Slide-MAN204-MAN204-slide-02.ppt.........

Education

1. CHAPTER 4
THE EVOLVING/
STRATEGIC ROLE
OF HUMAN
RESOURCE
MANAGEMENT
PowerPoint Presentation by Charlie Cook
Copyright © 2002 South-Western. All rights reserved

2. Copyright © 2002 South-Western. All rights reserved. 4–2
Strategic Human Resource Strategic Human Resource
ManagementManagement
•Involves the development of a consistent, aligned Involves the development of a consistent, aligned
collection of practices, programs, and policies to collection of practices, programs, and policies to
facilitate the achievement of the organization’s facilitate the achievement of the organization’s
strategic objectives.strategic objectives.
•Requires abandoning the mindset and practices of Requires abandoning the mindset and practices of
“personnel management” and focusing on “personnel management” and focusing on
strategic issues than operational issues.strategic issues than operational issues.
•Integration of all HR programs within a larger Integration of all HR programs within a larger
framework, facilitating the organization’s mission framework, facilitating the organization’s mission
and its objectives.and its objectives.

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4. Copyright © 2002 South-Western. All rights reserved. 4–4
Traditional HR versus Strategic HRTraditional HR versus Strategic HR

5. Copyright © 2002 South-Western. All rights reserved. 4–5
Barriers to Strategic HRBarriers to Strategic HR

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7. Copyright © 2002 South-Western. All rights reserved. 4–7

8. Copyright © 2002 South-Western. All rights reserved. 4–8
Reading 4.1: HR and Organizational Reading 4.1: HR and Organizational
Excellence Excellence
•HR can help deliver organizational excellence by:HR can help deliver organizational excellence by:
–Becoming a partner with senior and line managers in Becoming a partner with senior and line managers in
strategy execution.strategy execution.
–Becoming expert in the way work is organized, delivering Becoming expert in the way work is organized, delivering
administrative efficiency to ensure that costs are reduced administrative efficiency to ensure that costs are reduced
while quality is maintained.while quality is maintained.
–Becoming a champion for employees, representing their Becoming a champion for employees, representing their
concerns to senior management and working to increase concerns to senior management and working to increase
employee contributions.employee contributions.
–Becoming an agent of continuous transformation by shaping Becoming an agent of continuous transformation by shaping
processes and organizational culture. processes and organizational culture.

9. Copyright © 2002 South-Western. All rights reserved. 4–9
Reading 4.1: Five Critical Business ChallengesReading 4.1: Five Critical Business Challenges
GlobalizationGlobalization
Profitability through GrowthProfitability through Growth
TechnologyTechnology
Intellectual CapitalIntellectual Capital
Change, Change, and More ChangeChange, Change, and More Change

10. Copyright © 2002 South-Western. All rights reserved. 4–10
Reading 4.1: HR as Strategy Execution Reading 4.1: HR as Strategy Execution
Partner Partner
•HR is responsible for defining an organizational HR is responsible for defining an organizational
structure as the model for the company’s way of structure as the model for the company’s way of
doing business.doing business.
•HR must be accountable for conducting an HR must be accountable for conducting an
organizational audit.organizational audit.
•HR is to identify methods to renovate part of the HR is to identify methods to renovate part of the
organizational architecture.organizational architecture.
•HR must take stock of its own work and set clear HR must take stock of its own work and set clear
priorities.priorities.

11. Copyright © 2002 South-Western. All rights reserved. 4–11
Reading 4.1: HR and Organizational CultureReading 4.1: HR and Organizational Culture
•HR can help bring about a cultural change by:HR can help bring about a cultural change by:
–Defining and clarifying the concept of cultural change.Defining and clarifying the concept of cultural change.
–Articulating why cultural change is central to business Articulating why cultural change is central to business
success.success.
–Defining a process for assessing the current culture and the Defining a process for assessing the current culture and the
desired new culture, as well as measuring the gap between desired new culture, as well as measuring the gap between
the two.the two.
–Identifying alternative approaches to creating culture Identifying alternative approaches to creating culture
change. change.

12. Copyright © 2002 South-Western. All rights reserved. 4–12
Reading 4.1: Four Changes for the LineReading 4.1: Four Changes for the Line
•How senior operating management can create an How senior operating management can create an
environment in which HR becomes focused on environment in which HR becomes focused on
outcomes instead of activities:outcomes instead of activities:
–Communicate to the organization that the “soft stuff” Communicate to the organization that the “soft stuff”
matters.matters.
–Explicitly define the deliverables from HR, and hold HR Explicitly define the deliverables from HR, and hold HR
accountable for results.accountable for results.
–Invest in innovative HR practices.Invest in innovative HR practices.
–Upgrade HR professionals.Upgrade HR professionals.

13. Copyright © 2002 South-Western. All rights reserved. 4–13
Reading 4.2: Human Capital ManagementReading 4.2: Human Capital Management
•To become effective human capital managers, To become effective human capital managers,
HR mangers must develop competencies in:HR mangers must develop competencies in:
–Knowledge of the business.Knowledge of the business.
–Human resource functional expertise.Human resource functional expertise.
–The management of change.The management of change.

14. Copyright © 2002 South-Western. All rights reserved. 4–14
Reading 4.2: New Functional Role for HRReading 4.2: New Functional Role for HR
•HR must focus on business level outcomes rather HR must focus on business level outcomes rather
than HR level inputs.than HR level inputs.
•HR must become a strategic core competency HR must become a strategic core competency
rather than a market follower.rather than a market follower.
•Strategic competencies are more important than Strategic competencies are more important than
functional competencies.functional competencies.
•The most important missing element in the HR The most important missing element in the HR
function expertise is a systems perspective. function expertise is a systems perspective.

15. Copyright © 2002 South-Western. All rights reserved. 4–15
Reading 4.3: Organization Culture Reading 4.3: Organization Culture
QuestionnaireQuestionnaire
•Topics to be included in the questionnaire:Topics to be included in the questionnaire:
–How is performance defined, measured and rewarded in the How is performance defined, measured and rewarded in the
organization?organization?
–How are information and resources allocated and managed How are information and resources allocated and managed
in the organization?in the organization?
–What is the operational philosophy of the organization with What is the operational philosophy of the organization with
regard to risk-taking, leadership, and concern for overall regard to risk-taking, leadership, and concern for overall
results?results?
–Does the organization regard its human resources as costs Does the organization regard its human resources as costs
or assets?or assets?

16. Copyright © 2002 South-Western. All rights reserved. 4–16
Reading 4.3: Analyzing Dysfunctional Reading 4.3: Analyzing Dysfunctional
CulturesCultures
•Which components of the culture are misaligned?Which components of the culture are misaligned?
•What priorities should be assigned each of the What priorities should be assigned each of the
gaps between what the culture is and what people gaps between what the culture is and what people
feel that it should be?feel that it should be?
•What resources are needed and how should they What resources are needed and how should they
be used to change the culture?be used to change the culture?
•How should the change effort be managed and How should the change effort be managed and
who does what?who does what?
•What role should HR strategy play in signaling, What role should HR strategy play in signaling,
making and reinforcing the necessary changes?making and reinforcing the necessary changes?