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CHAPTER 2 STRATEGIC HR MANAGEMENT AND PLANNING Learning Objectives Summarize the strategic planning process and how it drives the organizational...

HR Best Practices: NASA Launches Workforce Realignment
In 2010 the space shuttle program will be discontinued and thousands of NASA engineers and scientists will be affected. The Constellation program, which will succeed the space shuttle program, will not launch for five years. If the skilled shuttle staffers decide to retire rather than wait for the replacement program, NASA will face a serious knowledge gap. Also, a government panel is studying manned spaceflight programs to determine if the shuttle should truly be taken out of service. All of the uncertainty creates a major challenge of keeping employees engaged and committed. HR staff is working with managers to map skills for the next program and comparing them to the skills of the current workers. They have found that systems engineering and project management skills are lacking and they are developing training to fill the skill shortage. In addition to the tangible transition issues, there are intangible issues such as dealing with fear of the unknown, breaking up teams, and grief for the and o a program that many employees have worked on their entire career.

Questions for Discussion:
1. Why do you think project management skills are lacking in current workers at NASA?
2. As a HR manager, how would you deal with the intangible issues that are mentioned?
3. How could you measure employee morale and optimism over the next five years to make sure that current levels are being maintained?

CHAPTER 2 STRATEGIC HR MANAGEMENT AND PLANNING Learning Objectives Summarize the strategic planning process and how it drives the organizational activities. Outline how strategic HR management is linked to the organizational strategies. Discuss how internal and external environmental factors affect HR strategies. List Hr strategic challenges faced by modern organizations. Explain how technology is affecting HR management practices and employees. Identify how organizations can measure and assess the effectiveness of HR management practices. CHAPTER 2: STRATEGIC HR MANAGEMENT AND PLANNING Chapter Overview Strategic human resource management refers to the use of employees to gain or maintain a competitive advantage. There should be a close linkage between organizational and HR strategies. This chapter starts with a discussion of strategic planning including strategy formulation, the strategic planning process, strategic competencies for HR professionals, and operationalizing HR management strategies. Next, HR as organizational contributor is explored with high-performance work practices and HR effectiveness and financial performance covered. Environmental analysis, including both internal and external factors, is presented followed by global competitiveness and strategic HR issues. Next, HR planning activities in mergers and acquisitions, before the deal, during integration, and post integration are discussed. Then some strategic challenges are presented: managing a talent surplus, legal considerations for workforce reductions, and managing a talent shortage. Specific technology challenges are also explored and include the effects of technology on work and organizations, effects on communication, effects on work processes, and effects on HR activities. 22
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Chapter 2: Strategic HR Management and Planning The chapter closes with measuring effectiveness of HR initiatives. The development and use of HR metrics is explored and specific strategic HR effectiveness tools such as benchmarking, the balanced scorecard, return on investment (ROI), and HR audits are discussed. Chapter Outline and Notes The strategy an organization follows is its proposition for how to compete successfully and thereby survive and grow. There are different approaches to strategy formation but regardless of which specific strategy is chosen, an HR strategy to have the right people in the right place at the right time will be necessary to make that overall strategy work. That is why it is commonly argued that HR should have input into the organization’s overall strategy. To have input into overall strategy HR must move beyond the administrative and legally mandated tasks and add value by improving the performance of the business. To add value to the human capital, HR must have good measurements (metrics) about the HR side of the business including core competencies, and capabilities of the organization. LOGGING ON: People Trak-Strategic HR Software – provides strategic HR management and planning software for organizations – I. STRATEGIC PLANNING Strategic planning is the process of defining an organizational strategy, or direction, and making decisions on allocating the resources of the organization (capital and people) to pursue this strategy. A. Strategy Formulation – The strategic planning cycle typically covers a 5-year time frame, and management considers both internal and external forces when formulation the strategic plan. Figure 2-1 shows the strategic planning process for the organization. The guiding force behind the strategic planning process is the organizational mission , which is the core reason for the existence of the organization and what makes it unique. Strategic HR management refers to the use of employees to gain or maintain a competitive advantage. The focus of HR initiatives is evolving from a traditional emphasis to a strategic emphasis, as detailed in Figure 2-2. 1. Strategic Competencies for HR Professionals – the following six primary strategic competencies are critical for HR Professionals: Credible Activist Culture and Change Steward Talent Manager/Organization Designer Strategy Architect Operational Executor Business Ally 23
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Answer 1:
Effective project management skills in the workforce decide the success of the
organization. It is strategic competency which helps in delivering the expected results, with the
help of...

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