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Unformatted text preview: Strategic Human
Paul L. Schumann, Ph.D.
© 2011 by Paul L. Schumann. All rights reserved. 1 Strategic Decisions Where should we compete? • What industries, products, locations, …? How should we compete? • What criteria: cost, product features, quality, reliability, …? With what should we compete? • What gives us competitive advantage? 2 Competitive Advantage Unique, sustainable, hard to copy:
• Product or service
Production or inventory methods
Information management methods
Human resource management 3 Link HRM & Strategy Administrative linkage
Integrative linkage 4 Generic Strategies (Porter) Cost Leadership Strategy
• Control overhead and other costs
Use efficient, largescale facilities
Exploit the experience curve Differentiation Strategy • Differentiate through unique technology, features, customer service, brand image, etc. 5 Directional Strategies External growth • Mergers & acquisitions (“M&A”) Horizontal (M&A involving competitors) Vertical (M&A involving the supply chain) Internal growth • New products, new markets, innovation Concentration (focus, niche) • Cut costs, grow market share in niche Downsizing / divesting 6 Transforming the HRM Function Customers
Methods 7 Measuring HRM Effectiveness Audit approach • Measure key indicators & customer satisfaction Analytic approach • Cost / benefit analysis 8 Improving HRM Effectiveness Restructure HRM:
• HRM Centers for Expertise (specialists)
HRM Field Generalists (dual reporting)
HRM Service Center (specialists) Outsource HRM
Process redesign/reengineering HRM
Human Resource Information Systems (HRIS)
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This note was uploaded on 03/25/2012 for the course HR 612 taught by Professor P.h during the Spring '12 term at Minnesota State University Moorhead .
- Spring '12