Chapter 2

The Manager’s Role in Strategic Human Resource Management

Why Strategic Planning is Important to all Managers
The firm’s strategic plan guides much of what is done by all to accomplish organizational
goals.Decisions made by managers depend on the goals set at each organizational level in
support of higher level goals.

PLANNING PROCESS
Set Objective
Devolp Forecast And Check Alternative Course Of Action
Devolpe Alternative Corse Action
Evaluate Alternative Course Action
Select And Implement It
Strategy
A course of action the organization intends to pursue to achieve its strategic aims.
Strategic Plan
How an organization intends to match its internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive advantage over the long term.
Strategic Management
The process of identifying and executing the organization’s mission by matching its capabilities
with the demands of its environment.
Leveraging
Capitalizing on a firm’s unique competitive strength while underplaying its weaknesses.
STRATEGIC MANAGEMENT PROCESS
Step 1: Define the Current Business and Mission
Decisions on:
• Products and services to provide
• Where to sell them
• Product/Services differences from competitors
Example: Rolex sells high-priced quality watches vs. Seiko sells inexpensive but innovative
watches

Step 2: Perform Internal and External Audits

Analyze external and internal situations. Usage of SWOT (Strengths, Weaknesses, Opportunities
and Threats) analysis through the usage of a SWOT chart

Step 3: Formulate a New Business Mission and Its Vision

Vision
A general statement of the firm’s intended direction; it shows, in broad terms, “what we want to
become”
Mission
Summaries the answer to the question, “What business are we in”

Step 4: Translate Mission into Strategic Goals

If the company’s mission is “to make quality products”, what does this mission mean, for
each department, in terms of how to improve quality?

Step 5: Formulate Strategies to Achieve Strategic GoAL

 Strategy: A course of actionShows how company will move from the present business to the
new business
Step 6: Implement the Strategies
Implementation = putting into action
• Hiring people
• Building plants adding new product lines
• Involves management functions:
• Plan
• Organize
• Staff
• Lead &Control

Step 7: Evaluate Performance

Success of strategies dependent on changes in external factors
• E.g. New trends may reduce demand in one product and increase the demand for
another
• Strategic Control necessary
• Process of accessing progress towards strategic goals and taking corrective
actions
• Managers study new situations and make adjustments

Three types of strategies:

1) Corporate strategy
2) Competitive strategy
3) Functional strategy

• Corporate strategy
1) Company-wide
2) Identifies the portfolio of businesses that, in total, comprise the company and the ways in
which these businesses relate to each other.

• Four possible Corporate Strategies:

1) Diversification strategy implies that the firm will expand by adding new product lines.
2) Vertical integration strategy means the firm expands by, perhaps, producing its own raw
materials, or selling its products direct.
3) Consolidation strategy reduces the company’s size
4) Geographic expansion strategy takes the company abroad.

Business-level/Competitive Strategy
• Identifies how to build and strengthen the business’s long-term competitive position in the
marketplace.

Three possible Competitive Strategies:

• Cost leadership: the enterprise aims to become the low-cost leader in an industry.
• Differentiation: a firm seeks to be unique in its industry along with the
dimensions that are widely valued by buyers.
• Focus: a firm seeks to carve out a market niche, and compete by providing a
product or service customers can get in no other way.
• Functional Strategies
Identify the basic courses of action that each department will pursue in order to help the
business attain its competitive goals. HAR DEPARTMENT KYA KERA G GOALS KO
ACHIEVE KERNA M

Competitive advantage
• Any factor that allows an organization to differentiate its product or service from those of its
competitors to increase market share.
• Superior human resources are an important source of competitive advantage
• E.g. Toyota’s self-managed teams

Strategic Human Resource Management

The linking of HRM with strategic goals and objectives in order to improve business
performance and develop organizational cultures that foster innovation and flexibility.
Involves formulating and executing HR systems—HR policies and activities—that produce
the employee competencies and behaviors that the company needs to achieve its strategic
aims.

Managers use several tools to translate the company’s strategic goals into human resource
management policies and practices. These tools include the strategy map, the HR scorecard,
and the digital dashboard.
Strategy Map
A strategic planning tool that shows the “big picture” of how each department’s performance
contributes to achieving the company’s overall strategic goals
HR scorecard A process for assigning financial and nonfinancial goals or metrics to the human
resource management– related chain of activities required for achieving the company’s strategic
aims and for monitoring results.
Digital Dashboard Presents the manager with desktop graphs and charts, and shows a
computerized picture of where the company stands on all those metrics from the HR scorecard
process.

Human Resource Metrics: activity sati hr ki

Benchmarking: aik employee kese kam kera kis had tak kitna acha ker rha

Strategy-based Metrics : company activiy kis trah contribute kr rai strategic aim ko
achieve kerna
Metrics that specifically focus on measuring the activities that contribute to achieving a
company’s strategic aims.
An HR audit is an analysis of the completeness, efficiency, and effectiveness of the
organization’s HR functions, including its HR policies, practices, processes, and relevant metrics.

High-performance Work System (HPWS) A set of human resource management policies and
practices that promote organizational effectiveness
Chapter 3
Job Analysis and the Talent Management Process

Talent Management
The goal-oriented and integrated process of planning, recruiting, developing, managing, and
compensating employees.

Talent Management Process

1. Decide what positions to fill, through job analysis, personnel planning, and forecasting.
1. Build a pool of job applicants, by recruiting internal or external candidates.
2. Obtain application forms and perhaps have initial screening interviews.
3. Use selection tools like tests, interviews, background checks, and physical exams to
identify viable candidates.
4. Decide to whom to make an offer.
5. Orient, train, and develop employees so they have the competencies to do their jobs.
 6. Appraise employees to assess how they’re doing.
7. Compensate employees to maintain their motivation.

Talent Management Software: Employers use talent management software to help

ensure that their talent management activities are aimed in a coordinated way to achieve
the company’s HR aims.
The Basics of Job Analysis: Terms
Job Analysis : kis trah ki duties ki zarorat or kis tah k bnda hire kerna
1. The procedure for determining the duties and skill requirements of a job and the
kind of person who should be hired for it.
2. Job analysis produces information for writing job descriptions and job
specifications.
Job Description A list of a job’s duties, responsibilities, reporting relationships, working
conditions, and supervisory responsibilities—one product of a job analysis (a list of what the job
entails).
Job Specifications A list of a job’s “human requirements,” that is, the requisite education, skills,
personality, and so on—another product of a job analysis (what kind of people to hire for the
job).

Types of Information Collected via the Job Analysis

• Work activities: Actual work activities of the job how, why, and when the worker
performs each activity.
• Human behaviors: Human behaviors the job requires communicating, deciding, and
writing or walking long distances.
• Machines, tools, equipment, and work aids: Machines, tools, equipment, and work aids
used on the job, materials processed, knowledge dealt with or applied, and services
rendered.
• Performance standards: Standards of expected employee job performance quantity
and/or quality output levels that can be used to appraise employees.
• Job context: The organizational and social context in which the job exists physical
working conditions, work schedules, and incentives.
• Human requirements: The job’s human requirements, job-related knowledge or skills
(education, training, work experience) and required personal attributes (aptitudes,
physical characteristics, personality, interests).
Job analysis provides the information required for other organizational activities that depend on
and also support the job.
Uses of Job Analysis Information to Support HR Activities:
Recruitment and Selection
Job analysis provides required duties and desired human characteristics information needed to
effectively recruit and select individuals for jobs.
• Compensation
Compensation usually depends on skills and education level, degree of responsibility and so on
are assessed by job analysis.
• Training
Knowledge of specific duties and requisite skills of a job is required for proper Training of
employees.

Performance Appraisal
Correctly conducting a Performance Appraisal requires knowledge of the job’s duties and
standard.
• Discovering Unassigned Duties
Job analysis is a method for Discovering Unassigned Duties that should become a formal part of
a job.
• EEO Compliance
Job analysis is required to validate essential job functions and EEO Compliance under the
Uniform Guidelines on Employee Selection.

Methods for Collecting Job Analysis Information

Interviews
Questionnaires
Observations
Diaries/Logs
Job Analysis: Interviewing Guidelines
• The job analyst and supervisor should work together to identify the workers who know
the job best.
• Quickly establish rapport with the interviewee.
• Follow a structured guide or checklist, one that lists open-ended questions and provides
space for answers.
 • Ask the worker to list his or her duties in order of importance and frequency of
occurrence.
• After completing the interview, review and verify the data.

Methods for Collecting Job Analysis Information: The Interview

Information Sources
• Individual employees
• Groups of employees
• Supervisors with knowledge of the job
• Advantages
• Quick, direct way to find overlooked information
• Disadvantage
• Distorted information
Interview Formats
• Structured (Checklist)
• Unstructured
• Information Source
• Have employees fill out questionnaires to describe their job-related duties and
responsibilities
• Questionnaire Formats
• Structured checklists
• Open-ended questions
Advantages
Quick and efficient way
to gather information
from large numbers of employees
Disadvantages
Expense and time consumed in preparing and testing the questionnaire

Information Source
 -Observing and noting the physical activities of employees as they go about their jobs by
managers.
Advantages
-Provides first-hand information
-Reduces distortion of information
Disadvantages
Time consuming
• Reactivity response distorts employee behavior
• Difficulty in capturing
entire job cycle
• Of little use if job involves a high level of mental activity
Information Source
• Workers keep a chronological diary or log of what they do and the time spent on each activity
Advantages
• Produces a more complete picture of the job
• Employee participation
• Disadvantages
• Distortion of information
• Depends upon employees to accurately recall their activities

WRITING A JOB DESCRIPTION

There is no standard format for writing a job description. However, most descriptions contain
sections that cover:
• Job identification
• Job summary
• Responsibilities and duties
• Authority of incumbent
• Standards of performance
• Working conditions
• Job specification

“What human traits and experience are required to do this job well?”
-Job specifications for trained versus untrained personnel
-Job specifications based on judgment
- Job specifications based on statistical analysis
The job specification focuses on the person in answering the question, “What human traits and
experience are required to do this job effectively?”
It shows what kind of person to recruit and for what qualities you should test that person. The job
specification may be a section of the job description, or a separate document.
Job specifications for trained employees focus on traits like length of previous service,
quality of relevant training, and previous job performance.
In the Job specifications for untrained employees focus on specific qualities such as physical
traits, personality, interests or sensory skills that imply some potential of performing or for being
trained to do the job.
Job specifications can be based on the best judgments of the common-sense experiences of
supervisors and human resource managers. The basic procedure here is to ask, “What does it take
in terms of education, intelligence, training, and the like to do this job well?”
Basing job specifications on statistical analysis is more defensible than the judgmental approach
because equal rights legislation forbids using traits that can’t be proved to distinguish between
high and low job performers.
Steps in the Statistical Approach
Analyze the job and decide how to measure job performance.
1. Select personal traits that you believe should predict successful performance.
2. Test candidates for these traits.
3. Measure the candidates’ subsequent job performance.
4. Statistically analyze the relationship between the human traits and job performance.

Job Design
Job Enlargement: attempts to make work more motivating by assigning workers additional
same-level activities.
Job Rotation: involves systematically moving workers from one job to another to enhance work
team performance and/or to broaden his or her experience and identify strong and weak points to
prepare the person for an enhanced role with the company.
Job Enrichment: involves redesigning jobs in a way that increases the opportunities for the
worker to experience feelings of responsibility, achievement, growth, and recognition.
Chp The Recruitment and Selection Process

Workforce (or Employment or Personnel )Planning The process of deciding what positions
the firm will have to fill, and how to fill them.
Succession Planning The process of deciding how to fill the company’s most important
executive jobs.
What to Forecast?
• Overall personnel needs
• The supply of inside candidates
• The supply of outside candidates

Forecasting Personnel Needs

Trend analysis can provide an initial estimate of future staffing needs, but employment
levels rarely depend just on the passage of time. Other factors (like changes in sales volume
and productivity) also affect staffing needs.
• Ratio analysis provides forecasts based on the historical ratio between (1) some causal factor
(like sales volume) and (2) the number of employees required (such as number of
salespeople).
• A scatter plot shows graphically how two variables—such as sales and your firm’s staffing
levels—are related. If they are, and then if you can forecast the business activity (like sales),
you should also be able to estimate your personnel needs.
Drawbacks to Traditional
They focus on projections and historical relationships.
They do not consider the impact of strategic initiatives on future staffing levels.
They support compensation plans that reward managers for managing ever-larger staffs.
They used the idea that staff increases are inevitable.
They validate and institutionalize present planning processes and the usual ways of doing things.
Forecasting the Supply of Inside Candidates
Manual Systems
Department managers or owners of smaller firms often use manual devices to track employee
qualifications. Thus a personnel inventory and development record form compiles qualifications
information on each employee.
Computerized Skills Inventories
Computerized skills inventory data typically include items like work experience codes, product
knowledge, the employee’s level of familiarity with the employer’s product lines or services, the
person’s industry experience, and formal education.
Personnel replacement charts
Personnel replacement charts ,are another option, particularly for the firm’s top positions. They
show the present performance and promotability for each position’s potential replacement.
Position Replacement Card
As an alternative, with a position replacement card you create a card for each position, showing
possible replacements as well as their present performance, promotion potential, and training.
• Forecasting Outside Candidate Supply
Factors In Supply of Outside Candidates
• General economic conditions
• Expected unemployment rate
• Sources of Information
• Periodic forecasts in business publications
• Online economic projections