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A Strategic Management
Approach to HRM
McGraw-Hill/Irwin
Human Resource Management, 10/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Introduction
Taking a strategic HRM approach means:
Making human resources management a top priority
Integrating HRM with the company’s strategy,
mission, and goals
HRM can make significant contributions if included
in the strategic planning process from the outset
The strategic management process helps determine:
What must be done to achieve priority objectives
How they will be achieved
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Introduction
Productivity is:
An important part of a nation's economic condition
Representative of an organization’s overall efficiency
The output of goods and services per unit of input
(resources) used in a production process
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Economic Conditions
Before productivity can be managed and improved,
it must be measured
Isolate the outputs
Determine the costs that went into producing the
output
Compare the current year's figures with those of the
previous year
Productivity measures are crude and subject to
short-term error, but over time can show a trend
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Economic Conditions
Suggestedsolutions for increasing productivity:
Reduce government controls
Develop more favorable income tax incentives
Reindustrialize the business-industrial complex
Contrary to stereotypes:
Employees 45+ have no
more accidents than
younger ones
Until age 55, absenteeism rates are the same or lower
Employees under 35 have the worst accident rate
When total performance is considered, older
employees are just as effective as younger ones
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Employment Projection
Theten fastest-growing occupations:
Computer software, engineers, applicants
Computer support specialists
Computer software, engineers, systems software
Network and computer system administrators
Network systems and data communication analysts
Desktop publishers
Database administrators
Personal and home care aides
Computer systems analysts
Medical assistants
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Geographic Location of the Organization
The location of the organization influences hiring
practices and HRM activities
Rural versus urban
International versus local
Education
Behavior
Legal-political factors
Economics
Inter-cultural training
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Internal Environmental Influences
HRM programs are influenced by:
Strategy
Goals
Organizational culture
Nature of the task
Work groups
The leader’s style and experience
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Strategy
Astrategy:
Indicates what an organization's key executives hope
to accomplish in the long run
Is concerned with competition and aligning the
resources of the firm
Some companies believe long-term success is linked
to helping employees achieve work-life balance
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Goals
Organizational goals differ within and among
departments
Most departments have similar goals
Differences arise from the importance placed on the
goals
In organizations where profits take precedence,
HRM goals receive little attention
This results in effectiveness problems (absenteeism,
performance decrements, high grievance rates)
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Goals
Members:
Have eye contact and work closely together
Have similar backgrounds
Depend on the group to satisfy their needs
Planning also:
Expands awareness of possibilities
Identifies strengths and weaknesses
Reveals opportunities
Points to the need to evaluate the impact of internal
and external forces
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Strategic HRM: A Key to Success
Organizational strategic plans permit HR to prepare
for internal and external environment changes
Each organization should adopt a strategy that best
fits its goals, environment, resources, and people
An organization must match its:
Strategic plan
Employees' characteristics
HRM activities
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Strategic HRM: A Key to Success
The days of viewing HRM as only a highly
specialized and technical staff are over
HRM must be involved in all aspects of an
organization's operation
It must make everyday contributions to the
organization
HRM programs must be:
Comprehensive
Adapted to the organization's culture
Responsive to employee needs
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Strategic Challenges Facing HRM
Global competition has become intense
HRM professionals are now being asked to optimize
the skills, talents, and creativity of every employee
Failure to do so will mean the firm cannot compete in
a globally interconnected world
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Strategic Challenges Facing HRM
Technology trends:
Growth in knowledge needs
Shift in human competencies
Global market connection
Business streamlining
Rapid response
Quicker innovation
Quality improvement
Industrial revolution
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Building a Cooperative Workforce
TheU.S. workforce is changing in dramatic ways:
There is a slower increase in the number of Caucasian
workers than other groups
By 2006, white males will no longer dominate the
workforce
Women are entering the workforce in record numbers
The number of Hispanic, Asian, and older workers
will continue to rise
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Building a Cooperative Workforce
The changing look, age, and needs of the workforce
have resulted in more concern about:
Child care
Elder care
Diversity understanding and training