MIIE 330 Ch. 2 Notes
MIIE 330 Ch. 2 Notes 330
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This 5 page Class Notes was uploaded by Victoria Notetaker on Thursday September 15, 2016. The Class Notes belongs to 330 at North Carolina State University taught by Paul Mulvey in Fall 2016. Since its upload, it has received 8 views. For similar materials see Human Resource Management in Business Administration at North Carolina State University.
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Date Created: 09/15/16
▯ Chapter 2 (Slideshows, Quiz Practice) ▯ Slideshow Strategic human resource management (SHRM): this is the pattern of planned HR activities and deployments intended to enable an organization to achieve its goals. Strategic management is a process to address the organization’s competitive challenges by integrating goals, policies and action sequences into a cohesive whole. ▯ ▯ ▯ ▯ ▯ ▯ Company strategies to create a competitive advantage: 1)Overall cost leadership Producing the lowest cost products or services. 2) Differentiation strategy Creating the perception that products or services are different from others in the industry. ▯ ▯ 5 forces that shape strategy: 1) Rivalry among existing competitors 2) Threat of new entrants 3) Bargaining power of suppliers 4) Threat of substitute products or services 5) Bargaining power of buyers ▯ Quiz Practice A business model charts how a firm will create value for customers and, more important, how it will do so profitably. A legacy workforce consists of the former workers to whom the firm still owes financial obligations. Strategic management is a process, an approach to addressing the competitive challenges an organization faces. o It can be thought of as managing the 'pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.' During strategy formulation, the strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses. o They then generate various strategic alternatives and compare those alternatives' ability to achieve the company's mission and goals. During strategy implementation, an organization follows through on a strategy chosen in the strategy formulation stage. o This consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals. External analysis consists of examining an organization's operating environment to identify its strategic opportunities and threats. o An example of an opportunity is a customer market that is not being served. o An example of a threat is a potential labor shortage. Companies produce a given product or service and the manufacture of these products requires that a number of tasks be performed. o These tasks are grouped together to form jobs. o Job design addresses which tasks should be grouped into a particular job. Selection is the process by which a firm attempts to identify job applicants with the necessary knowledge, skills, abilities, and other characteristics that will help it achieve its goals. o The strategy a firm is pursuing has a direct impact on the types of employees it seeks to recruit and select. A number of skills are instilled in employees through training and development. o Training is a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees. Performance management is used to ensure that employees' activities and outcomes are congruent with the organization's objectives. o It entails specifying those activities and outcomes that will result in the organization successfully implementing the strategy. The differentiation strategy attempts to create the impression that a company's product or service is different from that of others in the industry. o The perceived differentiation can come from creating a brand image, from technology, from offering unique features, or from unique customer service. Strategies emphasizing market share or operating costs are considered 'concentration' strategies. o With this type of strategy, a company attempts to focus on what it does best within its established markets and can be thought of as 'sticking to its knitting.' Companies attempting to integrate vertically or horizontally or to diversify are exhibiting an external growth strategy, usually through mergers or acquisitions. o This strategy attempts to expand a company's resources or to strengthen its market position through acquiring or creating new businesses. Learning organizations are required to be in a constant state of learning through o monitoring the environment o assimilating information o making decisions o flexibly restructuring to compete in that environment Companies that develop such a learning capability have a competitive advantage. Five major components of the strategic management process are o 1) mission o 2) goals o 3) external analysis o 4) external analysis o 5) strategic choices The human resource management (HRM) function's attention is focused on day-to-day activities. o The HRM department simply engages in administrative work unrelated to the company's core business needs. External analysis and internal analysis combined constitute what has come to be called the SWOT (strengths, weaknesses, opportunities, threats) analysis. o After going through SWOT analysis, the strategic planning team has all the information it needs to generate a number of strategic alternatives. A high level of pay and/or benefits relative to that of competitors can ensure that the company attracts and retains high-quality employees. o This might have a negative impact on the company's overall labor costs. o By tying pay to performance, the company can elicit specific activities and levels of performance from employees. One of the human resource management challenges of downsizing is to boost the morale of employees who remain after the reduction. o Survivors may feel guilt over keeping their jobs when their friends have been laid off, or they may envy their friends who have retired with attractive severance and pension benefits. Linkage is when a firm's strategic business planning function develops the strategic plan and then informs the human resource management (HRM) function of the plan. o Although one-way linkage does recognize the importance of human resources in implementing the strategic plan, it precludes the company from considering human resource issues while formulating the strategic plan. ▯
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