In which type of linkage can the HRM participate in the strategic management process?

To be maximally effective, the human resource management function must be integrally involved in the company's strategic management process. What can human resource managers do to achieve this?

To be maximally effective, the human resource management function must be integrally involved in the company's strategic management process. This means that human resource managers should: (1) have input into the strategic plan, both in terms of people-related issues and in terms of the ability of the human resource pool to implement particular strategic alternatives; (2) have specific knowledge of the organization's strategic goals; (3) know what types of employee skills, behaviors, and attitudes are needed to support the strategic plan; and (4) develop programs to ensure that employees possess these skills, behaviors, and attitudes.

List the four levels of integration that exist between the human resource management function and the strategic management function.

The four levels of integration that exist between the human resource management function and the strategic management function are: (1) Administrative linkages, (2) one-way linkages, (3) two-way linkages, and (4) integrative linkages.

What are the three steps involved in two-way linkages?

Two-way linkage allows for consideration of human resource issues during the strategy formulation process. This integration occurs in three sequential steps. First, the strategic planning team informs the human resource management (HRM) function of the various strategies the company is considering. Then HRM executives analyze the human resource implications of the various strategies, presenting the results of this analysis to the strategic planning team. Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive, who develops programs to implement it.

What five major components of the strategic management process are relevant to strategy formulation?

The five major components of the strategic management process that are relevant to strategy evaluation are: (1) Mission: The mission is a statement of the organization's reason for being. It usually specifies the customers served, the needs satisfied and/or the values received by the customers, and the technology used. (2) Goals: Goals are what a company hopes to achieve in the medium- to long-term future. They reflect how the mission will be operationalized. (3) External analysis: The external analysis consists of examining the organization's operating environment to identify the strategic opportunities and threats. (4) Internal analysis: The internal analysis attempts to identify the organization's strengths and weaknesses. (5) Strategic choice: The strategic choice is the organization's strategy. It describes the ways the organization will attempt to fulfill its mission and achieve its long-term goals.

List the five important variables that determine success in strategy implementation.

The five important variables that determine success in strategy implementation are (1) organizational structure, (2) task design, (3) selection, training, and development of people, (4) reward systems, and (5) types of information.

Discuss the six important functional areas of human resource management?

The six important functional areas of human resource management are job analysis/design, recruitment/selection, training and development, performance management, pay structure/incentives/benefits, and labor/employee relations. (1) Job analysis is the process of getting detailed information about jobs. Job design addresses what tasks should be grouped into a particular job. (2) Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the company achieve its goals. (3) Training refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees. Development involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of existing jobs or jobs that do not yet exist. (4) Performance management is used to ensure that employee' activities and outcomes are congruent with the organization's objectives. (5) Pay structures/incentives/benefits help a company elicit specific activities and levels of performance from employees. (6) The approach a company takes toward its labor/employee relations results in it achieving its short- and long-term goals or ceasing to exist.

Compare and contrast Porter's generic strategies of cost leadership and differentiation.

Cost leadership: This strategy focuses on becoming the lowest cost producer in an industry. This, strategy is achieved by constructing efficient, large-scale facilities, by reducing costs through capitalizing on the experience curve, by controlling overhead expenses and costs in such areas as research and development, service, sales force, and advertising. Differentiation: It attempts to create the impression that firm's products or services are different from others in the industry. The perceived differentiation can come from creating a brand image, from technology, from offering unique features, or from unique customer service.

What are the four directional strategies that firms use to meet their objectives?

The five directional strategies that firms use to meet their objectives are: (1) Concentration strategy focus on what a company does best within its established markets. (2) Internal growth strategies focus on market development, product development, innovation, or joint ventures. (3). External growth strategies are used by companies that attempt to integrate horizontally or vertically or diversify. (4). Divestment strategies involve retrenchment, divestitures, or liquidation.

What are the human resource challenges faced by a firm adopting an internal growth strategy?

Internal growth strategies present unique staffing problems. Growth requires that companies constantly hire, transfer, and promote individuals, and expansion into different markets may change the necessary skills that prospective employees must have. In addition, appraisals often consist of a combination of behaviors and results. The behavioral appraisal emphasis stems from the knowledge of effective behaviors in a particular product market, and the results appraisals focus on achieving growth goals. Compensation packages are heavily weighted toward incentives for achieving growth goals. Training needs differ depending on the way the company attempts to grow internally. Joint ventures require extensive training in conflict resolution techniques because of the problems associated with combining people from two distinct organizational cultures.

Explain the challenges and opportunities for human resource management while downsizing.

Challenges of human resource management (HRM) function: (1) It must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. (2) It must boost the morale of employees who remain after the reduction. (3) It must maintain open communication with remaining employees to build their trust and commitment. Opportunities provided by downsizing: (1). It allows the company to "get rid of dead wood" and make way for fresh ideas. (2). It provides a unique opportunity to change an organization's culture. (3) In firms characterized by antagonistic labor, downsizing can force parties to cooperate and to develop new, positive relationships. (4) It can demonstrate to top-management decision makers the value of the company's human resources to its ultimate success.

Which are types of linkages that exist between the HRM function in the strategic management function in an organization?

What is linkage in HRM?

What links HR management directly to the strategic plan of your organization?

How HR processes can be linked to business strategy?