Human Resource Management, 15e (Dessler) Chapter 3 Human Resource Management Strategy And Analysis

Strategic planning refers to the process of determining and setting the long-term goals and objectives of a company, as well as identifying the actions and resources required to achieve them. It involves analyzing the company's internal strengths and weaknesses, such as its resources, capabilities, and competitive advantages, and aligning them with external opportunities and threats in the market. By doing so, strategic planning helps the company maintain a competitive position by effectively leveraging its strengths, addressing weaknesses, and capitalizing on market opportunities while mitigating potential threats.

A SWOT chart is a frequently used tool to organize relevant information on positive and negative aspects of the company and environment. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It helps in identifying the internal strengths and weaknesses of the company, as well as the external opportunities and threats in the environment. By analyzing these factors, John can gain a comprehensive understanding of the company's current situation and make informed decisions during the strategic management process.

The first step in the basic planning process is setting an objective. This involves identifying and clearly defining the desired outcome or goal that the planning process aims to achieve. By setting a specific objective, it provides a clear direction and purpose for the planning process, allowing for the development of strategies and actions that align with the desired outcome. Without a set objective, the planning process may lack focus and may not effectively address the needs or goals of the organization or individual.

John is adopting the competitive strategy of cost leadership. This strategy involves offering the lowest prices in the market, which allows a company to attract price-sensitive customers and gain a competitive advantage. By adopting this strategy, John aims to position his shoe store as the go-to option for customers looking for affordable shoes.

A firm's functional strategies identify the broad activities that each department will do in order to help the business accomplish its strategic goals. This means that the different departments within a firm, such as marketing, finance, operations, and human resources, will have specific tasks and responsibilities that contribute to the overall success of the company. By aligning the activities of each department with the strategic goals of the business, the firm can ensure that all areas are working towards a common objective and maximizing their effectiveness.

The management planning process involves various steps such as setting objectives, making forecasts, reviewing alternative courses of action, evaluating options, and implementing the plan. This process is essential for organizations to effectively plan and coordinate their activities, allocate resources, and achieve their goals. It helps in ensuring that the organization's actions are aligned with its overall strategy and that it can adapt to changing circumstances. Through this process, managers can identify potential opportunities and challenges, make informed decisions, and allocate resources effectively to achieve desired outcomes.

Building corporate hierarchies is not part of the basic managerial planning because it pertains to the organizational structure and design, which falls under the realm of organizational management rather than planning. Managerial planning involves activities such as evaluating options, setting objectives, and implementing plans to achieve those objectives. Building corporate hierarchies, on the other hand, focuses on establishing the chain of command and reporting relationships within the organization, which is more closely associated with organizational structure and management.

The strategic management process involves evaluating the firm's internal and external situation, asking "Where are we now as a business?", and formulating a new business direction. Offshoring low-skill jobs is not a step involved in the strategic management process. Offshoring low-skill jobs may be a business decision made as part of the new business direction, but it is not a step in the process itself.

Functional strategies refer to the specific actions and plans that each department within a company must undertake in order to support the achievement of the organization's strategic goals. These strategies focus on the unique functions and activities of each department, such as marketing, finance, operations, and human resources, and outline how they can contribute to the overall success and competitiveness of the business. By aligning the efforts of each department with the company's strategic objectives, functional strategies help ensure that the organization operates efficiently and effectively, ultimately leading to the accomplishment of its goals.

A diversification corporate strategy implies that a firm will expand by adding new product lines. This means that the company will seek to enter new markets and offer a wider range of products or services to its customers. By diversifying its product portfolio, the firm aims to reduce its reliance on a single product or market, thereby spreading its risk and potentially capturing new opportunities for growth. This strategy can help the company to attract new customers, increase market share, and ultimately drive revenue and profitability.

A digital dashboard is a tool that provides managers with visual representations of data and metrics from the HR scorecard process. It presents desktop graphs and charts that help managers understand and analyze the company's performance in various HR areas. This allows them to easily track and monitor key metrics, identify trends, and make informed decisions based on the data presented.

The first step in the strategic management process is asking, "Where are we now as a business?" This step is crucial because it involves assessing the current state of the business, including its strengths, weaknesses, opportunities, and threats. By understanding the current position of the business, it becomes easier to formulate an effective strategy and make informed decisions for future growth and success.

Implementing high-performance practices such as recruiting, screening, and training is done to develop a trained, flexible, and self-motivated workforce. By implementing these practices, organizations can ensure that their employees possess the necessary skills and knowledge to perform their jobs effectively. Additionally, these practices help in creating a workforce that is adaptable to changing circumstances and can easily take on new responsibilities. This ultimately leads to a more productive and efficient workforce, which is crucial for the success of any organization.

The correct answer is diversification. Harley-Davidson selling a line of boots, helmets, and leather jackets indicates that the firm is expanding its product offerings beyond motorcycles. Diversification strategy involves entering new markets or developing new products in order to reduce risk and increase revenue streams. By diversifying its product line, Harley-Davidson is targeting a broader customer base and seeking to generate additional revenue from the sale of accessories and apparel. This strategy allows the company to leverage its brand and expand its presence in the market.

A digital dashboard is a tool that provides a visual representation of data, allowing managers to easily monitor and analyze key metrics. In this case, John, as a manager, is using a digital dashboard to view HR scorecard data. The digital dashboard presents the data in the form of graphs and charts, giving John a comprehensive overview of how the company is performing in various HR metrics. This allows him to quickly assess the company's progress and make informed decisions based on the data presented.

A plan is a term that indicates the course of action for getting from where you are to where you want to go. A plan is a detailed strategy or set of steps that outlines how to achieve a specific goal or objective. It involves identifying the desired outcome, determining the necessary resources and actions, and creating a timeline or schedule. A plan helps to provide direction and guidance, allowing individuals or organizations to effectively navigate their way towards their desired destination.

Producing raw materials indicates that a firm is implementing a vertical integration strategy. Vertical integration involves the company expanding its operations to different stages of the supply chain, either backward (towards suppliers) or forward (towards customers). By producing raw materials, the firm is taking control of its supply chain and reducing dependence on external suppliers. This strategy allows the company to have greater control over costs, quality, and availability of raw materials, leading to increased efficiency and potentially higher profits.

A strategy refers to a course of action that a firm can adopt to achieve its strategic aims. It involves a set of plans and decisions that guide the organization towards its desired goals. A strategy outlines how the firm will allocate its resources, compete in the market, and differentiate itself from competitors. It provides a roadmap for the firm to achieve its long-term objectives and helps in aligning the activities of the organization towards a common purpose.

Competitive advantage refers to any factors that allow a company to differentiate its product or service from those of its competitors to increase market share. It is a unique position that a company holds in the market, which gives it an edge over its competitors. This advantage can be achieved through various means such as superior product quality, lower prices, better customer service, or innovative technology. By having a competitive advantage, a company can attract more customers and gain a larger market share, leading to increased profitability and success in the industry.

Mergers and acquisitions often fail primarily due to personnel issues. This could include a lack of cultural fit between the two organizations, conflicts between management teams, or difficulties in integrating employees from both companies. Personnel challenges can lead to a loss of key talent, decreased employee morale, and a failure to effectively execute the integration process.

A strategy map is a strategic planning tool that shows how each department's performance contributes to achieving the company's overall strategic goal. It provides a visual representation of the company's objectives, initiatives, and key performance indicators (KPIs) in a cause-and-effect relationship. This helps align the efforts of different departments and individuals towards the common goal and ensures that everyone understands how their work contributes to the overall success of the organization.

Human resource strategies are the policies and practices used to support a firm's strategic goals. This means that organizations develop and implement specific policies and practices related to their human resources in order to align them with their overall strategic objectives. These strategies can include recruitment and selection policies, training and development programs, performance management systems, and compensation and benefits structures. By aligning their human resource policies and practices with their strategic goals, organizations can ensure that they have the right people with the right skills and capabilities to achieve their objectives.

A company's business-level strategy identifies the ways to strengthen a firm's long-term competitive position in the marketplace. This means that the strategy focuses on developing and implementing tactics that will give the company a competitive advantage over its rivals. By identifying the most effective ways to differentiate themselves from competitors, the company can position itself as a leader in the industry and attract customers who value their unique offerings. This strategy also helps the company to sustain its competitive advantage over time, ensuring long-term success in the marketplace.

Strategic human resource management refers to the process of developing and implementing human resource policies and practices that align with the overall strategic goals and objectives of a company. It involves identifying the competencies and behaviors that are required for the company to achieve its strategic aims and then formulating HR policies and practices to develop and maintain those competencies and behaviors among employees. This approach ensures that the HR function is integrated with the overall strategy of the organization and contributes to its success.

Benchmarking refers to the process of comparing and analyzing the practices of one firm with those of a high-performing company. This allows the firm to identify areas where it can improve and adopt best practices to enhance its own performance. By benchmarking, a company can gain insights into industry standards, identify areas of weakness, and implement strategies to achieve higher levels of performance and efficiency.

The given correct answer suggests that high-performance companies prioritize extensive training for their employees. This indicates that these companies invest in developing the skills and knowledge of their workforce, which can lead to increased productivity and performance. By providing extensive training, high-performance companies aim to ensure that their employees have the necessary tools and expertise to excel in their roles. This approach also suggests that these companies value continuous learning and development, which can contribute to employee satisfaction and retention.

The environmental scan worksheet is a simple guide used to compile relevant information about a company's environment, including economic, competitive, and political trends that may affect the firm. This worksheet helps the company gather and analyze data about external factors that can impact its operations and decision-making process. It allows the company to stay informed about the external environment and make strategic decisions based on the information gathered.

Vertical integration refers to a business strategy where a company expands its operations by acquiring or merging with businesses involved in different stages of the same industry's supply chain. In this case, Apple opening its own Apple stores can be seen as an example of vertical integration because it involves the company directly entering the retail stage of its own supply chain, thereby gaining more control over the distribution and customer experience of its products.

The HR scorecard is a process that involves assigning financial and nonfinancial goals or metrics to the human resource management-related strategy-map chain of activities required for achieving the company's strategic aims. It helps in aligning HR practices and initiatives with the overall organizational strategy, allowing HR professionals to measure and track their performance in contributing to the company's goals. The HR scorecard provides a comprehensive framework for evaluating the effectiveness and impact of HR activities on the company's success.

An HR audit is a comprehensive evaluation of an organization's HR policies, procedures, and practices. It aims to identify areas of improvement and ensure compliance with legal requirements. The audit typically focuses on various aspects such as employee classification, job descriptions, and workers' compensation benefits to ensure fair treatment and compliance with labor laws. However, accounting expenses are not typically addressed in an HR audit as they fall under the purview of the finance department rather than HR.

The HR scorecard refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results. It is a measurement tool that helps organizations align their HR practices with their overall business strategy. The HR scorecard allows companies to track and evaluate HR metrics and key performance indicators to ensure that HR initiatives are contributing to the achievement of strategic objectives.

A vision statement provides a summary of a firm's intended direction and outlines its aspirations and goals for the future. It serves as a guide for decision-making and helps to align the actions and efforts of the organization towards a common purpose. Unlike a mission statement, which focuses on the present and describes the company's purpose and values, a vision statement looks ahead and articulates the desired future state of the organization. A strategic plan, on the other hand, is a detailed roadmap that outlines the specific actions and initiatives that will be taken to achieve the vision. A marketing plan is a tactical document that outlines the specific marketing strategies and activities to be implemented.

The correct answer is consolidation. The announcement of closing approximately 600 stores indicates that Starbucks was implementing a consolidation strategy. This strategy involves reducing the number of stores and focusing on improving the performance and profitability of the remaining locations. By consolidating its operations, Starbucks aims to streamline its business and eliminate underperforming stores to enhance overall efficiency and profitability.

Human resource metrics refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position. It involves the use of data and statistics to assess and evaluate various HR processes and outcomes. These metrics help organizations track and analyze their HR performance, identify areas of improvement, and make informed decisions to optimize their human capital management strategies.

A company's corporate-level strategy refers to the overall plan and approach that the company takes in managing its portfolio of businesses and how these businesses are interconnected. This strategy involves decisions about resource allocation, diversification, synergy creation, and overall direction for the entire organization. It is different from functional, business unit, or competitive strategies, which focus on specific areas or aspects of the company's operations.

Approximately 30% of the U.S. workforce feels engaged, according to the text.

A company's competitive strategy refers to the plan or approach it adopts to gain a competitive advantage in the marketplace. This strategy focuses on differentiating the company's products or services from competitors, identifying target markets, and positioning the company as a leader in the industry. By building and strengthening its long-term competitive position, the company aims to attract and retain customers, increase market share, and ultimately achieve sustainable success.

Evidence-based HR management should have all of the following characteristics: use of data, experimentation, and prediction. Subjectivity is not a characteristic of evidence-based HR management as it relies on objective data and empirical evidence to make informed decisions and predictions. Subjectivity involves personal opinions and biases, which are not compatible with the evidence-based approach.

The primary purpose of strategic human resource management is to integrate a company's strategic plan with its human resource strategies. This means that the HR department should align its policies and practices with the overall goals and objectives of the organization. By doing so, HR can ensure that the workforce is effectively utilized and developed to contribute to the company's success. This integration helps in creating a cohesive and aligned approach towards achieving business objectives, as well as ensuring that HR practices support the overall strategic direction of the company.

Computerized applicant tracking systems are the best tool to assess recruitment effectiveness because they allow organizations to track and analyze various recruitment metrics, such as time-to-fill, cost-per-hire, and quality of hire. These systems automate the recruitment process, making it easier to collect and analyze data on candidate sourcing, screening, and selection. By using these systems, organizations can identify areas of improvement in their recruitment strategies, optimize their hiring processes, and make data-driven decisions to enhance recruitment effectiveness.

A data mining system would be the most effective tool for Hartford Clothing to analyze their customers' buying habits and discover patterns. Data mining involves extracting valuable information and patterns from large datasets, which can help the executives understand what products are being purchased, when they are being purchased, and which days of the week are most popular for shopping. This information can then be used to make predictions and informed decisions about marketing strategies, inventory management, and customer targeting. A data mining system can provide valuable insights and help Hartford Clothing optimize their operations and improve customer satisfaction.

The given information suggests that Reese Enterprises prioritizes internal promotions for upper-level positions and uses validated selection tests for external hires. This indicates that the company is focused on developing a high-performance work system. This system aims to optimize employee performance and productivity by promoting internal talent and using effective selection processes for external candidates.

The use of human resource metrics is essential for evidence-based management. This means that by collecting and analyzing HR data, managers can make informed decisions and take actions based on evidence rather than relying on intuition or guesswork. HR metrics help in measuring and evaluating the effectiveness of HR programs, policies, and practices, enabling organizations to align their HR strategies with overall business objectives. This data-driven approach allows for more accurate forecasting, better resource allocation, and improved decision-making, ultimately leading to increased organizational performance and success.

The final step in the strategic human resource management process is for the manager to determine the specific recruitment, selection, training, and other HR policies and practices that need to be implemented in order to develop the necessary employee skills and behaviors. This step is crucial in ensuring that the organization has the right people with the right skills and behaviors to achieve its strategic plans and goals. By identifying and implementing these HR policies and practices, the manager can effectively align the human resource strategy with the overall strategic objectives of the organization.

Strategic management is the process of identifying and executing an organization's strategic plan. This involves aligning the company's capabilities with its environmental demands. By understanding and responding to the external factors and conditions that affect the organization, such as market trends, customer preferences, and regulatory requirements, strategic management ensures that the company's actions and decisions are in line with the needs and expectations of its environment. This helps the organization to effectively compete and thrive in its industry.

Human resource management must first develop strategic plans in order to generate the desired workforce skill, competencies, and behaviors that a firm needs to achieve its strategic goals. Strategic plans outline the long-term objectives and actions required to align the workforce with the organization's strategic direction. By developing strategic plans, HR management can identify the specific skills, competencies, and behaviors required from employees to support the organization's goals. This allows HR to focus on recruiting, training, and developing employees with the necessary skills and competencies, and establish HR policies that align with the strategic plans. Company norms and employee skills are important factors, but they are outcomes of the strategic planning process.

Companies like Ferrari are known as "focusers" because they carve out a market niche and compete by providing a product that customers can attain in no other way. This means that they specialize in a specific market segment and tailor their products or services to meet the unique needs and desires of that segment. By focusing on a specific niche, these companies can differentiate themselves from competitors and attract customers who are willing to pay a premium for their specialized offerings.

KIA UK did not focus on bonus-based compensation as one of the steps in their employee engagement HR strategy. This means that they did not prioritize or emphasize the use of bonuses as a means to engage and motivate their employees. Instead, they likely used other methods such as setting measurable objectives, conducting a leadership development program, and improving internal communications to enhance employee engagement.

A strategy map is a strategic planning tool that provides a visual representation of how each department's performance aligns with and contributes to the company's overall strategic goals. It helps in understanding the cause-and-effect relationships between different objectives and measures, allowing organizations to effectively track progress and make informed decisions to achieve their strategic objectives. It provides a comprehensive overview of the company's strategy and helps in communicating and aligning the goals and objectives across the organization.

This answer supports the argument that MAX should move towards a high-performance work system because it suggests that using advanced recruitment and hiring practices will improve employee productivity. By implementing a more rigorous and effective process for selecting and hiring employees, MAX can ensure that they are bringing in highly skilled and motivated individuals who are more likely to contribute to the company's growth and success. This will help address the issue of high employee turnover and increase the overall productivity of the workforce.