Case 1: The added value of HRM

20 important questions on Case 1: The added value of HRM

Why do companies have an HR strategy?

To gain/maintain edge against competitors in the marketplace.

What is an HR tactic for?

This is an HR policy/program to help the strategic goal.

What is the difference between HR strategy & HR tactic?

The strategy is the goal.
The tactic helps the goal.
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What is the order in the chart from high to low?

Manager - Line employees - Staff employees. (decentralization)

What is a manager?

A person who is in charge of others. Responsible for the timely & correct execution of actions.

What is a line employee?

A person who is direct involved in producing the company's goods or delivering the service.

What is a staff employee?

A person who helps the line employee (indirect involvement).

What is quality of work life?

A measure of how safe and satisfied employees feel with their jobs.

How do you call it when you provide workers with the skills/authority to make decisions that would normally be made by managers?

Empowerment.

What is brain drain?

Loss of highly talented key personnel to competitors/start-up ventures.

On which 3 levels are there challenges for today's managers?

On individual, organisational and environmental level.

To what kind of challenge do these belong? Rapid change, rise of internet, work diversity, globalization, legislation, evolving work/family roles, skill shortage, rise of the service sector, natural disaster, collapse housing market?

Environmental.

Background-colorTo what kind of challenge do these belong? Competitive position, decentralization, downsizing  organizational restructuring, self managed work, small businesses, organizational culture, technology, internal & data security, outsourcing, product integrity.

Organizational.

Background-colorTo what kind of challenge do these belong? Matching people & organization, ethical dilemma's/social responsibility, productivity, empowerment, brain drain, job insecurity.

Individual.

How do they keep up their competitive position?

  • controlling costs
  • creating distinctive capabilities
  • improve qualities (TQM)

How can a company be successful with planning & implementing strategic HR choices?

By aligning their HR strategies/policies with:
  • environmental opportunities
  • business strategies
  • unique characteristics
  • distinctive competence

The mix of businesses a corporation decides to hold and the flow of recourses among those businesses. HR strategies that foster flexibility, quick response , entrepreneurship, risk sharing and decentralization are particularly appropriate.

Corporate strategy.

The formulation and implementation of strategies by a firm that is relatively autonomous, even if it is part of a larger corporation.

Business Unit Strategy.

How can a company examine the environment?

  • degree of uncertainty
  • volatility
  • complexity
  • magnitude of change

What is degree of uncertainty?

How much info there is about environment to make a decision.

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