HRM Chapter 4

September 23, 2015

Instructor - Ms. Stephanie Hall, MBA/PA

Strategic Planning

A process for making decision about an organizations long-term goals and how they will be executed.

Strategic plans are the high level decisions of an organizations vision, mission and core values. The business industry they will engage in and the structure.
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Mission - organizations purpose and the scope of their operations.

Coca Cola's Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

  • To refresh the world...
  • To inspire moments of optimism and happiness...
  • To create value and make a difference.

Vision - organizations long term goals - what the organization would like to become/accomplish - their image of the future.

Coca Cola's Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

  • People: Be a great place to work where people are inspired to be the best they can be.
  • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
  • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
  • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
  • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
  • Productivity: Be a highly effective, lean and fast-moving organization.

Core Values - beliefs/principles that guide the organizations decisions and goals

Coca Cola's Values

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.

  • Leadership: The courage to shape a better future
  • Collaboration: Leverage collective genius
  • Integrity: Be real
  • Accountability: If it is to be, it's up to me
  • Passion: Committed in heart and mind
  • Diversity: As inclusive as our brands
  • Quality: What we do, we do well

A company's mission, vision, and core values then inform the company's analysis of its business opportunities/threats.

Analyzing the external environment, including economic conditions and competitive threats, assists organizations positioning to be successful.

Business Strategy - How a company will compete in a specific market.

Coca Cola's Focus on the Market

  • Focus on needs of our consumers, customers and franchise partners
  • Get out into the market and listen, observe and learn
  • Possess a world view
  • Focus on execution in the marketplace every day
  • Be insatiably curious

Human Resource Planning - is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization.

Review Figure 4-1 on page 102.
Review Human Resource Planning Process on page 102.

Sources for Evaluating General Economic Trends

Leading Economic Index - a monthly composite economic index published by the Conference Board, is designed to signal peaks and troughs in the business cycle and forecast future economic activity.

Consumer Confidence Index
- a monthly survey that randomly ask 1000 adults questions and perceptions on job security and their willingness to spend money. This can predict future demand for an organizations product and their labor requirements.

Exchange rate trends - this is a reflection of the cost of one country's currency in terms of another currency. By influencing the cost of raw materials, the price of the organization's exports, and the prices of competitors imports, exchange rates influence product demand and subsequent demand for employees.

Interest rate forecasts
- it reflects the cost of borrowing money. Higher interest rates make money more expensive to borrow. Accordingly, interest rates influence both consumer demand for a company's products and companies' willingness to borrow money to fund expansion plans.

Additional Labor demand forecasting sources and metrics - economic indicators include Gross Domestic Product (GDP), business inventories, and the monthly Purchasing Managers Index.


Labor Demand Forecasting Methods

Trend Analysis - utilizing previous employment patterns to predict a organizations future labor need.

Staffing Ratio - indexing headcount with a business metric.

Judgmental forecasting - relying on the peoples expertise within the organization to predict future employment needs.

Forecasting Labor Supply

Understanding current and future skill and competency trends in the labor market, which assists organizations to meet their future talent need.

Forecasting the Internal Labor Market

Review Figure 4-2 on page 108. - its an estimate of an organizations internal talent supply at a future point in time.

Talent Inventories - databases that summarize all employees competencies, qualifications, fluent language, and all other contributions from employees.

Replacement charts - Replacement charts are a forecasting technique used in succession planning to help companies visualise key job roles, current employees and existing and future vacancies.

Succession Planning - ensures that there are qualified and motivated employees (or a means of recruiting them) who are able to take over when the executive director or other key people leave an organization.

Review Replacement Chart Figure 4-3 on page 110.

Forecasting External Labor Markets

Organizations can monitor external labor in two ways:
1. Monitor their own experiences.
2. Monitor through statistics generated by others. U.S. Bureau of Labor Statistics - provides free comprehensive data.

Gap Analysis - comparing labor supply/deman forecast to identify future talent needs

Action plan - a strategy for proactivly addressing an expected talent shortage or surplus

Job Design - when managment understands employees differences and needs - then creates jobs to best fufill those needs.

Frank and Lillian Gilbreth and Frederick Winslow Taylor in the 1980's studied the positive effects of precise instructions, goal setting and rewards on employee motivation their ideas became the Scientific Management - is a theory of management that analyzes and synthesizes workflows.

Breaks down workflow into simple elements and systematically improves employees performance for each element or task.

Review the four principles of the scientific management on page 114.

Job Characteristics Model - designed by Hackman and Oldham, is based on the idea that the task itself is key to employee motivation

Review the five characteristics on which job differs on page 115.
Review Figure 4-4 on page 116.

Job Enrichment - is a management concept that involves redesigning jobs so that they are more challenging to the employee and have less repetitive work.

A supervisor can introduce new or more challenging task, give employees additional authority and organize groups in work teams to create job enrichment.

Job Enlargement - is an increase in job tasks and responsibilities to make a position more challenging.

Job rotation - A job design technique in which employees are moved between two or more jobs in a planned manner.

Cross Training - training employees in more than one position in multiple skills to enable them to do different jobs.

It is a great way for businesses to build employee skill sets while ensuring maximum coverage of key job responsibilities.

Job analysis - s a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job.

1. Determining hiring requirements
2. Developing a recruiting plan
3. Selecting job applicants for employment
4. Creating employees training plans
5. Designing compensation systems
6. Developing performance evaluation tools

Job Description - written description of the duties and responsibilities of the job itself.

1. Job title
2. Department
3. Salary Range
4. Position grade and level
5. To whom the employee reports and for whom the employee is responsible
6. Summary of the main duties/responsibilities
7. Summary of the occasional duties/responsibilities
8. Special equipment used on job
9. Special working conditions (weekend, travel etc..)
10. Other duties assigned statement

Job task - observable unit of work with a beginning and an end.

Sorting parts, completing purchase orders.

Task statements - identify an specific behavioral terms - regular duties and responsibilities of position.

Person specification - describes what experience, skills and qualifications someone must have to be able to do the job and any extra things it would be good for them to have.

Essential criteria - job holder characteristics that are vital to job performance

Desirable criteria - they compare job candidates who possess the essential criteria.

Knowledge - organized factual or procedural information tha can be applied to perform a task.

1. Knowledge of which vendors are best for different supplies
2. Knowledge of local building codes
3. Knowledge of the Mandarin language

Skill - the ability to use some sort of knowledge in performing a physical task; often refers to psychomotor activities.

1. Driving a truck
2. Depth perception
3. Manual dexterity

Ability - a stable and enduring capability to perform a variety of task

1. Running ability
2. Quantitative ability
3. Ability to repair small motors

Other Characteristics

1. Education
2. Work experience
3. Extroversion

Job Analysis Method - to collect a variety of information from an incumbent by asking the incumbent to describe the tasks and duties performed.

Review Table 4-3 on page 122.

Critical Incidents technique - job experts describe stories of good and poor performances to identify desirable and undesirable competencies, behaviors.

1. Circumstances leading up to the event or the context of the incident
2. Action taken by the worker
3. Consequences of that action

Job elements job analysis method - expert brainstorming sessions that identify the characteristics of successful workers.

Structured interview technique - job experts provided information about the job during a structured interview

Interview should be conducted to reduce risk of interviewer bias and to ensure a focus on identifying characteristics that distinguish superb employees.

Task inventory approach - is a job analysis approach. Hiring managers or human resource managers create an initial itemized list of all of the tasks, or specific activities, that make up the performance of a specific job at a particular organization.

Information is collected by surveys. Due to the focus of identifying typical job task, this technique may not identify pertinent uncommonly displayed employee characteristics or those that could separate excellent employees.

Structured job analysis questionnaire - a listing of pre-identified questions intended to analyze a job.

Position Analysis Questionnaire - a copyrighted, standardized structured questionnaire intended to be utilized for any position.

Information input, mental processes, work output, job context and other job characteristics associated with a position is assessed.

Competency Modeling - a job analysis method that identifies the worker competencies characteristics that underlie successful performance or behavior on the job.

Competencies can include multiple knowledges, skills, attitudes etc...and can serve as a additional purpose of reinforcing an organizations culture, while KSAO statements are initiated by job analysis in the context of the job.

Competencies - generous employee characteristics that underlies successful position performance.

Review Table 4-4 on page 125.

Job rewards analysis - technique that identifies the intrinsic and extrinsic rewards of a job.

Intrinsic rewards - non-monetary rewards - initiated by work alone - helping colleagues and working with pleasant colleagues.

Extrinsic rewards - monetary rewards - base pay, performance bonuses and benefits.

Total rewards - combination of intrinsic and extrinsic rewards

Organizational structure - the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. Task, power and reporting relationships.

Organizational structure influences employee behavior by enabling or restricting communication, teamwork, and cooperation as well as inter-group relationships.

Organizational Design - selecting/managing attributes of organizational structure to facilitate and accomplish organizations goals.

Organizational Chart - a graph exemplifying the chain of command/reporting relationships in a organization.

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Formalization - Formalization is process in which managers specify, in writing, responsibilities of the individual and the organization as a whole, which leads to the development of processes, relationships, and operating procedures.

In highly formalized organizations, little decision making flexibility exists and procedures and rewards follow precise rules.

Centralized formalization - concentrating power and decision making authority is at the highest level of the organization.

Most effective in noncomplex, stable environments.

Division of Labor - Employee specialization

Organizations with a high division of labor require more specialist.


Span of control - number of employees that report directly to an individual.

Restricted spans of control are more costly, receive close supervision, more coaching but are necessary for complex or original task.

Hierarchy - some employees have formal authority over others.

Hewlett-Packard is known to have minimal hierarchy with eight organizational levels which coordinate tens of thousands of employees.

Workflow - is the series of activities that are necessary to complete the organizations goals.

Workflow analysis - examines how work is processed through an organization to identify changes to increase efficiency to improve customers needs.

Business Process Reengineering - horough rethinking of all business processes, job definitions, management systems, organizational structure, work flow, and essential expectatiions and beliefs.

Morale and productivity can be threatened during this process, but it can improve business outcomes.


Your organization has been asked to participate in a job fair. Please create a job fair site where potential employees can get information about your company. Remember that part of recruitment involves enticing potential applicants to want to work with your organization. Your materials and /or handouts must be professional and informational. Feel free to be creative in making your site a site that all job fair participants want to visit. Your site must include the following:

A brochure that provides an overview of your company with its mission statement.

A job application form

Any handouts and/or give away materials that relate to your company

A large sign to advertise your company

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