The Importance of Organizational Strategy for HR Strategy

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Human Resources Management Capstone: HR for People Managers

109 calificaciones

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University of Minnesota

Human Resources Management Capstone: HR for People Managers

109 calificaciones

Curso 5 de 5 en SpecializationHuman Resource Management: HR for People Managers

This specialization provides a robust introduction to the key principles, policies, and practices of human resource management, with a focus on understanding managerial choices and constraints, acquiring and onboarding talent, managing employee performance, and rewarding employees. The capstone project provides learners with the opportunity to apply these key principles and practices to a real-world workplace (including a learner's own workplace if desired). Specifically, the capstone project will involve identifying the key human resources challenges for a workplace--including the most pressing motivational, selection, performance evaluation, and reward issues. And for each of these areas, learners will devise a multi-step action plan for addressing the challenges identified.

De la lección

Milestone 1: Identifying the Internal and External Context

The first major milestone in the capstone project is identifying the internal and external needs, pressures, and constraints. In this module, you will be prompted to think about the major elements of the internal and external context and will create a draft description of these elements to share with other learners. You will also review others' work to provide guidance and to help reflect upon their own context.

External Influences on HR Strategies6:58

The Importance of Organizational Strategy for HR Strategy6:04

Why Worry about Why Employees Work?2:46

The Many Meanings of Work4:40

Work is Complex, So Managing is Complex9:42

The Goals of Every People Manager4:10

You Can't Always Do What You Want7:10

Conoce a los instructores

John W. Budd
Professor and Director
Center for Human Resources and Labor Studies
Larry Bourgerie
Senior Lecturer
Carlson School of Management, Department of Work and Organizations
Amy Simon
Senior Lecturer
Department of Work and Organizations
Alan Benson
Assistant Professor
Carlson School of Management, Department of Work and Organizations

In the last video we looked at influences on HR strategy and

managerial styles that reside outside the organization.

Let's continue that discussion by now looking inside the organization and

focusing on organizational strategy.

I say organizational strategy intentionally and not business strategy

because this applies to all organizations, not just private sector businesses.

So while we're on the topic of strategy, first let's ask,

what does it mean for HR to be strategic?

Well this requires at least two things.

First it requires that HR in an organization be focused on organizational

needs, not just the administration of HR policies.

Second, it also requires a shift and

a pushing out of HR tasks from being the responsibility solely of HR

to being a line manager's responsibility with help from an HR partner, of course.

But things like hiring, performance appraisal, determining pay for

performance, those should be a line manager's responsibility.

In fact, those are exactly the classes that follow in this specialization, okay.

So now let's look at relationship between organizational strategy and

HR policies, first starting with business strategy.

I’m going to use a very popular simple two-dimensional approach

to business strategies, Porter's generic 2 business strategies.

First strategy is cost leadership.

Second is called product differentiation.

As the name suggests, in cost leadership, low cost is key,

whereas in product differentiation, differentiation of course is key.

Trying to develop unique features, such as quality, or other types of things

that can give an organization some pricing power or some other thing that will

create a bond between the customers and the organization.

So again, contrast between emphasizing cost and product features.

What does this imply now for HR strategy?

Well, in a cost leadership strategy, you would naturally expect

that HR strategy is also going to emphasize labor costs.

Keep labor costs low and really drive workers in an aggressive way.

How about in a product differentiation strategy?

Well this we would expect to result in a different type of HR strategy,

more that revolves around developing and rewarding employees, engaging employees,

maybe even in some organizations empowering employees.

Now, just as a reminder, when HR's being strategic, it's these types of things that

are being done by managers, not just by HR.

Okay, now to tie this back to the previous lesson,

we characterized these initial HR strategies as low road strategies and

the second category as high road strategies.

And if we recall the contrast between Sam's Club and Costco,

now we can see more clearly where those HR strategy are coming from.

They're coming from different business strategies,

a cost leadership strategy on Sam's Club part and

more of a product differentiation, service differentiation on Costco's part.

Now in some countries, low road HR is called hard HR,

and in some countries high road HR is called soft HR.

I don't really like those labels.

The soft HR, in particular, is particularly a poor label, and

so I'm going to erase those labels.

But let's quickly look at some examples.

Think of a low-cost,

no-frills airline compared to an airline that focuses on business travelers.

We would naturally expect that these would have different HR strategies.

Similarly, think of a budget motel versus a luxury hotel.

We would normally think,

typically think that this would result in different types of HR strategies.

Or even within the same organization,

core employees at Google who need to be creative, have lots of autonomy, flexible,

all right, they would have a high road HR strategy for those employees.

But within a different business, for example, the competitive delivery

business, where labor costs are more important, we would expect that Google

might have a different HR strategy that emphasizes cost containment.

But also to reinforce a lesson from the previous lesson, want to emphasize that

while these business strategy influences are important,

they do not completely determine an HR strategy.

And so we can have some crossover here as well.

Now I also want to emphasize that this doesn't apply simply to private sector

business organizations, but really applies to all organizations.

So let's consider the public sector.

There's been a lot of pressure on public sector organizations in a lot of

countries.

There's a lot of different pressures, let's just simplify it down to two.

So some public sector organizations are under great pressure to reduce costs,

which might imply an HR strategy that increasingly emphasizes outsourcing and

weakening civil service rules.

There's other public sector organizations that have a lot of pressure to improve

service delivery.

This also tends to put pressure to weaken civil service rules but

also leads to enhanced performance management.

Greater levels of incentive pay, more flexible work arrangements, and sometimes,

even employee voice.

So again, in the public sector we have the same features as going on in the private

sector, in which organizational strategy is affecting HR strategy.

It's not completely determining what's happening, but organizational

strategy certainly is a major influence on an organization's HR strategy, okay.

So, what are we going to do next time?

I'm going to interview some HR executives so you can continue to get

different ideas for how to manage people and advice for how to manage people.

And then we're going to follow that up in the last video

by looking at how ideas matter for managing people.

Okay, I wish I was able to erase this board better.

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