Strategic Management Process and Goal Setting in Human Resources

Human Resources Management Strategy & Analysis Nurin Nadhilla Vanya Febiwindyah P.

THE STRATEGIC MANAGEMENT PROCESS THE STRATEGIC MANAGEMENT PROCESS The Portman s Hotel 3 steps: -Strategically -To achieve this -To produce these employee skills and behavior

THE STRATEGIC MANAGEMENT PROCESS How managers formulate and implement plans and how they analyze and evaluate their results

Goal setting and the Planning Process Goal setting and the Planning Process Involves: Setting objective ,Making basic planning forecasts, Reviewing alternative courses action , Evaluating with options are best, Choosing and implementing your plan

Sample hierarchy of goals diagram for a company Presiden Double sales revenue to $16 million in fiscal year 2011 Vice president of Human Resource: Add train 6 salespeople Vice president of Production: Add one new production line at plant Vice president of Sales: Double sales in east, west and south regions Training Manager Train 6 new salespeople and retrain all others within 4 months Sales manager West region Move 6 nevada salespeople to california market Recruiting Manager Identify and attract 20 good sales candidates Sales manager, south region hire 4 new salespeople, add 18 customers Sales Manager East Region Triple sales to government agencies

Strategic Planning Strategic Planning Strategic Management Strategic Planning Strategic Step 5: Formulat e strategies to achieve the strategic goals Step 4: Translate the mission into strategic goal Step 2: Perform eksternal and Internal Audits Step 1: Define the current business Step 3: Formulate a new direction Step 6: Implemen t the strategies Step 7: Evaluate Performan ce Strategic Planning

Improving Productivity Through HRIS Improving Productivity Through HRIS

Type of Strategies Type of Strategies Corporate-wide strategic planning How many and what kind of business should we be in? Business unit strategic planning On what basis will each of our business compete? Human Resource As a Competitive Advantage Functional strategic planning What do our competitive choice (such as maintaining the lowest costs) mean for each of the departments that actually must do the work? Strategy Fit To sum up the idea that each department s functional strategy should fit and support the company s competitive aims

Top Managers Roles in Strategic Planning Devising a strategic plan is top management s responsibility. Top management must decide what business the company will be in and where, and on what basis it will compete. Department Manager s Strategic Planning Roles in Action: Improving Mergers and Acquisitions. The company s departmental managers (as for sales, manufacturing, and human resource management) also play roles in strategic planning. Departmen Managers Strategic Planning Roles in Action: Improving Mergers and Acquisitions Mergers and acqusitions are among the most important strategic moves companies make. When mergers and acquisitions fail, it s often not due to financial or technical issues but to personnel-related ones.

STRATEGIC HUMAN RESOURCE MANAGEMENT Formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Companys competitive Company s competitive environment Economic political environment Economic political demographic competitive demographic competitive Company s strategic plan Company s strategic plan For example For example Should we expand Should we expand geographically? Cut costs? geographically? Cut costs? Diversity? Diversity? Company s strategic situation Company s strategic situation Company s internal strengths Company s internal strengths and weakness and weakness Company s HR (and other Company s HR (and other functional )strategies functional )strategies What are the basic policies What are the basic policies HR will pursue to ensure that HR will pursue to ensure that the recruiting, selecting, the recruiting, selecting, traning traning, appraising, and , appraising, and compensation systems compensation systems support the company s support the company s strategic plan strategic plan Organizational performance Organizational performance Linking Company Wide and HR Strategies Linking Company Wide and HR Strategies

Human Resource Strategies and Policies HR AS A PROFIT CENTER Albertsons Example Several years ago, Albertsons Markets had to improve performance, and fast. With 2,500 stores workers, it faced competition not only from grocery chains, but also from Walmart and online sites. Albertsons overall strategic aims included reducing costs, maximizing financial returns, becoming more customer focused and energizing employees. Albertsons turned to its human resource managers to help achieve these strategic aims. Its new human resource strategy entailed new screening, training, pay and other human resource policies and practices, and using more technology to reduce its HR activites costs. The Albertsons human resource team s efforts helped Albertsons to cut costs, and to boost customer service by hiring and motivating-focused applicants.

Strategic Human Resource Management Tools THREE IMPORTANT STRATEGIC HUMAN RESOURCE MANAGEMENT TOOLS STRATEGY MAP THE HR SCORECARD DIGITAL DASHBOARDS

HR METRICS & BENCHMARKING better customer service what are you doing? Strategic plan -> workforce requirements diberikan persyaratan tenaga kerja. DM merumuskan strategi u/ mendukung HR, kebijikan dan praktik. HR manager picks measures 1. 2. 3.

Types of Metrics

Improving Productivity Through HRIS Tracking Applicant Metrics for Improved Talent Management menilai efektivitas rekrutmen -> metrik "kualitas karyawan baru" dan "sumber rekrutmen yg menghasilkan karyawan yang paling baru.

Benchmarking in Action Comparing the practices of high-performing companies to your own, in order to understand what they do that makes them better. Strategy and Strategy-Based Metrics Benchmarking only provides one way to look at how your company s humans resourcees managements system is performing. Strategy-based metrics -> metrics that specifically focus on measuring the activities that contribute to achieving a company s strategic aims

Workforce/Talent Analytics and Data Mining Use software applications to analyze their human resouces data and draw conclusions from it. DATA MINING The set of activities used to find new, hidden, or unexpected patterns in data. Use tools like statistical analysis to sift through data for relationships

What Are HR Audits? An analysis by which an organization measures it currently stands and determines what it has to accomplish to improve its HR function A process of examining plicies, procedures, documentation, systems, and practices with respect to an organization s HR function.

Evidence-Based HR and the Scientific Way of Doing Things The use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated reseacrh/case studies to support human resource management proposals, decisions, practices and conclusions. How To Be Scientific Mengumpulkan bukti-bukti, para ilmuwan (manager) juga harus objektif, atau tidak ada cara u/ mempercayai mereka. Being scientific also requires experimental.

Why Should A Manager Be Scientific? Being scientific is to make better decisions. The problem is that what s intuitively obvious can be misleading. WHAT ARE HIGH-PERFORMANCE WORK SYSTEMS? seperangkat kebijakan manajemen sumber daya manusia dan praktek yang bersama-sama menghasilkan kinerja karyawan yang unggul.

High-Performance Human Resouce Policies and Practices 1. Human resource metric -> pengukur kuantitatif dari aktivitas manajemen sumber daya manusia seperti pergantian karyawan, jam pelatihan per karyawan, atau pelamar yang memenuhi syarat per posisi. 2. The things employers must do 3. Aspire to help workers to manage themselves 4. The measurable differences between HR management system in high-performance and low-performance companies.

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