Chapter 03 Hr Scorecard

Chapter #3 Strategic HRM and the HR Scorecard

HR must develop systems 

that support the firm’s mission statement –

strategic goals and direction

–

By hiring, firing, training etc.

Steps in the Strategic Process  Step

1  Step 2  Step 3  Step 4  Step 5  Step 6

Vision, mission SWOT Translate mission to goals Formulate strategy to achieve goals Implement strategy Evaluate performance

Levels of Strategic Planning –

Corporate level  Diversification  Vertical

integration  Consolidation  Geographic Expansion  Business –

level

Define competitive advantage  Cost Leadership – Wal*mart  Differentiation - Volvo  Focuser - Ferrari

Strategic Fit

 Structure

must follow strategy

–

All activities must support strategy

–

Look page #78

HR provides competitive advantage  Hiring

right  Training  Motivating  Inspiring commitment  Policies and practices

HR strategic role cont.  To

identify the human issues vital to business strategy U of Michigan study

 HR –

is a partner not a cost center

Study of CEO’s HR

execs need strategic skills and business knowledge!!!!!!!

High Performance Work Systems  Idea

is to create HPWS

 HR

must understand what competencies are need and know how to train and hire to acquire them.

 LOOK

# 85 (Comparing high and low performance)

The HR Scorecard Approach 

 

Creates bottom line value Measurable Metrics (quantitative standards

You must have 3 types of information  





Know strategic goals Match employee behavior to goal attainment Must have metrics or standards to measure by Look # 88

Seven Step Approach  Step

1  Step 2  Step 3  Step 4  Step 5  Step 6  Step 7

- Define business strategy Outline value chain Identify outcomes or org. goals Identify competencies needed Identify polices, training programs Design a measuring system Continually evaluate ( Page # 92)