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Chapter 2 & 5a. Strategic Management & Planning. Strategic HR Management. The use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness. Part 1. Productivity & HR. Productivity.

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strategic hr management
Strategic HR Management
  • The use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness.

Chapter 2 & 5a

part 1
Part 1
  • Productivity & HR

Chapter 2 & 5a

productivity
Productivity
  • A measure of the quantity and quality of work done, considering the cost of the resources used.
  • A ratio of the inputs and outputs that indicates the value added by an organization.
    • Unit labor cost: computed by dividing the average cost of workers by their average levels of output

Chapter 2 & 5a

improving organizational productivity
Improving Organizational Productivity
  • Organizational restructuring
  • Re-designing work
  • Aligning HR Activities
  • Outsourcing analyses and assistance

Chapter 2 & 5a

organizational culture effectiveness
Organizational Culture & Effectiveness
  • Organizational Culture
    • The shared values and beliefs in an organization
  • Strategy and culture must be compatible.
  • Culture affects recruitment and retention of employees.
  • Culture can enhance or constrain organizational performance.

Chapter 2 & 5a

part 2
Part 2
  • HR Planning

Chapter 2 & 5a

human resource planning
Human Resource Planning
  • Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization.
  • Purpose of HR Planning
    • right people with right skills at right place at right time

Chapter 2 & 5a

types of workers needed
Types of Workers Needed
  • Core knowledge workers
  • Traditional job-based employees
  • Contract labor
  • Alliance/partners

Chapter 2 & 5a

1 core knowledge workers
1. Core knowledge workers
  • Employees who have firm-specific skills that are directly linked to the company’s strategy.
  • Example: Senior software programmer

Chapter 2 & 5a

2 traditional job based workers
2. Traditional Job-based workers
  • Employees with skills to perform a predefined job that are quite valuable to a company, but not unique.
  • Example: Security guard

Chapter 2 & 5a

3 contract labor
3. Contract Labor
  • Employees whose skills are of less strategic value and generally available to all firms.
  • Example: General electrician

Chapter 2 & 5a

4 alliance partners
4. Alliance/Partners
  • Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.
  • Example: Independent product label designer

Chapter 2 & 5a

hr planning model
HR Planning Model
  • Forecast Demand
  • Forecast Supply
  • Find balance
    • Shortage – recruit: full-time, part-time, recalls
    • Surplus – Layoffs, terminations, demotions, retirements

Chapter 2 & 5a

forecasting work requirements
Forecasting Work Requirements
  • Determine expected production for department for specific time period
    • 10,000 T-shirts per month
  • Determine how many labor hours it will take to meet production goal
    • Each worker makes 10/hr 10,000/10 = 1000 hours

Chapter 2 & 5a

forecasting work requirements1
Forecasting Work Requirements
  • Convert work hours to work days
    • With 8 hr shifts  1000/8 = 125 days
  • Divide needed workdays by workdays-per-period
    • With 20 workdays/month  125/20 = 6.25 people

Chapter 2 & 5a

forecasting work requirements2
Forecasting Work Requirements
  • Make allowances for absences, training, and leaves
    • Round up to 7 people
  • Search for other ways to meet your schedule
    • i.e. overtime, transfers, borrow employees, temps
    • instead of 7 line workers to do 6.25 work, hire 6 & work a little overtime

Chapter 2 & 5a

your goal
Your Goal:
  • Make sure employees on hand matches workload

Chapter 2 & 5a

overstaffing
Overstaffing
  • Having more workers than minimum necessary
    • Costs & flexibility increase
    • Efficiency drops
    • Coaching & training opportunities may be taken

Chapter 2 & 5a

understaffing
Understaffing
  • Having fewer workers than minimum necessary
    • Can get you behind schedule
    • Costs may end up higher as you try to make up the difference
    • Can bring out creativity

Chapter 2 & 5a

effective staffing
Effective Staffing
  • The right number & kinds of workers on the right jobs at the right times

Chapter 2 & 5a

forecasting internal labor supply1
Forecasting Internal Labor Supply
  • Staffing Tables
    • Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements.
  • Markov Analysis
    • A method for tracking the pattern of employee movements through various jobs

Chapter 2 & 5a

internal supply forecasting tools
Internal Supply Forecasting Tools
  • Skill Inventories
    • Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds.
  • Replacement Charts
    • Listings of current jobholders and persons who are potential replacements if an opening occurs.

Chapter 2 & 5a

internal supply forecasting tools1
Internal Supply Forecasting Tools
  • Succession Planning
    • The process of identifying, developing, and tracking key individuals for executive positions

Chapter 2 & 5a

factors influencing external labor supply
Factors influencing external labor supply
  • Demographic changes in the population
  • National and regional economics
  • Education level of the workforce
  • Demand for specific employee skills
  • Population mobility
  • Governmental policies

Chapter 2 & 5a

part 3
Part 3
  • Managing a HR Surplus

Chapter 2 & 5a

warn act
WARN Act
  • Workforce Reductions and the Worker Adjustment and Retraining Notification
    • Sets out employer requirements for advance notice of a layoff or facility closing.
      • 60-day notice to employees and the local community before a layoff or facility closing involving more than 50 people.
      • Does not cover part-time or seasonal workers.
      • Imposes fines for not following notification procedure.
      • Has hardship clauses for unanticipated closures or lack of business continuance capabilities.

Chapter 2 & 5a

workforce realignment
Workforce Realignment
  • “Downsizing”
  • “Rightsizing”
  • “Reduction in Force” (RIF)
  • all mean reducing the number of employees in an organization

Chapter 2 & 5a

realignment causes
Realignment Causes
  • Economic
    • weak product demand, loss of market share to competitors
  • Structural
    • technological change, mergers and acquisitions

Chapter 2 & 5a

realignment positives
Realignment Positives
  • Increase competitiveness
  • Increased productivity

Chapter 2 & 5a

realignment negatives
Realignment Negatives
  • Cannibalization of HR resources
  • Loss of specialized skills and experience
  • Loss of growth and innovation skills

Chapter 2 & 5a

managing realignment survivors
Managing Realignment Survivors
  • Provide explanations for actions and the future
  • Involve survivors in transition/regrouping activities

Chapter 2 & 5a

how to downsize
How to Downsize
  • Attrition and hiring freezes
    • Not replacing departing employees and not hiring new employees
  • Voluntary Separation Programs
    • Early retirement buyouts.

Chapter 2 & 5a

how to downsize1
How to Downsize
  • Layoffs
    • Employees are placed on unpaid leave until called back to work when business conditions improve.
    • Employees are selected for layoff on the basis of their seniority or performance or a combination of both.

Chapter 2 & 5a

how to downsize2
How to Downsize
  • Outplacement services provided to displaced employees:
    • Personal career counseling
    • Resume preparation and typing services
    • Interviewing workshops
    • Referral assistance
    • Severance payments
    • Continuance of medical benefits
    • Job retraining

Chapter 2 & 5a