ROBERT L. MATHIS JOHN H. JACKSONPowerPoint Presentation by Charlie Cook The University of West AlabamaStrategic HR Management and PlanningChapter 2SECTION 1SECTION 1 Nature ofNature of Human ResourceHuman Resource Management Management All rights reserved.Learning Objectives After you have read this chapter, you should be able to: Explain strategic HR management and how it is linked to organizational strategies. Describe how legal, political, cultural, and economic factors affect global HR management. Discuss four dimensions of organizational effectiveness and how HR contributes to each. Define HR planning and outline the HR planning process. Discuss several ways of managing a surplus of human resources. Identify why HR metrics must consider both strategic and operational HR measures.2Human Resources as a Core Competency Strategic Human Resources Management The use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness. Core Competencies The unique capabilities of employees in an organization that create high value and that differentiate the organization from its competition The source of an organizations sustainable competitive advantage.3Strategic HR Management ProcessFigure 214Linkage of Organizational and HR Strategies Cost Leadership Competition on the basis of low price and high quality of product or service Relies on “building” employees to fit specialized needs Requires a longer HR planning horizon approach Differentiation Competition on the basis of either offering distinctively different products or services or establishing an exclusive image for quality products and services Relies on hiring needed skills. Needs a shorter planning time frame in order to be responsive to dynamic environments5Globalization of Business and HRGlobal Global CommunicationsCommunicationsGlobal Population Global Population ChangesChangesGlobal Economic Global Economic InterdependenceInterdependenceRegional AlliancesRegional Alliances NAFTA, EUNAFTA, EUGlobalization Globalization ForcesForces6Types of Global Organizations Importing and Exporting Buying and selling goods and services with organizations in other countries Multinational Enterprise (MNE) An organization with operating units located in foreign countries. Global Organization An organization having corporate units in a number of countries that are integrated to operate worldwide.7Transition to Global Organizations8Transition to Global Organizations9Global EmploymentGlobal EmployeeGlobal Employee Relations IssuesRelations IssuesGlobal Labor-Global Labor- Management Management RelationsRelationsGlobal Health, Global Health, Safety, and Safety, and SecuritySecurityDiscrimination Discrimination Regulations Regulations GloballyGlobally10Factors Affecting Global HR ManagementPoliticalPoliticalEconomicEconomicCulturalCulturalLegalLegal11Global Cultural Factors Culture Societal forces affecting the values, beliefs, and actions of a distinct group of people. Geert Hofstedes Culture Dimensions Power Distance: the inequality among the people of a nation. Individualism: the extent to which people prefer to act as individuals instead of members of groups. Masculinity/Femininity: the degree to which “masculine” values prevail over “feminine” values. Uncertainty Avoidance: the preference of people in a country for structured rather than unstructured situations. Long-Term Orientation: the preference for long-term values emphasizing the future as opposed to short-term values focusing on the present.12Hourly Compensation Costs for Manufacturing Production WorkersFigure 22Hourly Costs (in U.S. Dollars)Source: U.S. Bureau of Labor Statistics, www.bls.gov; and www.uschinabiz.com, 2004.13Global Economic Factors Sources of Economic Factors Differences in economic, political, legal, and cultural systems Global Economic Interdependence Regional trade and political alliancesNAFTA, EU, WTO Global Productivity and Strategic HR Management Issue: How to increase organizational effectiveness and performance (productivity) in the face of global influences and foreign competition.14Organizational Effectiveness and Strategic HR Management Effectiveness The extent to which goals have been met. Efficiency The degree to which operations are done in an economical manner. Dimensions of Organizational Effectiveness Organizational productivity Financial contributions Service and quality Organizational culture15Organizational Productivity and HR Efforts Productivity A measure of the quantity and quality of work done, considering the cost of the resources used. A ratio of the inputs and outputs that indicates the value added by an organization.Unit labor cost: computed by dividing the average cost of workers by their average levels of output. Improving Organizational Productivity Organizational restructuring Re-designing work