15 660 strategic human resource management
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15.660 Strategic Human Resource Management. MIT Sloan School of Management. Objectives. Review lessons from Southwest Airlines case To link explicitly a firm’s strategy and key success factors to its HR policies and practices To evaluate the economic costs and benefits of Portman’s strategy

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15.660 Strategic Human Resource Management

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15 660 strategic human resource management

15.660 Strategic Human Resource Management

MIT Sloan School of Management


Objectives

Objectives

  • Review lessons from Southwest Airlines case

  • To link explicitly a firm’s strategy and key success factors to its HR policies and practices

  • To evaluate the economic costs and benefits of Portman’s strategy

  • To consider how HR alignment and consistency relate to the execution of strategy


15 660 strategic human resource management

Portman’s Hotel

1. What evidence is there that Portman is having

problems?

2. What are the causes of these problems?

3. To what extent are Portman’s human resource

policies consistent with its strategy? With

each other?

4. What should Portman do? How much should

Portman be willing to spend to solve their

problems?


Portman s vision

Portman’s Vision

“We know that if we want customers treated better we should treat each other better. Wewant to make the Portman the most fulfilling, fun work experience that anyone on the staff has ever had. We want to be the best employerin San Francisco, to show our trust and pridein each person on our staff, and to work in waysthat help each person to grow, both personallyand professionally.”


Are portman s hr policies consistent with their strategy internally consistent

Are Portman’s HR Policies Consistentwith their Strategy? Internally Consistent?

  • •Vision/philosophy •Recruiting

  • •Participation

  • •Staffing

  • •Cross utilization

  • •Job design

  • •Teams

  • •Training

•Base pay

•Incentive pay

•Benefits

•Job security

•Ownership

•Information sharing

•Measurement of practices

•Long-term perspective


Portman hotel

Portman Hotel

How much should Portman

be willing to spend to fix the

problems you’ve identified?


Portman hotel1

Portman Hotel

Pat Mene

Managing Director

Assistant Manager

(Vacant)

Director of

Marketing

Joe Villa

Director of

Human Resources

Spencer Scott

Guest Room Service


Job design considerations

Job Design Considerations

Core Job

Dimensions

Psychological

States

Work

Outcomes

Intrinsic

Motivation

Skill Variety

Task Identity

Task Significance

Meaningfulness

Quality

Autonomy

Responsibility

Satisfaction

Knowledge

of Results

Absenteeism

Turnover

Feedback


To enrich jobs consider the following

To Enrich Jobs, Consider the Following...

Form Natural Work Units

Combine Tasks

Establish Client Relationships

Increase Task Responsibility

Open Feedback Channels

Task Identity

Skill Variety

Task Significance

Autonomy

Feedback


Job design considerations1

Job Design Considerations

  • Technological efficiency. Are the tasks performed efficiently in terms of level of output per unit of labor input(adjusting for the cost of labor inputs)?

  • Flexibility. How flexible is the organization in adjusting to both temporary and more permanent changes in its external environment?

  • Explicit extrinsic incentives.To what extent can (must?) workers be given explicit, extrinsic incentives that will lead them to act in the fashion desired by the organization?


Job design considerations cont d

Job Design Considerations Cont’d

  • Intrinsic motivation and commitment. To what extent are workers intrinsically motivated to perform well? To what extent does the job design encourage or foster commitmentto the organization?

  • Social aspects. Does the job design foster positive peer pressure and discourage negative peer pressure? Are social comparisons fostered or defused? Do workers benefit from positive social interactions on the job?


Narrow jobs

Narrow Jobs

Technological efficiency (pin factory)

Learning easier

Incentives easier


Broad jobs

Broad Jobs

Uses peoples minds

Creates organizational flexibility

Increases organizational

commitment (more social interaction)


Conclusion

Conclusion

  • Next Class:

    • NUMMI


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