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Strategic Human Resources Management

Instructor

Asma Hameed Muntaha Tatheer Rahat Rafique Aimen Tanveer

05 28 36 01

Distinctive Human Resources are Firms Core Competencies

The genesis of efforts to create distinctive competencies and, in turn, business strategies

 Chose paired companies in same industries Identified the distinctive Competencies of each organization Finally compared there distinctive Competencies

 When Employees are the Product

When information or advice as a Product Beyond direct services

o Professional Sports o Retailing

Sales as Service

Recruitment through Collage Draft rather then trade

Long term player development strategy

Holding best Players and paying them generously

Players have influence on team decisions and feel they are part of Organization

They do not as a rule, develop their own Players and use trades to scoop up talented Players High Turnover , their reputation as a collection of individuals who are not fit together well Not known for treating players extraordinarily, and making them a part of Organizational Decisions

A precise , well defined unit Players long tenure help to built relationship with fans Qausi-autonomous team

Individual Performance
Wide Open Style

Desperate attitude and reputations

an organization anomaly

 Pioneering firm in the science of Employee selection

Sophisticated Selection tests Frequent and rigorous employee surveys

 Intensive training in Sears Products, Operating Systems and Sales techniques Straight Salary for many of the employees, No Commissions or if paid (1% only)

Decentralized hiring, no formal selection tools Applicants with experience and customer contact Imp. Qualities are pleasant personality and Motivation Only 1 rule in its personnel handbook use your best judgment at all times

A stream of Motivation programs, but provides little training

Pay system is leaded towards Commissions

Ranking on the basis of monthly sales

In fashion retail, employees personal contacts and emotional energy is important

Housewares dominant Sales financing & warranties The name you can trust Turnover is costly Highest satisfaction level

Intense level of motivation & customer contact Commissions, Internal Competition, Motivation programs provide drive Autonomy and absence of rules let it too be exercised High turnover

o Consultancy
o Business Schools o Financial Services

 Attracts candidates having broad perspective of business Maintain idea of Revolving door with academia Entrepreneurial Environment Individualized incentive pay culture

 On campus recruiting system Prefer candidates having technical background Provide extensive training in companies method of project management and execution Provide consistent services

 Clean sheet of paper approach

The Mckinsey way (standardization)

 Faculty having unique skills and abilities

Hire largely to business field Students who are PHDs in unrelated business field became business experts and are hired as assistant professors

 Hires from network of PHDs and competitor schools Prefer candidates having exceptional academic record in relevant field of business

Harvard graduates are specialized in general management orientation and superior discussion skills

Wharton graduates have superior analytical skills associated with functional areas

o Shipping business o Food & beverages

 Variety of programs to empower employees Survey-feedback action Developing detailed action plan

Dominant force in overnight mail business

 First company to win national quality award Achieve the objective of organized decision making Organized interactive skill tests

 No people management practices Measures individual performance against company standard

Substantial material reward system

 Pays highest wages and benefits

Offers gain sharing and stock ownership plans

Highly motivated and loyal employees

Operating with only one hub Focusing on overnight package delivery services Having fewer problem of coordination as UPS incompatible

Drivers productivity is 3x higher than FedEx Wide range of products Overnight delivery volume is only 60% of FedEx Nine time large total business Demand an extremely high level

 Most recognized trademark Marketed 70 years before Pepsi

Requires a deep specific understanding and feel

Build employment system

 Hires college graduates Offer reward and life time job on adequate performance

Internal culture is family-like

Centralized decision making

 Proposed by seeking out the niche market Becoming more diversify by finding new markets

Markets more aggressively

Many more bottling franchises

Faces much more complicated set of management challenges

Hiring people with experience and advance degree

Operate in decentralized manner and introduce share power stock option program Continuous flow of new ideas

 Relatively less job security Ability to change quickly Employees having significantly less loyalty By different ways attacking in many different markets

HR COMPETENCIES BUSINESS STRATEGIES

Flexibility Outside Development Inside Selection

Raiders BCG A.I.G. Pepsi

Established market/ Niche

49ers McKinsey Chubb Coke

o Flexibility
Rely on outside market Grab opportunities through flexible approach Individualism

o Established markets/Niche

Rely on organizations specific capabilities/ strengths

o Outside development o Inside selection

Factors that help sustaining equilibrium: Difficult to match others strategy i.e.
Flexible Established markets/Niche Pepsi Coke

Coke cannot respond quickly to the market changes as compared to Pepsi. While Pepsi cannot meet the depth of competencies and long term investment.

 Internal flexibility that is driven by organizations competencies and capabilities

Any of the approach is not universal

 Competitive pressure pushing firms towards Outside/Flexible quadrant. Firms taking on more talent from outside to create necessary competencies in future prospect.

Investment in particular approach affect employee selection

Transformation from outside to inside strategy

(GE attempted to change HR practices in a decade)

Start up and rapidly growing firms rely on market approach

Core competencies should derive business strategy not vice

versa Firms that rely on flexible approach are better at spotting and managing talent and skills

 Put pressure on firms to respond quickly

(BM and UPS are established but not flexible)

Increased the level of employers investment Employment policies should be well aligned with business strategies and competencies.

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