Ch 2: Strategic Human Resource Management

Internal Growth Strategy

A focus on new market and product development, innovation, and joint ventures. Employees are rewarded dependent on what the company is looking to grow.

Strategic Human Resource Management

A patter of planned human resource deployments and activities intended to enable an organization to achieve it's goals.

Business Model

A story of how the firm will create value for customers and how it will do so profitably.

Concentration Strategy

A strategy focused on increasing market share, reducing costs, or creating and maintaining a market niche for products and services. A company is focusing on what it does best in it's market and employees are rewarded for maintaining current skills.

External Growth Strategy

An emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new markets. "People issues" is one of the main reasons this method is not successful because combining two company's could be difficult if they do not share similiar organizational values.

Analytic Approach

Assessment of HRM effectiveness that involves determining the impact and financial outcome of a program or practice. Did the program have the intended effect and what were the costs of implementing it.

Audit Approach

Assessment of HRM effectiveness that involves review of customer satisfaction or key indicators (turnover rate) related to an HRM functional area (recruitment).

Integrative Link

Based on continuing not sequential interaction. HRM executive is a member of the strategic planning team and HRM is built into strategy formulation.

Business Driven Strategies

Begins with identifying major business needs and issues, consider how people fit in and what people outcomes are necessary, and then build HR systems focused on meeting those needs.

Role Behaviours

Behaviours that are required of an individual in his or her role as a jobholder in a work environment.

New technologies

Current applications been of knowledge, procedure, and equipment that haven't been previously used. Often it replaces human labour with equipment.

Self service

Giving employees online access to HR info, online enrollment in programs, and completing online attitudes surveys.

Two-Way Link

HRM is considered during strategy formation as well as strategy implementation. It involves the strategic planning team informing HRM of stategies being considered, HRM analyzing the implications of each strategy, and once a strategy is chosen, the HRM function implements it. HRM and strategic planning are dependent on one another.

Administrative Link

HRM is focused on day-to-day activities and the company's strategy exists with no HRM input. This is the lowest level of integration between HRM and strategy.

Reengineering

Review and redesign of work processes to make them more efficient and improve the quality of the end product or service.

Emergent Strategies

Strategies that evolves from the roots of the organization and can be thought of as what organizations actually do, as opposed to what they intend to do. Often identified by lower level employees.

One-Way Link

The firms strategy is developed independent of the HRM function who are then asked to design and implement the strategic plan. No HRM issues are considered while the plan is formed.

Downsizing

The planned eliminating a large numbers of personnel, designed to enhance organizational effectiveness. It can negatively affect a company's reputation.

Outsourcing

The practice of having another company provide services.

Strategy Formulation

The process of deciding on a strategic direction by defining a company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses. AKA a SWOT analysis. Alternatives are developed and then the alternative that is most likely to achieve company objectives is chosen.

Strategy Implementation

The process of devising structures, ensuring the firm as employees with the necessary skill sets, developing reward systems, and allocating resources to enact the chosen strategy.

Intended Strategies

The results of the rational decision-making process used by top managers as they develop a strategic plan.