Dessler - hrm14 - PPT - 03 N 04
Dessler - hrm14 - PPT - 03 N 04
Dessler - hrm14 - PPT - 03 N 04
Competitive Strategy
Managers endeavor to achieve competitive advantages for each of their businesses. Competitive advantages enable a
company to differentiate its product or service from those of its competitors.
3
Functional Strategy
Functional strategies identify the basic course of action that each department will pursue in order to help the business
attain its competitive goals. Human capital is one of the best competitive advantages because it is hard to duplicate a
company’s personnel.
Strategic Fit
“Strategic fit” sums up the idea that each department’s functional strategy should fit and
In companies, it is traditional to view the goals from the top of the firm down to front-
line employees as a chain or hierarchy of goals. A strategic plan is the company’s plan
for how it will match its internal strengths and weaknesses with external opportunities
and threats. This will allow the organization to maintain a competitive advantage.
They decided that to compete, they had to improve the hotel’s level of service.
It meant putting in place a new human resource strategy for the Portman Hotel, one aimed at improving customer service.
Their HR strategy involved taking these steps:
● Strategically, they set the goal of making the Shanghai Portman outstanding by offering superior
Customer service.
● To achieve this, Shanghai Portman employees would have to exhibit new skills and behaviors, for
instance, in terms of how they treated and responded to guests.
● To produce these employee skills and behaviors, management formulated new human resource management plans,
3
policies, and procedures. For example, they introduced the Ritz-Carlton Company’s human resource system to the Portman:
“Our selection [now] focuses on talent and personal values because these are things that can’t be taught . . . it’s about caring
for and respecting others.”
Management’s efforts paid off. Their new human resource plans and practices helped to produce the employee Behaviors
required to improve the Portman’s level of service, thus attracting new guests. Travel publications were soon calling it the
“best employer in Asia,” “overall best business hotel in Asia,” and “best business hotel in China. ”Profits soared, in no small
part due to effective strategic human resource management.
Strategy map
The strategy map shows the “big picture” of how each department’s performance contributes to achieving the
company’s overall strategic goals. Many employers quantify and computerize the map’s activities. The HR Scorecard
helps them to do so.
3
The HR scorecard
The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR
activities, employee behaviors resulting from the activities required in order to achieve the company’s strategic aims
and for monitoring results.
Digital dashboards
A digital dashboard presents the manager with desktop graphics and charts. It is a computerized picture of where the
company stands on all those metrics from an HR Scorecard perspective.
Copyright © 2015 Pearson Education,
3-16
Inc.
SCOREBOARD & STRATEGY MAP
• https://www.youtube.com/watch?v=M_IlOlywryw
• Definition
• Strategies
• Policies
3
• Service-oriented
example
strategic human resource management as formulating and executing human resource policies and practices. Such policies and practices can produce
employee competencies and behaviors the company needs to improve its competitive position.
Strategies are then developed for the organization that suggest certain workforce requirements. With these workforce requirements, HR management
formulates strategies to produce the desired workforce skills, competencies, and behaviors.
3
Benchmarking
comparing the practices of high-performing companies to your own
Evidence-Based HR
Copyright © 2015 Pearson Education,
3-19
Inc.
Strategy and Strategy-Based
Metrics
Workforce/Talent Analytics
Analyzed data on employee backgrounds, capabilities, and performance. Workforce or talent
3
analytics help you understand and track and improve results.
As another example, the chemical company BASF Corp. analyzed data on the relationship among
stress, health, and productivity in its 15,000 U.S. headquarters staff. Based on that analysis, the
company instituted health programs that it calculated would more than pay for themselves in increased
productivity by reducing stress.
Discussion Question 3-2: If it is apparently so easy3 to do what BASF did to size up the potential
benefits of health programs, why do you think more employers do not do so?
Workforce or talent analytics help you understand and track and improve results.
Data has to be useful and involves statistical analysis to find hidden or new relationships
among different variables.
HR audits are a way for an organization to measure current policies and practices.
3
Evidence-based HR is the use of data, facts, etc. to support HR activities.
For managers, the key point of being “scientific” is to make better decisions through objective
experimentation.
All of these elements together are designed to help integrate business goals with HR practices
and policies while improving results.
The Strategy
All Hotel Paris managers—including the director of HR services—must now formulate strategies that support this competitive
strategy approved by the board and top managers. “The Hotel Paris International will use superior guest services to differentiate the
Hotel Paris properties, and to thereby increase the length of stays and the return rate of guests, and thus boost revenues and
profitability.”
3
The usual process of talent management consists of the following steps:
1. Decide what positions to fill
2. Build a pool of job candidates
3. Application forms
4. Use selection tools
5. Make an offer
6. Orient, train, and develop
7. Appraise
8. Reward and compensate
Thought of as linear
process
acquire, deploy, and retain
3
Definition
Managing talent
effectively
• Work activities
• Behaviors
3
• Machines, tools,
equipment, and work aids
• Performance standards
• Job context
• factors controlled by the organization like work
condition, base salary, company policies etc
• Human requirements
Copyright © 2015 Pearson Education,
4-39
Inc.
Uses of Job Analysis
Information
• Recruitment and
selection
• EEO compliance 3
• Performance
appraisal
• Compensation
• Training
Copyright © 2015 Pearson Education,
4-40
Inc.
Uses of Job Analysis
The information collected through a job analysis is used help manage all aspects of an
effective HR program.
In terms of recruitment and selection information about what duties the job entails and
what human characteristics are required helps in hiring decisions.
Job analysis is crucial for validating all major human resources practices, especially
when it comes to legal compliance. You may recall from our earlier discussion of federal
laws that care must be exercised in all areas related to employees such as hiring under
the Americans with Disabilities Act (ADA).
3
A job analysis helps compare each employee’s actual performance with his or her duties
and performance standards in performance appraisals.
Compensation often depends on the job’s required skill and education level, safety
hazards, degree of responsibility, and other factors you assess through job analysis.
The job description, which is created from a job analysis, lists the job’s specific duties
and skills—and therefore the training—that the job requires.
1. Workflow analysis is a detailed study of the flow of work from job to job in a work process.
Usually, the analyst focuses on one identifiable work process, rather than on how the company gets all its
work done.
3. Job redesign 3
A. Job enlargement means assigning workers additional same-level activities. Thus, the worker who
previously only bolted the seat to the legs might attach the back too.
B Job rotation means systematically moving workers from one job to another.
C. Job enrichment means redesigning jobs in a way that increases the opportunities for the worker to
experience feelings of responsibility, achievement, growth, and recognition—and therefore more
motivation. It does this by empowering the worker—for instance, by giving the worker the skills and
authority to inspect the work, instead of having supervisors do that. Herzberg said empowered employees
would do their jobs well because they wanted to, and quality and productivity would rise. That
philosophy, in one form or another, is the theoretical basis for the team-based self-managing jobs in many
companies around the world today.
Discussion Question 4-1: Based on your experience, what would the workflow look like
for the process a dry-cleaning store uses to accept and chronicle a new order of clothes
from a customer?
How might this process be improved?
A joint effort
human resources manager, the worker, and the worker’s
supervisor.
Different job analysis methods
3
questionnaire, survey, focus groups, observation,
interviews
Clarity of questions and
process
Having employees fill out questionnaires to describe their job-related duties and responsibilities is another popular way to obtain job
analysis information.
Direct observation is especially useful when jobs consist mainly of observable physical activities—assembly-line worker and accounting
clerk are examples.
Another method is to ask workers to keep a diary/log of what they do during the day. For every activity engaged in, the employee records
the activity (along with the time) in a log.
Qualitative methods like interviews and questionnaires are not always3suitable. You may need to say that, in effect, “Job A is twice as
challenging as Job B, and so is worth twice the pay.” Now, of course, you must be able to prove such a claim quantitatively. The position
analysis questionnaire (PAQ) is a very popular quantitative job analysis tool, consisting of a questionnaire containing 194 items. The 194
items (such as “written materials”) each represent a basic element that may play a role in the job.
Experts at the U.S. Department of Labor (DOL) did much of the early work developing job analysis. The DOL method uses a set of standard
basic activities called worker functions to describe what a worker must do with respect to data, people, and things.
For internet-based job analysis, the HR department can distribute standardized job analysis questionnaires to geographically disbursed
employees. Such questionnaires may be sent via company intranets, and include instructions to complete the forms and return them by a
particular date.
• The Interview
o Typical questions
o Structured interviews
3
o Pros and cons
o Interviewing guidelines
Many managers use a structured format to guide the interview to ensure consistency and be certain key elements are
not overlooked.
The interview’s wide use reflects its advantages. It’s a simple and quick way to collect information, including
information that might not appear on a written form.
3
Distortion of information is the main problem—whether due to outright falsification or honest misunderstanding.
• Interviews
• Questionnaires
• Observation 3
• Diary/logs
• Quantitative techniques
• Internet-based (Geographically disbursed)
Can be used in conjunction with one or more of the other techniques
• Job identification
• Job summary
• Relationships
• Responsibilities and duties
3
o Authority
• Performance standards &
working conditions
• Job specifications
There may be a “relationships” statement that shows the jobholder’s relationships with others inside and outside the
organization. Responsibilities and duties are the heart of the job description. This section should present a list of the
job’s significant responsibilities and duties. This section may also define the limits of the jobholder’s authority.
A “standards of performance” section lists the standards the company expects the employee to achieve for each of the
job description’s main duties and responsibilities. 3
Working conditions include the location, tools, environment (hot, cold, etc.) and the like.
More employers are turning to the Internet for their job descriptions. The process is simple. Search by alphabetical
title, keyword, category, or industry to find the desired job title. This leads you to a generic job description for that
title which you may then customize as needed. The Internet, particularly O*NET, can help you create the “human
requirements” of the job for the job specification. We will discuss job specifications next.
https://www.youtube.com/watch?v=jsHC15xh43A
http://www.careeronestop.org/businesscenter/jdw/gettingstarted.aspx
Step 2. Develop an Organization Chart. Start with the organization as it is now. Then
produce a chart showing how you want it to look in a year or two. Microsoft Word includes
an organization charting function.
Step 3. Use a Job Analysis Questionnaire. Next, gather information about each job’s duties.
(You can use job analysis questionnaires, such as those shown in Figure 4-4 and Figure 4-10.)
3
Combine the duties of the “retail salesperson” with those of “first-line supervisors/managers of
retail sales workers.”
Step 5. List the Job’s Human Requirements from O*NET. Next, return to the summary for
Retail Salesperson (C). Here, click, for example, Knowledge, Skills, and Abilities. Use this
information to help develop a job specification for your job. Use this information for
recruiting, selecting, and training your employees.
Step 6. Finalize the Job Description. Finally, perhaps using Figure 4-10 as a guide, write an
appropriate job summary for the job. Then use the information obtained previously in steps 4
and 5 to create a complete listing of the tasks, duties, and human requirements of each of the
jobs you will need to fill.
Discussion Question 4-2: Pick out a job that someone with whom you are familiar is doing, such
as a bus driver, mechanic, and so on. Review the O*NET information for that job. To what extent does
the person seem to have what it takes to do that job, based on the O*NET information? How does that
correspond to how he or she is actually doing? Copyright © 2015 Pearson Education, 3-59
Inc.
Experts at the U.S. Department of Labor (DOL) did much of the early work developing
job analysis. The DOL method uses a set of standard basic activities called worker
functions to describe what a worker must do with respect to data, people, and things.
• Job descriptions
o Identifying the job,
3
summary, relationships
o Responsibilities, duties,
standards
• Specifications
• Statistical analysis
• Task statements
Finally, the job analyst compiles all this information in a job requirements matrix for this job.
This matrix would list the following information, in 5 columns:
Column 1: Each of the four or five main job duties;
Column 2: The task statements associated with each main job duty;
Column 3: The relative importance of each main job duty;
Column 4: The time spent on each main job duty; and
Column 5: The knowledge, skills, ability, and other human characteristics related to each
3
main job duty.
Such a job requirements matrix provides a more complete picture of what the worker does on the job
and how and why he or she does it than does a job description. (For instance, it specifies each task’s
purpose.) And, the list of each duty’s required knowledge, skills, abilities, and other characteristics is
useful for selection, training, and appraisal decisions.
Competencies are observable and measurable behaviors of the person that make
performance possible. Competency-based job analysis means describing the job in terms
of measurable, observable, behavioral competencies. Such competencies are usually
grouped into general competencies, leadership competencies, and technical competencies.
Competencies-based job analysis played an important role in staffing this factory. Guidelines regarding
who to hire and how to train them are based more on the competencies someone needs to do the job
(such as “ability to work cooperatively on a team”) than on lists of job duties. Because they don’t have to
follow detailed job descriptions showing what “my job” is, it’s easier for employees to move from job to
job within their teams.
Stressing competencies rather than duties also encourages workers to3look beyond their own jobs to
find ways to improve things. For instance, one team redesigned the racks that the assembly parts move
on, saving assembly workers thousands of steps per year, thereby boosting performance and productivity.
Now that the new system, including the competencies-based job analysis, has proved itself in Alabama,
Daimler plants in South Africa, Brazil, and Germany now use it.
Discussion Question 4-3: Are you surprised that Daimler could implement a team-based production
system like this in places where the cultures are as disparate as Alabama, Germany, and Brazil? Why?
What inter-country cultural differences would you think might have impeded Daimler’s efforts?