Strategic HRM - 國立中興大學

Strategic HRM - 國立中興大學

Strategic HRM Final Notes Our Goal for SHRM: To understand the strategic issues in using Human Resources for sustainable competitive advantage and how to implement the changes necessary to achieve this. This requires that we be able to:

Think systematically and strategically about managing human assets Understand what really needs to be done to implement these policies. HR Creating Value Adapted from: David Ulrich, Human Resource Champions, p.24 7 The War for Talent

In the new economy, competition is global, capital is abundant, ideas are developed quickly and cheaply, and people are willing to change jobs oft en. In that kind of environment all that matters is talent superior tale nt will be tomorrows prime source o f competitive advantage. Chambers, E. et al. (1998) The War for Talent. McKinsey Quarterly, 2-15

Case Studies Southwest Airlines MacTemps

Morgan Stanley The Mens Wearhouse NUMMI PSS World Medical Visionary Design Systems Harrahs Entertainment Looking Back on the course. Exposure to some intriguing HR practices

Vision, values, and key success factors Contingency workforce Selection for fit as well as skills Investing in people (intellectual capital) Long-term employment vs. free agency

Psychological vs. financial ownership Performance management Two Mysteries about the Cases How have these companies achieved extraordinary performance with people who are no different from those employed by the competition?

If what they are doing is so understandable, why havent their competitors simply replicated them and achieved similar competitive advantages? HR and Competitive Advantage

The bad news: Its not easy to do. The good news: Its hard to imitate. The HR levers for competitive advantage are identifiable. The only issue is whether we consciously manage them. To do this effectively requires us to think about motivation in a non-intuitive way. Conventional Model of Motivation The Fundamental

Attribution Error When we watch people behave, we tend to see their behavior as being caused by something about their personality or dispositions. When we explain our own behavior, we are far more conscious of the pressure of the situation (e.g., deadlines, rewards, the opinions of others.)

An Alternative Model of Motivation The Social Construction of Reality Three people were at work on a c onstruction site. All were doing the same job, but when each was aske d what his job was, the answers va ried. Breaking rocks, the first repli

ed. Earning my living, said the se cond. Helping to build a cathedral, said the third, Values-based Organizations These organizations place less emphasis on following a clear strategy than on build ing a rich, engaging corporate purposef ocus less on formal structural design and more on effective management processes

and are less concerned with controlling employees behavior than with developing their capabilities. Such a transformation c an start only with top management. Value-based Practices

Values and culture come first. Hiring for fit. Investment and opportunities for all people in the company. Widespread information sharing of operational and financial data. Reliance on teams and involvement. Emphasis on equity and non-monetary rewards.

Leaders, not managers. Two Bases of Ownership Financial Ownership YES Psychologic al Ownership NO

YES Southwest MacTemps NUMMI NO Many high tech companies Traditional Companies HRs Role

The job of Human Resources is NOT primarily t o: Keep the company out of court Enforce rules and maintain consistency. Manage administrative processes.

Tell people No. HRs job is to: Help build and reinforce the companys values and culture Play a leadership role in building capabilities that en sure the successful execution of business strategy.

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