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STRATEGIC HRM AND UAE
CHALLENGESBMHR N300
Diane Evans
Objectives
Define the term ‘strategic hrm’ Identify specific issues of shrm Apply hr strategies to a case study
HR Management Challenges
Globalization of BusinessOutsourcing and increased competition
The threat of terrorism
Economic and Technological ChangesOccupational Shifts
Workforce Availability and Quality Concerns
Technological Shifts and the Internet
© 2007 Thomson/South-Western. All rights reserved. 1–3
Co-operation of HR with Operating Managers
HR UnitDevelops legal, effective
interviewing techniquesTrains managers in
conducting selection interviews
Conducts interviews and testing
Sends top three applicants to managers for final review
Checks referencesDoes final selection and
hiring for certain job classifications
ManagersAdvise HR of job openingsDecide whether to do own
final interviewingReceive interview training
from HR unitDo final interviewing and
hiring where appropriateReview reference
information Provide feedback to HR unit
on hiring/rejection decisions
© 2007 Thomson/South-Western. All rights reserved. 1–4
FIGURE 1.2 Changing Roles of HR Management
1–5© 2007 Thomson/South-Western. All rights reserved.
FIGURE 1.3 Strategic HR Management Process
1–6© 2007 Thomson/South-Western. All rights reserved.
Nature of strategic HR management
Cost Leadership Competition on the basis
of low price and high quality of product or service
Relies on “building” employees to fit specialized needs
Requires a longer HR planning horizon approach
Differentiation Competition on the basis of
either offering distinctively different products or services or establishing an exclusive image for quality products and services
Relies on hiring needed skills.
Needs a shorter planning time frame in order to be responsive to dynamic environments
© 2007 Thomson/South-Western. All rights reserved. 1–7
Relationship of Organizational and HR Strategies
Nature of Strategic HR Management (cont’d)
Customer Service and Quality Products Linked to HR StrategiesHigh quality products and services are the results of
HR-enhancements to organizational performance. Organizational Culture and Organizational
EffectivenessOrganizational culture—the shared values and beliefs
in an organization○ Strategy and culture must be compatible and aligned for
the organization to be effective.○ Culture affects recruitment and retention of employees.
© 2007 Thomson/South-Western. All rights reserved. 1–8
Human Resource Planning Human Resource (HR) Planning
The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.
© 2007 Thomson/South-Western. All rights reserved. 1–9
FIGURE 1.4 HR Planning Process
1–10© 2007 Thomson/South-Western. All rights reserved.
Scanning the External Environment
Environmental ScanningThe process of studying the environment of
the organization to pinpoint opportunities and threats.
Environmental Changes Impacting HRGovernmental influencesEconomic conditionsGeographic and competition issuesWorkforce composition
© 2007 Thomson/South-Western. All rights reserved. 1–11
Assessing the Internal Workforce
Jobs and Skills Audit What jobs exist now?How many individuals are performing each
job?What are the reporting relationships of jobs?How essential is each job?What jobs will be needed to implement
future organizational strategies?What are the characteristics of anticipated
jobs?
© 2007 Thomson/South-Western. All rights reserved. 1–12
Assessing the Internal Workforce (cont’d) Organizational Capabilities Inventory
HR databases—sources of information about employees’ knowledge, skills, and abilities (KSAs)
Uses of KSA inventories○ Recruiting○ Selection○ HR development○ Capabilities of future workforce
© 2007 Thomson/South-Western. All rights reserved. 1–13
Forecasting HR Supply and Demand Forecasting
The use of information from the past and present to identify expected future conditions.
Forecasting PeriodsShort-range: six months to one yearIntermediate-range: up to five yearsLong-range: more than five years
© 2007 Thomson/South-Western. All rights reserved. 1–14
HR Forecasting
1–15© 2007 Thomson/South-Western. All rights reserved.
Factors Affecting External HR Supply
Net migration for an area
Individuals entering and leaving the workforce
Individuals graduating from schools and colleges
Changing workforce composition and patterns
Economic forecasts
Technological developments and shifts
Actions of competing employers
Government regulations and pressures
Other circumstances affecting the workforce
© 2007 Thomson/South-Western. All rights reserved. 1–16
Forecasting HR Supply and Demand (cont’d) Forecasting Internal HR
SupplyEffects of promotions, lateral
moves, and terminations Succession Planning
Long-term plan to replace key employees.
Managing an expatriate workforce
© 2007 Thomson/South-Western. All rights reserved. 1–17
Measuring HR Effectiveness (cont’d) Measures of Strategic HR Effectiveness (cont’d)
Return on Investment (ROI)○ A calculation showing the value of expenditures for HR
activities and how long it will take for the activities to pay for themselves.
Economic Value Added (EVA)○ A firm’s net operating profit after the cost of capital (the
benchmark for minimum return) is deducted.HR and the Balanced Scorecard
○ Financial ○ Internal business processes○ Customer○ Learning and growth
© 2007 Thomson/South-Western. All rights reserved. 1–18
Measuring HR Effectiveness (cont’d) HR Measurement and Benchmarking
Benchmarking○ Comparing specific measures of performance against
data on those measures in other organizations.
HR AuditA formal research effort that evaluates the current
state of HR management in an organization.Audit areas:
○ Staffing○ Compensation○ Health and Safety
© 2007 Thomson/South-Western. All rights reserved. 1–19
UAE HR Management Challenges Global perspective and influence Reliance on expatriate workers for
skills/knowledge needed Public v private employment Cultural development – Arab/Islam v
Western/secular
Apply SHRM to a case study
Al Ain Water