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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Learning Objectives
After studying this chapter, you should be able to:
1. Describe the competitive environment of human
resource management
2. Identify three types of strategies and relate each to
human resource management
3. Discuss human resource strategy formulation and
relevant organizational factors
4. Discuss the processes through which human
resource strategy is implemented
5. Discuss how the human resource function in
organizations can be evaluated
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–2
• The Competitive Environment
for Human Resource Management
 HRM occurs not in a vacuum, but in a
complex and dynamic milieu of forces
within the organizational context.
 HR managers now have a strategic
perspective that recognizes the critical
links between organizational strategy
and HR strategy.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
4–3
Strategic
Human
Resource
Management
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–4
Beyond the Book:
Considering Fundamental HRM Practices
 If we examine fundamental HRM practices,
it seems reasonable to suggest two points:
 Formal performance appraisals
are better than none.
 Using systematic selection techniques
is better than hiring based on intuition.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–5
A Strategic Perspective
• What is meant when we refer to strategy
and a strategic perspective:
 All firms exist in a competitive environment,
with competitors trying to attract the same
customers.
 Therefore, a firm implements a strategy that
its competitors are unable to implement.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–6
Human Resources and
Competitive Advantage
• If a firm can
1. hire the right people
2. train them to be effective
3. place them in the right jobs
4. motivate them to work hard, and
5. retain them
then it can gain a sustained competitive
advantage.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–7
The Influence of Organizational
Purpose and Mission
• What is an organization’s purpose?
 It is the organization’s basic reason for
existence.
• What is an organization’s mission?
 It is the organization’s statement of how
it intends to fulfill its purpose.
• Both purpose and mission affect an
organization’s HR practices.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–8
Starbucks Corporate Mission Statement
Our Starbucks Mission Statement
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Here are the principles of how we live that every day:
Our Coffee
It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans,
roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is
never done.
Our Partners
We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where
each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.
Our Customers
When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few
moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about
human connection.
Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place
where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster.
Always full of humanity.
Our Neighborhood
Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in
wherever we do business. We can be a force for positive action – bringing together our partners, customers, and the
community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world
is looking to Starbucks to set the new standard, yet again. We will lead.
Our Shareholders
We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully
accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–9
What Is a Top Management Team?
The organization’s group of
senior executives responsible
for the overall strategic
operation of the firm.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–10
Beyond the Book:
Organizational Culture and HRM Success
Understanding
the Cultural Environment
Sets the tone
for the
organization
Plays a major
role in shaping
its culture
Have a vision
of where firm
is going
Have a vision
of how firm
should get
there
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–11
Corporate Strategy and HRM
• Corporate Strategy
 Deals with determining what businesses the
corporation will operate.
• Business strategy
 Deals with how the firm will compete in each
market where it conducts business.
• Functional strategy
 Deals with how the firm will manage each of
its major functions (such as marketing,
finance, and human resources).
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–12
Corporate Strategy and HRM (cont’d)
• Growth Strategy
 Focuses on growing and expanding the
business, which can be pursued through
joint ventures or acquisitions.
• Retrenchment Strategy
 Occurs when an organization’s operations
are not effective and changes are required.
• Stability Strategy
 Maintains the status quo.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–13
Diversification Strategies
• Diversification Strategy
 Occurs when an organization adds new
products and services.
• Related Diversification
 Occurs when a firm achieves synergy among
the various businesses it owns.
• Unrelated Diversification
 Is used when a firm operated several unique
businesses in different unrelated markets.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–14
Business Strategies (cont’d)
• The Adaptation Model
 Is an approach to business strategy where a
firm seeks ways to adapt to its environment.
• Basic Strategy Alternatives:
 Defender strategy
 Prospector strategy
 Analyzer strategy
 Reactor strategy
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–15
Business Strategy Alternatives
Defender Strategy
Works best in an environment
with little uncertainty and risk
and a high degree of stability
Prospector Strategy
Works best in dynamic and
growing environments with much
uncertainly and risk
Analyzer Strategy
Works best in stable conditions
with a moderate degree of
uncertainly and risk
Reactor Strategy
Represents the strategic failure
of a firm to respond properly to
its competitive environment
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–16
Other Competitive
Strategies
Differentiation
strategy
Cost leadership
strategy
Focus
strategy
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–17
Human Resource Strategies
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–18
What Is
Organizational Design?
• The framework of jobs, positions, clusters
of positions, and reporting relationships
among positions that are used to construct
an organization.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–19
The Impact of Organization Design
Organization Design Forms
U-form
(unitary/functional)
H-form
(holding company)
M-form
(multidivisional)
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–20
Corporate Culture
The set of values that helps an
organization’s members understand
what it stands for, how it accomplishes
what it wants to accomplish, and what it
considers important.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–21
The Impact of Corporate Culture
• Strong Corporate Culture
Defines to its employees what the firm stands
for, its values, and acceptable employee
behaviors.
 Is shaped by its founder and leaders.
 Can impede or facilitate the firm’s success.
 Has a critical effect on the success of mergers
and acquisitions.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–22
Interpersonal Processes and
Strategy Implementation
• Psychological Contract
 The overall set of expectations held
by the individual that they can
contribute to the organization.
• Personality
 The stable set of psychological
attributes or traits that distinguish
one person from another.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2–23
HR Strategy Implementation (cont’d)
• Communication
 The exchange of information and shared
meaning
 HR managers are responsible for coordinating
communication among employees.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2–24
Motivation is:
The set of forces that causes people
to behave in certain ways.
A major determinant of individual
performance.
What causes an employee to choose
to expend effort to support an
organizational activity.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
4–25
Understanding Stress
• Stress
 A person’s adaptive response to a stimulus
that places excessive psychological or
physical demands on that person.
• Managing stress requires understanding:
 The causes of stress
 How stress affects individuals
 How organizations and individuals
can better cope with stress
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–26
Human Resource Management Practices That
May Lead to Improved Firm Performance
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4–27