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HR STRATEGY. MANA 3320 Dr. Jeanne Michalski. Strategic Planning and Human Resources. Strategic Planning Procedures for making decisions about the organization’s long-term goals and strategies Human Resources Planning (HRP)

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Hr strategy


MANA 3320

Dr. Jeanne Michalski

Strategic planning and human resources

Strategic Planning and Human Resources

  • Strategic Planning

    • Procedures for making decisions about the organization’s long-term goals and strategies

  • Human Resources Planning (HRP)

    • Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.

Strategic planning and hr planning

Strategic Planning and HR Planning

  • Strategic Human Resources Management (SHRM)

    • The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals

      • Strategy formulation—providing input as to what is possible given the types and numbers of people available.

      • Strategy implementation—making primary resource allocation decisions about structure, processes, and human resources.

Mission vision and values

Mission, Vision, and Values

  • Mission

    • The basic purpose of the organization as well as its scope of operations

  • Strategic Vision

    • A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent

  • Core Values

    • The strong and enduring beliefs and principles that the company uses as a foundation for its decisions

Changing views of hr

Changing Views of HR

  • Business strategies require specific skills and behaviors to be successful.

  • HR practices can be crafted to develop certain types of skills and encourage behaviors.

  • HR practices should support the “core competencies” and strategy of the organization.

Hr alignment

HR Alignment

Hr alignment1

HR Alignment


Hr alignment2

HR Alignment



Business strategy

Business Strategy

  • Value Creation

    • What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted (value = benefits — costs).

    • Low-cost strategy: competing on productivity and efficiency

      • Keeping costs low to offer an attractive price to customers (relative to competitors).

    • Differentiation strategy: compete on added value

      • Involves providing something unique and distinctive to customers that they value.

Business strategy cont d

Business Strategy (cont’d)

  • Functional Strategy: Ensuring Alignment

    • External Fit/Alignment

      • Focuses on the connection between the business objectives and the major initiatives in HR.

    • Internal Fit/Alignment

      • Aligning HR practices with one another to establish a configuration that is mutually reinforcing.

How do they compete

How do they compete?

  • Wal-Mart

  • Apple

  • McDonald’s

  • Starbucks

Mcdonalds vs starbucks

McDonalds’ vs. Starbucks

Rapid growth

Rapid Growth

Starbucks opens three new stores every day.

2006 = 12,440

2005 = 10,241

2004 = 8,337

2003 = 7,225

2002 = 5,886

2001 = 4,709

2000 = 3,501

1990 = 84

  • 120,000 employees worldwide

  • The long-term goal is 30,000 around the world, including 15,000 in the U.S.

  • The company is adding people at the rate of 200 a day.

Starbucks strategy

Starbucks Strategy

  • Price of a tall latte in the U.S. is around $3.00

  • High-speed wireless Internet service – now available at Starbucks.

  • October 1, 2007 “Starting tomorrow at certain Starbucks stores, a person with an iPhone or iTunes software loaded onto a laptop can download the songs they hear over the speakers directly onto those devices.”

  • Rapid growth.

Howard schultz on starbuck s strategy

Howard Schultz on Starbuck’s Strategy

1997 Interview w/ Larry King:

“So the question is: How could a company create retail stores where coffee was not previously sold, ... charge three times more for it than the local doughnut shop, put Italian names on it that no one can pronounce, and then have six million customers a week coming through the stores?”

Working at starbucks

Working at Starbucks

The downside:

  • Salaries are low

  • Shift assignments are unpredictable

  • Number of working hours cannot be relied upon.

    The upside:

  • Flexibility

  • Company culture

  • Employee empowerment

  • Benefits package

  • Fortune magazine #16 best companies to work for in U.S.

Hr strategy

Working at Starbucks

Partners who work full time or part time (generally 20 hours or more per week) may participate in a variety of programs including:

  • Progressive Compensation

  • Healthcare Benefits (Medical, Prescription Drugs, Dental and Vision)

  • Retirement Savings Plan

  • Stock Options and Discounted Stock Purchase Plan “Bean Stock”

  • Income Protection Plan (Life and Disability Coverage)

  • Management Bonus Plan

  • Adoption Assistance Plan

  • Domestic partner benefits

  • Referral programs and support resources for child and eldercare

  • Employee involvement

  • A pound of coffee each week


  • To woo europeans mcdonald s goes upscale

    “To Woo Europeans, McDonald’s Goes Upscale”

    McDonald’s in London

    NYT August 25, 2007

    Mcdonald s goes upscale

    McDonald’s Goes Upscale

    • Aiming to create a more relaxed experience in a sophisticated atmosphere, McDonald’s is replacing bolted-down plastic yellow-and-white furniture with lime-green designer chairs and dark leather upholstery.

    • The changes are more than cosmetic. McDonald’s is introducing healthier foods and items that cater to regional tastes, like caffè lattes.

    • Hoping to attract more young adults and professionals, the chain is also adding amenities like Internet access and rental iPods.

    • The original impetus for the makeover was a European sales slump in the late 1990s, brought on by concerns about obesity and annoyance at unappealing décor and grumpy employees.

    Competitive advantage

    Competitive Advantage

    Technological Capability

    Competitive advantage1

    Competitive Advantage


    Technological Capability



    Competitive advantage2

    Competitive Advantage

    Technological Capability






    Competitive advantage3

    Competitive Advantage











    Capabilities people as a strategic resource

    Capabilities: People as a Strategic Resource

    • Core Capabilities

      • Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

    • Sustained competitive advantage through people is achieved if these human resources:

      • Are valuable.

      • Are rare and unavailable to competitors.

      • Are difficult to imitate.

      • Are organized for teamwork and cooperation.

    Company vision example

    Company Vision - Example

    • Provide transportation services that consistently meet customers expectations

    Strategic initiatives example

    Strategic Initiatives – Example

    • People

    • Growth

    • Efficiency

    • Ease of Doing Business

    • Service

    Human resources vision

    Human Resources Vision

    • HR makes it happen for “Company”

      Great Company…...

      Great People……

      Great Leaders…..

      …….Engaged in delivering extraordinary results

    People strategies

    People Strategies

    • Drive Performance Ethic

    • Transform Leaders

    • Enhance Talent

    • Engage all Employees

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