Strategic Human Resource Management
What is an Organization?
An organization is a structured collection of individuals working together within a coordinated system of specialized activities over an extended period to achieve specific goals or objectives. These goals can range from profit-making to providing social services.
Examples:
Nike: Focused on creating and selling high-quality sports products while ensuring excellent service and a superior consumer experience. This involves continuous innovation, marketing strategies, and supply chain management.
Doctors Without Borders: Dedicated to providing medical care in conflict zones and countries affected by endemic diseases. This non-profit organization relies on donations and volunteers to achieve its humanitarian goals.
Key Questions to Consider About an Organization:
Who are the members? Understanding the demographic and skill set of the members is crucial.
How many members are there? The size of the organization affects communication, coordination, and decision-making processes.
What departments exist? Different departments handle various functions, such as marketing, finance, and operations.
How do they interact? The relationships and interactions between departments can impact efficiency and productivity.
What is the objective? Clearly defined objectives help align the efforts of all members and departments.
How many years has the organization been in existence? The age of the organization can indicate its stability, experience, and adaptability.
Organization Chart
An organizational chart visually represents the structure of an organization, illustrating the roles, responsibilities, and relationships between individuals and departments.
Typical Components:
CEO: The highest-ranking executive responsible for the overall success of the organization.
Administrative Staff: Provides support to executives and ensures smooth office operations.
COO: Oversees the company's day-to-day operations.
VPs of Various Departments: Lead specific departments such as Operations, Customer Service, Marketing, Sales, Production, and Human Resources. They are responsible for setting departmental goals and strategies.
Managers: Supervise teams and ensure tasks are completed efficiently.
Team Members: Execute specific tasks and contribute to the overall goals of the team and department.
Additional Functions Represented:
IT/Web Design: Manages the technological infrastructure and online presence.
Research Assistance: Supports research and development efforts.
Marketing Coordination: Coordinates marketing campaigns and activities.
Specific Teams: Includes Service Teams, Sales Teams, and Production Teams, each with specialized functions.
Three Basic Functional Areas in a Business
Marketing: Responsible for promoting and selling products or services. This includes market research, advertising, and branding.
Operations: Manages the processes and activities involved in producing goods or services. This includes supply chain management, production planning, and quality control.
Finance: Manages the financial resources of the organization. This includes budgeting, accounting, and financial planning.
Human Resources: Focuses on managing employees, including recruitment, training, and compensation.
The Ultra Micro Entrepreneur
This example illustrates basic business functions through a simple entrepreneurial endeavor.
Setting: A street corner near a bus stop, offering a convenient location for potential customers.
Action: Selling calamansi juice to passersby on a sunny day.
Process:
Develop the right mix of calamansi and sugar to create a tasty and appealing product.
Break piggy bank or borrow money from family to secure initial capital.
Build the stand and mix the first batch of juice to start the business.
Start selling and engage with customers to build a client base.
Ask for help from family members on class days to manage time and resources.
Make other juices (dalandan, guyabano) to diversify the product offering.
Use earnings to pay back loans and buy more materials to ensure sustainability.
Connects to basic business functions including: Marketing, Operations, Finance, and Human Resources.
Why is HR Management Important?
People are at the heart of organizations, driving innovation, productivity, and overall success.
Organizations of any size are comprised of people, making HR management essential for every business, regardless of scale.
All other functions ('Marketing', 'Sales', 'Finance', 'Operations') deal with people; effective coordination and management of these individuals are crucial.
Competitive advantage needs to be driven by people; HR management helps attract, retain, and develop the talent needed to outperform competitors.
People may have different opinions on how to reach a common goal, necessitating HR's role in conflict resolution and alignment.
"Hard" skills vs. "Soft" skills:
Soft skills (communication, teamwork, problem-solving) cannot be easily copied by Artificial Intelligence, making them invaluable in today's job market.
Individuals and contexts are unique, requiring HR to tailor approaches to meet diverse needs and situations.
Foundations in Organizational Behavior
Organizational Behavior studies the way people interact within groups. Its principles can be applied to make organizations operate more effectively.
Organizational Behavior is related to:
Personality: Understanding individual traits and how they impact behavior.
Attitudes: Exploring how people feel about their jobs and the organization.
Learning: Examining how employees acquire new skills and knowledge.
Motivation: Identifying what drives employees to perform their best.
Stress: Managing workplace stress to improve employee well-being.
Leadership: Studying effective leadership styles and their impact on teams.
Communication: Improving communication channels for better collaboration.
Decision-Making: Analyzing how decisions are made and how to improve the process.
Power: Understanding the dynamics of power within the organization.
Politics: Managing organizational politics to create a fair work environment.
Org Design: Structuring the organization for maximum efficiency.
Culture: Shaping a positive and productive organizational culture.
Change: Managing organizational change effectively.
Personality Exercise
Personality Test: BIG5 (also known as the Five-Factor Model).
Scores range from 10-50, providing a spectrum for assessing personality traits.
Factors:
Openness: Reflects curiosity, creativity, and a willingness to try new things.
Conscientiousness: Indicates organization, responsibility, and diligence.
Extraversion: Shows sociability, assertiveness, and energy levels.
Agreeableness: Reflects compassion, empathy, and cooperation.
Neuroticism/Emotional Stability: Measures emotional resilience and the ability to handle stress.
What is Organizational Behavior?
Actions of individuals and groups in an organizational context, focusing on how these actions affect organizational performance.
In an organization, interactions are inevitable and necessary for achieving common goals and maintaining operational efficiency.
Levels of Organizational Behavior
World at Large: Understanding the broader societal and global factors that influence organizational behavior.
Organization: Analyzing the overall structure, culture, and processes of the organization.
Group/Team: Studying team dynamics, communication patterns, and collaboration.
Social: Examining social interactions and relationships within the workplace.
Individual: Focusing on individual behavior, motivation, and performance.
Self: Understanding one's own behavior, attitudes, and values in relation to the organization.
Organizational Behavior Insights Lead To:
Understanding: Gaining insights into human behavior in the workplace.
Higher Productivity: Improving efficiency and performance through better management of human resources.
Satisfaction: Enhancing employee job satisfaction and morale.
Success: Achieving organizational goals and objectives through effective management of people.
How is OB Connected with HR Management?
Overall HR Management: Applying OB principles to all HR functions to enhance effectiveness.
Org Design and Talent Acquisition: Using OB insights to create effective organizational structures and recruit suitable talent.
Talent Development and Performance Management: Designing development programs and performance management systems based on OB principles.
Total Rewards: Creating compensation and benefits packages that motivate and retain employees.
Employee Engagement: Fostering a positive work environment that enhances employee engagement.
Change and Global HR Management: Managing organizational change and adapting HR practices to global contexts using OB principles.
Includes: communication, org culture, decision-making, politics, power, personality, attitudes, motivation, team dynamics.
Understanding OB + Savvy HR Management
Brings out the best in human capital by aligning HR practices with organizational behavior principles.
Pixar's Success Factors
Recruit people who communicate well, fostering an environment of open dialogue.
Leaders build teams and encourage participation, promoting collaboration and innovation.
Pixar University for continued learning, ensuring employees stay updated with industry trends.
Culture of creativity and openness, allowing employees to express ideas freely.
Keeping Talent: <5% annual turnover, indicating high employee satisfaction and retention.
Relates to:
Org Design & Talent Acquisition
Employee Engagement
Total Rewards
Talent Development & Performance Management
communication
learning
org culture
decision-making
politics
power
personality
motivation
attitudes
team dynamics
Human Capital
Skills, knowledge, values, beliefs, and attitudes of people in the organization, representing the collective intellectual and social capital.
Creates competitive advantage through:
Value: Contributing to the organization’s strategy and goals.
Rareness: Possessing unique skills and talents not widely available.
Difficulty to Imitate: Having skills and knowledge that are hard for competitors to replicate.
Human Capital: Value
Extent to which individuals are capable of producing work that supports an organization’s strategy for competing in the marketplace, ensuring alignment with business objectives.
Example: Fine Dining Restaurants need skilled Chefs, Wait Staff, Receptionists, Cashiers with positive attitudes to deliver exceptional customer experiences.
Human Capital: Rareness
Extent to which the skills and talents of an organization’s people are unique in the industry, providing a distinct competitive edge.
Not all chefs may be the same level of skills and knowledge or have the same positive work attitudes, making it valuable to identify and retain top talent.
Human Capital: Difficulty to Imitate
Extent to which the skills and talents of an organization’s people makes it difficult for other organizations to copy or duplicate, creating a sustainable competitive advantage.
Train chefs to offer specialty dishes that rotate weekly, keeping the menu fresh and exciting.
Foster a positive culture from the interactions of employees who have unique personalities, enhancing customer loyalty and satisfaction.
Competitive Implications
Human Resources in the firm:
If NOT Valuable? NO Competitive Advantage, resulting in below-average performance.
If Valuable but NOT Rare? Competitive Parity, leading to average performance.
If Valuable and Rare, But NOT Difficult to Imitate? Temporary Competitive Advantage, providing a short-term edge.
If Valuable, Rare, and Difficult to Imitate? Sustainable Competitive Advantage, ensuring long-term success.
Supported by effective management?
No: Below normal Performance, resulting in inefficiencies and missed opportunities.
Yes: Normal or Above Normal Performance depending on other factors, contributing to organizational success.
Importance of Motivation and Support
An organization may have highly talented, uniquely skilled associates and managers, but if these individuals are not motivated or are not given proper support resources, they will not make a positive contribution, hindering overall performance.
Sustainable competitive advantage through people depends not only on the skills and talents of those people, but also on how they are treated and deployed. This includes fair compensation, growth opportunities, and a positive work environment.
Personality
Stable set of characteristics or traits representing internal properties of an individual, influencing behavior across various situations.
Relatively enduring: If a person is introverted or shy, he or she will likely remain so for a long period of time, influencing their interactions and preferences.
Major determinant of one’s behavior: An introverted person will generally be withdrawn and exhibit non-assertive behavior, affecting their communication and teamwork styles.
Influential towards one’s behavior across a wide variety of situations: An introverted person will generally be withdrawn and non-assertive at a party, in class, in sports activities, and at work, demonstrating consistent behavior patterns.
Big Five Personality Traits
Conscientiousness: Degree to which an individual focuses on goals and works toward them in a disciplined way, impacting productivity and reliability.
Extraversion: Degree to which an individual is outgoing and derives energy from being around people, influencing social interactions and leadership style.
Agreeableness: Degree to which an individual is easygoing and tolerant, affecting teamwork and conflict resolution.
Emotional Stability: Degree to which an individual easily copes with stressful situations or heavy demands, influencing resilience and decision-making under pressure.
Openness to Experience: Degree to which an individual seeks new experiences and thinks creatively about the future, impacting innovation and adaptability.
The Big 5: Extraversion
Enjoys being around other people, is warm to others, speaks up in group settings, maintains a vigorous pace, likes excitement, and is cheerful, making them effective in social roles.
Certain occupations benefit from higher extraversion (Sales, Management), where interpersonal skills are essential, while others benefit from lower extraversion (IT, Engineering, Accounting), where focus and independent work are more critical.
The Big 5: Conscientiousness
Feels capable, is organized and reliable, possesses a drive for success, focuses on completing tasks, and thinks before acting, leading to high performance and dependability.
Leads to higher job satisfaction and income; companies look for this trait when hiring and promoting employees.
Related to detail-orientedness, ensuring accuracy and thoroughness in tasks.
The Big 5: Agreeableness
Believes in the honesty of others, is straightforward, willing to help others, tends to yield under conflict, exhibits humility, and is sensitive to others’ feelings, fostering positive relationships.
Effective in teamwork, contributing to a collaborative and supportive environment.
The Big 5: Emotional Stability
Is relaxed, slow to feel anger, rarely becomes discouraged or embarrassed, resists unhealthy urges, and handles crises well, maintaining composure and effectiveness under pressure.
Those high in this dimension tend to have an advantage in the workplace, as they are better equipped to handle stress and maintain productivity.
The Big 5: Openness to Experience
Has a vivid imagination, an appreciation for art and beauty, values and respects emotions, prefers variety, has broad intellectual curiosity, and is open to reexamining values, driving innovation and creativity.
High scores are beneficial in creative occupations; low scores are beneficial in routine tasks, ensuring the right fit for different job roles.
Related to innovation and learning, fostering a culture of continuous improvement.
Competencies for Managers and Associates
Managers: Delegating, Developing, Motivating (requires patience, coaching ability & interest in others), enabling team members to succeed.
Tied to Big Five Traits: High agreeableness and conscientiousness are beneficial for these competencies.
Associates: Decision-making, Self-development, Self-management, Teamwork (requires consideration, feedback interest & willingness to subordinate personal interests), contributing to team goals and personal growth.
Tied to Big Five Traits: High conscientiousness and emotional stability are advantageous for these competencies.
Other Notes on Personality
People may adjust behavior and go against their personality in different situations, adapting to the demands of the environment.
Advantages exist when personality matches job requirements, leading to increased job satisfaction and performance.
Personality vs. Attitude
Personality is who you are; attitude depends on who you are with, reflecting the dynamic nature of attitudes.
Attitude
Persistent tendency to feel and behave in a favorable or unfavorable way toward a specific person, object, or idea, influencing behavior and interactions.
Reasonably Stable: Won’t change unless people have strong reasons to, reflecting the deeply ingrained nature of attitudes.
Directed at: object, person, or idea, showing the specific focus of attitudes.
Influences behavior, impacting actions and decisions in the workplace.
How Attitudes are Formed
Learning Process: Attitudes can be learned with positive experiences, reinforcing favorable views.
Self-Perception: Based on simple observations of individuals’ own behaviors, shaping attitudes through self-reflection.
Need for Consistency: We tend to form consistent attitudes towards related objects or persons, maintaining cognitive balance.
Hader’s Balance Theory: Urge to maintain consistent values, driving attitude formation and change.
Important Workplace Attitudes
Job Satisfaction: High satisfaction = positive attitude; low satisfaction = negative attitude, impacting motivation and performance.
Organizational Commitment: Strong commitment = positive attitude; weak commitment = negative attitude, influencing loyalty and retention.
How can HR foster High Satisfaction and Strong Commitment? By implementing effective HR practices that address employee needs and values.
How Effective HR Management Can Foster Positive Attitudes
Org Design and Talent Acquisition: Creating roles that fit employees' skills and interests.
Talent Development and Performance Management: Providing training and feedback to enhance job satisfaction.
Total Rewards: Offering competitive compensation and benefits.
Employee Engagement: Promoting a positive work environment and culture.
Change and Global HR Management: Managing transitions and supporting diverse teams.
Implications for Individuals
Even if you don’t plan to be an HR manager, at some point you will work with people or lead your own teams, or even companies, making HR knowledge valuable for everyone.
HR and OB Principles will help improve your interactions and decision-making.
Leading people: one of the most strategic, but difficult functions in practice, requiring a deep understanding of human behavior.
People are at the heart of organizations, emphasizing the importance of effective HR management.
Soft skills are not easy to learn and are complex, requiring continuous development and refinement.
Implications for the Job Market
The job market is competitive; Understand how you can contribute and bring “value” to an organization, highlight what makes you “rare” or unique, and continue to develop your skills so that you are “difficult to imitate”. This involves self-awareness, continuous learning, and strategic skill development.
Effective and Strategic HR Management can foster positive attitudes to the organization, driving employee engagement and performance.
What is Strategy
Defines:
Who we are (Values, Mission), establishing the organization’s identity and purpose.
Where are we (Context, Current Results), analyzing the current situation and performance.
Where do we want to go? Why? (Vision, Goals, Objectives), setting future direction and targets.
How do we get there? Why? (Initiatives, Programs, Org Design, Strategies), outlining the methods and reasons for achieving goals.
How and why should HR help? By aligning HR practices with the overall strategy to drive organizational success.
The Role of Managers
Planning: Defining vision/mission, establishing goals/standards, developing rules/procedures/forecasts, providing teams with targets, setting the direction for the organization.
Leading: Communicating goals, painting a clear vision, motivating employees, rallying teams, inspiring and guiding employees towards achieving goals.
Organizing: Delegating authority, forming departments/teams, coordinating tasks, creating channels, allocating resources, structuring the organization for efficiency and effectiveness.
Staffing: Determining who to hire, recruiting/selecting, setting compensation standards, assessing performance, providing training, ensuring the organization has the right people in the right roles.
Controlling: Evaluating performance, reviewing metrics, adjusting/correcting, monitoring progress and making necessary adjustments to stay on track.
Strategic Human Resource Management: Definition
Formulating and implementing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims, aligning HR with organizational goals.
Reasons Why HR Management is Important
To Avoid Personnel Mistakes: Unsatisfied employees, hiring the wrong person, high turnover, lacking trained employees, reducing costly errors and improving employee satisfaction.
To Improve Profits and Performance, driving business success through effective HR practices.
HR and Organizational Goals:
Everyone should contribute to supporting the overall goals, ensuring alignment across all functions and levels.
Employees in every part of an organization play a role in achieving HR and organizational goals.
HR as a function is shared by all and not just limited to the HR Department, emphasizing the importance of HR principles throughout the organization.
HR practitioners typically work with other managers in order to carry out employee-related policies and procedures, fostering collaboration and consistency.
Types of Authority
Line Authority: the right to issue orders, directing actions and decisions.
Staff Authority: the right to provide advice, offering expertise and guidance.
Functional Authority: the right to do a specific job, which may cross over to other departments, ensuring specialized tasks are completed effectively.
Procedural Authority: power to do a task as part of a larger process, maintaining consistency and efficiency.
Modern HR Management
Not just transactional; other models, not just centralized but shared, evolving to meet changing organizational needs.
New HR Practices:
Shared Services Arrangements: Centralized HR units using online portals for employee requests, etc, improving efficiency and accessibility.
Corporate HR Teams: Assist top management on high-level issues, providing strategic guidance.
Embedded HR Teams: HR generalists assigned to functional departments, offering localized support.
Centers of Expertise: Act as HR Consulting Firms within a company, delivering specialized knowledge.
Technology Assists in HR
Workforce Planning, enabling data-driven decisions. M metrics may include:
Headcount: Total # employees.
Cost to Move Employees: Cost/Relocation.
Hires and Terminations: # hires vs. terminations.
Time to Fill Positions: Time to fill opens positions.
Cost to 50th percentile Average: Cost relative to average compensation.
Number of Read Top Succession Plans: Succession plans implemented.
How to More Concretely Connect HR with Strategy?
Strategy Mapping
Helps organizations see how their goals relate to one another, like a cause-and-effect relationship, illustrating the interconnectedness of objectives.
Each team should contribute to the overall goal, ensuring alignment and collaboration.
Strategy Mapping: Airlines
Overall Goal: Profit, driving strategic decisions.
Influenced by Revenues less Costs, Customers, Air Fare, On-time flights, Leased Planes (same kind), On Ground Turnaround Time, Frills (meals), Engaged Enthusiastic Flight Crew and Ground Staff, Effective HR Policies, highlighting key factors impacting profitability.
Tracking Metrics for Success
What gets measured gets done using an HR Scorecard, which monitors relevant metrics; it changes depending on the situation/company priorities, enabling data-driven decision-making.
Competences
In order to support organizational strategies, HR should develop organization and employee COMPETENCES, which are applications of knowledge, skills or attitudes, improving performance and achieving strategic goals.
Different disciplines would require different competences, tailoring development efforts to specific needs.
Competencies
Activating network of contacts to find more customers, expanding market reach.
Coding in language relevant to projects, enhancing technical capabilities.
Analyzing market data to understand consumer trends, informing strategic decisions.
What HR Expertise is Needed?
Proficiency Includes Knowledge in General HR Practices and Technology; Management of Stakeholders, ensuring comprehensive and effective HR functions.
Competency-Based HR Management
Integrates HR policies and procedures with Business Planning, aligning HR with strategic objectives.
Competences
Example: Changing the product mix from fuel to wind and solar energy:
Strategic Objective ➔ Acquiring external expertise by recruiting engineer experts in the renewable energy space and training for sustainability. Dedicate headcount to championing and creating internal teams for sustainable energy goals to employees and monitor their performance, driving the transition to renewable energy.
Overview of HR Functions
Organization Design: How teams and departments are arranged and organized, optimizing structure for efficiency.
Talent Acquisition: Also known as Recruitment, includes planning for job roles, advertising postings, and choosing the best applicant, ensuring the right talent is brought into the organization.
Talent Development: Also known as training or learning, includes assessing necessary competences and executing training initiatives, enhancing employee skills and knowledge.
Performance Management: Appraising performance to improve how employees support company objectives, driving performance improvement.
Total Rewards: Compensation and Benefits motivating through financial and non-financial benefits, attracting and retaining employees.
Employee Engagement: Deals with relations between individuals and the organization, fostering a positive work environment.
Change Management: Supporting and preparing employees to adapt to changes, ensuring smooth transitions.
Global Human Resource Management: Adapting to globalization and implications on talent; virtual teams and cross-border collaboration, managing a global workforce effectively.
Decision-Making
Decisions are choices of actions from among multiple feasible alternatives. Process includes: Defining the Problem, Identifying Criteria, Gathering and Evaluating Data, Listing and Evaluating Alternatives, Selecting Best Alternative, Implement and Follow Up, Feedback, ensuring a thorough and effective decision-making process.
Decisions: Optimal vs. Satisficing
Optimal: Best Choice seeking to maximize objectives with complete knowledge and known outcomes, pursuing the best possible outcome.
Satisficing: Satisfactory Choice seeking to satisfy objectives with incomplete knowledge likely probable outcomes, aiming for an acceptable outcome given constraints.
Types of Decisions
Reactive: Quick responses to immediate concerns, usually under pressure, addressing immediate issues.
Proactive: Anticipating events and concerns to minimize negative outcomes; generally preferred over reactive decision-making, preventing problems before they arise.
Intuitive: Made through instinctive feelings instead of rational thought; may be influenced by past experiences, relying on gut feelings.
Systematic: Made through a rational and organized approach; generally preferred over intuitive decision-making, ensuring a structured and logical process.
Steps in Decision-Making
Define the Problem: Balance between broad definitions and specific definitions, clarifying the issue at hand.
Identify Criteria: Looking at parameters that help make your decision, including organization goals as well as metrics like revenue or market share, setting the standards for evaluation.
Gather and Evaluate Data: Look for specific information based on the criteria and potential training for e-commerce, informing the decision with relevant information.
List and Evaluate Alternatives: Look at all your options and lay out the facts for each and form a hiring team that fits and balances what you and the employees need, exploring all possible solutions.
Select the Best Alternative: Choose the option that best fits your requirements and circumstances, making a well-informed choice.
Implement and Follow Up: Follow through with actions and look at metrics and adjust if necessary, ensuring effective execution and continuous improvement.
Awareness of Heuristics and Biases
Heuristics: Mental “short cuts” that allow us to make decisions quickly and use less effort, simplifying the decision-making process.
Biases: Result from misapplying heuristics, favoring particular judgements, and overreliance on heuristics may limit our options, potentially leading to flawed decisions.
Types of Heuristics and Biases
Availability: What you remember the most will impact your decisions and related to
Recency Effect or even Peak-End Rule (End), skewing decisions based on recent or memorable events.
Anchoring & Adjustment: Getting stuck with a benchmark, and only willing to move up or down a little, limiting the exploration of alternatives.
Representative: What is a typical…?, making decisions based on stereotypes.
Simulation: “Anticipating” what will happen in a situation based on previous experiences, predicting outcomes based on past events.
Illusion of Control:
Overestimate our abilities and downplay other circumstances/external effects, leading to overconfidence.
AIM or Affect-as-Information Mechanism: Associated with feelings when making decisions, relying on emotions to guide choices.
Scarcity: Rare = desirable, influencing value judgments.
Similarity: We tend to treat people similar to us better than those who are not, impacting fairness and inclusivity.
Breaking Away from Biases
Need for Critical Thinking: Reflective, purposeful judgment used for decision-making and problem-solving, ensuring objective and rational decisions.
Data helps you make better decisions, providing evidence-based insights.
HR decisions impact people, emphasizing the importance of ethical considerations.
What is Strategy? Who, Where, and How?
Step 1:
Define the Current Business ➔ Look at organization’s Vision, Mission and Objectives, establishing the foundation.
Step 2:
Perform Audits Internal and External
SWOT Analysis), analyzing the internal strengths and weaknesses as well as external opportunities and threats.
Step 3:
Formulate a New Direction. HR is usually involved in making decisions about new directions ➔ impact employees, shaping the future course.
Step 4:
Translate the Mission into Strategic Goals: Set metrics; what gets measured gets done!, setting quantifiable targets.
Step 5:
Formulate Strategies to Achieve the Strategic Goals
Think of ways to reach those goals by partnering digital marketing campaigns, developing actionable plans.
Step 6:
Implement the Strategies: Executing projects, initiatives, taking action.
Step 7:
Evaluate Performance monitoring how things are going vs. goals; adjusting when necessary,
DASHBOARDS, tracking progress and making necessary adjustments.
Key Takeaways
Strategy and HR are intertwined, emphasizing the importance of alignment.
People are everywhere, manage them toward an overall goal, focusing on human capital.
Strategic HR management, and all its functions, are really about managing people, highlighting the core function of HR.
You will eventually manage people, principles should help, providing practical guidance.
Making decisions is not always easy, especially when they affect others; remember ethical leadership, emphasizing the importance of integrity.
Organizational Change
Changes in organizations involve complex systems (IT systems, relationships/networks, culture). HR is active at driving organizational change and guiding individuals through the change, managing transformations effectively.
HR is active at driving organizational change and guiding individuals through the change, ensuring smooth transitions.
Pressure for change can be influence by Tech advances, Life Cycle, Globalization, Ethics, Sociopolitical, increased competitors and Discrepancies, highlighting the forces driving change.
VUCA Trends that Organizations need to address related to people:
VUCA = Stands for Volatility, Uncertainty, Complexity, and Ambiguity, representing the key attributes of the environment in which organizations operate.
The Yellow World (Collectivism), emphasizing collaboration and teamwork.
The Red World (Rule of Innovation), driving creativity and forward-thinking.
The Green World (Companies Care), promoting social responsibility.
The Blue World (Corporate Rules), maintaining structure and compliance.
What does Change Look like in Organizations?
What might organizations prepare for these trends? By fostering adaptability and resilience.
How might people in the organizations adapt to these trends? By embracing new skills and ways of working.
What does Change Look like in Orgs? A model of Organizational Change
Define the Problem
Identify the Criteria
Gather & Evaluate Data
List & Evaluate Alternatives Select Best Alternative
Implement & Follow Up
Feedback
70% of organizations fail in their change processes largely due to technological changes, external pressure, socio-political shifts, international dependence, life cycle management of ethical behavior, and increased competition, highlighting the challenges of organizational change.
Organizational Change
Internal pressures can lead gaps between what an individual, unit, or organization wants to achieve and what its is achieving.
Internal Pressures:
Aspirations
Discrepancies and Business Life-Cycle Changes with Top Management.
Inertia can lead to behavior continuation if previously successful, however if things change and the change factor is not adaptability is not achieved than there is risk.
Leaders need to be able to drive innovation and not be a hostage of past experiences, fostering forward-thinking.
External Pressures for Change:
Might include:
Technological Advances such as Radical or Incremental shifts, impacting processes and strategies.
Socio-Political Changes may impact consumers boycotting companies conflicts, influencing corporate behavior.
Globalization requires more awareness of DEI and Sustainability, promoting inclusivity and environmental responsibility.
Increased Competition via Bhasin, driving the need for innovation.
Red Queen Hypothesis: Continuous race where each competitive advantage makes the other one stronger, with a need to overcome challenges faster, emphasizing the importance of continuous improvement.
Managing Organizations through the Change Journey
Change can be achieved when the organization has the Need to Question the Rationale, inventory losses while setting Standards Implementation by making regular assessments and supervision. It requires continuous training and positive momentum. This could lead to Guilt. 7
The Process of Planned Change
Unfreezing: Rationale, creating safety; encouraging self-efficacy, preparing for change.
Moving:
Providing information and behavioral changes, implementing the change.
Refreezing:
Evaluate progress and implement system changes to adjust needs
Leading Requires Pace, Timing of Change and Equilibrium, ensuring stability.
Leadership is crucial in Change, driving successful transitions.
HR’s ROLE in Driving Organizational Change
BEFORE CHANGE ➔
Assess
Analyzing data and designing training
Plan with stakeholders, preparing for the transformation.
HR should tend to:
Tracking Implementing initiatives focused on Job satisfaction and intent to leave helps increase psychological in employees and helps reduce Stress, promoting well-being.
Implementing new Evaluation and promotion System that also promotes a Culture of Fairness, and increase retention and Communication as well as Job satisfaction by offering constant support, and open communications, fostering a positive work environment.
HR’S ROLE IN GUIDING INDIVIDUALS THROUGH CHANGE
Effective leaders can ensure they can align objectives by including things like:
Talent acquisition
Performance Management
Succession Planning and Develop Leaders, ensuring continuity and development.
Leaders vs Managers
Managers Maintain and Direct what's already their while creating rules and standards, focusing on stability and control.
Leaders create longterm objective vision by showing expertise and pushing teammates values to improve and stay ahead of those standards, inspiring growth and innovation.
Leadership Models Includes:
A focus on Leaders Traits with set behaviors, Contingency taking into account different Situations, Transformations to influence change in others attitudes. They require care especially when a shift occurs and needs Communication as negotiations, adapting leadership to different contexts.
Negotiations
Process by which parties with different preferences or interests attempt to agree on a solution to a conflict. It needs Formal and informal bargaining. That require using such Tactics like
Win or Lose, however ideally Win-Win, seeking mutual gains.
Compromise that benefits everyone- Avoid or Accommodate Conflict that can hurt those in the team, promoting collaboration.
Negotiation Tactics:
Requires an attitude for structure when you value maximizing harmony:
Can be achieved by being:
Flexible
Communicate or express
Tough, or demanding
Preparation, Analysis of Self and Others
Determine timelines structure
Negotiation agreements to finalize contracts
BATNA technique ➔ Best Technique to Use that requires preparation and flexibility: Always be ready with a B plan option: Increase what company offers vs what you need.
Important Considerations
Change is an internal force within the organization in addition is there an need to communicate to reach those externally, emphasizing the importance of communication and transparency.