Fundamentals of Human Resource Management 5th Edition Dessler Solutions Manual
Fundamentals of Human Resource Management 5th Edition Dessler Solutions Manual
Fundamentals of Human Resource Management 5th Edition Dessler Solutions Manual
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C H A P T E R T T h r e e
Lecture Outline
Performance
3
I. The Strategic Management Process
A. The Basic Management Planning Process
B. What Is Strategic Planning? In Brief: This chapter explains
C. The Strategic Management Process how to design and develop an HR
D. Types of Strategies system that supports the
E. Managers’ Roles in Strategic Planning company’s strategic goals. It
II. Strategic Human Resource Management
explains the strategic management
A. What Is Strategic Human Resource Management?
B. Sustainability and Strategic Human Resource
process, what strategic HR
Management management is, HR metrics, high-
C. Strategic Human Resource Management Tools performance work systems, and
III. HR Metrics and Benchmarking employee engagement. It discusses
A. Types of Metrics how to create a strategy-oriented
B. Benchmarking HR system.
C. Strategy and Strategy-Based Metrics
D. Workforce/Talent Analytics
E. Data Mining Interesting Issues: The human
F. Using HR Audits resource function today continues
G. Evidence-Based HR and the Scientific Way of to play an increasingly visible role
Doing Things in the strategic planning and
IV. Building High-Performance Work Systems management process, requiring a
A. High-Performance Work Systems
new level of skill and competency
B. High-Performance Human Resource Policies and
Practices
among HR professionals. HR
V. Employee Engagement and Performance managers must develop
A. Employee Engagement measureable strategies that
B. Why Is Employee Engagement Important? convincingly showcase HR’s
C. The Employee Engagement Problem impact on business performance.
D. What Can Managers Do to Improve Employee Successful human resource
Engagement?
managers have adopted a
E. How to Measure Employee Engagement
VI. Employee Engagement Guide for Managers
perspective that focuses on how
A. How Kia Motors Improved Performance with an HR their departments can play a
Strategy Aimed at Boosting Employee Engagement central role in implementing the
B. The Challenges firm’s strategy.
C. The New HR Management Strategy
D. The Results
ANNOTATED OUTLINE
E. Data Mining — Data mining sifts through huge amounts of employee data
to identify correlations that employers then use to improve their
employee selection and other practices. Data mining is “the set of
activities used to find new, hidden, or unexpected patterns in data.”
KEY TERMS
Strategic plan The company’s plan for how it will match its internal
strengths and weaknesses with external opportunities and
threats in order to maintain competitive advantage.
Mission statement Summarizes what the company’s main tasks are today.
Competitive strategy A strategy that identifies how to build and strengthen the
business’s long-term competitive position in the
marketplace.
Strategic human resource Formulating and executing human resource policies and
management practices that produce the employee competencies and
behaviors the company needs to achieve its strategic
aims.
Strategy map A strategic planning tool that shows the “big picture” of
how each department’s performance contributes to
achieving the company’s overall strategic goals.
Digital dashboard Presents the manager with desktop graphs and charts
thus presenting a computerized picture of where the
company stands on all the metrics from the HR Scorecard
process.
DISCUSSION QUESTIONS
3-1. Give an example of hierarchical planning in an organization. (LO 3.1: Explain, with
examples, each of the steps in the strategic management process.)
This item can be assigned as a Discussion Question in MyLab Management. Student
responses will vary.
3-2. Define and give at least two examples of the cost leadership competitive strategy
and the differentiation competitive strategy. (LO 3.1: Explain, with examples, each of
the steps in the strategic management process.) The cost leadership competitive strategy
means that the enterprise aims to become the low-cost leader in an industry. For
example, stores such as Staples and Office Max maintain their competitive advantage by
selling large quantities of office products at low prices. Airlines such as Southwest offer
low fares in addition to quick turnarounds at the gate. Walmart’s slogan is “Low Prices
Always.”
3-4. Explain why strategic planning is important to all managers. (LO 3.1: Explain, with
examples, each of the steps in the strategic management process.) The human resource
function today continues to play an increasingly visible role in the strategic planning and
management process. The HR function requires a new level of skill and competency
among HR professionals. HR managers must develop measureable strategies that
convincingly showcase the impact of HR on business performance. Successful human
resource managers have adopted a perspective that focuses on how their departments
can play a central role in implementing strategy. While strategic planning is broad and
long ranged in nature, managers must be able to translate such goals into practical and
actionable items in their departments or business units.
3-5. Explain with examples each of the seven steps in the strategic planning process.
(LO 3.1: Explain, with examples, each of the steps in the strategic management
process.) First, define the current business and mission of the organization. The logical
place to start is by defining one’s current business. What products do we sell, where, and
how do our products or services differ from our competitors? Second, perform external
and internal audits by asking, “Are we heading in the right direction?” Third, formulate a
new direction then ask, “What should our new business be?” Translate the mission into
goals. Then, translate the mission into strategic objectives. Fourth, translate the desired
new direction into strategic goals. Fifth, formulate strategies to achieve the strategic goal.
The role of the manager in the process is to choose courses of action that will enable the
company to achieve its strategic goals. Sixth, implement the strategy. Strategy execution
means translating the strategies into action and trying them out. Finally, evaluate
performance. Things don’t always turn out as planned. At this point, the strategies are
tested against reality. If changes are needed, the entire process may be repeated from
an earlier step.
3-6. List, with examples, the main generic types of corporate strategies and competitive
strategies. (LO 3.1: Explain, with examples, each of the steps in the strategic
management process.) There are two generic types of competitive strategies. The cost
leadership competitive strategy means that the enterprise aims to become the low-cost
leader in an industry. For example, stores such as Staples and Office Max maintain their
competitive advantage by selling large quantities of office products at low prices. Airlines
such as Southwest offer low fares in addition to quick turnarounds at the gate.
A diversification corporate strategy means the firm will expand by adding new product
lines. PepsiCo is diversified. For example, over the years, PepsiCo added Frito-Lay chips
and Quaker Oats.
A vertical integration strategy means the firm expands by, perhaps, producing its own raw
materials, or selling its products direct. Thus, Apple opened its own Apple stores.
With geographic expansion, the company grows by entering new territorial markets, for
instance, by taking the business abroad.
3-7. Define and give several examples of strategic human resource management. (LO
3.2: Define strategic human resource management, and give examples of strategic
human resource management in practice.) Strategic human resource management
means formulating and executing human resource policies and practices that produce the
employee competencies and behaviors the company needs to achieve its strategic aims.
The basic process of strategic human resource management is simple. First, decide what
the strategic goals are, then identify the employee skills and behaviors that achieving
these goals require, and then, formulate human resource management policies and
practices that will produce these required employee skills and behaviors. For example,
FedEx hires, trains, and rewards a diverse workforce. One of FedEx’s strategic aims is to
achieve superior levels of customer service through a highly committed workforce.
FedEx’s human resource strategies stem from this aim. They include building two-way
communications, screening out potential managers whose values are not people-
oriented, guaranteeing fair treatment and employee security, and utilizing promotion-
from-within to give employees opportunities to realize their potential.
3-8. With three or four other students, form a strategic management group for your
college or university. Your assignment is to develop the outline of a strategic plan
for the college or university. It should include such things as mission and vision
statements; strategic goals; and corporate, competitive, and functional strategies.
In preparing your plan, make sure to show the main strengths, weaknesses,
opportunities, and threats the college faces, and identify which prompted you to
develop your particular strategic plans. (LO 3.1: Explain, with examples, each of the
steps in the strategic management process.) Look for students to prepare a well-
developed mission and vision statement, making sure that they are clearly differentiated
from each other with the vision being future focused, articulating the desired state, with
the mission supporting the vision, describing “who we are, what we do, and where we are
headed.” Use this exercise as an opportunity to discuss the problems that may be
created by not clearly defining the mission and vision, as well as the strengths,
weaknesses, opportunities, and threats.
3-9. Using the Internet or library sources, analyze the annual reports of at least five
companies. Bring to class examples of how those companies say they are using
their HR processes to help the company achieve its strategic goals. (LO 3.2: Define
strategic human resource management, and give examples of strategic human resource
management in practice.) In class, facilitate a discussion on how effective students
believe the HR processes each company is using to support the strategic goals.
Challenge students to come up with additional ideas for other approaches for using the
HR processes and how they would go about implementing them, noting the specific
challenges of each.
3-10. Interview an HR manager and write a short report on “The Strategic Roles of the
HR Manager at XYZ Company.” (LO 3.2: Define strategic human resource
management, and give examples of strategic human resource management in practice.)
Instruct students to follow the model outlined in this chapter for the steps in the strategic
management process, and HR’s role in strategy execution and strategy formulation.
3-11. Using the Internet or library resources, bring to class and discuss at least two
examples of how companies are using an HR scorecard to help create HR systems
that support the company’s strategic aims. Do all managers seem to mean the
same thing when they refer to HR scorecards? How do they differ? (LO 3.3: Explain,
with examples, why metrics are important for managing human resources.) Students
should find a variety of examples of HR scorecards. The differences in the scorecards will
likely highlight the differing strategies of the organizations.
3-12. Possibly in teams of several students, choose a company for which you will
develop an outline of a strategic HR plan. What seem to be this company’s main
strategic aims? What is the firm’s competitive strategy? What would the strategic
map for this company look like? How would you summarize your recommended
strategic HR policies for this company? (LO 3.1: Explain, with examples, each of the
steps in the strategic management process.) For each example, ask students to
comment on how effective they believe the measures that were selected by the company
are in terms of allowing the company to achieve the strategic aims and their competitive
strategy. Some data across several years will be necessary to support the students’
claims. Challenge students to critique the strategic map and how it could be improved to
measure strategically relevant organizational outcomes, workforce competencies and
behaviors, and HR system policies and activities.
3-13. For this activity, you will need the documents titled (1) “HRCI PHR® and SPHR®
Certification body of Knowledge” and (2) “About the Society for Human Resource
Management (SHRM) Body of Competency and Knowledge TM Model and
Certification Exams.” Your instructor can obtain these documents from the
Pearson Instructor Resource Center and pass them on to you. These documents
list the knowledge someone studying for the HRCI or SHRM certification exam
needs to have in each area of human resource management (such as in Strategic
Management and Workforce Planning). In groups of several students, do four
things: (1) review the HRCI and/or SHRM documents; (2) identify the material in
this chapter that relates to the required knowledge the appendix lists; (3) write four
multiple-choice exam questions on this material that you believe would be suitable
for inclusion in the HRCI exam; and (4) if time permits, have someone from your
team post your team’s questions in front of the class, so the students in other
teams can take each other’s exam questions. (Covers all learning objectives) The
material in this chapter that relates to the HRCI certification exam includes strategic
planning, types of strategies, human resource strategies and policies, and HR metrics
and benchmarking. A sample question, answer, and explanation is available from
http://www.certgear.com/products/preview/sphr_certification/index.html. Multiple-choice
questions should reflect material in this chapter and should have answer choices that
could appear plausible.
Students can find the following assisted-graded writing questions at MyLab Management
(www.pearson.com/mylab/management):
3-14. What is the difference between a strategy, a vision, and a mission? Give one
example of each. (LO 3.1: Explain, with examples, each of the steps in the strategic
management process.)
APPLICATION EXERCISES
3-16. Based on the information in this case, provide examples, for Siemens, of at least
four strategically required organizational outcomes, and four required workforce
competencies and behaviors. (LO 3.1: Explain, with examples, each of the steps in
the strategic management process.) Strategically required organizational outcomes
would be the following: 1) an employee selection and compensation system that attracts
and retains the human talent necessary to support global diversification into high tech
products and services; 2) a “learning company” in which employees are able to learn on a
continuing basis; 3) a culture of global teamwork that will develop and use all the
potential of the firm’s human resources; 4) a climate of mutual respect in a global
organization. Workforce competencies and behaviors could include 1) openness to
learning; 2) teamwork skills; 3) cross-cultural experience; 4) openness, respect, and
appreciation for workforce diversity.
3-17. Identify at least four of the strategically relevant HR system policies and activities
that Siemens has instituted in order to help human resource management
contribute to achieving Siemens’ strategic goals. (LO 3.2: Define strategic human
resource management, and give examples of strategic human resource management in
practice.) The four policies and activities are: 1) training and development activities to
support continuous learning through a system of combined classroom and hands-on
apprenticeship training to support technical learning; 2) continuing education and
management development to developing skills necessary for global teamwork and
appreciation for cultural diversity; 3) enhanced internal selection process that includes
prerequisites of cross-border and cross-cultural experiences for career advancement; 4)
organizational development activities aimed at building openness, transparency, fairness,
and supporting diversity.
3-18. Provide a brief illustrative outline of a strategy map for Siemens. (LO 3.2: Define
strategic human reosource management, and give examples of strategic human resource
management in practice.)
Metrics could include things such as:
1. Level of organizational learning:
3-19. Would you recommend that the Carters expand their quality program? If so,
specifically what form should it take? (LO 3.4: Answer the question “What are high-
performance work systems?” and give examples of how they differ from non-high-
performance ones.)
There are several opportunities for Carters if they choose to expand their quality
program. While the workers are not highly paid, giving them ownership in the quality
process would likely lead to a higher level of employee engagement. Carters should
consider several practical managerial actions that can foster employee engagement,
including making sure employees 1) understand how their departments contribute to the
company’s success, 2) see how their own efforts contribute to achieving the company’s
goals, and 3) get a sense of accomplishment from working at the company.
3-20. Assume the Carters want to institute a high-performance work system as a test
program in one of their stores. Write a one-page outline summarizing important HR
practices you think they should focus on. (LO 3.4: Answer the question “What are
high-performance work systems?” and give examples of how they differ from non-high-
performance ones.)
There are several practices that Carters could focus on to institute a high-performance
work system. First, they should look at their recruitment practices to identify methods to
recruit more quality candidates. They should begin hiring based on valid selection tests
and expand their training program. Finally, they should use human resource metrics to
measure their results.
EXPERIENTIAL EXERCISE
Purpose: The purpose of this exercise is to give you experience in developing an HR strategy, in
this case by developing one for Starbucks.
Required Understanding: You should be thoroughly familiar with the material in this chapter.
How to Set Up the Exercise: Set up groups of three or four students for this exercise. You are
probably already familiar with what it’s like to have a cup of coffee or tea in a Starbucks coffee
shop, but if not, spend some time in one prior to this exercise. Meet in groups and develop an
outline for an HR strategy for Starbucks Corp. Your outline should include four basic elements: a
basic business/competitive strategy for Starbucks; workforce requirements (in terms of employee
competencies and behaviors) this strategy requires; specific HR policies and the activities
necessary to produce these workforce requirements, and suggestions for metrics to measure the
success of the HR strategy.
Students’ responses may vary but should include an outline that has four basic elements
including:
2. In 2009, Comcast Cable announced it was buying NBC/Universal to combine its own
cable delivery business with NBC’s content. Many thought the acquisition was ill
conceived, in part because the “content” employees’ culture might differ from that of
the cable employees’ culture. Some of the concerns are illustrated at
http://arstechnica.com/tech-policy/news/2010/02/congress-told-that-comcastnbc-
merger-a-big-crapshoot.ars. Use other Internet sources to answer this question: How
different are the two companies’ cultures and how would you as CEO overcome those
differences? Many of the differences with the cultures lie with the different strategies of the
two companies. Students should find some of these differences to help explain the cultural
clashes that could occur. The CEO plays a critical role in merging the two cultures and
ensuring the workers are productive moving forward. It would be helpful for the CEO to
engage a consulting firm with merger expertise. Emphasis should be on HR practices such
as retention strategies and compensation systems. The CEO must also have a clear
communication strategy related to the merger.
ADDITIONAL ASSIGNMENTS
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