; reward systems; and types of information and information systems.

As we see in this Figure， HRM has primary responsibility for three of these five implementation variables: task, people, and reward systems. In addition, HRM can directly affect the two remaining variables: structure and information and decision processes.

First, for the strategy to be successfully implemented, the tasks must be designed and grouped into jobs in a way that is efficient and effective. In chapter 4 we will examine how this can be done through the processes of job analysis and job design.

Second, the HRM function must ensure the organization is staffed with people who have the necessary knowledge, skill, and ability to perform their part in implementing the strategy. This goal is achieved primarily through recruitment, selection and placement, training and development—topics covered in Chapter 5,6, and 9.

In addition, the HRM function must develop performance management and reward systems that lead employees to work for and support the strategic plan. The specific types of performance management systems are covered in Chapter 8, and the many issues involved in developing reward systems are discussed in Chapters 11 through 13.

The details of each of these HRM practices are the focus of the rest of this book.

This section describes the concept of strategic human resource management and develops the strategic management process.

The HRM function needs to be integrally involved in the formulation of strategy to identify the people-related business issues the company faces.

Once the strategy has been determined, HRM has a profound impact on the implementation of the plan by developing and aligning HRM practices that ensure that the company has motivated employees with necessary skills.