Aligning Human Resources and Business Strategy
Distinctive human resources are firms core competencies
Distinctive human resources are firms' core competencies
Strategic Human Resource Management SHRM is the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizationa cultures that foster innovation and flexibility SHRM is the pattern of planned human resource deployment and activities intended to enable an organization to achieve its goals Strategic human resources management is largely about integration and adaptation. Its concern is to ensure that: (1)human resources (HR)management is fully integrated with the strategy and the strategic needs of the firm; (2) HR policies cohere both across policy areas and across hierarchies; and( 3)HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work
◼ SHRM is the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. ◼ SHRM is the pattern of planned human resource deployment and activities intended to enable an organization to achieve its goals. ◼ Strategic human resources management is largely about integration and adaptation. Its concern is to ensure that: (1) human resources (HR) management is fully integrated with the strategy and the strategic needs of the firm; (2) HR policies cohere both across policy areas and across hierarchies; and (3) HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work. Strategic Human Resource Management
The 5-P odel Linking Strategic Business Needs Strategic HRM Activities ORGANIZATIONAL STRTEGY Initiates the process of identifying strategic business needs and provides specific qualities to them NTERNAL EXTERNAL CHARACTERISTICS CHARACTERISTICS STRTEGIC BUSINESS NEEDS Expressed in mission statements or vision statements and translate into strategic business objectives STRATEGIC HUMAN RESOURCES MANAGEMENT ACTMVTIES
The 5-P Model ORGANIZATIONAL STRTEGY Initiates the process of identifying strategic business needs and provides specific qualities to them STRTEGIC BUSINESS NEEDS Expressed in mission statements or vision statements and translate into strategic business objectives EXTERNAL CHARACTERISTICS STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES INTERNAL CHARACTERISTICS Linking Strategic Business Needs & Strategic HRM Activities
The 5-P odel Pepsi-Cola Internationals strategy Being No. 1 by Creating Value through Leadership and Excellence ● The fastest growing The most committed to customer service and attuned to customer needs ● The best operators o The best selling and marketing company o The best people-oriented company
Pepsi-Cola International’s strategy Being No. 1 by Creating Value through Leadership and Excellence. ⚫ The fastest growing ⚫ The most committed to customer service and attuned to customer needs ⚫ The best operators ⚫ The best selling and marketing company ⚫ The best people-oriented company The 5-P Model
The 5-P odel PcIs strategic business objectives o Committed bottling organization o Uncompromising dedication to quality o Development of talented people ● Focus on growth Quality business plans
PCI’s strategic business objectives ⚫ Committed bottling organization ⚫ Uncompromising dedication to quality ⚫ Development of talented people ⚫ Focus on growth ⚫ Quality business plans The 5-P Model
The 5-P odel STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES Human Resources philosophy Express how to treat and Expressed in statements defining value people business values and culture Human Resources policies Establishes guidelines for action Expressed as shared values on people-related business issues (guidelines) and HR programs Human Resources Programs Coordinates efforts to facilitate Articulated as Human resources change to address major people Strategies related business issues Human Resources Practices For leadership, managerial, and Motivates needed role operational roles behaviors Human resources processes Defines how these activities For the formulation and are carried out implementation of other activities
Human Resources Policies Expressed as shared values (guidelines) Human Resources Philosophy Expressed in statements defining business values and culture Human Resources Programs Articulated as Human Resources Strategies Human Resources Practices For leadership, managerial, and operational roles Human Resources Processes For the formulation and implementation of other activities Express how to treat and value people Establishes guidelines for action on people-related business issues and HR programs Coordinates efforts to facilitate change to address major peoplerelated business issues Motivates needed role behaviors Defines how these activities are carried out The 5-P Model STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES
The 5-P odel 1. HUMAN RESOURCES PHILOSOPHY This is a statement of how the organization regards its human resources, what role the resources play in the overall success of the business and how they are to be treated and managed Instead of using the terms HR philosophy or Hr values to describe how human resources are regarded treated and managed some organizations use the term culture
1. HUMAN RESOURCES PHILOSOPHY ◼ This is a statement of how the organization regards its human resources, what role the resources play in the overall success of the business, and how they are to be treated and managed. ◼ Instead of using the terms HR philosophy or HR values to describe how human resources are regarded, treated, and managed, some organizations use the term culture. The 5-P Model
The 5-P odel, philosophy A statement of the culture at Pcl LEADERSHIP IN PEOPLE We will develop an excellent organization focused on building the business by o Empowering people to drive the business from the closest point to the market o Developing the right skills to be the best in the business o Building career opportunities ● Building teamwork With bottlers to ensure that we maintain strong partnerships Among area, division, and headquarters staff to ensure that we coordinate functional strengths to produce the best possible results Across markets to ensure that we share the best practices throughout the enterprise o Helping people succeed by building an environment with High integrity Strong and consistent values Continuous improvement
A statement of the culture at PCI LEADERSHIP IN PEOPLE We will develop an excellent organization focused on building the business by: ⚫ Empowering people to drive the business from the closest point to the market ⚫ Developing the right skills to be the best in the business ⚫ Building career opportunities ⚫ Building teamwork: ➢ With bottlers to ensure that we maintain strong partnerships ➢ Among area, division, and headquarters staff to ensure that we coordinate functional strengths to produce the best possible results ➢ Across markets to ensure that we share the best practices throughout the enterprise ⚫ Helping people succeed by building an environment with: ➢ High integrity ➢ Strong and consistent values ➢ Continuous improvement The 5-P Model: PHILOSOPHY
The 5-P Model, A statement of the culture at PCI LEADERSHIP IN OUR BRANDS We will achieve brand superiority by: o Delivering the best products in the marketplace 母 The highest quality 中 The best tasting 中 The most consistent O Communicating these benefits in a high-impact, persuasive and consistent manner LEADERSHIP IN MARKETING We will build on our brand platforms by O Creating new brand, channel, and package segments that build the business 中 Faster off the mark 中 Better ideas e Quicker to create and take advantage of opportunities
LEADERSHIP IN OUR BRANDS We will achieve brand superiority by: ⚫ Delivering the best products in the marketplace: The highest quality The best tasting The most consistent ⚫ Communicating these benefits in a high-impact, persuasive and consistent manner LEADERSHIP IN MARKETING We will build on our brand platforms by: ⚫ Creating new brand, channel, and package segments that build the business: Faster off the mark Better ideas Quicker to create and take advantage of opportunities The 5-P Model: A statement of the culture at PCI