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Strategic HR Overview by Yj21O2F

VIEWS: 6 PAGES: 9

									        Strategic HR Management:
               An Overview
     A Career in HR? Really? If no, so what?
     How do firms gain competitive advantage?
     How do firms gain sustainable competitive
      advantage?
      What is the role of HR for the success of the
      firm?
      Eight “Secrets” of HR Management
    10/4/2012
     One Measure of Value: Salaries
SHRM: 250,000 members worldwide, SHRM.ORG
Median Total Cash Compensation 2009
HR Executive (with LR experience): $254,000
International HR executive:                                  $242,400
Compensation & Benefits:                                     $193,800
Training & Development:                                      $173,700
Employment/recruitment:                                       $150,300
http://www.bls.gov/oco/ocos021.htm#earnings
   10/4/2012   Source: HR Magazine, December, 2009; Watson Wyatt 2009/2010 Survey Report on Human
                           Resources Personnel Compensation
                 How to become “strategic”

   Conventional View: Decide what business to be
    in and how to compete.
   Develop functional strategies: finance,
    marketing, manufacturing, etc.
   Identify critical tasks for executing strategy.
   Design, implement, align, monitor practices.

     10/4/2012
        How to Become “Strategic”
   Unconventional view: Values first!
   What policies & practices are consistent?
   How can we serve our customer better than our
    competitors?
   Given our capabilities, how do we deliver value
    to the customer that our competitors cannot
    easily imitate?
   Senior Mgmt manages values & culture!
    10/4/2012
          When the Conventional View
          Doesn’t Work: Blow It Up!


   Cindi Lesher’s experience at Minnesota Light
    & Power.
   Who is my customer? What do they need?
    How do I help them?


     10/4/2012
   The Pfeffer Magic Seven plus One!
1. Employment security for core employees.
2. Selective hiring of new people.
3. Self-managed teams and decentralized decision-making.
4. Comparatively high compensation and performance based.
5. Extensive training.
6. Reduced status distinctions.
7. Extensive sharing of financial and performance information.
8. Use of alternative dispute resolution procedures (mediation &
  arbitration)

    10/4/2012
                Costco vs. Sam’s Club

“At Costco, it’s better to be an employee or a
    customer than a shareholder!”
Bill Dreher, analyst Deutsche Bank.




“We want to build a company that will still be here
  50 and 60 years from now!”
Jim Senegal, CEO Costco.


    10/4/2012
                       Costco vs. Sam’s Club
                                                     Costco           Sam’s Club

Average wage:                                        $17.00           $10.11

Turnover:                                               17%             44%

5 year Stock Price Gain: 55%                                          (10%)

Operating Income per
 employee:                                              $21,805        $11,615
Source: W. Cascio, Academy of Management Perspectives, August, 2006
        10/4/2012
 Culture as the Source of Sustainable
       Competitive Advantage



“Labor is the superior of capital and deserves
  much higher consideration.”




   10/4/2012

								
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