1

Meeting Present and

Emerging Strategic
Human Resource
Challenges

© 2004 by Prentice Hall 1-1

Terrie Nolinske, Ph.D.
 Challenges facing HR
• How can HR influence firm
performance?

• How can HR cope with

workplace changes and trends?

• What are HR strategies that

help a firm achieve competitive
advantage?

© 2004 by Prentice Hall 1-2

Terrie Nolinske, Ph.D.
 Key HR Challenges for
Today’s Managers: Environmental

• Rapid change
• Workforce diversity
• Globalization
• Internet revolution
• Legislation
• Evolving work and family roles
• Skill Shortages
• Rise of the service sector

© 2004 by Prentice Hall 1-3

Terrie Nolinske, Ph.D.
 Key HR Challenges for
Today’s Managers: Organizational

• Quality, distinctive capabilities

• Decentralization
• Downsizing
• Organizational restructuring
• Self-managed work teams
• Small business growth
• Technology
• Outsourcing

© 2004 by Prentice Hall 1-4

Terrie Nolinske, Ph.D.
 Key HR Challenges for
Today’s Managers: Cultural
Basic assumptions and beliefs shared by
members of an organization…
• rules, norms
• behaviors
• philosophy
• dominant values
• feeling or climate
© 2004 by Prentice Hall 1-5
Terrie Nolinske, Ph.D.
 Individual Challenges
Key HR Challenges for
Today’s Managers: Individual
• Matching People and Organization
• Ethical dilemmas
• Social responsibility
• Productivity
• Empowerment
• Brain drain
• Job insecurity

© 2004 by Prentice Hall 1-6

Terrie Nolinske, Ph.D.
 Scope of Human Resources
management
 Objectives of HRM
 Organization of HRM
 Strategic HRM
 Employment
 Development
 Wage and Salary Administration
 Maintenance
 Motivation
 Industrial Relations
 Participative Management
© 2004 by Prentice Hall 1-7
Terrie Nolinske, Ph.D.
 Definition of Human Resource Management:
Human Resources Management means employing
people, developing their resources, utilizing,
maintaining and compensating their services in
tune with the job and organizational requirements
with a view to contribute to the goals of the
organization, individual and the society.

HRM can be defined as managing the functions of

employing, developing and compensating human
resources resulting in the creation of human
relations with a view to contribute proportionately
to the organizational, individual and social goals.

© 2004 by Prentice Hall 1-8

Terrie Nolinske, Ph.D.
 HR Strategy Leads to Improved
Organizational Performance

Organizational
Strategies Organizational
Capabilities

HR Strategies

Organizational
Characteristics
Environments

© 2004 by Prentice Hall 1-9

Terrie Nolinske, Ph.D.
 Porter’s Differentiation Strategy

• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on technical skills
• Emphasis on job-specific training
• Emphasis on job-based pay
• Use performance appraisal
© 2004 by Prentice Hall 1 - 10
Terrie Nolinske, Ph.D.
 Porter’s Low-cost
Leadership Strategy

• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on qualifications and skills
• Emphasis on job-specific training
• Emphasis on job-based pay
• Use of performance appraisal
© 2004 by Prentice Hall 1 - 11
Terrie Nolinske, Ph.D.
 Porter’s Focus Strategy

Low cost

Differentiation

© 2004 by Prentice Hall 1 - 12

Terrie Nolinske, Ph.D.
 Miles and Snow
Defender Strategy -- RECRUITING

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

© 2004 by Prentice Hall 1 - 13

Terrie Nolinske, Ph.D.
 Miles and Snow
Prospector Strategy -- RECRUITING

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

© 2004 by Prentice Hall 1 - 14

Terrie Nolinske, Ph.D.
Miles and Snow
Defender Strategy -- Compensation

• Fixed pay
• Job-based pay
• Seniority-based pay
• Centralized pay decisions

© 2004 by Prentice Hall 1 - 15

Terrie Nolinske, Ph.D.
Miles and Snow
Prospector Strategy -- Compensation

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

© 2004 by Prentice Hall 1 - 16

Terrie Nolinske, Ph.D.
 LEADERSHIP
How HR can be a Strategic Partner

• Understand styles of leadership

• Display appropriate leadership

• Demonstrate leadership at all levels

of performance – team, individual,
unit or organization

© 2004 by Prentice Hall 1 - 17

Terrie Nolinske, Ph.D.
 KNOWLEDGE OF BUSINESS
How HR can be a Strategic Partner
HR must understand…
• internal / external customers

• key business disciplines

• business structure, vision, values,

goals, strategies, finances

• competitors, products, technology

and sources of competitive advantage

© 2004 by Prentice Hall 1 - 18

Terrie Nolinske, Ph.D.
 STRATEGIC THINKING
How HR can be a Strategic Partner

• Understand strategic business planning

• Apply a systematic HR planning process
• Integrate HR systems to build capability
and competitive advantage for the firm
• Develop and integrate department
strategies within corporate framework

© 2004 by Prentice Hall 1 - 19

Terrie Nolinske, Ph.D.
 PROCESS SKILLS
How HR can be a Strategic Partner

• Know management processes

• Know process skills: consulting, problem
solving, evaluation and communication
• Understand organizational development
• Facilitate and manage change
• Manage under uncertainty and instability

© 2004 by Prentice Hall 1 - 20

Terrie Nolinske, Ph.D.
 TECHNOLOGY
How HR can be a Strategic Partner
• Maintain HR documentation using
knowledge management and
technology
• Build firm’s capability using info
systems
• Provide training in use of technology

© 2004 by Prentice Hall 1 - 21

Terrie Nolinske, Ph.D.