Human Resources Management Strategies

  1. People and Culture Practices
    Align with Organization Strategy & Operating Systems
  2. Managing Culture
    Is Strategic
  3. Executing Systems with
    Diligence is Key
  4. Past
    is no guarantee of future - emerging challenges
  5. Human Resources
    Strategy and Strategic Fit
  6. HR Strategy and Employees
    A source of firm performance and sustainable competitive advantage
  7. Organizational Culture is Key
    HR is both casual and reflective of Org Culture
  8. Execution
    Not only design, but key
  9. Basic Job-Merit Base Pay System
    • Role of Job Evaluation
    • Compensable Factors
    • Score the job and control points
    • Compa-ratio: salary as % of control point
  10. Performance Management Objectives
    • Formalize feedback
    • Pay System Application
    • Promotion Decision
    • Developmental Decisions
    • Decisions on substandard performance
    • Culture and change efforts
    • Note "linkage and 'fit' issue
  11. How can 'PE' be counterproductive
    • Design: Not aligned with strategy and culture
    • = dysfunction of wanting A but facilitating B

    • Execution: Not Managed properly
    • = inaccurate measurement
    • =employee cynicism
  12. Common Execution Errors
    • Failing to accurately measure
    • Overrating, central tendency
    • Cognitively related errors: 'halo' and 'horn'
    • Heuristic based decisions

    • Execution related problems
    • Lack of training for execution
    • Lack of accountability / priority for conducting
  13. Performance Management Methods
    • Standard graphic scales
    • Comparative types
    • force distribution, ranking, paired comp, etc
    • Outcome bases
    • 360 degree process
  14. Designing and Executing PE:
    • Why we are going to do it?
    • Who will do it?
    • What will we do it? (the method)
    • How will we do it?
  15. Suggestions to Improve HR Department Effectiveness
    • Focus beyond transactional activities
    • Think is terms of firm performance and act as a strategic oriented business partner
    • Get a mandate from senior management
    • Measure/analyze/audit/diagnose/cost out
    • Learn the business
    • Outsource transactional activities
  16. SouthWest Future
    Threats: Internal and External
    • Competitor = lower cost models emerging
    • Competitor: combinations
    • Life Cycle/> = culture change
    • Growth Strategy (merger) & culture threat
    • Necessity of continued productivity difficult
    • Operational changed ripples through model
  17. SouthWest Strengths
    • Culture embedded
    • HR Process institutionalized
    • Leadership transition complete
    • Brand
  18. Conglomerate: How GE Succeeds when Other Fail
    • Portfolio of business
    • Performance: expanding productivity and cost reduction - role of continuous improvement
    • Decentralized structure
    • Human Capital as strategic advantage
  19. How GE Manages Human Capital Development
    • Recruiting and selection
    • Decentralized structure
    • Session C
    • Workouts
    • Formal Training-Immelt's program
    • Performance Management
    • Deployment and rotation
    • Coaching and mentoring
  20. Key to Human Capital Development
    • An integrated systematic and strategic approach
    • Development is the responsibility of every manager
    • Org Structure
  21. Should GE Tweak System
    • Ensures serious assessment
    • Generates useful information
    • Overcomes overrating
    • Rating fairness over the long-term, given the removal of low performers
    • Culture impact over time
  22. Strength of GE PE
    • GE has an embedded and integrated system of development and is a meritocracy, not simply as a set of practices
    • GE's HR is highly strategic
  23. Starbucks - 3 factor Value Proposition
    • 3 factor Value Proposition
    • Product quality
    • Service! Role of culture
    • Atmosphere -
  24. Starbuck Take-Aways
    • Alignment of HR to its business model
    • Role of building culture in service model
    • Importance of maintaining 'brand'
    • Growth/success as a threat?
    • International growth: threat and opportunity, especially culture - based consumer taste
  25. Egon Zehnder- Reward System
    • Simple and Seniority Based
    • No Individual Performance Based
    • Profit Sharing-On Seniority (Partners)
    • Junior Consultants and Partner Process
    • Junior Consultant - Annual Bonuses (But not Financial Based)
  26. Zehnder - what does it take to be successful with this approach
    • Hiring
    • Selection Criteria and Fit
    • Interviewing and Fit
    • L-T Human Capital Investment
    • Long Term Relationship with Client
    • Repeat Business
  27. Compensation Objectives
    • Attract
    • Retain
    • Motivate
    • Build desired culture
    • Control cost - ensure productivity
    • Comply with laws
  28. Total Rewards?
    • 3 Prong Platform
    • Direct Pay
    • indirect pay: benefits
    • Intrinsic rewards
  29. Comp: Basic Strategic Choice
    • Pay 'level' strategy
    • lead, lag, match
    • Organization 'structure'
    • flat or tall, dispersion, etc.
    • 'Form' of compensation
    • mixed of pay and benefits and intrinsic rewards
    • Type of 'system' / how pay is determined
    • Performance Based
    • Position Based
    • Market Based
    • Skill Based
  30. Equity Considerations
    • Weaving together:
    • Internal equity
    • Employee equity
    • External equity
  31. Job Based with Merit
    • Requires job evaluation
    • Build structure around relative worth
    • Required performance evaluation or some metric based assessment
    • Allocate on basis of performance
    • Requires decision making guidelines for annual raises, encompassing both standing in range and PE rating
  32. Relying of Outside Hiring
    • Advantages
    • Developmental cost
    • Retention costs and legacy costs
    • Avoids bumping problems (5 to 1 ratio)
    • Augments changed strategy
    • New perspectives
    • Disadvantages
    • Instability
    • Costs of vacancy and cost of hiring
    • Org culture as relates to meritocracy culture
    • Psychological contract loss
  33. Transition
    Org Man - Just in Time
    bring in youth as to development, career transition etc.

    • Implications in recent years?
    • Back to internal development
  34. How to address the possible problems of both oversupply of talent and undersupply of talent

    • Role of development in employee engagement
    • Role of development in incentive-leave
  35. How Reconcile Conflict Between Buy vs. Grow
    • Key
    • Must ensure internal > validity
    • Must do some of both
    • Org, job, and market contingencies
    • degree to which firm-specifics, available within, available outside, degree of change
    • Beyond the contingencies, firm can make a value choice of buy or grow
  36. Four Season
    How it Built its Service Culture
    • Recruitment and Selection
    • Attitude
    • Training
    • Based on service operating standards
    • Performance Measurement
    • Golden Rule and service quality
    • Rewards
    • Managers get bonus based on people, service quality, and profit
  37. Four Seasons:  How it Entered France
    • Basic core values of service and the 'golden rule': not varies
    • Way core values enacted: varied modestly
    • Standard not core: enacted flexibility
  38. 4 seasons:  Overall Take-Aways
    • The combination between retaining core practices while adapting to new cultural context
    • In doing so, the importance of how practices extended instead of what is retained
  39. Strategic Decision Keys When Expanding Globally
    • What HR practices to transfer and what to adopt? Contingencies?
    • Role of firm culture in success
    • Is practice core
    • Cultural differences: home vs. context
    • How decentralized is the firm?
  40. Pros/Cons of HCN vs. PCN
    • Local:
    • Better citizen
    • Less Cost
    • Know market, political/labor context, relationships
    • Expat:
    • Technical skills
    • Developmental opportunity
    • Control and transference
  41. Managing Expats
    • Getting the right selection criteria
    • And sending for the right reason
    • choosing the right person
    • the role of socialization and support
    • ensuring the right linkages are maintained
    • conducting repatriation
  42. Hofstede Cultural Dimension
    • Power Distance
    • Masculinity
    • Individualism
    • Uncertainty Avoidance
    • Time Perspective
  43. Key Overall Learning Points from our Global HR Anaylsis
    • Challenges/Risks Associated with
    • 'Transfer' and 'portability' of existing practices a key challenge
    • Should occur in the context of a 'linked' strategy emphasizing org structure, culture
    • Extending firm culture to international requires effective 'change leadership'. And leading 'change' always a challenge = how geocentric current and/or desired
  44. Alcoa - Strategic Safety: Keys
    • Plant Performance and Safety: Quality is Quality and the Myth of the Trade-off
    • Safety Performance as a Bottom-Line Performance Outcome
    • Why Workers get injured: Behavior vs. Conditions
    • Building a Program: The role of Culture and Accountability
    • Merton's plan: What's missing
  45. Alcoa - What's missing from Merton's Plan
    Systematic safety performance accountability as a key facet of overall performance management system
  46. Alcoa: Key Learning Points
    • Safety as an example of strategic practices and the impact on Firm Culture and, in turn, the Impact on measurable firm performance
    • Safety is an ideal example of role of Strategy, Quality Improvement, Leadership, Culture, Change
  47. Leading for Safety Performance: The Keys
    • Devise and execute a portfolio of practices that focus BOTH on 'Acts' and 'Conditions'
    • Design and execute a multi-faceted system that builds a 'safety-Culture'
  48. Key Laws
    • Civil Right Act of 1964 (Title VII)
    • Civil Rights Act 1991
    • Americans with Disability Act (ADA)
    • Age DEA
  49. Civil Right Act of 1964 (Title VII)
    • Outlawed racial segregation and discrimination in employment, public facilities, and education
    • states the illegality of discrimination against individuals based on race, religion, color, sex, or national origin
  50. Civil Right Act of 1991
    reinstated burden of proof on the by the employer and allowed punitive and compensatory damages through jury trials
  51. America with Disability Act (ADA) of 1990
    extends employment protection to most forms of disability status

    • undue hardship
    • Reasonable accommodation regarding:
    • Access
    • Job Modifications-essential components of the job issue
  52. Age DEA (1967)
    Increased mandatory retirement age from 65-70. Later amended (1986) to eliminate the upper age limit

    Amended in 1990 - prohibit organizations from excluding benefits for older workers
  53. Uniform Guidelines on Employment Selection Process
    • Adverse Impact
    • any employment consequence that discriminates against employees who are members of a group protected by equal employment law

    • Adverse (disparate)Treatment
    • occurs when a member of a protected group receives less favorable outcomes in an employment decision than a non-protected group member

    • 4/5th Rule
    • % of minority hires is 80% of the or more of the number of non-minorities hired
  54. BFOQ's (under Title VII)
    • Bona Fide Occupational Qualifications
    • Prison Guards
    • Healthcare workers
Card Set
Human Resources Management Strategies
HRM 5051 Human Resource Management Strategies Final - Concepts